The labor journal. [volume] (Everett, Wash.) 1909-1976, 1919-08-15
FOR SERVICE AND
NOT FOR PROFITS


Labor faces a persistently Sc
rious situation due to the cost o
living, and the impossibility o
wages keeping pace with the depre
citation of money. No Fundamental
changes are being advanced to save
workers from continual defeat II
the economic struggle of life. The
railroad employees are in no MOOD
to brook the return of the lines tc
their former control, since all the
plans suggested for this settlement
of The problem leave labor essen
TALLY where it has stood, and where
it is determined not to stand.
1--WE realize that in the strife for
wage increases we cannot win any
permanent victory. 1t is not money
but value which counts. The VI
cious circle is infinite; increased
wages are over-capitalized for in
flated profits and the cost of goods
mounts faster than the wage level.
A few grow wealthy, and the multi
tude is impoverished.
amy basic change must begin
with the railroads. We believe the
interests of labor and the public to
| be identical in the railroad ques-
+ ton. The properties have been
operated for the profit of the few,
not for the service of the many.
| Not only have we suffered from in
adequate wages, but the public has
paid an eXtortionate tax for trans
portation, a tax based on inflated
values and collected from every per-
son buying the necessaries Of life.
Our proposal is to operate the
railroads demoCratiCally, applying
the principles to industry for which
in international affairs the nation
has participated in a world war.
President Wilson declared in his
message of May 80, 1919, for the
genuine characterization of indus
try, based upon a 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 in
dustry.' He spoke plainly in behalf
of genuine cooperation and part
nership based upon real community
of interest and participation in con-
troll
at has been argued that labor is
merely asking the public to let the
workers become the railroad prof
iteers in place Of Wall Street. This
argument cannot survive a scrutiny
of our proposal.
1--WE do ask for share of the sur
plus, at the end Of each year, after
costs are met and fixed
are paid. But we also pro-
vide an automatic reduction in rates
when this surplus comes to a given
level. To restore the surplus, the
of the railroads must in
crease the efficiency of their man
agement, and they must invite new
business. What we ask is to share
the saving from economies we our
selves introduce, and to share the
surplus from new business our ef-
ficiency makes possible. We should
not profit from the railroads as IL
nanciers have done; we should par
ticipate in the increased earnings
from our increased production. we
could not earn dividends unless IN
dustry as a whole were stimulated
by improved transportation service
'In our bill, the rights OF the
public are protected. The rate fix
ing mower. which is the final check
upon railroad management, remains
with the Interstate Commerce Com
mission. If the new corporation
should attempt to pay itself excess
stve returns, and produce a deficit,
the lease is forfeitable.
LAS to the danger of collision
between the directors of labor and
the directors of management to vote
to absorb the surplus by raising
wages, and thus to destroy the in
centive of dividends, the bill makes
a sound provision. We believe that
the dividend system is essential if
service is to be the motive, and not
profits. We arrange to give to
management twice the rate of divid-
end the classified employees receive.
So management dividend 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 its own gains. To obtain a wage
al tffoJ