Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-08-19

oNtuoliI III tle service, ana
Why Do Operating Officials Receive
the Larger Rate of Dividend?
Because 1t serves as q greater slim
illus to the group with the most re
sponsibility. And since the operating
OFFICIALS would lose dividends if wages
were increased it acts automatically to
prevent collision between labor direc-
tors and the operating directors to
outvote the public's directors in rails
ing wages beyond reasonable level.
The chief argument against the plan
Is that the public loses control of
its own property, and that the elen in
charge cannot be prevented frof COM
bining to pay themselves extortionate
wages, This method of sharing di-
Vldends sets up natural barrier
against collision.
Is This the Only Protection
for the Public?
NO. the rate-making power remains
with the Interstate Commerce COM
mission, and if wages We're raised so
high that rates had to be increased,
the commission could refuse to change
them, and shippers might appeal to
the courts for redress. If the oper-
alton by the directors results In a
deficit congress can revoke their
charter.
Does This Difference in DIVIDENDS
Create Hostility Between Officials
N and Men? $50
No, because without harmony be-
tween then neither group can earn
dividends, An official In working for
his own dividend is working for the
dividend of his subordinates. for one
cannot gain unless all gain.
Does the Plan Assure a Decrease
i'm Rates?
1t provides that when the govern
ment's share of the surplus is 5 per
cent or more of the gross operating
revenue, rates shall be reduced accord
ingly to absorb the amount the gov
eminent receives. For Instance: If
the entire surplus one year is $780,
100000, and this is 10 per cent of the
gross operating revenue, the govern
ment receives $250.000,000. And be-
cause this is per cent, rates are de-
creased s per cent. See what follows.
Without new economies or new bust
ness the profits the next year would
be only $250.000000, and the employ
es and the government would receive
only half the amount of the year be-
business; and also, the reduction in
dividends would stimulate the employ
es to improve their operation by APP
plying better methods. So the tend
ency is to assure constantly decreas-
ing rates, to add TO the volume of
business, and to give the most efficient
service human ingenuity and devotion
can provide. Decreased rates mean
cheaper commodities; and so, through
the effectiveness of the railroads, the
purchasing power of money is increas-
ed, not only for the railroad man, bnt
for every wage Garner and every pur
chaser.
What Does the Government Do With
Its Share of the Surplus?
1t invests it in improvements and
thus adding to the value
of the railroads without adding to the
fixed charges. 1t retires the outstand-
ing bonds, thus reducing the fixed
charges. Ultimately the public has its
service at cost
Docs the Government Pay for All
Extensions?
No, the, community benefited must
pay if it can; if it is able to pay all, |
the building of the extension is obli- |
gatory If it only pays part, the gov
eminent pays the remainder, but only !
makes the extension as it deems wise. |
And where the general public and
not local community would be bene- I
fitted, the government pays the whole
bill.
How Are Disputes Between Officials |
and Men Adjusted?
BY boards, to which the operating !
officials elect five members and the
men, five members. In case of failure |
to reach an adjustment, the case Is
appealed to the directors.
What Determines the Rate OF Wages? /
The board of directors.
Who Supeivises the Purchase of the
Roads?
A purchasing board, composed of
the Interstate Commerce commission
and three directors of the new gov
eminent corporation, one director
from each group.
Who Decides the Value of the Private
Interest I'm the Roads?
The courts. 1t is a judicial question, |
and is TO be answered only after an |
of the charters of the ex-
listing companies, the laws under
which they are created, and the man
ner in which the company has lived !
up to its charter and these laws.
Will the Public Have to Pay for Wa
tered Stock?
No. The public will probably pay
less than two-thirds of what the rail- |
roads claim as their value.
Are There Other Sayings?
Yes. the public can obtain the mon
ey to purchase the lines at per cent, |
the public is now charged |
rates to guarantee the roads LIZ
per cent on their money. The saving
on the present capital account of the
raj roads would be about $500, 900, 600, |
and on an honest valuation would be |
nearly twice this sum. The Plumb |
plan provides for sinking fund and |
every year one of the fixed charges
would be / per cent of the outstand- |
ing Indebtedness to be used in retir- |
ing the bonds. The government also
uses its profit in retiring bonds, SO
eventually, probably in fifty years, the
people would own the roads debt-free.
A further saving would be in the OPP
Grafton of the roads as a unified sys-
tenn, which permits the interchange
of equipment, the end of wasteful
and greater economy in
buying supplies. Under. this plan, pas
senger rates of 1 1-2 cents a mile, |
and reduction of freight rates by
40 per cent appear reasonable.
What Is Called the Plumb Plan?
Because 1t was conceived by Glenn
E. Plumb, general counsel for the