New-York tribune., 1919-02-07
Continued from page |

of the roads would be in the hands Of
a. Federal corporation, the stock OF
whihc would be held in trust for the
benefit of the employees.
Employees Would Share Earnings
Earnings of the corporation would
be divided from time to time among
the employees. each employc receiving
that proportion of the total earnings
which his annual wage bore to the to-
tai annual compensation of all the en-
ployes.
The affairs of the corporation would
be in the hands of board of directors,
one-third of whom would be elected by
the classified employees below the grade
of appointed officials; one third by the
appointed officers and employees, and
the final third being named by the
President of the United States.
The board of directors would an
point all officers on their system from
the President Of the operating corpo-
ration down to the point where en-
ployment begins by classification. and
would prescribe the conditions Of en-
pioyment and classification of all the
ther employees.
Would Divide Revenues
The net revenues of the combined
railroad system, under the plan, would
be divided equally between the govern
ment on the one hand and the operat-
ing corporation On the other, the half
going to the corporation appearing
thereafter as a dividend on the payroll.
Whenever the governments share
exceeded a certain amount, the plan
provides, the excess would be absorbed
by an automatic reduction in freight
and passenger rates.
On the assumption that the out
standing stock of all the railroads
represents the entire equity in the
properties, the plan proposes that the
government shall buy the roads on the
basis Of the market value of these
stocks, no allowance whatever being
granted for investments out of earn
ings. On this basis the plan proposes
that the present holders of railroad
securities be required to exchange all
these securities for government bonds
to an aggregate amount of $4,000, ,0O0.-
600. The security owners at present
claim a value for their securities of
| $1S,000,0 0,000.O00
Some Leaders Fear Bolshevism
Some of the brotherhood leaders
frankly state their fears that the
scheme smacks to strongly Of Boshev-
ISM Others among them insist that
the time Is opportune for the employees
OF the railroads to take over the oper-
alton Of the properties intheir own in
terest. Justifying the wish to- do this,
the brief which Mr.. Plumb will sub
mt to,morrow says in part:
Under the old system of private
ownership and operation the hope of
increased returns actuated only those
individuals employed in the service,
who might reasonably be expected to
/ share IN those returns. All other en-
! ployes were merely actuated by fear
that they might lose their Jobs, or
might face an actual or relative de-
crease in wages. Fear is the poorest
| incentive on which to build efficiency
! or economy. Hope is the strongest in
centive to achieve these results
Would Promote Morale
A cooperative organization, Mr..
Plumb says, would promote morale
among employees that has never been
! approached in any industrial enter
prise. ''It would supplant," he as
serts, "the old system Of competition
under which the profits Of the labor
ers industry went to another, and in
which he could never hope to share,
by new system where the profit of
his industry accrued to himself alone,
where all employees were united by a
common purpose, all working toward
common end, inspired by the same
motives, by the same Incentives, and
with no opportunity for a division of
interest and no apprehension that an
other would reap what he had sown"
All wage disputes and disputes re-
lating to conditions of labor as we'll
as any other matter connected with