The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-05-22
WAGES AND PROFITS.

WAGES AND PROFITS.
On another column Of this page ap~
pears contribution from F. G. r,
Gordon Of Minneapolis in reply to an
article on wages and profits which ap.
peared in the last number Of The Labor
World. Mr.. Gordon has been writing
considerably of late against the public
ownership Of the railroads. He is con-
nected with q publicity bureau said to
be maintained by the railroads.
Mr.. Gordon attempts to ridicule the
wage and profit statistics compiled by
Mr.. Lauck, consulting economist for the
railroad labor organizations, declaring
them to be "misleading, full Of misin-
formation and calculated to cause more
unrest on the part Of the workers be.
cause of their misinformation.' Mr..
Gordon should direct his reply to the
railroad labor. board. to which the sta.
tisties and statement were presented.
Mr.. Lauek had, little to say about
labor and the railroads. He attempted
to show that advancing wages followed
and were not the cause Of high prices.
We think Mr.. Lauck proved his case,
His exposure Of the profits reported by
the manufacturers Of the country is
revelation, and the figures were gotten
from the internal revenue department
to which they were reported.
Mr.. Gordon's contention that q coal
mine owner receiving a royalty Of Is.
cents a ton before the war should now
receive from IS to 40 cents royalty, is
one Of the best arguments thus far
advanced for granting railroad workers
increased wages. Indeed. the mine own
er's living needs are limited and his
profit should not keep on at. the same.
ratio, fol-; that which he is able to save
over and above his living expenses,
while now worth but 30 cents on every
do:'ar, will some day buy considerably
more than it will today. Present prices
compel =. worker to expend his full
'neome as he earns it. He has nothing
to save
One does not have to read Mr.. Cor.
don's letter very carefully to discover
what he is driving at. His ridicule Of
Mr.. Lauck: and his reference to labor
costs soon vanish when he discusses
the public ownership of railroads. That
is the big scare in railroad circles and
Mr. Gordon is not permitting an. OPP
portunity to escape, without hitting at
it. we had government operation dur.
ing the war. We have private opera,
ton now. We leave it, to fair-minded
persons to say which was the more sat-
lsfactory> In six months more Of such
management as we now, have there
will be but few Americans left to speak
tor the railroads.
Mr.. Gordon says that cit is a motor.
lous fact that governments are always
wasteful and extravagant-that thew
generally employ two men and So to
accomplish the same result that pri.
vate ownership will accomplish with
one Every department of our govern.
,ment is over'staffed." This is a stock
argument against government owner.
ship. It has been made repeatedly and
little attention has been given to an
s'wering it by the. friends of public
ownership.
The United States government is not
engaged in very many business enter.
prises. The only one we can think Of
that it owns and operates is the postal
system. We know something about it.
and because we do know we boldly ia.
clare that it is one of the best man.
aged institutions in the world. It sur.
passes any business institution in this
country in efficiency. 1t obtains the
maximum Of results at minimum of
cost. 1t pays better average wages
than most other lines of business. It
IS free from extravaganza. It is not
over'staffed, and it is run for the bene-
tit Of the people, with "service Firstn
as its slogan. It is self-sustainine:
The public ownership of the :Ameri-
can railroads under the democratic plan
OF operation proposed by Mr.. Plumb
Will bring to the people exactly the
same results as have been rendered bv
the postal service. The Labor World
Is not an advocate of Socialism, a. its
friends know, but we contend that the
public ownership and democratic admin.
'stratlon OF the transportation and com.
mun1eatloa systems of the country is
a. necessary for tho preservation of
democracy and tho guarantee of equal
'ty OF opportunity as is the people q
ownership Of their government.
10 THE VOTERS MAY, KNOW.