The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-06-06
RAPID TRANSIT
WORKERS FORCED
TO BUY STOCK
Company Needs Money
for New Cars

pany wanted to add one hundred new
steel cars to their IL" lines, so they
have made their employees cough up
with million dollars worth Of "Se-
ries A Prior Preferred Stock" to pay
for the improvements.
The inducement offered in the
whirlwind campaign, which ends to-
night, is that "the interest on the new
stock will come first in payment of
all other company indebtedness, with
the exception of the bonds" The
fact that the Rapid Transit company
is capitalized at $1S,56S,OOO Of adjust
ment debenture bonds, due 1868, and
mortgage bonds and equipment obli-
cations Of $47,6OO,OOO, the latter bear
ing interest before the stock now is
sued, does not seem to deter the COM
pany in whooping it up among the
employees.
It was stated at the stock sale de-
partment of the Rapid Transit COM
pany, twelfth floor of the Edison
building, 70 West Adams St., tina;
they don't want the employees to get
the impression that it is compulsory
to buy the stock" However, it is an.
nounced that over 20 per cent of the
employees of the IL" lines have al
ready paid up the first installment on
their stock, and many more have
signed up and promised to pay.
This has been accomplished by the
determined efforts of every boss in
the company to rake in the stock sub
scriptions. A special STOCK Sale
Daily News" was issued in the inter-
ests of the campaign. How about the
shops" says one item in the Rapid
Transit sheet. 1.-THE road department
took vacation on Memorial day and
the electrical department slipped one
over on them, bringing their average
up to "a per cent. Watch our smoke,
says Captain Toner"
Officials Of the company have dis
claimed any attempt to force the men
to buy stock, but every effort was
brought to bear to get every employee
to subscribe and buy those new i'm
provements for the IL" roads.
President Britton l. Budd of the
Rapid Transit company tries to in
duce the men to buy with the offer of
more work. "AlI employees are vitality
interested in the securing of capital
to go ahead with well-defined plan
of progressive development, because
an expanding business means more
work, more runs to choose from and
better prospects, says the altruistic
Budd.
employees of the Chicago Rapid
Transit company and members of
their families are now given chance
to become part owners in the COM
pany, following the authorization by
the Illinois commerce commission of
an issue Of $4,000 prior preferred
stock, paying rs per cent dividend"
says the High Line, the Rapid Tran
sit magazine.
An article in the High Line de-
clares that 'the return on this invest
ment, under the employees fund pur-
chase plan, will amount to $3.50 per
cent" But Budd's letter declares
that "this stock will pay dividends of
SIS cents per month, which equals
$3.50 per share ($1OO a share) per
year." It is not explained what hap
pens to the other 0.S6 per cent.
Here's another statement in the
Rapid Transit newspaper which
shows that the company is not at all
Indifferent as to the amount of sales
made to employees. 1--WE heard a
complaint the other day that the per
cent for the general Offices was too
low. That is the per cent of employees
who are subscribers. We do not
think the complaint is warranted, be-
cause IS per cent of all the employees
is a good showing-but there are
some who think that it should be
higher. How about it, Mr.. Kretsch-
mer?"
"Well, it's all right, boys. The
main thing is to get the subscriptions,
and that you certainly are doing. The
old flag is flying at the masthead, and
wen nail it there If necessary"
Perhaps the explanation Of the
frenzied attempt of the Rapid Tran
sit officials to line up their employees
to put their hard earned money into
the company is explained in another
statement in the High Line. "In-
creases in traffic" says the company
magazine, due to longer trains and
platforms and more efficient opera
ton, it is estimated, will increase the
earnings of the company about $400,-
900 per annum."