Gilpin observer., 1919-12-25
THE PLUMB PLAN

We see but little mention, in
the subsidized press, of the Plumb
plan. An idea that has been in
dorsed by several million voters
among organized labor, by large
number of farm organizations, by
numerous civic bodies thruout the
country, and that is daily gather
ing to itself new elements of
strength should receive the care
full attention of the press of the
country.
Briefly stated, the Plumb plan
stands for the public ownership
and the democracy in the control
of the railroads. A board of fif-
teen directors will control the op-
Grafton of the roads, five to be
named by the president of the Un-
tied States, five to be elected by
the operating officers and five to
be elected by the classified en-
ployes. After operating expenses
and fixed charges are met, includ-
ing interest on outstanding gov
ernment securities, one-half of
the profits will go to the govern
ment and the other half will be
paid to the employees. The pres
ent owners of the roads will re-
ceive no share of the profits as
the government proposes to buy
the roads by issuing bonds to pay
for the legitimate private interest
in the industry. This means that
all water will be squeezed out of
the stock and that the owners will
not receive pay for over capitali-
zation but only for the cash value
of the roads. 1t is estimated that
the public will pay less than two
thirds of what railroad compan-
les claim as their value. While
the government has only one-third
of the board of directors and does
not have absolute control of the
operation of the roads, it retains
the right to fix all passenger and
freight rates thru the Interstate
commerce commission. The gov
ernment invests it's part of the
profits in the improvements of the
roads without advancing the fixed
charges for services and in the
end the public would have its lail-
road service at cost.
The board of directors will op-
crate the roads under charter
and in case their operations
should result in a deficit, congress
can revoke their charter. One of
the fixed charges made a part of
the operating expenses provides
for the creation of a fund to re-
tire the bonds with which the
roads are purchased. The plan
seems to be very carefully drawn
with provisions made to meet any
contingency that might arise.
There can be no doubt that it
would prove to be a great i'm
provement over the present meth
cd of operating the roads. If upon
practical application defects
should be discovered they could
be easily remedied. A
So far as railroads are concern
ed it would prevent the concentra-
tion of wealth by the few, as all
of the profits of the business
would go to the government and
to the railroad employees.
1t would prevent profteering
for the reason that the govern
ment retains the power to fix rail-
road, freight and passenger rates.
1t would remove at one blow one
of the great monopolies that are
today menace to the life of this
nation and the freedom of it's peo-
pie.
1t would end all railroad strikes
as there would no longer be any
necessity for striking. 1t would
be a just recognition of the rights
of labor and labor is now contend
ing, not for an advance in wages,
but for its full rights, and we use
the word labor in no narrow
sense. Every person who tolls
with hand or brain to produce
anything that will benefit human
ity is a laborer. We must unite
if we expect to obtain equal op-
portunities for alls with special
privileges to none" The next ell
ection should be fought out on
live issues and not upon the de-
cayed memories of the past. No
party is worthy of notice that does
not base its appeal to the people