Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-02-07
J.. S. OWNED ROADS
PLAN IS PROPOSED
Labor for Private Operation
Under One Corporation,
Senators Told.
PROFITS TO BE SHARED

Railroad labor interests today pro-
posed government ownership and pri-
waite operation by one large corpor-
alton, comparatively organized and
sharing profits with employees, as
their solution of the railway problem
Testifying before the Senate inter
state commerce committee on behalf
of the four leading trainmen's broth
erhood and other employees organiza-
tons. Glenn E. Plumb of Chicago rec
commended that the government ac-
quire all railroad property at price
fairly representing the physical valu-
alton, and intrust the operation to
corporation to be directed jointly by
employees. officers and the government.
Earnings would be divided equally
among employees and the government,
and rates would automatically be re-
duced when profits amounted to more
than a fixed rate.
Believes It Would Be Boon.
This plan, it was argued, would
provide cheaper financing, give sta
bIlity OF income to security owners,
promote efficiency of operation
through sharing profits. remove rail-
road operation from partisan politics.
compose conflicts between federal
and state authorities, keep rates at a
minimum. eliminate complications in
rate schedules, and provide a means
of making communities benefiting by
extensions pay for them. The cor
poration would be subject to regula-
ton by the Interstate Commerce Com
mission, which would retain its
present regulating powers.
The brotherhoods objected to the
railway executives proposal for
establishing a Secretary of Transpor-
tation, saying this would constitute
regulating the people in the inter
ests of capital" They also protested
order forbidding railway employees
taking part in politics, arguing that
the solution of the railway problem
is a political issue and that employees
are entitled to participate.
For Operating Corporation.
Mr.. Plumb suggested organization
of IAN operating corporation where
operating ability constituted its sole
capital
"A certain agreed percentage OF the
net results of operation should belong to
this corporation" he said THE stock
Of the corporation should be held in
trust for the benefit of the employees.
The corporation would be administered
by a board of directors, who, we sug-
gest tentatively, should be elected in
this manner: One-third to be elected by
The classified employees below the grade
Of appointed officials, one-third by the
appointed officials and employees, the
inal third being appointed by the Presi-
<xf fha vr;t 1d no
With one-hah of the profits going to
the government and the other half to
The corporation to be distributed among
Mr.. Plumb said, the men
would be actuated by desire to pro-
mote efficiency and economy as means
Of increasing profit
Such a scheme" he said, would
render to the public all of the benefits
Of unified operation. It would eliminate
al the costs OF competition. without los
ing any of the benefits OF competition.
Sees Removal Of Politics.
This would remove the operation of
the railroads from politics. Government
officials could not possibly have any
thing to say about the employment of
men or officials of the road. They would
have nothing to say as to construction
Or extension of new lines.
THE government would have no
power TO exact IIUIn Inc pubic a re-
turn which was more than adequate
for the maintenance and operation of
the service. and the public would not
need to be protected against high
rates and diversion of profits to pri-
gate interests.
you could provide that whenever
the total amount of net revenue paid
to the governm emit exceeded 5 per cent
IF the gross operating revenue the In
terstate Commerce Commission should
.hereupon adjust the scale of rates in
cent thereby producing an equivalent
Of a per cent reduction in rates."
Boards for Adjustment.
Wage and employment disputes
would be settled by wage boards and
boards of adjustment similar to those |
now maintained by the railroad adj
The government could provide cap
tai from one-fourth to one-half |
cheaper than private investors. said |
Mr.. Plumb, and this should mean an |
annual saving under government |
ownership in the cost Of capital of |
rom four to six hundred million dol |
ars" The result might be a reduc- |
Jon Of 10 per cent in rates. he de- |
,lared.
Railroad security owners would have |
l fixed rate of return, and this. he |
would eliminate continual |
agitation before Congress and state |
legislatures for measures affecting
financial interests of railroads.
MANY BILLS SIDETRACKED.
L.: ~,