Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-05

provides remedy and we ask merely
that its terms he scrutinized Our full
argument in support of these terms will
be presented on Wednesday before the
| House committee on interstate com
merce by Warren s. Stone. grand chief.
brotherhood of Locomotive Engineers
Frank Morrison, secretary of the
! American Federation of Labor, and
Glenn f. Plumb, general counsel for
the Organized Railway Employees OF
America. In this statement we are
sounding the note of our basic prin-
ciple.
THAT this role originates with labor
is merely because labor happens to
have firm organizations through which
1t may become articuIate. II il
not to benefit labor as labor alone; it
is. to benefit the consuming public. Of
which labor at present is the audible
part. In labor's bill providing that
the public take over the railroads and
establish tripartite control between
the public. the railway operating man
agement and the employees. the labor or
ganizatious of America have established
this now policy which envisages their
condition. not only as producers but
also as consumers.
Want Profits System Oyerbauled
1T marks the step by which orqan-
lied labor passes from demands for wage
increases to demands that the system
OF profits in industry be Ovcrhaulpd.
hitherto during successive wage nPgo-
tiationS and arbitration awards we have
called for provisional settlements only
OF questions arising out of differences as
to wages. hours and conditions of labor.
That principle of genuine Co-opern
ton and partnership based upon n real
/ rf, M rtY,it .f tV,tn 49,
in CONTROL of which President Will
son has spoken to Congress-. has been
/ ignored both by labor and by the private
owners of the railroads
"What wage increases have been re-
reivCd during the last few years re-
suited only in immediately being fol
/ lowed by more than propOrtiOnate in
crpaSes in the cost of living. Each rise
in wages has turned out to mean only
| temporary relief for the affected work
Prs. When the increases have gone
around the circle. labor. as producer.
loses the advantage of the new wages
, through the additional cost it pays az
consumer. Moreover. through com
pounded profits taken on these wage in
crpases. each cycle becomes an upward
spiral of costs. which the consuming
public vainly reaches to control.
AS the major part of the consuming
public. labor is entitled to representa-
tion on the directorate of the public
railroads. As Il producer of capital it
, i entitled to representation on tn" di
ructoratr of the railroads. To capital.
which is the fruit of yesterdays labor.
we now propose to discharge every Just
,bligution. We demand that the owners
! Of capital. who represent only financial
interest rs distinguished from opcrat
q hn
management. receiving government
bonds with a fixed interest return for
every honest dollar that they have in
vested in tn" railway industry. 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
ont on the railroad lines, shall take
charge of this service for the public.
Method Outlined
"rhc~c represent all the brains. skill
/ and energy that is in the business They
are entitled to that measure of control
which is equal TO their ability and their
responsibility for operating the trans
. purtatiom properties. Them and then
only. will tn" service De primarily for
the public. not primarily for profits
to Spectators and inhatorS Of capital
As Il means for accomplishing this end
We ask that n lease be granted to a cor
poratiOn created not for profit but for
! public service. we ask that this corpora
/ tion be controlled in its management
by an equal representation of the three
fundamental interests upon which in
duStry is based The public. operating
managers and wage earners will then
guarantee both the integrity of the in e.
veStment required for the conduct Of
the industry and that return which in =
duces 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 re
quired to meet the guarantee.
This is provided by granting to the
wage earuers and management one
half Of the savings which they, through
their perfected organizations. Cun make
and by securing to the public the other
half to be enjoyed 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 existence
can render. Thus the cost Of trans
, purtation is automatically reduced ex-
actly in proportion as benefits accrue
to the producers Of transportation. In
crease in earning power of producers
under this system cannot be reflected
in increased costs it must be bal
anc"d by decreased costs.
''The railroads are the key industry
! Of the nation. They affect at once the
| price of every necessity. As increased
transportation costs are reflected in the
increased price of all commodities, SO a
reduction in those costs must be re-
6Cctod by reduced prices
1--WE say this because of labor's in 2
tereSt as consumer, as part of an over
burdened public. This fundamental
statement of principle we respectfully
submit TO the American people"
Tie-Up is Threatened
After the conference with the Presi-
dent yesterday Mr.. Jewell did not minCe
words. and declared emphatically that if
Congress passed the legislation proposed
by Director General Hines Wen tie
the railroads up so tight they'll never
run
No union men could ever be got to sit
on such an investigating body as con
templated by the director general and
the President, Mr.. Jewell added
President Wilson, the union official
said listened sympathetically to what
the union officials had to say regarding
! the situation, and appeared to recog
nize it's seriousness. but did not indi
cate an intention to recede from his
attitude that he had not the power to
| grant the increases.
president Wilson told us frankly, "