The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1919-12-12
D n { PLU NIB
PLAN JOKER
Employees Would Fix Own Pay
and Hours
NO SURPLUS FOR USE
United States Government To Get
No Dividends
NO SURPLUS FOR USE

Glenn Z. Plumb, and other advocates
of the plan for having the railroads
bought by the national government
and turned over to the railroad or
CARNATIONS to operate. try hard to
meet the objection to their project that
II would virtually give the railroad
employees power to fix their own pay
end subject the country to the evils
OF excessive cost Of transportation,
made necessary by unjustiflably high
wages and short hours for railroad
workers.
Lawyer Plumb himself argues that
the danger of imposing upon the pub
lie needlessly high rates OF fare and
freight charges, to provide the money
for eKtravagant wages. unfair to the
people who have to foot the bills. is
sufficiently guarded against by the
simple device OF granting the salaried
or managerial employees" as he calls
them, twice as high a dividend rate as
the classified or wage-earnering en-
ployes are TO receive.
The Plumb plan provides that the
whole railroad system of the country
shall be leased TO a corporation, with
out stock, which is to be under the
control OF a board of fifteen directors,
FIVE to represent the government, FIVE
the wage-earners Of the railways and
FIVE the managerial employers. or rail
road officials. A combination of the
FIVE directors who would represent the
government with the five who would
speak for the salariSd or managing en-
ployeE could. Of course, outvote the
remaining five who would represent
the classified workers.
Mr.. Plumb says that this would hap
pen whenever the wage-earners asked
too high pay. because the mana
gerial employees" would prefer more
dividends to better salaries. His theory
rests on the belief that they would
take that course because they could
only enjoy the same rate per cent OF
increase in their compensation which
would go 70 the classified employees al
20. whereas they would have twice as
high dividend rate.
But all this is based on a purely
fanciful and extremely fantastic no
ton Of the size and importance OF the
dividends which would be available. at
any time. The chances are over
whelmingly great that there would be
10 dividends at all
At most, under the Plumb plan as Il
stands. the employees could only hope
for half OF the dividends, for one-hals
In to go TO the national government,
10 be used for extensions and improve
ments in the railroads it is to buy and
pay for. with the peoples money.
As the case stands today, IL the
latest demands OF the railroad en-
ployes. in respect to pay and hours.
were granted in full the cravings Of
the railways would not be sufficient to
meet the interest on the bonds which
would have to be sold to obtain money
70 buy the lines. and to keep them in
good condition. and to provide one per
cent yearly of a sinking fund to re-
tire the bonds. as the Plumb plan de
crees. There could be nothing for
dividends.
1t is safe to say that there never
would be any funds for such distri-
button. The interest Of the classified
employees would lie In taking the
money which might otherwise be used
for dividends in higher wages That
would be the sure, quick way to get
it. The so-called managerial" en-
ployes could not Withstand the pres
sure from the vastly greater number of
wage earners. They would not have
one hundredth part OF the incentive to
do so that the present owners and
managers would have. and how far
would they go, with the government
against them?
The managing employees would have
only shadowy and distant chance Of
dividends to offset against certainty
of more pay, and OF course they would
take the larger salaries. To strive for
dividends instead. because they could
get twice as high a rate of dividends
as the wage-earners, would provoke
envy, III will and trouble of the gravest
nature No such state of things would
exist.
The notion OF dividends from the
railroads for the government. under
the Plumb plan or anything similar to
IL, might as wall be dismissed from all
consideration Like the school boys
apple. there wouldn't be any core. of
that kind The railroad emDlOves