The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1919-08-22
PLUMB ACCUSES
IS BIG RAILROADS
House Committee Told That
Roads Gave Away Huge
Stock Bonuses.
GARRETSON ALSO TESTFIES
Tells Body That Railroad Officials
Who Acted for Government Tried
to Show That Private Own-
ership Was Not Best.

Washington, Aug. 14.-Charges that
IS representative railroads operat-
ing In all parts of the United States
gave away stock bonuses aggregatlng
S45O,414,OOO from 1900 to 1910 n
have paid millions in dividends on
these bonuses were made before the
house interstate commerce committee
by Glenn T.. Plumb Of Chicago, author
OF the Plumb plan for tripartite con
troll Of the roads.
Mr.. Plumb charged further that
"these railroads, which have so IN
creased their property investment &C
count at the expense Of the public, are
now controlled in whole or in part by
the Morgan interests, the Rockefeller
interests and the Gould interests.
"On behalf Of all of the employees
of these systems, of transportation ana
the public" said Mr.. Plumb, I'VE de-
mand that congress shall make q THOR
ough investigation Of the charges mere
In set forth, so that the American peo-
pie may know to what extent lt IS
sought to subject them to exploitation
under the plans proposed to this com
mittee of congress, plans which would
make lawful the fixing Of rates based
on the now unlawful aggregate prop
erty investment accounts of these sys-
tens"
Specifically, Mr.. Plumb charged thai
the Chicago, Burlington & Quincy, the
Chicago, Milwaukee & st. Paul, the
Chicago & Northwestern, the Great
Northern, the Illinois Central n the
Southern Pacific railroads gave away
i'm bonuses to their stockholders more
than $3.50, OOO,O 900 during the ten-year
period mentioned, and that the actu-
al dividend disbursements on this eX-
cess capital for the year 1913 alone
amounted to more than $11,O0O,OOO."
He also alleged that the Pennsyl-
vania, Baltimore & Ohio, New YORK,
New Haven & Hartford, New YORK
| Central & Hudson River railroad,
Boston & Maine and the Delaware u
Hudson company ISSUED new stock
for $1O1, 600, 900 less than its market
value"
A. b. G~arretson, former head OF the
Order of Railway Conductors, told the
committee that operating oflclalS III
charge of railroads during government
control were actuated by the one de-
side of demonstrating that government
ownership was not best for the coun-
try. Exactly the same operating force
that built up a great surplus before
the war created a big deficit, Garrett
son said.
There could be no real test as 70
government operation so long as the
future disposition Of the roads mac
not been determined. Every effort was
made to convince the people that prl'
vate management was best.
when the railroad official prays ne
turns his face to Wall street, but once
II is demonstrated, for instance, tina
management In future will center IL
Washington, l am sure he will serve
the government as earnestly as III
served the old masters in the past
Discussing the Plumb plan for TIL
partite control of the roads, Mr.. Gar
retson said it utterly demolished cap
itai account, while the other plans sub
mitted to congress, added to 1T unit
the grandchildren of the present gen
GRAFTON would stagger under the a