New-York tribune., 1919-08-05

IGStQGIt w liSOn HAS SHVkCIl W GQu-
gress, has been ignored both by
labor and by the private owners Of
the railroads.
"What wage increases have been
received during the last few years
resulted only in Immediately being
followed by more than proportionate
increases in the cost of living. Each
rise in wages has turned out to mean
only temporary relief for the affected
workers. When the increases have
gone around the circle labor, as pro-
ducer, loses the advantage of the new
wages through the additional cost it
pays as consumer. Moreover, through
compounded profits taken on these
wage increases, each cycle becomes
an upward spiral of costs which the
consuming public vainly reaches to
control.
CAS- the major part Of the consum-
ing public labor is entitled to repre-
sentation on the directorate Of the
public roads. AS producer of capi-
tai labor Is entitled to representa-
tion on the directorate of the rail-
roads. To capital, which is the fruit
of yesterdays labor, we now propose
to discharge every just obligation.
"We demand that the owners Of
capital, who represent only financial
interests as disguised from operat-
ing brains and energy, be retired
from management, receiving govern
'ment bonds with fixed interest re-
turn for every honest dollar that
they have invested in the railway in
dustry. We ask that the railroads of
the United States be vested in the
public; that those actually engaged
in conducting that industry, not from
Wall Street but from the railroad
offices and yards and out on the rail-
road lines, shall take charge of this
service for the public.
These represent all the brains,
skill and energy that is in the busi-
ness. They are entitled to that
measure of control which is equal to
their ability and their responsibility
for operating the transportation
properties. Then, and then only, will
the service be primarily for the pub
lie. not primarily for profits to spec
uiators and infators Of capital.
What They Now Ask
AS means for accomplishing
this end we ask that a lease be
granted to a corporation created, not
for profit but for public service. We
ask that this corporation be con-
trolled in its management by an
equal representation Of the three
fundamental interests upon which
industry is based. The public, oper-
then guarantee both the integrity of
the investment required for the con-
duct of the industry and that return
which induces it, by investing, to
enter the public service.
The public as consumers and the
operating managers and wage earners
as producers, having joined in that
guarantee, will then share equally
all earnings in excess of the amounts
required to meet the guarantee.
"This is provided by granting to
the wage earners and management
one-half of the savings which they,
through their perfected organlza-
tions, can make, and BY securing TO
the public the other half. to be en-
Joyed by the consumers, either by
increasing the means for service
without increasing fixed charges or
by reducing the cost of the service
which the machinery then in ex-
istence can render. Thus the cost of
transportation is automatically re-
duced exactly in proportion as bene-
fits accrue to the producers OF trans
portation. Increase in earning power
of producers under this system can
not be reflected in increased costs;
it must be balanced by decreased
costs.
"The railroads are the key indus
try Of the nation. They affect at
once the pr'ce of every necessity.
AS increased transportation costs ara
reflected in the increased price Of
all commodities, so q reduction in
those costs must be reflected by re-
duced prices
eve say this because of labor's
interest as consumer, as part of an
overburdened public. This funda-
mental statement of principles we
respectfully submit to the American
people.
WARREN S. STONE,
Grand Chief,
brotherhood of Locomotive Engi-
neers.
Timothy SHEA,
Acting Chief,
brotherhood of Locomotive
Firemen and Enginemen
"L. E. SHEPPARD, President,
"Order of Railway Conductors.
"B. M. JEWELL, Acting President,
Railway Employees Department.
american Federation of Labor"
W. NJ GCC, DIOLIcTUOOO
of Railway Trainmen, who was a sgner
of the first statement issued by the
railway brotherhood, was absent from
Washington at the time Of issuance Of
this statement.
ident Jewell and the Brother
hood heads in Washington subse-
quently called on Director General
Hines and told him the only way out
of the difficulty for the present was
for Congress to appropriate money
enough to meet the increased wage
demands, if there was none in the
railway administration treasury.
They further told Nh Hines that they
were not interested in the Presidents
plan.
Jewell's' White House Call
Mr.. jewell is represented as having
spoken to the President in much the
same spirit as that of the brotherhood
statement.
MIR. Jewell said afterward that he
told the President that organized labor
had no sympathy with his course in
proposing to meet the situation with
further legislation relative to wage ad-
lustments and corresponding rate
changes, and that the strike referen-
DUN Of the shopmen. including 100000
men III the United States and 100000
IN Canada, would go on, and that a
strike was certain by September 2 un-
less in the meantime the demand for
more pay had been granted or the
Plumb pian of government ownership
or some equivalent measure was agreed
upon.
He said that the President remained
silent when informed that the railway
nmnlOVeS Wern not In anu dnnroo IL,