New-York tribune., 1919-08-13
Charges Rockefeller, Nor
gan and Gould Interests
Are in Political Conspir-
acy to Mulct the Public
He Tells of Large Gifts
Says $45O,4l4,OOO Stock
Bonuses Went to Share
holders i'm Ten Years

WASHINGTON, Aug r. An inves
tlgation of charges that the Morgan
Gould and Rockefeller interests, con
lnterlocking directorates, are engage,
IN political conspiracy to procur,
from the government validation O
inflated railroad values and a guaran
teed return of per cent, was asked
by Glenn H. Plumb, counsel for tn,
Railroad Brotherhoods, in statemcn
made before the House Interstate ant
Foreign Commerce Committee this af
ternoon.
"To this system OF pablo plunder,
he said, 1--WE utter the word Jericho
1t must fall. Against it we raise tn,
voice of our implacable defiance"
Mr.. Plumb's principal charges were
l. That eighteen railroads in a
period Of tel. years issued stock
aggregating $450,414,O0O as bonuses.
2. That many millions of dollars
have been paid as dividends on such
bonuses
s. That property investment ac-
counts or proposed valuations of
the roads, upon which to base
per cent return, are being systcmat-
ically padded
4. That if there had been waste in
running the roals under government
control, it occurred at the instance
OF railway managements to make the
expense accounts appear cNtravaant
and wasteful
At Government Expense
5. That men influenced by Wall
Street have been building up the
roads at government expense in an
tlclpation of their return to private
ownership, even buying supplies for
this purpose at eXorbitant prices
8. That the railroads most Offend
ing are controller by the Morgan,
Rockefeller and Gould Interests who
are conducting political conspiracy
to validate all Illegal acts hitherto
consummated by railroad corporations
they control and to bind the oblga-
tlons thus incurred upon the public
Mr.. Plumb presented excerpts from
reports by the Interstate Commerce
Commission as evidence that the prop
erty investment accounts of the rail
way lines of the United States are un.
reliable and cannot be used as the
basis for determining what the public
shall pay for service.
He offered the five railway valuations
first completed and published by the
Interstate Commerce Commission tc
prove that the actual cost of recon
struction now, including the Increased
value of lands and real estate. would
be but so per cent OF the aggregate
property investment accounts Of the
five railways so valued.
At Instance Of Management
In his statement Mr. Plumb said, in
part:
81 charge that President Underwood
Of the Erie Railroad. in an interview
recently given to The New York
World.' stated that the expense OF
operation under government control
had been greatly increased by the en-
ployment for political purposes of un-
crease IN payroll expense had been
made for the purpose OF building a
polltical machine. charge the.t in
vcstigation of President Underwood s
Indictment VIII disclose that if there
mas been wastcfulness OF money in
swelling the payrolls, it has been at
the instance of railway managoments
to make the expense account under
government control appear cXtrava-
CANT and wasteful.
u charge that at the time the gov
ernment took control of the operation
OF the railroads they We're in such de-
! ion
repairs Of both roadbed and rolling
stock that it has required hundreds OF
millions OF dollars advanced by the
government to place them in effective
operating condition.
81 charge that in the making Of such
expenditures the railroads opcrated d
and controlled by men under the in
Huence of Wall Street directorates have
spent vast sums in unusual cXpendi-
lures Tor maintenance ard supplies
anticipating the return Of the railroads
to the priNatc owners; that such un-
usual expenditures have been made for
the purpose of placing these properties
IN perfect operating condition and fur
nlshlng them with supplies for long
period OF operation ahead, such sup
plies having been paid for out Of gov
ernmeMt money at exorbitant prices.
Public Lands Capitalized
Il charge that the records disclose
that an area of land exceeding 100000
600 acres. or 296,S75 square miles, has
been given by the United States gov
ernmcnt and by the various state gov
ernmeuts to our railroads to aid in
the construction of our national high
ways; that this area exceeds in extent
the areas of all the New England
states, New York, Delaware, New Jer-
sey, Pennsylvania, Maryland, Ohio
Indiana and Illinois, and exceeds the
area Of either England, France. Ger
many or Austria Hungary before the
war; that Of the grants made 3,0O0,-
600 acres had been patented and 35.-
100000 acres had been forfeited prior
to June 80, 1910, and that Of the re