Evening journal., 1919-09-22
docs not want n made I
PLAN ron EMPLOYEES OWNERSHIP AND MANAGE
MENT OF RAILROADS.

r. MPLOYES ownership as well employees manage
L. Of the railroads possible substitute for the
Plumb plan is suggested by the Railway Age in an edi-
oria in It's current issue.
ut may be thought" saws the Railway Age that en-
ployes ownership would be dlcult bring about But
it would be very easy to bring about When II can be
shown that railroad employees could easily and in
short time become the managers Of the railroads by the
simple process Of becoming their owners the question
naturally arises why they should be carrying
propaganda TO get the other people OF the
country 70 buy the railroads for them"
The employees n pointed out could quickly become
the Of the railroads by saving comparatively
small part Of their annual wages and investing II in rail
road securities "of course II the employees owned even
majority Of the stock they could elect all the directors
and through them the railroads" plan for
poyes purchase and ownership Of the railroad is out
lined as follows.
The employees being paid approximately
ssOoO0oOO0 year in wages The cost Of living in the
United States according to the most reliable estimates
has increased only about 70 per cent within the last
i've years while the railway has increased
about 90 per cent Therefore the employees could the
average approximately one-nfth OF their annual
and at the time live about as well they
could have lived about lve years il they had spent
all Of their wages II they should save onenfth Of their
wages their total annual saving would be s6OoOooO0O.
The amount OF railroad stock outstanding the hands
Of the public June 30 1916 and It is
per cent Presumably If the railways are returned to
private operation they win be regulated as to enable
them TO continue to pay dividend OF 5ls per
cent II the employees should save S6O0O0OOO year from
their invest II each year in railroad stocks and
also invest in railroad stocks the dividends they
from their stocks they would in five years $780,
100000 Of stock majority Of all the stock outstanding
This would give them control OF the ownership there
fore Of the management OF the railroads OF the United
STATES II they should continue to in the way
at the end Of nine they would have saved wages
and dividends s667iOooOoO With this they could pur-
chase all the stock outstanding and also a few hun
dreds Of millions worth OF bonds.
These calculations are based upon the assumption that
on the they would have TO pay par for the stock
but there railroad stocks selling below par than
above Therefore, the employees II they bought stock at
anything like the present market prices could acquire
complete ownership OF the railroads for much than
has been estimated We have not extended our calcula
tons to railroad bonds but it would be an easy matter
for ihe present generation OF railroad employees by the
practice Of merely reasonable thrift to acquire all the
railroad stocks and bonds in existence and leave them
a heritage TO their children
This plan would have great advantages over the Plumb
plan from the viewpoint Of both the public and the en-
poyes Its adoption would necessate the practice by
the employees Of the thrift which the farmer or the
small storekeeper practices in order to acquire his
property. Under this plan Of employees ownership the
employees would be much competent 10 select the
best men for railroad than they would under
the Plumb pan The practice enough thrift TO enable
them 10 buy the railroads their ownership Of large
amounts Of property would give them the experience
and the broad view OF business and would enable
them TO judge much better than they can now Of the
qualities which good railroad manager should possess
OF the things he ought and OF how he ought IN do
them Under the Plumb plan the employees would get
half OF any surplus that earned while the public
would have to pay all OF any deficit incurred II the
employees knew, as they would know II they owned the
railroads. that every increase in the efficiency of the man
seeme1t going to rebound greatly TO their benefit
while every reduction Of efficiency going to result