The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-09-13
PLUMB AND OTHER Plans.

Noting the continuing agitation
among railway workers for the Plumb
plan, which, of course, includes other
industries as well as railroads, the
Railway Age suggests that If the
employees" of railways, coal mines and
other industries really believe that
those sFho' own them derive immense
profits from exploiting their EN-
ployes, they buy the industries in
which they are employed and get the
: profits for themselves.
This question has been given in
creased pertinency," continues the
Railway Age, ''by the advances in the
wages of railway employees which re-
Gently have been made. The wages
now being paid to them amount to
about $500, 5000 a year. The adj
vances in their wages granted in the
recent award of the Railroad Labor
Board amount to $625. 900. 900 a year
They easily could and should save this
part Of their annual incomes. Why
de- they not do this and adopt say, a
Sco-operative plan thru their labor
organizations or otherwise, Tor acquir-
/ ing the ownership Of the railroads?
They could easily save enough money
to do this"
The Age then proceeds TO submit
figures intended to substantiate its
contention. as follows:
p The total par value of railroad
stocks outstanding in the hands of the
public on December 81, 1917, as re-
| ported by interstate commerce commits
/ Sion. was IS. 5S5. 600, 900. The saving by
! railway employees of the recent adj
vance in their wages would give them
/ S625,0O0.o00 annually for investment.
! On this basis, IL they bought at par
they could, by investing ~ their saw
J ings and their dividends on their saw
! ers of So. 4sO, 100000, or substantial
ma Jority OF all the stock outstanding
within five years.
| But they would not have to pay par.
/ The average price at which the stocks
4 OF IS large railroad systems were
bought and sold in the open market
| last week was $3.50. Taking this as
the average market price at present of
/ the railway stocks outstanding, all the
stock could be bought for $3TS51, O00,-
| 600, and one-half of il, or enough to
give absolute control, could be bought
| for 81, 926, 100000. On this basis the
railways employees, by saving and in
vesting their recent increase in wages
! IN rdlrOaQ STOCKS could acquire own
ership of & majority of the stock of
ali, the railroads within three years.
! If the cooperative organization
/ which we have suggested the employees
might form did not wish to invest in
the stocks of all the railways stimuli
taneously. 1T could acquire first one
railway and then another. The COM
bined outstanding stocks of the New
| York Central and the Pennsylvania in
the east and the Atchison, Topeka &
/ Santa Fe and the Union Pacific in the
west amount to less than 81, AIT .000.-
600. If the employees desired to ac-
1 quire control first OF the ownership
and management of only these four
| great properties they could buy q ma
/ jority of the stocks of all of them at
par with their recent increase in wages
j in IL months.
/ The financial power Of the en-
| ployes of the railways would be enor-
! paratively small part of their wa ges
and invest them in securities The
same thing is true of the workers in
all otheF.lines of industry. Why should
! they carry on propaganda to get the
public TO tax itself to buy and turn
over tofworking men the mana cement
i Of the industries in which they are
1 engaged when 1t would be easily
within the power OF the working men
I to acquire. both the ownership and
mEAa cement of all the industries they
are engaged in If they would practice
I the thrift in their expenditures upon
which has been originally founded the
fortune of every man who ever ad-
: or from farm hand to farmer?