The labor journal. [volume] (Everett, Wash.) 1909-1976, 1919-08-15
CONTINUED from Page One)

Deen determined in each ludiNlQual
case, TO issue Government bonds in
like amount and at the lowest OBJ
tainable rate Of interest TO pay for
such "A finding after Il has been jul
dicially approved by the supreme
Court When that step is taken we
have governmental ownership. but
/ want you to distinguish clearly be
tween Government ownership and
Government operation, because we
mako that distinction. BY the aC-
QUESTION of these railroads by SUBJ
stituting Government bonds for the
outstanding investments, we climin-
ate by this plan private capital The
holders of the securities are placed
in a status that is fixed. 1t is not
within the power of Congress TO in
crease the amount of their claim or
their returns; consequently Congress
and the legislative bodies viii not be
besieged by the representatives Of
capital to grant them further privi-
leges. Capital is not represented by
the obligations of the Government,
and a saving in fixed charges would
be occasioned, first by a reduction
of the eighteen billion dollars the
amount actually invested, and sec
ond by the reduction in interest
charge which a Government security
affords over a private security, Also,
the holders of these securities are
no longer interested to mOnOpOliZe
the management of these properties.
They are disinterestod spectators.
Management
And management also becomes as
clearly disdssoCiated from capital
istiC control as do the legislative bod
les. However, management remains,
and management must be placed in
n hAr I- Of ha ~
how to conduct this industry.
And remember, all the time that
am discussing management, from
this time forth, it is a management
released from the dictatorship of
Wall Street. We provide for man.
agemcnt in this fashion We ask this
Government, we ask the people Of
this Government, to create a cor
poratiOn for public service, not for
private profit. That corporation
must be composed of a body of men;
therefore. we say it shall consist,
first, Of the Board of Directors; sec
ond, Of all official employees; and
third, of all classified employees. The
Board of Directors shall have con-
troll of this corporation. We Sug-
gest that that Board of Directors be
made up in this manner: that the
President shall appoint onc-third of
that Board, that third shall repre-
sent the public interest; that the
classified employees representing the
wage earners, shall appoint one
third, and that the official employ
ees, representing management shall
appoint one-third. This Board of
Directors shall then, in its legislat-
i've capacity, have control of the op-
erations of this corporation. Having
created the corporation we authorize
a lease by the Government to the
corporation of all of the transpOrta-
ton systems which the Government
has acquired. BY this lease the cor
poration is obliged to pay for that
out of revenue, first its operating
expenses, including such sums for
maintenance and renewals as the In
terstate Commerce Commission may
determine from time to time to
maintain the integrity of the invest
ment. That is something that has
never been done heretofore, as you
railroad men we'll know.
After meeting these operating eX-
penSeS the corporation must then
pay the interest on the outstanding
bonds. After having paid that in
terest it must provide a sinking fund
to retire these bonds, and after it
has done that then what is left rep
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