New-York tribune., 1921-04-12
The Real Railroad Owners

Fiske, president Of the Metropolitan
Life Insurance Company, and Mr..
A. Fl. Smith, president Of the New
York Central Railroad. ought to
have beneficial effect in the way
of emphasizing the wide distribution
Of railroad ownership. For many
years the public has confused rail-
road control and management with
railroad ownership. In disputes
before the Interstate Commerce
Commission over rates or with en-
ployees over wages it has visualized,
on the one side, a little group of
railroad presidents and magnatcs,
and, on the other, a vast army of
shippers or of railroad workers.
Rate concessions or wage conces-
sions were supposed to be wrung
from high-salaried operating man.
ayers and millionaire directors.
This was an absurdly theatrical
lied picture. Railroad control has
remained in a few hands. But own
ership and investment interest have
become more and more diffused. In
1920 the average number of railroad
employees was 1,993,5 But sim
gle railroad system like the Pennsyl-
rania has we'll up to 100000 indi-
vidual stockholders. Including bond
holders. depositors in savings banks
and holders of insurance policies in
companies which have enormous in
vestments in railroad securities,
those with an investment interest in
railroad prosperity vastly outnum-
Der the railroad workers. The saw
ings banks, holding nearly $1,000
100000 of railroad bonds, have
100000 depositors. And there are
millions of policyholders in insur-
ance companies which own $4,000
100000 or more of railroad secu-
rites.
The railroads are being run at
loss (their deficit for February was
S7,205 ,000) for the benefit of the
1,993,524 employees. But ten to ff-
teen times that many people are suf-
ferers from operation on this abb
normal basis. They have suffered
more or less silently so far. The
conflict before the Federal Railroad
Labor Board at Chicago has been
staged, as usual, as one between na-
tion-wide labor organizations and
handful of railroad presidents and
directors. In fact, it is nothing of
the sort. 1t concerns the millions of
people with financial stake in the
roads, who look to the government
and its agencies, as we'll as to the
managers and directorates, to restore
normal economic operation.
Mr.. Smith censured Mr.. Fiske and
the National Association of Owners
of Railroad Securities for trying to
take a hand in the wage settlement.
But the trouble has been up to now
that the real owners haven't taken
part actively enough in shaping rail
road policies. There has been too
much "absentee ownership" Mr..
Smith seems to want to continue
that system. Yet nothing could help
the railroads more than demon
stration of the extraordinary scope
of railroad ownership interest. If
the railroad workers can be made to
realize that they--a small minority
ARE infringing on the rights of a
great majority and at the same time
are driving the railroad systems to-
ward receiverships, they will un-
doubtedly abate their extravagant
claims. And the public will be far
more inclined to do justice to an
ownership which has not only dis
closed it's full extent but has shown
that it is capable of using the power
which comes from organization and
soil 1arity.