Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-08-28
RETURNS INDICATE
RAILWAY WORKERS
WILL REJECT OFFER
Plan for Reorganization of
Rail Lines Offered by
Judge Anderson.
LABOR LEADERS TO MEET
AND DISCUSS SITUATION
President Gompers and Other
Officials Gather in Wash
ington Today.
NEW STATUS FOR EMPLOYEES
Interest In Operation of National
Carrier System.

WASHlNGION. August 27.-Early re-
turns Indicate that the railway shop
men will refuse to accept President
Wilson's compromise offer Of cents
per hour wage increase.
Reorganization OF the railroads
under plan combining the most de-
sirable factors OF both government
and private ownership.
These are the outstanding facts In
connection with the railroad situation
tonight
that no announcements regarding the
vote would be made while it was in
PROGRESS They admis,ed, however,
significant in that i, is Illustrative OF
concerned.
The shopInen situation is one of the
most important matters for immediate
American Federation OF Labor MI
Gompers will arrive here tomorrow
: conference with the executive council
OF the American Federation OF Labor
Council TO Hold SeHsion.
On account Of the urgency OF the
a full membership OF the council will
be present Those who will probably
ss nas joseph OF q g
cinnatl; Frank Duffy. indianapolis; ;
william Green. indianapolis; T.. 4
cago: Secretary Frank Morrison, and
Both the railroad and the steel
Gompers and the executive council
Pending matters Of legislation now
before Congress Will also be taken up
by the council.
Inasmuch as reports OF the vote
as taken by the shopmen are to be
result will be known within n week or
ten days at the most.
Offers New Control Plnn.
Railroad reorganization under plan
tors" OF both sovernment @ and H private
ownership and operation was offered
today as a solution Of the railroad prob
the United States District Court. Bos-
ton. former member OF the Interstate
Commerce Commission. who appeared
before the Interstate Commerce Com
mittee.
Formation OF Federal railroad
company. with broad powers. includ-
ing eminent domain to take over exist
ing transportation facilities, SO as 10
provide "a single national highway
and carrier system" was advocated by
contained no element not already pre-
sented in essence, but was a combina-
tion of clements that lis radically
new"
iew Stntus for Labor.
Labor would, by the proposal of the
sponsibility, include profit sharing. but
strikes would be illegal. Along with
have equal Representations on. the
board Of directors selected to manage
the roads. Rates would be initiated
on the service-at-cost principle by the
Federal company. subject to approval
Of the Interstate Commerce Commits
sion; States would deal with purely
local questions, such as Communication
rates. improvements and safety precau
tionS.
Present owners of the carriers, by
his plan. would be protected in that
bonds would be assumed by the Fed
erl company, and guaranteed by the
government and stockholders in reg
ular dividend paying companies would
be permitted to exchange their hold
inEs on basis not exceeding the re-
turn turn dnrins Federal control. while
Stockholders in the new company
Judge Anderson proposed, would have
an incentive for efficiency, economy
and progress by authorizing a dividend
in excess Of the standard one and pro
rata Issues Of new stock at par.
Secure Public Interest.
Public interest. his plan held, should
be secured against undue capital
esps n hy he ne@ masyy 70 Of bonds hs
Issued at the lowest available interest
rate. Stock certificates of the Federal
provision that they might be taken
over at any time by the government
at par and the accrued standard divi-
dend.
Government contr>S of the railroads
during the war was defended by Judge
Anderson. who asserted that under
such control there was less failure
In the railroad business than in any
other big industry" a statement which
he said he recognized was "inconsist-
ent with prejudiced public senti-
ment."
New Bill offered In Congress-
Several representatives of railroads
appearing before the committee urged
that equipment purchased by the rail-
road admin .stratlon at war prices he
sold to the companies when the roads
were returned, at reduced prices.
In the Senate, a bill was introduced
by Senator Lenroot, Republican, Wis
consin. providing for unification of the
railroads into one privately owned sys-
tenn with. minimum earnings guar
anteed and management shared by the
security holders, public and employees.
-Four Negro Churches Burn.