Newark leader. ([Newark, Ohio]) 1917-1946, 1919-07-18
RAILROAD DEMOCRACY
Two Million Railroad Workers Supporters of the
Newly Organized "PIumb Plan League

| LaDOrS solution OF the railroad
problem finds official voice for the
first time through the organization
in Washington Of the "Plumb Plan
League. This organization is plac-
ing before the nation a plan for
public operation and democracy in
control of the railroads. The League
is supported by the two million or
ganized railroad workers; the exc
cutive council Of the American Fed
GRAFTON of Labor has been instructed
to cooperate with it. Samuel Com
pers, President of the American Fed
Grafton of Labor, is its honorary
president and nineteen high officials
of national and international labor
organizations form the corps of of
ficers.
The railroad question is Of vital
interest not only to the railroad
workers, not only to labor in general,
but to every. person. The cost Of all
articles Of dress, or building material
and fuel, or food-stuffs, is affected
by transportation rates. Every dol
lar paid in past years in rates has
gone in part to pay dividends on
watered stock, and so the price of
coal, cotton, pOtatOes-has gone up
millions of dollars, taken from the
people to enrich owners of specu-
lative securities.
Every $4,000 salary paid to an un-
necessary or incompetent railroad Of
fetal adds just that much to the
selling cost of transported articles.
The past era Of private ownership
and control has seen many such
salaries.
The nation is rising against these
evils, which have become synonymous
with private control and operation Of
it's railroads. Now labor provides a
new system for the railroad industry,
wherein these evils will not exist.
Briefly, the Plumb Plan provides:
Purchase OF the Roads
An issue of government bonds with
which to pay for the legitimate pri-
vate interest (actual Investments in
the railroad industry. This does not
mean purchase of watered stock. The
public probably will pay less than
two-thirds of what the railroads
claim as their value.
Determining the Real Value
The courts are to decide the real
value of the private interests in the
railroads. 1t can be determined only
after examination of the charters Of
the existing companies, the laws un-
der which they were created, and the
extent to which each company has
lived up to its charter and the laws.
Control of Operation
Operation will be by a board of
fifteen directors; five named by the
President to represent the public;
five by the managerial officers; five
elected by the classified employees.
This plan is free from the evils of
government operation. 1t eliminates
the opportunity for control by an in
efficient, politically appointed man.
agement. 1t gives each man in the
industry a voice in the management
Of the railroads.
Disposition of Surplus
Any surplus above operating eX-
penses and the payment of fixed
charges (including interest on out
staining government securities) is di-
vided equally between the govern
ment and the men. This provides
stimulus to the employees, since a
surplus may be secured only through
increases in efficiency and by the
creation of new business.
Sharing the Surplus
The share of the surplus going to
the government is to be used for i'm
provements and extensions, and to
retire outstanding bonds.
The share going to the men will be
divided among the managerial and
classified employees, but the former
class receives double the rate of the
latter.
Safeguarding the Public
By giving the official employees
twice the rate of dividend going to
classified labor, the extra response
bility of management is recognized,
and the public is protected against
combination of employees for the pur-
pose of undulY increasing wages. For