The Bridgeport times and evening farmer., 1919-08-14
WAKEFIELD PLAN PRESENTED TG CONNIE COM, Walter Explains Division of All Surplus Between Elm
 ployes and Public. OPPOSED FEDERAL
 INCORPORATION Financial Structure of Cred it's Depends Upon Legisla-
 tion Enacted.

Wash1n gton, Aug. 14 - The War field plan for railroad control, with provision for a flat return of 6 per cent on capital invested, was pre- scented today to the House Interstate Commerce Commission, by Luther M Walter. general counsel of the Ma tional Association of Owners of Rail- road Securities.
 The fundamentals of the plan, in- cluding division of all surplus over the fixed return among employees, the public and the road earning it, were explained by MT. Walter, who declar- ed 1t could be put into effect imme- . diately.
 '"The keystone of the Warfield plan," the witness said, lis con- gressiona1 direction to the Interstate Commerce Commission that it shall make freight and passenger rates suf- f1cient to pay operating expenses, | maintain railroad properties and give not less than DOT cent. return upon the aggregate face value of the prop | erty devoted to transportation in each | of the principal traffic territories.'' MT. Walter opposed federal incor- | poration, a telephone board and g. | secretary of transportation in the | cabinet, and declared that unless the | minimum return plan the net result | of operations in the pre-war test period, the basis of government rem l tai, some of the carriers would have i turned in a surplus for division be-
 tween employees and the public. MT. Walter said the financial ] structure of credits depended upon l the legislation enacted by this con- 1 gress to deal with the railroad prob
 lem. The association, he said, used l the property investment account of | the carriers as the basis upon which | to apply the per cent, because the i Interstate Commerce Commission had
 found that the only available basis 1 for prompt determination of suff- l ciency of the return upon investment. It was a fundamental of the War field plan, the witness said. that la
 of the carriers.
 I've believe" he declared, that
 capital is entitled to it's return of six
 per cent; that labor is entitled to a
 fair wage and that the excess earned by the carriers after paying fair wages and per cent. on capital should be divided with labor and the public. Labor's share should be used for the establishment of the insurance system or for profit sharing. By req son of the largely increased duties which fall upon the commission the security holders ask Congress to ere ate six regional interstate commerce commissions, subordinate to the com mission, but with all the powers of the interstate commerce commission in their respective territories. Our plan contemplates that these regional commissions shall act as boards of conciliation in settling wage disputes,
 being a body close to the employees
 the carriers and the shippers.
 ''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
 Interstate Commerce Commissioners I and eight railroad men selected by 1 the railroads. This corporation
 would furnish expert advice to the
 commission in the operation of car
 riers, would unify terminals, would
 operate equipment such has been
 built by the railroad administration
 and allocated to the individual rail-
 roads. It would furnish a great
 clearing house for railroad operation
 and in times of emergency would
 constitute the directing force for the
 handling of the railroads as a single
 SyStern'