Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-08-01

"TASHINGTON, D. c., July 26.-Now
NN steps forth new and idealistic plan
w for the operations of the railroads
of the United States-a plan which
has the Endorsement of the executives of the
organized railroad workers Of the nation and,
to a degree, Of the American Federation Of
Labor.
This plan would place the ownership of
the railroads in the hands OF the people
through the sale of bonds to absorb them
and would divide the profits from their OPP
GRAFTON between the government and the
workers who keep the wheels turning The
plan was evolved by Glen E. Plumb, Chicago
lawyer and expert on railroad valuation.
In urging this Plan it's friends insist that
government ownership Of the railroads is
still an untried experiment in this country.
During the emergency of war, the govern
ment has regulated them, but it has never
owned them. They are still owned by the
stockholders, who invested heir money in
them, and who continued to draw per cent
interest their capital under government
regulation. Moreover, they have been operat-
ed by the same men who operated them under
private control All that government regu-
lation has served to demonstrate, it is held,
is that the railroads could be run much more
efficiently il they were in the hands OF one
large syndicate, instead of several small ones,
such syndicate is made impossible under
private ownership by reason OF the Sherman
Antitrust laws.
1t is into this situation that Mr. Plumb
thrusts his new plan. He proposes that the
government buy the railroads from their own
ers for IL billion dollars, the money to be rails
ed among the people by the issuance of Treas
ury bonds. The bonds would pay per cent in
terest, and Mr.. Plumb claims that by this
method the government purchase OF these
roads would figure as much better business
proposition than the present arrangement
OF renting them.
If the owners of the railroads are dissat-
isfied with the valuation placed upon their
property by the government, they will be per-
mitted to take the matter into the courts,
which shall examine their books and make
final appraisals. Pending this time, Mr..
Plumb suggests, the government shall pay
the owners one-half the present rental fee,
which SHALL however, be deducted from the
price at the time the railroads are actually
sold.
Consider that, according to this plan, the
railroads are bought. 1t is proposed that
they be turned over to a board of fifteen d.
rectors, consisting of five, appointed by the
President to represent the public, five to rep
resent the operating employees, and five to
represent the ordinary, or what are termed
"classified," employees. This board of di-
rectors is to determine the policies of opera
ton and control. 1t is to run the railroads as
efficiently and cheaply as possible, but not
at loss to the government. On the con-
trary, it expects to make a profit, just as the
Post Office Department., in recent years, has
made profits. Z.
The question of profits is most important,
in fact, for this is the unique feature of the
plan. The profits are to be divided equally
between the government and the railroad en-
ployees, the operating employees, by reason of
their greater SKILL getting a larger percent
age than the classified employees. For ex-
ample, suppose that at the end of the year it
is found that the railroads have been operated
at profit of IL per cent Six per cent of
this will be taken over by the government and
used in building extensions, paying for i'm
provements or for retiring railroad bonds;
and six per cent will be divided among the
railroad employees. If the railroads are OPP
Grated inefficient1y, of course, this profit will
be greatly reduced and in the case Of a def
cit, Congress has the privilege of cancelling
the enterprise altogether
The railroad mileage of this country
amounts to 100000 miles. 1t carries an enor-
nous amount of commerce. The transporta-
ton of this freight has been one of our lead
ing industries, controlled by private owners,
regulated by the public, and employing more
than five per cent of the total labor supply
Of the country. This industry, Mr.. Plumb
says, is based upon three elements: The
grant of authority Gin the form of franchises)
from the people to conduct the industry for
their benefit; the investment of capital in
sufficient amount to acquire the proprieties