The Nonpartisan Leader Newspaper, September 8, 1919, Page 9

ety = “How It Will O erate Rallroad Brotherhoods> Scheme of Public Operation Would Let Employes ~ Run Roads and Share in Proflts—Rate Reductions Provided For HAT is the Plumb plan for rail- road operation? The plan has been discussed in the newspa- pers; it is incorporated in a bill presented to the congress of the United States; it is the only public ownership bill presented to congress and is one of three railroad plans offered. One of the other plans proposes the re- turn of the railroads to the stockholders, with a guarantee on the returns from the shares; the see- ond proposes a five-year retention of government operation of the railroads under the present plan of guaranteed returns to the stockholders. The Plumb plan. was drawn up by Glenn E. Plumb, attorney for the railroad brotherhoods. The plan has been indorsed by the American Feder- ation of Labor, the railroad brotherhoods and by many bodies of organized farmers. Briefly, the plan is this: ~ The government shall’ take over the railroads, at a price to be fixed on the valuation of the roads, and thé control of the lines vested in a board of 15 directars, five to be chosen from the operating employes, five from the managing employes and fivé to be appointed by the president to represent the public. . The managing and the operating em- ployes are to share with the government in the dividends from the roads, the lines.are to be paid for from the earnings, and when dividends reach a certain point ratés are to be automatically re- duced. Mr. Plumb, appearing recently before the inter- state commerce committee of the senate, explained his -plan for the railroad management in this manner: “I would suggest an operating corporation where operating ability constituted its sole capital. We would recognize as operating ability the skill, in- dustry and application of every employe from" president down to office boy. Such a corporation requires no capital. It should be organized under federal law. It should be authorized to take and hold and operate these properties under the full regulatory power of the government, to whom it should account for all of its operation and expen- ditures. It should be required to meet all costs of operation and fixed charges upon the capital em- ployed which had been guaranteed by the govern- ment. A certain agreed percentage of the net re- sults of operation should belong to this corporation. The stock of this corporation should be held in trust for the benéfit of the employes. “The earnings of the corporation should consti- tute a trust fund to be declared as a dividend upon_ the amounts to be paid, to the labor which it em- - ploys, every employe receiving that proportion of this trust fund which his annual wage bore to the total annual- compensation of all employes, -the operating officials to receive twice the rate of divi- dend of the classified employes. The affairs of ~ ey ~—Copyright by Underwood &-Underwood. N. Y. _ GLENN E. PLUMB this corporation should be admlmstered by a board of directors to be elected one-third by the classified employes below the grade of appointed officials, one-third by the appointed officers and employes, the final third being appointed by the president of the United States. This board should have power to appoint all officers from president down to the point where employment begins by classification, and to prescribe the conditions of employment and classification of all other employes. “I would have each employe assured that he must reap his fair share of what was produced by the efficiency and economy of all, and have him realize unless he performed his full share in_preserving efficiency and economy, he must inevitably receive a less return for his serv- ices. Such an organization would promote a morale among employes that has never been approached in any industrial enterprise. It would supplant the old system of competition under which the profits of the laborer’s indus- try went to another and in which he could never hope to share, by a new system where the prefit of his own industry accrued to him- self alone. “The argument could be made that the operating employes and the classified employes have between them 10 members on the board of directors to the public’s five. the two groups of employes for the mcrease of wages and the ruin of the service? “In the first place, there are no profits as such there are to be dividends on increased efficlency The plan provides for the continual reduction of rates as the dividends rise above a given level. The rate of dividend falling to the employés for ‘increased production is not comparable with the present rate of dividend to capital. Under the la- bor plan, if in any year the government’s share " .of profits is more than 5 per cent of the gross operating revenue, rates must be reduced 5 per cent. Supposing the government share a 12 per cent surplus on, say, a $4,000,000,000 operating revenue; it is then to receive $240,000,000, or 6 per cent. Then the rates must be reduced 6 per cent. If there are no further savings and the volume of traffic is not increased the ensuing year, the men have only $240,000,000 to share with the state. “We would give the operating employes twice the rate of dividend given to the classified em- =ployes. In this manner, it becomes the primary and vigilant interest of the operating employes to receive their share of the new business always in dividends and not in added wages. “It would be contrary to the employes’ interests to hold down the net earnings to be turned into the government treasury to a small margin below 5 . per cent to prevent a downward revision of rates, for it would mean they would then get less than '5 per cent as their share. It is to their advantage to make in a given year as much above 5 per cent as they can, for if they should make 8 or 10 per cent dividends, on the 50-50 basis they would have during the next succeeding year without further increasing efficiency or economies a share equal to 4 or 5 per cent instead of merely 2% per cent, which would be their minimum return. “Under the scheme which we propose every in- crease in surplus earnings tends to a reduction in rates. Every expenditure out of the earnings for betterments or improvements tends to increase the actual investment without any increase in fixed charges. Every improvement made upon the prop- erties and paid for by local taxation tends to in- crease earning power with no increase in the fixed charges. Every application of surplus earnings to a reduction of outstanding capital tends to di- minish net earnings, again favoring a reduction in rates.” Wisconsin Workers Want North Dakota Program BY A SPECIAL CORRESPONDENT | ISCONSIN labor is awake, ¢ | never before, to the need for organized workers, both in city tics. The reecent session of the Wisconsin legislature, which adjourned only a few weeks ago, with the most reaction- ary record of any law-making body in years, pointed out the need. And the record of the North Dakota legislature, which en- acted the most advanced laws in the country in the interest:of farmers and laborers, pointed out the way. The Wisconsin State Federation of Labor met for 'its annual convéntion at Appleton, Wis.,, al- most ‘immediately after the Wisconsin legislature had adjourned. The legislative committee, which had been attending the session of the legislature . for more than five solid months, trying to get some laws in the interest of the common people, made its report. It was a discouraging report— the record of one failure after another—because " the labor men, like the farmers in Wisconsin, had to ask favors from men elected by their enemies. But after reviewing what had been done and what and country, to go into poli- had not been done in the legislature, the legisla- tive committee said: “Organized labor must use the tactics of the organized farmers. After many years of struggle with meager results in North Da- kota they were told te ‘o home and slop their hogs’ They went home, organized and elected real farmers to the legislature, and in 54 days they passed more laws for the farmers and laborers than had been passed in the previous 20 years. ¥ * * “The trades unionists of each district owe it to the workers of the state to send someone who will represent them and pass laws for them instead of for the profiteers. The advice of the committee would be for the representatives of labor to meet with the organized farmers, if there are any in the district, before the next election, and “agree upon a man who will not only vote for the principles which both organizations are standing for, but one .who will put up a fight for them. “After picking out a good organized farmer or laborer, who is tried and ‘true in labor’s cause and who will subscribe to the legislative program of the federation, our advice would be that the work- ers see that such man is placed in nomination and not permit the interests to make the selection.” PAGE NINE All of which means that organized labor in Wisconsin, 80,000 strong, will be lined up with the organized farmers of the Nonpartisan league in the next election. The Wisconsin State Federation of Labor has put out a pamphlet entitled “The Next Steps for . Wisconsin, a Program of Construction,” which sets forth their aims for the future. This pamphlet is strikingly similar to another pamphlet, called “The New Day in North Dakota.” - put out by the industrial commission of that state, telling what the farmers of North Dakota have ALREADY ACCOMPLISHED. The program outlined in “The Next Steps for Wisconsin” includes: An anti-injunction law. Public ownership of railroads and mines. Public development of waterpower. The initiative, referendum and recall. Home building under state aid. Placing the burden of taxes upon those best able to bear it. State aid in marketing of farm products. All of these planks have been provided already, in one form or another, by North Dakota, and Wisconsin laborers see hope for a new day for: Wisconsin by adopting the North Dakota program. e What is tosprevent collusion between B T e S e T T AT e S S R DA T N B AV iy i N S Y DY VST, s PSS i e R N R TS T DS NNT! 23 e s S e ey Ty