Arizona republican., 1919-02-08
EMP PLOYEES WANT TO KEEP RAILROADS

WASHINGTON, Feb. 7.-Railroads should be kept under government con- trol until congress has developed per manent plan for their management, Glenn F. Plumb of Chicago, spokesman for organized railroad labor today told the senate interstate commerce com mittee. Twenty one months of govern ment control, authorized by the present law. will not be sufficient time for working out solution. Mir. Plumb said, but railway employees are hostile to five year extension unless the rail- road administration revokes it's order forbidding railway employees to par ! ticipate in politics.
 For permanent solution the labor forces proposed the following:
 Government ownership of all railroad properties; operation by a single cor poration. dividing profits equally be- l tween employees and the government and directed jointly by representatives of employees, operating officers and the public; automatic reduction of rates when profits exceed a certain ! amount and retention by the interstate commerce commission of present pow i CT to regulate rates.
 | Merits of the plan, it was argued, are | that 1t would promote efficiency through the profit shading feature and through 1 unified operation take railroads out Of ! politics, stabilize investments. elimi- nate conflicts between states and fed eral authority and provide local means of financing extensions.
 As a prerequisite to government ownership the labor interests proposed | that railway properties be appraised without the big allowances claimed by | nj fnF- 1ny y,1 | based on costs of acquiring them, at present
 Most of the questioning of MT. Plumb revolved around the opposition to the railroad administrations political or der. MT. Plumb said this virtually tied the hands of railroad employees in as sisting in developing a solution of the 1 railroad question.
 It might prevent them from organiz- ing for promotion of principles they l advocate, he said, while security own CTS and railroad executives are un- hampered by such a rule.
 Senator Cummins of Iowa inquired how the interstate commerce commits sion would determine under the labor plan what would constitute fair rates to provide share of profit for division among employees. Mir. Plumb suggested that in the beginning rates might be placed on a level to render one per cent of gross operating revenues as net earnings to be shared among employees and one per cent for the government When the governments share exceeded five per cent the interstate commerce commission should readjust the rates.
 Senator Cummins also expressed fear that if government operation were continued for five years, congress would stop efforts to find q solution until near the end of that period. MT Plumb replied that he believed inter- ests representing capital, seeing their relations becoming more complicated would press for change and the pub lie feeling that the government was paying too much as compensation to the roads, would urge congressional action sooner. Labor, he said would lend all it's influence to promoting early legislation.
 Arguing for profit sharing. MT Plumb said:
 'If you want efficiency, why not go to the men who have efficiency to sell ! Capital sdoes not produce efficiency l The efficiency of labor would be quad- rupled under this plan because they would not be hampered by the inexper- fenced officers who control capital