The daily Nome industrial worker., 1916-08-16

the etectS while mentioning never the actual causes of the events in Gpire his narrative. This railroad difficulty is enhanced by reason of the stock manipulations which re- suited in the introduction of so much water in the stock, and the efforts of those in control to pay dividends upon an over capitaliza- tion.
 The mythical idea of fair days wages for a fair days work cannot even be theoretically considered, even if it were possible to adjust the antagonistic concepts of em- ployer and employee as to what is a fair days work and what is a fair days pay. The question which is involved is whether it is possible or not to operate the roads at profit if the demands of the railroad brotherhoods are granted.
 The usual business procedure is reversed. If man buys a business he usually considers whether or not he will get an adequate return upon his money. If the facts indicate that he will not over a certain figure, he will not pay over that amount.
 But in railroad speculation that is not the procedure. So many shares are sold The re-organiZers or pro moters put them in proper propor- tion in their pocket. Then man. agerG are called upon to make it pay. It is immaterial what has been invested as a capitalization. It may be ten it may be twenty or it may be but a small amount over the ac- tual value. But the actual value is never considered at all. And the water carriers of finance are usually accommodating enough to sell as many shares as they can convent ently and profitably dispose Of. Their motto is all the water the property will bear. And the shena- nigan does not stop there. Roads and right of ways are bought and sold, adding to the capitalization and the profit of those who control the main road. And this goes on until bankruptcy calls for receiver and reorganization, and the whole thing is repeated as from the be- ginning.
 To make the roads pay first of all higher rates are demanded. Charges are added, cunning fees that are made to appear as if unconnected with the traffic rates. The operating force is cut down. Larger engines with smaller crews, roadbeds main- tained at minimum of expense compatible with safety sufficient to be more profitable than danger.
 Against this condition then come the workers demands like tidal wave against a break water. Those demands threaten the whole system of railroad finance as it has existed in the United States from time i'm If the other conditions remain the same, the other costs of operation remain as they are, ob- viously some roads cannot pay the dividends. They must equalize in two ways. One is the shipper must pay increased freight rates and the other is that the unorganized work CTS will have to have their wages The clerical staffs, the permanent way hands, the roust- abouts and non-union shop workers will have to endure a cut.
 A sense of outrage will permeate the shippers who pay the increased rate, but they will pass it on to the who will pay the higher costs. For the railroads will not | 10 without their dividends. That | s why the companies exist. A lot )f drivel is written about public | service corporations; there is no ,uch thing. There jare money mak- ng companies which seek to profit lbly operate public utilities. But heir function is primarily to pay dividends. The railroad stock that .annot pay dividends becomes unsafe lble. It does not matter if the roads were operated with the highest poss- ble efficiency and functioned to per- ection in the public veal. if they Iid mt nov m ono vvould want fo