Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-06-16
HERE'S A NEW SCHEME.

Discussion of the labc. problem and
of schemes for lettering the relations
between capital and labor are always
of interest. 1t would seem as tho abou;
every remedy for labors troubles had
been fully considered, but it has re-
manned for writer in the June number
of current magazine. Casters we
believe, 10 suggest the securities COM
pany idea for adoption by labor unions
to give labor share in their business
and a full-grown mans voice in It's
management.
This man Of ideas has witnessed the
growth Of the securities company
whereby a few capitalists. desiring to
act In concert in controlling certain
property, incorporate a securities hold
ing company. which company enters the
open market as purchaser of the stocks
of the concern these capitalists wish to
control until such control is obtained.
No one of them could have swung the
deal alone but, thru The securities
company, a few of them can buy con-
troll ard then can elect board of direc-
tors for the securities company, which
board decides upon the policy to be
voted in the real business corporation
by all the stock owned by the securities
company. In this form The compact is
a legal one and can not disintegrate
when partners fail to agree. The Sc
and itself owns the stock of the bust.
Tess concern. The capitalists own
merely shares of stock In the securities
company.
Having witnessed the success of this
modern scheme of financing, as stated
above, our magazine writer proposes
that the labor union pool the interests
Of its members in the same manner and
secure a real voice in the management
as well as a real share in the profits of
the business for which they labor. He
does not suggest incorporating, but his
scheme would, of necessity include this
to put it on safe legal basis. But
suppose that, instead of the employees
of the United States Steel Corporation
buying stock in small blocks here and
there the United Order Of Steel Work
ere should enter the stock market au-
fhoIized to do the purchasing for all of
the $4,000 employees of the steel trust?
Suppose that this steel workers union
should be incorporated ard, by putting
It's shares up for sale TO its members,
invite them to invest the!, savings with
their labor union securities company
which would in turn invest those saw
ings in stock in the business corpora
ton for which they We're working? Had
this been done last year. and had these
steel workers invested on an average,
10 per cent of the wages they received.
their labor union could have invested,
CIR the Wall street market, s1200O,0O0
in the common stock OF the steel cor
poration, which, at Saturdays quota
tions, would have purchased over $685.
100000 of the stock.
One does not have to suggest what a
powerful voice in the management of
the steel trust person would have who
owned s36,O00,000 of its common stock
The labor union securities company
would be that person. The union could
have a director or two on the board and
when questions came up of the proper
manner in which to distribute profits
the United Steel Workers Securities
Company directors might suggest
slight raise of wages or should it be
question of cutting down expenses these
same directors would be there to sug-
gest that salaries be cut by the same
ak that is applied to wages. Strikes in
Sfhe steel business would be thing Of
the past.
If labor could develop the capacity to
manage itself and the same saving of
SO per cent of its wages be invested,
thru its securities company, in COM
mon stock each year. seven years time