Ashland weekly tidings. [volume] (Ashland, Or.) 1919-1924, 1919-11-19
printed on request of the local
Railroad Unions.)

Railroad Unions.)
What is the Plumb Plan?
It is a plan for the public owner
ship and the democracy in the con
troll of the railroads.
Wha has. endorsed it?
The two million organized railroad
employees of America; and the Ameri-
can Federation of Labor, approving
the principle of government owner
ship, has instructed its executive
committee to cooperate with the of.
ficers of the railroad internationals
in their effort. II also has been en-
dorsed by several farmers organiza-
tions.
How does it propose to buy the
roads?
BY issuing government bonds with
which to pay for the legitimate pri
vate interests in the railroad indus
try.
How does it propose to operate the
roads?
By board of fifteen directors, five
named by the president, to represent
the public; five elected by the op
Grating officers; five elected by the
classified employees.
Does this mean government opera
tion?
No; it is operation by board II
which those having the responsible
ty have also the authority
II is superior to government op
Grafton because it prevents contro'
by an inefficient bureaucracy; ant
is true democracy since it gives tho
men engaged in the industry voice
in its management.
What becomes of the surplus?
After operating expenses are paid
and fixed charges are met, includinl
the interest on outstanding govern
ment securities, the surplus is di
vided equally between the govern
ment and the men. The employee
portion is to be divided between the
managerial and classified employees
the former receiving double the rate
received by the latter class. This /,
not profit, since the corporation
has no capital. What the men re.
ceive is a dividend on efficiency.
Is this bonus system?
No, it is giving those who increase
production a share of the results theh
increased effort has produced; and
this share is theirs for as long as
they are actually in the service, and
is not forfeitable.
Why do operating officials receive
the larger rate of dividend?
Because II serves as a greater stim.
illus to the group with the most re
sponsibility. And since the operat
ing officials would lose dividends il
wages were increased il acts auto
matically to prevent collusion be-
tween labor directors and the oper-
ating directors to outvote the publica
directors in raising wages beyond a
reasonable level. The chief argu-
ment against the plan is that the
public loses control of its own prop
erty, and that the men in charge can
not be prevented from combining to
pay themselves extortionate wages
This method of shading dividend
sets up a patural barrier against
eOllusion.
Is this the only protection for the
public?
No. the rate-making power re.
mains with the Interstate Commerce
Commission, and II wages were
raised so high that rates had to be
increased, the commission could re.
fuse to change them, and shippers
might appeal to the courts for re-
dress. II the operation by the di-
rectors results in a deficit congress
can revoke their charter.
Does this difference in dividends
create hostility between officials and
men?
No, because without harmony be-
twen them neither group can earn
dividends. An official in working
for his own dividend is working for
the dividend Of his subordinates. for
one cannot gain unless all gain.
Does the plan assure a decrease
in rates?
II provides that when the govern
ment's share of the surplus ia per
cent or more Of the gross operating
revenue. rates shall be reduced ac-
cordingly to absorb the amount the
government receives. For instance
n the entire surplus one year is
$500. .000.O 900. and this is 10 per cent
OF the gross operating revenue. the
government receives s25O.0OO.O0O. .