The Mena weekly star. (Mena, Ark.) 1904-1977, 1919-08-21
LABOR AND PUBLIC
SHOULD BENEFIT
Under Warfield Plan Freight and Pas
senger Rates WenId Pay Operating
Expenses of Railroads and SO on
the Investment.

Washington, Aug 1.-THE Warfield
plan for fiat return of per cent on
capital invested was presented today
to the house interstate commerce
committee by Luther M. Walter, gen.
eral counsel of the National Associa-
ton of Owners of Railroad Securities.
The fundamentals of the plan, in
Guiding division of all surplus over the
fixed return among employees, the pub
lie and the road earning it, were ex-
planned by Mr.. Walter. who declared
it could be put into effect Immediately
The Plans Keystone.
"The keystone of the Warfield plan"
the witness said, us a congressional
direction to the interstate commerce
commission that it shall make freight
and passenger rates sufficient to pay
operating expenses, maintain railroad
properties and give not less than 6
per cent return upon the aggregate
fair value of the property devoted to
transportation in each of the princi-
pal traffic territories"
Opposes Federal Incorporation.
Mr.. Walters opposed federal incor-
poration, a transportation board and
secretary of transportation in the
cabinet and declared that under the
minimum return plan 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 employees
and the public. Mr.. Walter said the
financial structure of credits depend
ed upon the legislation enacted by this
congress to deal with the railroad
problem.
Labor and Its Share.
1t was a fundamental of the War
field plan, the witness said, that labor
should participate in the earnings of
the carriers.
1--WE believe" he declared, "that
capital is entitled to its return of 6
per cent; that labor is entitled to a
fair wage, and that the excess earn
ed by the carrier after paying fair
wages and per cent upon capital
should be divided with labor and the
public. Labor's share should be used
for the establishment of an insurance
system or for profit sharing. BY rea-
son of the largely increased duties
which fall upon the commission the
security holders ask congress to Gre
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.
Matter of Wage Disputes.
"Our plan contemplates that these
regional commissions shall act as
boards of Cancellation in settling wage
disputes, being a body close to the EN-
ployes, the carriers and the shippers.
"The issuance of securities of all
carriers engaged in interstate COM
merce would be vested exclusively III
federal authority.
"This plan would create corpora
ton operated without profit to the
railroads and managed by the nine in
terstate commerce commissioners and
eight railroad men selected by the
railroads. This corporation would
furnish expert advice to the commits
sion in the operation of carriers,
would unity terminals, would operate
equipment such as has been built by
the railroad administration and al
located to the individual railroads. 1t
would furnish great clearing house
for railroad operation and in times of
emergency would constitute the direct
ing force for the handling of the rail-
roads as single system"
In contending that six per cent as
the proper return would not be ques-
toned, Mr.. Walter said:
even Mr.. Plumb, the great ex-
ponent of low returns, admits that
six per cent is not an excessive return
under private operation"