The labor world. [volume] (Duluth, Minn.) 1896-current, 1919-08-09

play in industry. He spoke, plainly
In behalf Of a. genuine cooperation
and partnership based upon real COM
munity OF interest and participation
in control
1T has been argued that labor is
! merely asking tho public to let the
| workers become the railroad profiteers
! in place Of Wall Street This arsu-
ment cannot survive a scrutiny Of
our proposal.
Share of Surplus Asked.
1--WE do ask for a share Of the sur
plus at the end Of each year. after
operating costs are met and fixed
charges are paid; but we also provide
an automatic reduction in rates
when this surplus comes to a. given
level. To restore the surplus the en-
ployes Of the railroads 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 intro
duce and to share the surplus from
new business our efficiency makes
possible. We should not profit from
I the railroads as financiers have done:
We should participate in the increased
earnings from our increased produc-
ton. We could not earn dividends
| unless industry as whole were
stimulated by improved transporta-
ton service.
In our bill the rights of the public
! are protected. The rate-fixing power,
which is the final check upon railroad
management, remains with the inter-
state commerce commission. If the
new corporation should attempt to
pay itself excessive returns and nro-
duce deficit, the lease is forfeitable.
las 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 pro-
vision. 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 dividend the classified en-
ployes receive. So arrangements
dividend is always double what it's
increase of wages would be, and man
agement would never vote to use the
surplus for a wage increase at the
sacrifice of half Of its own gains To
! obtain a wage increase the classified
employees would have to win the vote
of the public directors.
''We assure the public immediate
savings The cost Of capital would
be reduced from the present to z
per cent paid to Wall Street to 4 per
cent paid upon government securities.
The savings assured under a unified
system are enormous. The savings
! through efficiency rendered possible
! only by democratic operation are even
greater, for the increased production
resulting from harmonious relations
between employees and their managers
are incalculable. We believe our plan
| will reduce transportation charges in
surprising measure and that it is the
! first and the most important step in
any constructive effort to lower the
cost Of living.
WARREN S. STONE,
Grand Chief Brotherhood of Locomo-
! tive Engineers.
wv. G. LEE,
President Brotherhood of Railway
Trainmen.
Timothy SHEA,
Acting Chief Brotherhood of Locomo-
tive Firemen and Enginemen.
IL. E. SHEPPARD
President Order Of Railway Conduc-
tors.
"B M. JEWELL
Acting President Railway Employees
Department, American Federation
of Labor"