New-York tribune., 1919-08-03
Can See No Hope of Cain
in Contest Between Ris-
ing Cost of Living and
Increase i'm Earnings
Bill Introduced
In the House
1t Provides for u. S. Pur-
chase and Gives Men
Share in Management

WASHINGTON, Aug. 2.-Government
ownership of the railroads is proposed
in bill introduced to-day by Repre-
sentative Sims, Democrat, Tennessee.
The measure embodies the plan which
has been indorsed by the four brother
hoods and the American Federation of
Labor, and which was presented to
Congressional committees recently by
Glenn E. Plumb.
In statement accompanying the
measure Representative Sims said it's
enactment would "estahlish harmony
between the public interests, the wage
earners and capital and would be a
long step toward solving the high cost
Of living problem by lowering trans
portation charges.
Meanwhile the strike of railway
shopmen is spreading. Leaders of the
Increment mo onn declared tonight that
100000 shopmen are idle as the result
of the lockout. The same authorities
said they saw no immediate prospect
Of settlement. High officials of the ma
tlonal organization of electricians
have called on electricians who have
gone out to return to work
Under the bill for government own
ership introduced to-day operating con-
troll of railroads would be vested in n
directorate of fifteen five appointed by
the President. five by operating officials
and five by employees. Holders of 4
per cent bonds, which the government
would issue for the purchase of the
lines. and the employees would share
equally in the earnings Of the roads.
Believe 1t VIII Bring Action
Senator Cummins. chairman of the
Senate Interstate Commerce Commit
tee, and other members of that body
believe Che demands made by railroad
the high cost of living will hasten ac-
tion by Congress on legislation estab-
lishing national policy with respect
to the railroads.
Both the Senate and House commit
tees have been working on such iegis-
lation for some time, and presentation
of a tentative bill this month is cx-
rected.
"Labors railroad bill has the pur-
pose Of reducing the cost of living by
operating the most important industry
for profit" said statement on the
Sims bill by the head of the railroad
brotherhoods.
Labor faces a persistently ser Gus
situation, due to the cost of living and
the impossibility of wages keeping pace
with the depreciation of money. No
fundamental changes are being ad
vanced to save workers from continual
defeat in the economic struggle Of life.
The Mood of Labor
"The railroad employees are in no
mood to brook the return of the lines
to their former control, since all the
plans suggested for this settlement of
the problem leave labor essentially
where it has stood Nnd where it is
determined not to stand.
1--WE realize that in the strife for
wage increases we cannot win any per-
manent ctory. 1t is not money. but
value, which counts. The vicious cir
Gle is infinite; increased wages are
overcapitalized for inflated profits, and
the cost of goods mounts faster than
the wage level A few grow wealthy
and the multitude is impoverished.
"Any basic change must begin with
the railroads. Not only have we suf-
public has paid an extortionate tax
for transportation, tax based on in
fated values and collected from every
person buying the nccessaries of life.
Wilson Is Quoted
"President Wilson declared in his
message of May 20, 1919, for "the genu-
inc demonstration of industry, based
upon full recognition of the right of
those who work, in whatever rank, to
participate in some organic way in
every decision which directly affects
their welfare in the part they are to
play in industry He spoke plainly in
behalf of genuine cooperation and
partnership, based upon real COM
munity of interest and participation in
control.
merely asking the public to let the
workers become the railroad prohtecrs
in place of Wall Street. This argu-
ment cannot survive a scrutiny of our
proposal.
1--WE do ask for share Of the sur
plus, at the end of each year, after OPP
Grating costs are met and fixed charges
are paid. But we also provide an auto
matte reduction in rates when this
surplus comes to a given level. To re-
store the surplus the employees OF .he
railroads must increase the efficiency
of their management and they must
invite new business"
The Plan Summarized
Another statement issued in behalf
ct the government ownership bill sum-
married is as follows:
u. Purchase by the government on
valuation as determined finally by the
courts.
40. Operation by directorate Of fiji
teen, FIVE to lie chosen by the President
to represent the public, fva to he
! elected by the operating officials, and
FIVE By tho classified employees
49, Equal division Of surplus. after
paying fixed charges and operating
Continued on page ton