Newark leader. ([Newark, Ohio]) 1917-1946, 1919-07-18

general wage increase, so they are
committed to the dividend system;
and to win wage increase the di-
rectors of the classified men would
have to convince the public's di-
rectors of its justice.
This arrangement however, will not
cause hostility between the two
classes of employees, as sincere CO.
operation will be necessary to pro-
vide increasing efficiency in opera
tion and to secure new business-the
only ways of creating a surplus to be
divided. Each class, in working for
its own dividend, is working for the
dividend Of the other class.
Reduction of Rates
When the governments share of
the surplus is five per cent or more
of the gross operating revenue, rates
shall be reduced accordingly to alb
sorb the amount the government re-
ceives. For instance:' If the entire
surplus one year is $500,000,00O, and
this were ten per cent Of the gross
operating revenue, the government
receives $250,OO0,O0O And because
this is five per cent, rates are de-
creased five per cent.
Without new economies or new bus
mess the surplus the next year would
be only $250,O00,OOO, and the en-
ployes and the government would re-
ceive only half the amount of the
year before. But decreased rates
mean more business; and also, the
reduction in dividends would stimu-
late the employee to improve their
operation by applying better methods
Decreased rates mean cheaper
commodities; and soon, through the
effectiveness of the railroads, the
purchasing power of money is in
creased, not only for the railroad
man, but for every wage Garner and
every purchaser.
Making Power
The rate-making power remains
with the Interstate Commerce Com
mission. Should operation by the di-
rectors result in a deficit, Congress
can revoke their charter. This guar
antees the people the final control
over it's property.
Wages are to be determined by the
board of directors.
Disputes which may arise between
official and classified employees are to
be adjusted by boards composed of
ten men, five elected by each class of
employees. In case of failure to
reach any agreement, the question
would be referred to the board of di-
rectors for settlement.
A Saving From the Start
Immense saving will result even
from the machinery for assuming fl
nancial control of railroad properties.
The public can obtain the money
to purchase the lines at per cent,
whereas the public is now charged
rates to guarantee the roads about
612 per cent on their money. The
saving on the present capital account
of the railroads would be about $4OO,-
100000; and on an honest valuation
would be nearly twice this sum.
The Plumb Plan provides for a
sinking fund and every year one of
the fixed charges would be one per
cent of the outstanding indebtedness,
to be used in retiring the bonds.
The government also uses it's profits
in retiring bonds, so eventually, prob
ably in fifty years, the people would
own the roads debt-free.
A further saving would be in the
operation of the roads as a unified
system, which permits the inter-
change of equipment, the end of
wasteful competition, and greater
economy in buying supplies.
Plumb Plan League Memberships
Memberships in the League is open
to every person who believes indus
trial democracy is the solution of the
railroad problem. The yearly men,
bership fee is $1.0O, including liter
ature issued by the League, member
ship lapel button, and subscription to
Railway Democracy, the weekly
paper issued by the Plumb Plan
League. Organization headquarters
are in the Munsey Building, Wash
ington, D. c., to which place aplica-
tions for membership and remit
tanceS should ha oddraccad