Pine Bluff daily graphic., 1919-08-15
CAPITAL, LABOR
 AND PUBLIC TO
 SHARE PROFITS
Security Owners Representative Discusses Railway Problem
 Solution.

WaShfngtOn, Aug. 14.-Ihe War field plan for railroad control, with provision for flat return of six per cent on capital invested, was pre- sented today to the House Interstate Committee by Luther M. Walter, gen. eral counsel of the National Associa- tion of Owners of Raildroad Securl- ties.
 The fundamentals of the plan, in- cluding division of all surplus over the fixed return among employees, the public and the road earning 1t, were explained by MT. Walter, who declar- ed it could be put into effect lmme- diately.
 "rhe keystone of the Warfield plan, the witness said, "is a congressional direction to the Interstate Commerce Commission that it shall make freight and passenger rates sufficient to pay operating expenses, maintain rall- road properties and give not less than six per cent return upon the aggre- gate fair value of the property de- voted to transportation in each of the principal traffic territories"
 Entitled to Per Cent.
 MT. Walter opposed federal incor- poration, a transportation board and a secretary of transportation in the cabinet, and declared that under the minimum return the net result of operations in the pre-war test period, the basis of government rental, some of the carriers would have turned in a surplus for division between ~enn- ployes and the public. Mir. Walter said the financial structure of credits depended upon the legislation enacted by this congress to deal with the rall- road problem.
 It was fundamental of the War field plan, the witness said, that la Dor should participate in the earnings of the carriers.
 "We believe,' he declared, "that capital is entitled to it's return of SIX per cent; that labor is entitled IO . fair wage, and that the excess ear ned bv the carriers after paying falr wages and six per cent upon capital, should be divided with labor and the public. Labor's share should be used for the establishment of the insurance system CT for profit sharing. By req son of the largely increased duties which will fall upon the commission the security holders ask congress to create six regional interstate com merce commissions subordinate to the commission but with all the powers of the Interstate Commerce Commls- sion in their respective territories.
 "Our plan contemplates that these regional commissions shall act as boards of counciliation in setting wage disputes, being body close tc the employees, the carriers and the shippers.
 Reputable Issues. :,
 "The issuance of securities of all carriers engaged in interstate com merce would be vested exclusively in federal authority.
 "This plan would create a corpor- ation operated without profit to the railroads and managed by the nine Tn. stertate commerce commissioners ano eight railroad men selected by the railroads. This corporation Woulc furnish expert advice to the commls, sion in the operation of carriers, Woulo unify terminals, would operate equip ment such as has been built by the railroad administration and allocated to the individual railroads. It woulc furnish great clearing house fol railroad operation and in times o1 emergency would constitute the al. recting force for the handling of the railroads as asingle system"
 In contending that six per cent as the proper return would not be usury MT. Walter said:
 "Even MT. Plumb, the great eX- ponent of low returns, admits that six per cent is not an excessive return under private operation.