Evening star., 1947-05-02

| Phone Wage Increase
Will Meon Rute Roise
Battle Between $4,000 Striker,
And 6o5,66O Stockholders sss.
By Dapid La.Drence
Ever since the telephone strike sta,t.s
there have been references In the news-
papers to the national union" and Ia
the Company" But who is the tele-
phone company It is one man or one
group or several7 And who is fighting
whom9
There are about $4,000 employees ON
strike, but there are 695 500 stockholders.
Thus, the number Of persons involved
on the ownership side exceeds those on
the union side.
More than one-haH Of the stockhold.
ers are women, while 50 per cent Of the
employees. including nonstrikers, are
women.
The average number Of shares beld
by each stockholder Is about 80 and no
stockholder holds as much as one-half
of per cent Of the total stock out
standing. The holders of from one to
five shares number 2o7. 400, while e55 800
stockholders, or "a per cent Of the total,
hold less than 100 shares each.
The holders Of 100 shares or more, In.
cluding insurance companies, colleges,
hospitals and other institutions, total
$4,000 and hold total of AZ per cent
Of the stock.
$4,000 Workers Own Stock.
In the Bell System itself, about $4,000
employees own stock In the company.
Five States have more than $4,000 stock
helders each, 26 States have more than
5000 stockholders and no State has
fewer than 500 stockholders.
These facts are to be derived from q
reading of the 1946 annual report of
the American Telephone & Telegraph
Co. issued on February II Of this year.
Here, therefore, Is cross-section Of
the American people who have saved
their money and who have received
regular dividends from such investment.
1t is because the Bell System has paid
regular dividends that so many people
consider its securities sound invest
ment. More and more money is needed
each year for expansion, and the people
furnish 1t out of their savings. Widows
and orphans and trust estates usually
buy Bell securities because of its sound
financial policies and careful planning
to meet the Nations needs.
Now If there is to be an across-the-
board increase Of several dollars per
week to employees, the management must
make up its mind If these increases can
be afforded. The income of the tele-
phone company and it's subsidiary COM
panies throughout the. country Is de-
pendent on the rates that can be
charged. These, in turn, are fixed by
State commissions and by . Federal
commission.
Local Level Bargaining.
Much OF the controversy in the strike
has revolved around the proposal that
wages be arbitrated nationally or local
ly. The National Labor Relations Act
was established in order to certify proper
bargaining units. The local telephone
companies, known as subsidiaries, have
been certified as the appropriate bar
gaining units in their respective areas.
This means that, while the union may
be national in scope, the law as inter-
preted by the labor board requires bar
gaining at the local level.
The unions contend that they win
bargain locally but that the pattern
must be set and can be hxed by ma
tiona1 arbitration. The company con.
tends that arbitration Of wages Is fac :
tor which belongs under bargaining and
that, as long as the local companies are
the legally designated bargaining agents,
the bargaining and negotiating-includ
ing any arbitration-m be carried on
by the subsidiaries or regional COM
panies. There are about 16 of these COM
panies which supply telephone service
and there are few manufacturing
companies AFFILIATED with the parent
company.
The annual report shows that the A.
T. and T. owns all or nearly all the stock
OF the subsidiary companies. Notwith-
standing this fact, the local or regional
companies have been designated as bar
gaining agents. Doubtless this is be-
cause the rates of income are fixed local
ly by State commissions and hence wage
increases would have to be followed by
applications for rate increases In each
area.
The telephone company represents .
significant example of popular owner
ship as contrasted with concentrated or
group ownership. The public, there
fore, is seeing battle between nearly
100000 owners and $4,000 striking en-
ployes, each side acting through desig-
mated representatives. The outcome Is
certain to be some increase In wages
and eventually some increase In the
telephone rates.
tReproduction Rishts Reserved)
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