The herald and news. [volume] (Newberry S.C.) 1903-1937, 1919-08-08
which envisages labor net only a:
producers, but also as consumers.
Overhaul Profit System.

producers, but also as consumers.
Overhaul Profit System.
"It marks the step by which organ
lied labor passes from demands of
wage increase to demands that the
system of profits in industry be over
hauled. Hitherto, during successive
wage negotiations and arbitration
awards, we have. called for provision
al settlements only Of questions arls-
ing out of differences as to wages,
hours and conditions Of labor. That
principle of genuine cooperation and
partnership based upon real COM
munity of interest and participation
in control of which President Wilson
has spoken to congress, has been ig-
nored both by labor and by private
owners of the railroads.
"Wage increases which have been
received in the past few years have
resulted in the immediate increase OF
living conditions. While these con-
ditions have gone around the cycle,
labor as producer loses the advantage
of the new wages through the addl-
tional cost in prices as consumer.
Moreover, compounded profits taken
on these wage increases, each cycle
becomes an upward spiral of costs
which the consuming public vainly
reaches to control.
Eliminate Private Capital.
GAS the majority part of the ocn-
suming public, labor is entitled to
membership on the directorate of. di-
rectors. AS a producer of capital it
is entitled to representation on the
directorate of the railroads. To cap
ital which is the fruit of labor, we
now propose to adjust every obliga-
ton. We demand that the owners of
capital who represent only the finan-
cial interests as distinguished from
operating brains and energy be re-
tired from management, receiving
government bonds with a fixed in
terest return for every honest dollar
that they have invested in the rail-
way industry. We ask that the rail-
roads of the United States be vested
in the public; that those actually en-
gagged in conducting that industry not
from Wall Street, but from the rail-
road offices and railroad yards and
out on the lines, shall take charge of
this service for the public.
Rights They Claim.
"These represent all the brains,
skill and energy that is in the busi-
ness. They are entitled to that meas
ure of control which is equal to their
ability and their responsibility for
operating the transportation proper
ties. Then, and then only, will the
service primarily be for the public,
not primarily for profits to speculate
and inflators of capital. AS means
for accomplishing this end, we ask
that lease be granted to corpora
ton created not for profit but for
public service. We ask that this cor
poration be controlled in it's manage
ment by an equal representation OF
which industry is based. The public,
the three fundamental interests upon
operating managers and wage earn
ers will then guarantee both the in
tegrity of the investment required
for the conduct of the industry and
that return which induces it by IN
vesting, to enter the public service.
Share Earnings Equally.
"The public as consumers and the
operating managers and wage earn
ers 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 earners and management,
one-half of the savings which they,
through their perfected organizations
can make and by securing to the pub
lie the other half to be enjoyed by
the consumers, either by increasing
the means of service without increas-
ling fixed charges or'by reducing the
cost of the service which the machln-
cry then in existence can render.
Thus the cost of transportation is
automatically reduced exactly in pro-
portion as benefits accrue to the pro-
ducers of transportation. Increase In
earning power of producers under
this system cannot be reflected in
increased costs; it must be balanced
by decreased costs
Railroads Key Industry.
'The railroads are the key indus