The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1915-03-01

FL0ATED
FICTITIOUS
SECURITIES
RAILROADS pWATER SOAK
ED,' SAYS CHIEF ENGIN-
EERS' ORGANIZATION
(By Associated Press J

4 AtttD 1abAtLtNN W tlC DOdi ~ vi GA ~
ration which is hearing the wester
Z railroad wage case, statement
rebuttal to the testimony Of the raj
road managers, in which he charge
that the issuance Of fictitious secur
ties had absorbed past, present an
future revenue gains Of the wester
railroads. He declared: There
no hope for the railroad employees t
secure an equitable participation i
the fruits Of their work SO long ais th
present financial control and admir-
istration Of the railroads is unregu
Hated"
\ He pointed out that the employees
associations found economic justic,
i for their demand for increased wage
| in the productive efficiency OF thei
work, but that the constant conten
tion Of the railroads in reply to thil
Iargument was that revenue gain.
ARISING from increased productive ct
ficiency were absorbed by increased
operating costs and by the payment o.
Interest charges on additional capita
investments. which have been incur
red in the attempt to develop greater
efficiency in operation, and because
of public demand as to safety and
quality of service.
1T 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.
Statistics already read into the testi-
|mony by experts employed by the
brotherhood had shown remarkable
gains in railroad revenue and the
amount available for the increased
compensation Of labor.
I'VE shall show he continued
that the constant tendency has been
for those in financial control OF the
railroads to absorb revenue gains
arising from increased productive ef-
ficiency by the issuance Of fictitious
securities; that the productive effici-
ency OF the lnen working today, the
operating officials as we'll as the en-
ployes, had already been hypothecated
and capitalized before we were born;
that measures have already been TAX
en- by the issuance Of fictitious capi-
taiization to absorb the increased
work and productive efficiency of our
and our children's children.
and that there is no hope for the en-
gineer 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 administration |
OF the railroads was unregulated. In
other words, that any advances which
the employees have been able to obtain
In wages or earnings have been of no
financial significance as compared
with the indefensible absorption of
operating gains by the financial man
igement of western railroads.
Finally, we shall show that If
gains from past productive efficiency
lad been properly conserved and ad-
ninistered, enormous advances could
'e granted to all Classes OF railroad
employees, both organized and unor-
sanized, without prejudice to the in
erests OF the owners of the property,
md the financial status of western
ailroads today from the investors ,
tandpoint would be all that could be
esired
"The points we shall submit in this ,
are:
First. That the proceeds from the
grants of land by the fed.
raj and state governments to assist
the building of western railroads.
ERE not properly used, but their
alue, as well as the increased bucs- 3
ess arising from the development OF |
estern territory, was capitalized by
lie flotation Of fictitious securities.
Second. That the direct financial
'ntrol of western railroads, and the 7
'tential control of the economic well
re OF their employees now rests with .
small group of bankers and financial y
stitutions, which make and unmake
iiroad presidents. and which. by =
cir methods of administration of Il
e railroads. have absorbed present S
ID future revenue gains OF employees p'
the issuance of fictitious securities: ~ ~
other words, employees and operat.
officials are the victims of finan. II
Al administration. ct
Third. We shall show from the
blicly expressed opinions of emf le
mt financiers and financial experts e.
at this present inequality in the VI
'tribution of the output of the In al
stry is wrong.
Fourth. We shall conclude by