Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1919-08-20
IS BIG ROADS ARE
ACCUSED BY PLUMB
Declares They Gave Away Huge
Stock Bonuses.
MUCH TRICKERY is CHARGED
Garretson Tells Congressman Railroad
Administration Officials Who Act
ed for U. S. Tried to Show
Private Ownership Best.

Washington, Aug. discharges that
10 representative railroads operat-
ing in all parts of the United States
gave away stock bonuses aggregating
$45O,414,OOO from 1900 to 1910 and
have paid millions in dividends on
these bonuses were made before She
house interstate commerce committee
by Glenn e. Plumb of Chicago, author
of the Plumb plan for tripartite con-
troll of the roads.
Mr.. Plumb charged, further that
"these railroads, which have so in
creased their property investment &C
count at the expense of the public, are
now controlled in whole or in part by
the Morgan interests, the Rockefeller
interests and the Gould interests"
Demands Inquiry by Congress.
ION behalf of all of the employees
of these systems, of transportation and
the public" said Mr. Plumb, we de-
mand that congress shall make thor
ough investigation of the charges here
in set forth, so that the American peo-
pie may know to what extent it Is
sought to subject them to exploitation
under the plans proposed to this COM
mittee of congress, plans which would
make lawful the fixing of rates based
on the now unlawful aggregate prop
erty investment accounts of these Sys-
TENS"
Specifically, Mr. Plumb charged that
the Chicago, Burlington & Quincy, the
Chicago Milwaukee & st. Paul, the
Chicago & Northwestern, the Great
Northern, the Illinois Central and the
Southern Pacific railroads gave away
in bonuses to their stockholders more
than $3.50, 100000 during the ten-year
period mentioned, and that the actu-
al dividend disbursements on this eX-
cess CAPITA for the year 1913 alone
amounted to more than $11, 600 600"
He also alleged that the Pennsyl-
vania, Baltimore & Ohio, New York,
New Haven & Hartford, New York
Central & Hudson River railroad,
Boston & Maine and the Delaware Il
Hudson company ISSUED new stock
for $1O1 100000 less than it's market
amount in bonuses to stockholders, "
and that "the dividends on these fic-
titiOus stock issues in 1913 alone
amounted to S4,317 600"
Railway Trickery is Charged.
A 3. GarretSOn, former head of the
Order of Railway Conductors, told the
committee that operating officials in
charge of railroads during government
control were actuated by the one de-
side of demonstrating that government
ownership was not best for the cOun-
try. Exactly the same operating force
that built up a great surplus before
the war created big deficit, Garrett
son said.
There could be no real test as to
government operation so long as the
future disposition of the roads had
not been determined. Every effort was
made to convince the people that pri-
vate management was best.
when the railroad official prays he
turns his face to Well street, but once
1t is demonstrated, for instance. that
management in future will center in
Washington. l am sure he will serve
the government as earnestly as he
served the old masters in the past"
Discussing the Plumb plan for tri-
partite control of the roads, Mr.. Gar
retson said 1t utterly demolished cap
ital account, while the other plans sub
mitted to congress, added to it until
the grandchildren of the present gen.
Grafton would stagger under the load"