Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-08-07
BROTHERHOODS ASK
GOVT. own ERSH|P
"In No Mood" to Allow Return
of Railways to Owners
Place Bill before Congress

noon that the 100000 organized railroad
employees they represent were "in no
mood to brook the return of the lines to
their former CONTROL" and that in their
opinion widespread economic disaster
could not be avoided unless the govern
ment purchased the railway systems and
made provisions, through legislation, for
their operation on a basis in which the
employees would share in the earnings
Coincident with this announcement
authorized by Stone and labor leaders and
to which they asserted the American
Federation of Labor had given it's ap-
prevail, the brotherhood chiefs placed be-
fore Congress, through Representative
Sims, democrat. and former chairman of
the House committee on interstate and
foreign commerce, bill incorporating the
features of the so-caled Plumb plan,
which the railroad employees assert would
meet their demands and go to solve the
problem of the high cost of living.
BROTHERHOODS' STATEMENT
The statement issued by the four
brotherhoods of railroad employees. in
which they demand government owner
ship of the railroads on a proft-sharing
basis with employees, follows:
Labor faces a persistently serious
situation due to the cost of living and
the impossibiity of wages keeping pace
with the depreciation of money. No
fundamental changes are being advanced
to save workers from continual defeat
in the economic struggle of life. The
railroad employees are in no mood to
brook the return of the lines to their
former CONTROL since all the plans sug-
gested for this settlement Of the prob
lens leave labor essentially where it
mas STOOD ana where II is determined to
stand
we realize that in the strife for wage
Increases we cannot win any permanent
victory 1t is not money, but value
which counts. The vicious circle is in
finite increased wages are overcapitalzed,
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. We believe the interests Of
labor and the public to be identical in
the railroad question. The properties
have been operated for the profit of the
few, not for the service of the many
Not only have we suffered from made
quate wages, but the public has paid an
extortionate tax for transportation, a tax
based on inflated values and collected
from every person buying the necessaries
of life.
Our proposal is to operate the rail-
roads democratically. applying the prin-
cples to industry for which International
affairs the nation has participated in a
world war. President Wilson declared in
his message of May 20, 1919 for the
genuine characterization 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 community of interest
and participation in control"
vt has been argued that labor Is mere
ly asking the public to let the workers
become the railroad profiteers in place
of Wall Street. This argument cannot
survive a scrutiny Of our proposal
I'VE do ask for share Of the surplus
at the end of each year, after operating
costs are met and fixed charges are paid (;
but we also provide an automatic reduc-
ton in rates when this surplus comes to
n given level. To restore the surplus the
employees of the railroad must increase
the efficiency of their management and
they must invite new business What we
ask is to share the saving from economies
we ourselves introduce and to share the
surplus from new business our efficiency
makes possible. We should not profit from
the railroads as financiers have done; we
should participate in the increased earn
ings from our increased production. We
could not earn dividends unless industry
as a whole were stimulated by improved
transportation service.
In our bill the rights of the public
are protected, The rate-fxing power,
which is the final check upon railroad
management. remains with the Interstate
Commerce Commission. II the new cor
poration should attempt to pay itself ex-
cessive returns. and produce a deficit the
lease is forfeitable.
AS to the danger of collision be-
tween the directors of labor and the
directors of management to vote TO
absorb the surplus by raising wages
and thus destroy the incentive of divi-
dends, the bill makes sound proxi-
sion. We believe that the dividend
system is essential If service Is to be
the motive, and not profits. We ar
range to give to management twice
the rate of dividend the classified en-
| ployeS receive, SO managements div
dend is always double what its increase
| of wages would be, and management
would never vote to use the surplus
for a wage increase at the sacrifice OF
half of is own gains. To obtain a
wage increase the classified employees
would have to win the vote of the
public directors.
1--WE assure the public immediate
savings The cost of capital would
be reduced from the present s to I
! per cent. paid to Wall Street to per
cent. paid upon government securi-
! ties. The savings assured under a
| unihed system are enormous. The
savings through efficiency rendered
possible only by democratic opera
ton are even greater, for the in
creased production resulting from har-
monious relations between employees
and their managers are incalculable
We believe our plan will reduce trans
portation charges in surprising meas
ure and that it is the first and the
most important step in any construc-
! tive effort to lower the cost of liv-
| ing"
VERMnNT NAV CErU NTnDN