New-York tribune., 1919-09-04
What the Plumb Plan I. Not

Glenn +. Plumb, in The independent
concerning what he describes as "the
three main features" of the brotherhood
railway reorganization plan, summarizes
as follows
L. Operation Of the carriers by a tri-
partlte commission in which the public.
the operating officials and the workers
are equally represented.
Z. Purchase of the roads by the gov
ernment through the issuance of bonds.
mus guaranteeing just return on
valuation to be determined by the courts.
8. Dividends to be apportoned equally
between the government and the work.
ers These in two groups, the operating
otlclals and the classified employees"
The summary is neither accurate no~
complete. See the Sims bill, now before
Congress, which embodies the Plumb
plan.
The plan is not that the government,
having bought the railroads, shall rent
them to the employees, who are to as
sumo the risks of the business. The en-
ployes, besides retaining the right to
strike, are to fix their own wages
through direct control over five of the
fifteen members Of the Railroad Board.
plus indirect control over another five.
with a chance of controlling the remain
ing five by political pressure. Thus the
employees in fact would be the rate fixers.
tor the Interstate Commerce Commits
sion, although nominally prescribing
rates, would perform only clerkly func-
tlons The threat of universal trans
portation tie-up would quickly subdue all
protests"
Suppose man should come to a
farmer and say: II purpose to rent your
land l shall collect as first charge full
wages for the time l put in, the wage
scale to be determined by me or by arbi-
traitors controlled by me. If an award,
however, does not suit me, l reserve the
right to quit without notice. After 1 am
paid in full, if anything is left, l will al
low you half"
Here is the Plumb plan in essence. It
is not renting or profit sharing, but an
arrangement for an undetermined first
mortgage whose total can be pushed up as
the mortgage feels the need of money.
Mr.. Plumb describes his plan not as it
is, but as it is not Having tried to vic
tlmize others by misdescription, it is to
be inferred he has victimized the broth
erhoods; otherwise they would scarcely
deem it worth while to indorse the plan.
No railroad man able to handle throt-
tie, fill fire-boX, punch ticket or twist
brake would dream, touching his own
affairs, of "renting" even a garden plot
on such terms.
Should the brotherhoods appear as can
didates for lease on the condition. now
enforced against railway owners, that
the public shall fix rates, doubtless there
would be a willingness to dicker. If the
first claim on income were as much as 4
per cent on the value Of the property
rented the employees might be permitted
to have not so but 100 per cent of earn
lngs above the rent Railroad owners
are mild and modest. The average weld
on $4,000, 100000 of railway property is
now but 21a per cent Within two wears
railroad bonds have shrunk $500 .OOO.-
600 in market value and railway stocks
$2,000,oo0,000. A guarantee of 4 per
cent would lift a burden of anxiety from
millions who have invested as honestly
as have purchasers of homes.
The temporary government guarantee
of railway income is all that averts gen.
eral railway collapse; if the railroad en-
ployes get the new wages they demand
and rates continue to be but IS per cent
more than those of five years ago practi-
cally nothing will be received by the own
ers Of railway securities. So it is not
strange they have no prejudice against
any plan that promises to save them
from wreck and bankruptcy.