The Topeka state journal., 1919-08-16

their effort. 1t also has been indorsed by
several farmers organizations
How does it propose to buy the roads:
By issuing government bonds with which
| to pay for the legitimate private interests
In the railroad industry.
How does it propose to operate the roads?
By board of fifteen direetors-five
named by the president-to represent the
| public; five elected by the operating Off
GERS; five elected by the classified en-
Does this mean government operation?
No; it is operation by a board in which
the authority 1t is superior to govern
ment operation because it prevents control
by an Inefficient bureaucracy; and it is
true democracy since it gives the men
management.
What becomes of the surplus?
| After operating expenses are paid, and
! fixed charges are met, including the in
terest on outstanding government securi-
ties, the surplus is divided equally be-
I tween the government and the men. The
employees portion is to be divided between
the managerial and classified employees,
ceived by the latter class. This is not
profit, since the corporation has no capital
What the men receive is dividend on
Not Bonus System.
Is this bonus system?
] No; it Is giving those who increase pro-
creased effort has produced; and this
\ share is theirs for as long as they are act
ually in the service, and is not forfeitable.
| Why do the operating officials receive the
larger rate of dividend?
Because it serves greater stimulus to
I the, group with the most responsibility:
And since the operating officials would
lose dividends if wages were increased it
acts automatically to prevent collusion be-
directors to outvote the public's directors
sonable level. The CHIEF argument
against the plan is that the public loses
control of its own property, and that the
men in charge cannot be prevented from
combining to pay themselves extortionate
wages. This method of sharing dividends
sets up natural barrier against collusion.
Is this the only protection for the public?
No: the rate-making power remains with
the Interstate Commerce commission, and
II wages were raised so high that rates
had to be increased. the commission could
refuse to change them, and shippers might
appeal to the courts for redress If the
operation by the directors results in a de-
ficit congress can revoke their charter
Does the difference in dividends create hos
tility between officials and men?
No; because without harmony between
official in working for his own dividend
is working for the dividend of his subordi-
mates, for one cannot gain unless all gain.
Reduction of Rates.
Does the plan assure decrease In rates?
1t provides that when the governments
share Of the surplus is per cent or more
of the gross operating revenue, rates shall
be reduced accordingly to absorb the
amount the government receives. For in
stance: If the entire surplus one year is
S0OO,OOO.OOO, and this is 10 per cent of the
gross operating revenue. the government
receives S2J0.000.000. And because this is
per cent. rates are decreased 3 per cent.
or new business the profits the next year
would be only $3.50, 900, 900, and the en-
ployes and the government would receive
only haf the amount of the year before.
But decreased rates mean more business
and also, the reduction in dividends would
stimulate the employees to improve their
| operation better IN
the tendency is to assure constantly de
creasing rates, to add to the volume of
business, and TO give the most efficient
service human ingenuity and devotion can
provide. Decreased rates mean cheaper
of the railroads, the purchasing power of
money is increased, not only for the rail-
! road man, but for every wage Garner and
every purchaser.
What does the government do with. its
share of the surplus?
1t invests 1t in improvements and exten-
stonS. thus adding to the value of the rail-
roads without adding to the fixed charges.
II Ietires the outstanding bonds, thus re-
ducing the fixed charges. Ultimately the
public has its railroad service at cost
Does the government pay for all extern
sIons:
No; the community must pay II 1t can
II 1t is able to pay all. the building OF the
extension Is obligatory. II it only pays
part, the government pays the remsiEder.
but only makes the extension as It deems
wise. And where the general public and
not local community would be benefited,
How are disputes between officials and
men adjusted?
By boards. to which the operating off
! cials elect five members and the men five
members. In case of failure to reach M
adjustment, the case is appealed to the di-
rectors.
Who determines the rate Of wages:
Fhe board OF directors.
VINO supervises the purchase of the roads:
A Purchasing Board. composed of the In
terstate Commerce commission and three
directors of the new government corpora
! ton, one director from each group
Who decides the value of the private in
terest in the railroads?
The courts. 1t is a judicial question
and it is to be answered only after ar ex-
animation of the charters OF the existing
/ companies, the laws under which they are
created and the manner in which the COM
pany has lived up to its charter and these
laws.
Wilson Rooster Brings $50, 900.