South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-09-21
Plumb Defends Plan In
Reply To Sen. POmerene;
Says It's Constitutional
Denies Railway Men Threaten
Revolt Unless Plan is Adopt
ed; Leave 1t to People.
BY LOUIS LUDIOw.

Glenn f Plumb. author o. the
Plumb plan for the naturalization OF
railroads. has written a letter %
Sen. Pomerene which is a reply 20
the recent attack made By the sem
stor on the Plumb plan. Sen. Pone-
rene's letter which was IN answer
10 a communication from mem bers
OF the brotherhoods az Colum bus.
O.. had such a wide circulation and
attracted so much notice that the
author Of the plan himself deemed
it necessary 10 give Il his personal
attention.
Piumb's reply 20 Pomerene IS long
and goes into details
Plan Constitutional.
You say the Plumb plan is revo-
lutionary" says Plumb We hate
yet 10 md a student OF constitution
al law who SAYS that IL Is uncon-
stitutional II requires no amend
ment 20 the constitution 10 permit
this plan 20 be carried into effect
1t Is within the purview OF the con-
stitution. is therefore wholly Ameri-
can and cannot be damned by assert
ing that il Is socialistic or boishe-
vistic or by the application o. any
other epithet or misnomer.
You say there is no such radi-
cal difference between the present
government control and operation
and that provided for in the Plumb
plan as 10 warrant any one in saw
ing that while the former has been
a failure the latter viii be sue
cess.
If there is no radical difference
between present control and the
plan we suggest. then does the pres
ent control come under your de-
finitions OF socialism or bolsheSlsm
"a conclusion which we do not be-
lieve you Intended 10 reach on
the other hand, we find so radical
a difference in that under our plan
the roads are no longer operated
for private profit. even though
deficits occur. but are operated for
the public al cost. that we have no
difficulty in seeing success under
our plan, where failure under the
other was inevitable.
No Threats OF Revolt.
Again you say: I want 20 say
10 you, as one American TO another.
it is neither fair nor American TO
insinuate revolution as they have
done before the interstate commerce
committee OF the house, unless their
demands are granted and among
the threats they have made are the
threats OF nationwide strike
Your statement totally disregards
the explicit statements OF Mr.. Stone.
Mr.. GarretsOn and Mr. Plumb. who
plainly stated 10 the COMMITTEES that
there was no thought OF direct &C
ton by strike or otherwise 10 COM
pei the passage OF this measure;
that its consideration was purely a
matter OF statesm anship and II en-
acted 1t could only be enacted by
and with the approval OF the people
Of the United States. For you 10
assert 70 the contrary is 10 partici-
pate in propaganda OF misinforma-
ton, Misrepresentation and denial
OF the fair appeal 10 the public
which we are trying TO make"
Finance Plan.
In reply TO the question raised by
Sen. Pomerene as 20 how the scheme
would be financed. IN his reply. says:
You ask where can buyers be
found for the bonds the government
must sell. A slight understanding
OF finance would answer the ques-
ton. Assume that 81 be determined
that there is $4,000. 900. 900 invest
ed in these properties and the gov
eminent must then raise $4,000
600. 600 70 purchase that investment
The investment fund OF this nation
is almost a fixed quantity. The }13.-
900. 900. 900 now invested IN rail-
ways, II we paid that amount. must
find some other field Of investment
and no other field exists except that
offered BY the government IN place
OF the existing filed. Monday for In
vestmen cannot be held out % the
market except at a loss OF interest
return II would not be so held by
the present owners but. IN spite OF
all that IS said 10 the contrary. a
large percentage OF the owners %
that $4,000. 100000 OF value would
gladly seek re-investment in the
government securities al the rata
which could command that invest
ment.
In addition, organized labor sub
scribed S1.250.OcO.O00 IN Liberty
bonds. The public and organized
labor would surely subscribe for
one half the amount required II Tho
owners OF the existing investment
preferred 70 lose their investment
rather than receive interest on their
moneys"
Estimate Too High.
Referring 20 the estimate OF 500
900, 600, 900 as the value OF railroad
property IN the United States Plumb
says:
This we do not contemplate. We
only contemplate paying that
amount which the courts. after due
investigation. shall decide as being
the value Of the rights actually con-
ferred upon these corporations and
the value actually accrued 20 them
under the grants they have re-
ceived
~ .--a-aF-- fhat shn