The Streetcar 'Jack Pot Bank' That Kept Olympia's Railway Running
George Marvin Savage had a franchise to protect and no money to pay his workers—so he divided each day's fares into four pasteboard boxes and called it co-operation.
In addition to the ingenuity of operating an immense railway system with a tallow dip and a can of coal oil, George Marvin Savage has unhidden qualities which are likely at no distant time to make him shine in the financial world. Recent transactions show that he is a natural born financier who can do a whole lot on nothing.
Not long ago the puzzling question presented itself, 'How shall I feed my horses, pay my men and keep this system in operation in order to hold down my franchise?' His men were getting anxious for their pay, and when the day approached on which it was customary for the ghost to walk, he sometimes tendered 30, 60 or 90 day notes, instead of the yellow coin.
Presently the strain became too great and he called his employees together in council.
'We are getting behind each month,' he said, 'and we must cut things down to actual running expenses. I must make two trips a day in order to retain my franchise, and this will cost $50 per month. If you desire to continue and divide the receipts of the car each day, all right; otherwise I shall be obliged to cut the force down.'
The men saw no prospect of work and the proposition of the street railway president was agreed to. Mr. Savage then proceeded to inaugurate his co-operative plan, or jack pot bank, as it was known among the men, he, of course, coming in for a rake off.
Four little pasteboard boxes were constructed, one for each man. Into these the receipts of each day were evenly divided, and at the end of the week there was a run on each bank, which was relieved of all cash. Sometimes there were three or four dollars per man, sometimes more. Each man's account was credited with the amount in his box, and thus the great George Marvin continues to live and grow.
“If you desire to continue and divide the receipts of the car each day, all right; otherwise I shall be obliged to cut the force down.”
Savage's scheme shifted the risk of a public franchise onto the workers who ran it, paying them from daily receipts while he kept the franchise alive. It's an early version of the gig economy: the operator keeps the asset, the workers absorb the uncertainty. The fight over who bears the cost of public transit—and who gets the upside—is still with us.
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