The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-02-08
NEED 10 BILLION
FOR RAILROADS
Railroad Unions Want Half
a Billion More to Operate
i the Business 81
GOVERNMENT MUST
/ FURNISH THE MONEY
Expect to Increase Pay Rolls a Billion
and Make Another Billion Net In
come-Predict Large Deficit Under
Government Control.

come-Predict Large Deficit Under
Government Control
WASHINGTON, Feb. S.-The turning
of the railroads of the United States over
to the railroad employees to operate on a
cooperative profit sharing plan, proposed
to congress yesterday, would cost the
government sls,Ooo,OoO,oO0 to purchase the
roads.
The scheme eontemplates that cash
working capital of about 50o,coo,oO0 shall
be supplied by the government.
Out of the net income, after paying all
expenses. the employees would pay the
government rental Tor the use of the
property. Ii there were a surplus of rev
fcnue above per cent it would be split
between the government and the employ
es But if deficit resulted it would be
sustained by the government through tax.
alton
Tins ,es.i-ai proposal has been put in
the form of bill to be presented to con
gress and has been endorsed by the chief
executives OF fourteen railroad Labor
unions. representing 100000 men. The
plan was originally drawn by the fom
brotherhoods, comprising the engineers
Z, tiremen, conductors and brakemen. ano
endorsed by the ten railway labor union.
affiliated with the American Federation OF
! Labor.
The railroad payroll is now about s.,
| Coz, 0o0,o00 a year. When the government
ftook control OF the roads a year ago the
lpayroll was sl,700,oC0,o00. The railroad
administration has increased the wages
| by 5000, 0o0,o00 a year, and further ad
vanees that are under consideration, i
is expected, Will bring the total increas,
in the payroll to 81 ,00o,000,G00
/ The labor leaders point out that Will
the interest and dividends paid to tn,
security owners are. about s700,0O0,0o0
lyear the wages paid to labor are s. .6Ga,
100000. They assert therefore that Ia
hor's interest iH.-the railroad 6nane5s
budget is three or feT times greater thai
that OF capital and that for this reason
labor has a greater right to demand. con
1 t1ol oi, the management than has capital
/ The unions propose that all the ra3l
1 roads OF the country be operated as on
company under direction OF a single boar
TAT Washington, on which the public, Ii
Erallroad Official employees and the nnoG
eial employees shall have equal represents
ton. This board is to have supreme COZ
troll OF the operation Of the 260,t00 mile
OF American railways.
The value of American railways as a;
Escrted by the companies is about SlSg9a
Il, Al.
property with ; per cent bonds thca
would be an annual interest charge {
5000, 09,000 The government Is now pa,
! ing the roads an annual rental of abou
: 1850. 000Geo. The railroads in 1918 undo
| government operation produced net ii
come Of only $685. 100000, or s2l5,00o. 0t
less than the government rental.
Unofficial forecasts Of the operating L
sults made by members OF the railroa
administration indicate that in 1919 thel
will again be a large deficit, and that
| the volume of traffic declines as is no
> Indicated the deficit may reach 500 ,ott
r Geo
Il While the value OF the roads a. show
:, on the books of the railroads is slsnUt
! G00,G00, the spokesman for the brothe
i. hoods say that considerable part Of tn
y valuation has come from increased lar
j, values and the investment of surplus ear
ihss in the properties
They assert that the present owners
the railroads ought not to receive any j
I come ON property paid out OF earnings
y on the unearned increment in land value
= aud they estimate that the govcrnme
l. might be able through the courts to pt
il chase the $4,000, 100000 OF railroad. sect
Is tiles for as little as Sl2 ,000, 100000 I
/. iIed charges at per cent would then
$500, 100000 instead OF S900,000000.
Heads of the railroad labor organic
tions say they are not disturbed by t
large losses shown by government opel
ton, and that they will promise to p
T. duce a net income of $1,000, 100000 ii tn
II are allowed to run the roads They poi
n out that if the interest to be. paid by /
n. government were $4,000 900 an incol
al of Sl,O00. 0oo,000 would leave $3.50, ,0t
Il half of it would go tosthe national ire
/. Jury and the other half would be divid
bprc rata among all the other employ
This would be equivalent to about 5 /
cent Of the payroll. 50 that AN emplo
earning Sl,500 in wages would receive
q $40 profit sharing dividend; an exccut
&c receiving a salary Of $58.0e0 year VOL
N receive profit sharing dividend of S22,5
lci a Il. Garretson, head of the Order
2 Railway Conductors, probably win appt
" before the interstate commerce commit
i Of the senate i'll support of the pan
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