Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-13
DON'T NEED PLUMB PLAN
Expert Tells How Employees May Own
Railroads Without Govern
mental Disturbance .

'hht bukktsttu pluus iVi WI.
elimination of differences between capital
and labor, and many employers, actuated
Dy sentiments not, perhaps, wholly altru-
istic, for contented workmen mean more
efficient workmen, have tried them out.
working conditions have been improved;
means have been sought to bring about
return OF the personal touch common be-
tween employer and employe before busi-
ness grew to its present enormous proper
tons; profit sharing has cen trlebd out,
and, here and there. this last has been car
ried to its logical NEUTRALITY-SUSPICIOUS.
Several Philadelphia firms, including the
Stetson Hat Co., encourage their employees
to hold stock.
different angle. President Nitten, of the
L. II. t., urged employees to start saving
fund, which they did, and the money they
have accumulated now runs into millions.
The good feeling existing between employers
and employees m this concern recently evil
denced itself in a striking manner, as oil
Philadelphians remember.
Now both sharcholding and saving have
q distinct bearing on the suggestion made
by a writer In the current issue of the
halfway Age. That the wage problem
solves itself when the wage Garner becomes
also a wage payer is delightfully."- simple
economic pronouncemcnt which has never
been presented more cntertainingly than in
the article here appended.
U\NTHY do not the railway employees buy
w the railroads of the United States?"
asks the Railway Age. THE propaganda
for the Plumb railroad plan, which is but
part of the Bolshevstic crusade for the de-
struction of capitalism and the establish
ment of the political and economic rule of
the proletariat, still goes on. IL the en-
ployes OF railways, coal mines and other
industries really believe that those who own
them derive immense profits from exploiting
their employees, why do not the workers buy
thn s,.l,. 1T Al.
and get the profits for themselves?
This question has been given increased
pertinency," continues the Railway Age,
by the advances in the wages of railway
employees which recently have been made.
The wages now being paid to them amount
vances in their wages granted in the recent
award Of the Railroad Labor Board amount
to S625 ,0O0, 900 a year. They easily could
and should save this part of their annual
incomes. Why do they not do this and
adopt, say, n co cooperative plan, through
their labor organizations or otherwise, for
acquiring the ownership of the railroads?
They could easily save enough money to
do this.
NINliE total par value of railroad stocks
outstanding in the hands Of the public
on December 81, 1917, as reported by the
Interstate Commerce Commission, was
SG.5S3, 900, 900. The saving by the railway
OF tnp recent advance III tnclT
wages would give them 5000 900 an
nually for Investment. On this basis If
they bought at par they could. by investing
all their savings and their dividends on their
savings in railway stocks, become owners of
81, 400, ,000, 600, or a substantial majority
of all the stock outstanding within five
years
But they would not have to pay par.
The average price at which the stocks Of
twenty five large railroad systems were
bought and sold in the open market last
week was $3.50. Taking this as the aver.
age market price at present of the railway
stocks outstanding. all the stock could be
bought for S3.S5l 900 900. and one half of
it. or enough to give absolute control. could
be bought for 81 .026, 900, 900. On this basis
the railway employees, by saving and invest.
ing their recent increase in wages in rail
road stocks. could acquire ownership of q
majority of the stock of all the railroads
within three years
ETF THE cooperative organization which
L we have suggested the employees might
form did not wish to invest in the stocks
of all the railways simultaneously. it could
acquire first Ohe railway aud then another.
The combined outstanding stocks Of the New
York Central and the Pennsylvania in the
East. and the Atchison. Topeka & Santa
Fc and the Union Pacific In the West
amount to less than 81 All 900 900 If the
employees desired to acquire control first 0i
the ownership and management OF only these
four great properties they could buy ma.
jority Of the stocks .! al. of them at par
with their recent increase in wages in four
teen months.
The financial power Of the employees of
the railways would be enormous if they
would but save q comparatively small part
Of their wages and invest them ih>securitieS.
The same thing IL true of the workers in all
other lines OF industry. Why should they
carry on propaganda to get the public 10
tax itself to buy and turn over to working
men the management of the industries in
which they are engaged wheL it would be
easily within the power of the working men
TO acquire both the ownership and manage
meut of al the industries they are engaged
in II they would only practice the thrift in
their expenditures upon which has been
originally found the fortune of every man
who ever advanced from wage Garner To
capitalist, or from farmland to farmcr?
II the opportunities for profit are so great
and working men are so sure that thrir
management of industry would be more
efficient thar that of the capitalists, they
should feel sure that il they saved their
money and bought the capitalists out they
would have just as gOOd-a chance of maxim.
large profits III the future as the capitalists
would have.
UNIENER was there time in the history
~ of the United States when the wages
of railway employees and other workers were
so large in proportion to the prices of rail
way and other securities as they are now.
Never, therefore, were conditions so favor
able for the workers to acquire financial
control of the industries in which thcv work
and show hoy well they could manage them
"Of one thing We warn the workers now
however. This is, that If they do save their
wages and invest as suggested. they will
soon find that the difficulty of making profits
L,,.,g Il al,