Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-02
Stone Declares Rail EN-
ployes May Not Share
in Fruits Of Labor.
REGULATION OF
ROADS DESIRED
Justice For Men, Says Stone, Is I'm
possible a. Long as Present Finan-
eiai Control and Administration Of
the Railroads Arc UnresuIated-
Presents Statement in RebuttaI to
Testimony Of Railroad Managers.


grand chief engineer of the Brother
hood Of locomotive Engineers, today
submitted to the board Of arbitration
which is hearing the western railroad
wage case, a statement in rebuttal to
the testimony Of the railroad managers,
in which he charged that the issuance
Of fictitious securities had absorbed
past. present and future revenue gains
Of the western railroads. He declared
there - no hopaseor the railroad em-
ployes to secure AN sQuit6ble particle
|iration in the fruits Sof their work so
long as the present financial control
administration Of the railroads is un-
regulated"
He pointed out that the employees
association found economic justice for
their demand for increased wages in
the productive efficiency of their work,
but that the constant contention Of the
railroads in reply to this argument was
that revenue gainsIlarising from in
creased productive efficiency were alb
sorbed by increased operating costs
and by the payment Of interest charges
on additional capital Investments
which have been incurred in the at
tempt to develop greater efficiency in
operation. and because Of public de-
mand as to safety and quality of SER
vice.
oiseredts Operators Claims.
'Tt is now our purpose to disclose
that any decline in operating or net
income has not been due to the causes
set forth by the railroads" said he.
I'VE shall show" he continued, chat
the constant tendency has been for
those in financial control Of the rail-
roads to absorb revenue gains arising
from increased productive efficiency by
the issuance of fictitious securities;
that the productive efficiency of the
men working today, the operating Off
cials as well as the employees, had al
ready been hypothecated and capital
lied before we were born; that meas
ures have already been taken by the
issuance Of fictitious capitalization to
absorb the increased work and produc-
tive efficiency Of our children and our
children's children; and that there is
no hope for the engineer and fireman
and other classes of railroad employees
to secure an equitable participation in
the fruits Of their work. SO long as the
present financial control and admins
tration Of the railroads Is unregu-
lated.
( Basis of Employer Case.
connection are:
M.
munificient grants II land by the fed
eral and state governments to assist
in the building Of western railroads
were not properly used, but their val
ue, as we'll as the increased business
arising from the development of west
ern territory, was capitalized by the
f1otation Of fictitious securities.
"second-That the direct financial
potential control Of the economic well
fare oss their cnar!eya: now rests with
small group of bankers end financial
institutions, which make and unmake
railroad presidents, ani which, by their
methods Of administration Of the rail-
roads, have absorbed present and fut-
IRE revenue gains Of employees by the
issuance of fictitious securities; in other
words. employees and operating officials
are the victims Of financial admins
tration.
.Third-We shall show from the pub
iiciy expressed opinion. CT eminent
nnanciers and financial centers that
this present inequality in the distribu-
ton Of the output Of the industry is
wSSGs = wsSSSGs:Ss.
Fourth We shall conclude by
showing that despite the financial ex-
cesses Of railroads IN the past, that
they are still financially able to pay
reasonable and fair increases in
wages"
Statistics In support OF Mr. Stones
contention we're introduced and ana
lyxed by WI. Lauck. statistician,
who took theEr rotness staiad