Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1919-05-21
PLAN OF ORGAN
led EMPLO DYES
49, CONTINUED from Page Two) r.

lied =EMPLOYE
Continued from Page Two)
excessive profits to the corporation
or. to- the Government, we provide
that, whenever In one year the amount
OF net profits received by the Govern
ment shall equal or exceed, five per
cent, Of the gross operating revenues
the Interstate Commerce Commission
shall Immediately reduce the level
OF rates by an amount sufficient to
absorb these profits. Every such re.
duction in rates will tend to increase
the flow of traffic and again restore
profits to their former level, again In.
surfing further reduction in rates.
: Sixth. We provide
that extensions shall be. financed in
whole or in part by special assess.
ments levied against the property
benefited. Only so much of the cost
| of the extension as may be adjudged
by the proper tribunal to be properly
chargeable to the public benefit and
paid for out Of public funds, shall
be charged into capital account with
a corresponding increase in fixed
charges.
Seventh.-Sinking Fund.-We would
provide for the payment annually into
a sinking fund of sum equal to one
half of one per cent. of the outstand-
ing capital account, this fund to be
used in acquiring and extinguishing
the outstanding bonds issued by the
Government, either at current market
prices or at par, at fixed intervals of
redemption.
Eighth. distinguishing between
Wage Earning Employees and Employ.
es Exercising Executive and Manag.
erial Power.-Those opposing this
plan offer as the first objection that
we give to labor represented by wage
earners and managing officials two.
thirds control of the directorate; that
it would be possible for these two
forces to combine and by raising
wages absorb all profits so that there
would be nothing to divide between the
corporation and the Government, and
might even create a deficit in Operat-
ing expenses which must be met by
taxation.
Our plan provides against the posi-
bility of such contingency. While
the wage Garner and the managing
officials have a common interest in
the fixed level of wages and salaries,
we provide that they shall have con-
f1icting interests in the distribution
of the dividends. Assume that the
number of employees in Glass A is one
per cent. Of the number of employees
in Glass B. Now, for the purpose of
illustration assume that there is one
employe in Glass A and one hundred
employees in Glass B. If we were to
allow to the Glass A employe twice
the rate of dividend allowed to EN-.
ployes in Glass B, it is manifest that
any increase in the level of wages
would Immediately wipe out the extra
dividend allowed the Glass A employe
maintaining the fixed wage level al.
tanning for them the highest possible
crease in the wage level of Class B
employees would extinguish the oppor,
tunity Of the Class A employee to OBJ
tain the extra compensation assured
him by the double dividend rate. The
possibility of management and wage
Garner uniting to raise wages and sal.
aries and thus absorb profits, and per.
haps create a deficite, wholly disap-
pears when this detail of the division
of the profits is studied and under
| stood.
NATURALIZATION The great
fundamental upon which this plan is
based is that there shall be proper
valuation of all railroad properties
We contend that the only basis for
obtaining such valuation is to deter.
mine the amount of money which each
corporation, at the time of the valua.
ton, had put in the actual service of
the public. The amount so determin.
ed represents the property interest
which the corporation has been grant.
ed in the public highways to which
it holds title. The payment to it of
this amount, judicially determined,
would be full recognition of all of it's
property interests and all rights which
it enjoyed under its charter and the
Constitution of the State and the Unit
ed States. Such valuation eliminates
from the public obligations all f1cti.
tious securities, discounts on securi-
ties actually paid for to the extent of
the discounts, and improvements
made out of earnings which were
really paid for by the public.
Conclusion.-Under this plan we
provide sure method for the ultimate
reduction of transportation charges
to actual cost. Under this plan every
increase in surplus earnings tends
to reduction in rates. Every expend.
iture out of earnings for improve.
ments increases the actual investment
and earning power without any in.
crease in fixed charges. Every i'm.
provement made upon the properties
and paid. for by local taxation brings
about the same result. Every appli
cation of surplus earnings and sink.
ing fund accumulations secures a re-
duction Of outstanding capital and a
diminution of fixed charges, again
securing further reduction in rates
We insure the public against constant
ly increasing rates and the wage earn
er against the everpresent threat Of
a reduction in wages. We guarantee
to the holder of the securities the
protection of the integrity of his in
vestment and the receipt of adequate
returns. We give to the community
to the wage Garner, and to the man
agement an equal voice of authorit.
in the direction of the industry. These
benefits no other plan can promise
No plan presented by the presen
owners even attempts to procure thes'
results.
browns in Tank.
o~l