New-York tribune., 1919-08-12
The Plumb Plan

Direct government operation of the
railroads is so dead after year and one
half of experiment that no one except a
crank or two ventures to advocate gov
ernment ownership and operation.
The fruits of the experiment have been
higher fares, poorer service, increased
taxation, nothing for necessary improve
its worst The railroads of America are
being wrecked. When the plants and
equipment which the private owner sur
rendered are worn out conditions will
be worse. Already transportation by
vehicles on the highways is cheaper and
speedier.
The evils disclosed are inherent in the
system. 1t has been sadly demonstrated
that the government is not strong
enough to protect the unorganized pub
lie against the onslaughts of an organ
lied minority. Sometimes by political
pressure and sometimes by threats to
stop the traffic which is life to every
man and woman the selfish desires of
class gain mastery. The Gar formerly
used his old control of an army to ter
rorize millions into subservience; so the
new concentrated power is as ruthless.
Tyranny, alas, is always tyranny.
Direct government operation under
system in which public officers shall
dance as ordered having failed, another
scheme to the same end has been de-
vised-the Plumb plan. A practically
perpetual lease is to be given the same
minority. We turn from government
operation, because in fact it is brother
hood operation, and brotherhood OPERA
ton is proposed as d pretended substi-
tute.
10 protit-sharing there is no obiec-
ton. Despite the record made since
the Adamson law was driven through,
is it not impossible to consider a lease
to the railroad employees? Abstractly,
1t might be good to have the men finan-
clally interested i'll efficiency, even to
the extent of giving them every cent
they saved.
But the Plumb plan is not to intro
duce proft-sharng. 1t seeks other ends
first. 1t is highly improbable there would
be profits to share. Wage increases
would eat them up
This is conclusion not to be avoided
by those who take the trouble to read the
SimG bill which enlbodies the plan. First,
there is no acceptance of the risk of the
hI1C
securing a fair rental for the property
leased; third, there is no effective control
OF rates by public authority; fourth the
control over wages is placed in the hands
Of board that the railroad men will
control by a two-thirds majority, and
whose one-third they may control by
political mani pulation
Suppose the railroads were turned
back to private control and managed by
boards of directors elected by the stock
holders; then suppose these stockholders
could declare any dividend they pleased
and the Interstate Commerce Commits
sion were compelled to fix rates that
would realize the money; under these cir
cumstances one may imagine what the
stockholders would do And human ma
ture being about the same, whether a
man is a stockholder OF a railroad
worker, one may imagine what would
happen under the Plumb plan.
1t is fundamental to have public con-
troll over rates, and if there is lease, to
have the lessees take the risk of the busi-
ness. But these things are the exact
things the Plumb plan avoids providing
for. SO it is not difficult to assess it's
quality or to predict it's consequences.