New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-01
One-Third of Net Income
Above 6 Per Cent To Be
Bonus TO the Employees
U. S. Control Recognized
Security Holders Suggest
Board Composed of Rail
way Men and the l. C.. C..
NeW York Tribune
Washin oton 3ureu..

W washington IuTG1..
WASHINGTON, Jan. 31.-Owners of
railroad securities in the United States
are willing, under return of the prop
critics to private control, to share
their profits with the employees.
a comprehensive plan, with this as
the outstanding feature, was laid be-
fore the Senate Interstate Commerce
Committee to-day by S. Davies War
field, president of the National Associa-
ton of Owners of Railroad Securities.
Mr.. Wartield told the committee the
association represents 100000 of the
100000 persons interested in the
future of the railroads and the legis-
latlon Congress enacts, comprising de-
positors in national, state and savings
banks, trust companies, and the hun
dreds of thousands of individuals who
directly own railroad securities. He
laid particular emphasis ION the very
direct interest in the action of Con-
gress possessed by the holders of poll
cies in most of the insurance compan-
les of the country, declaring one-fourth
of the investments of these concerns is
in railroad securities for the protection
Of beneticiaries. A large part of the
resources of saving banks is similarly
invested. He said the association rep
resents $500, 100000 of the outstand-
ing 1900, 100000 of railroad securities.
WI he
GOO if the collateral railroad holdings
represented were taken into considera-
ton. q
Six Per Cent Income Proposed
Under the scheme proposed Congress
would establish by legislation a fixed
return Of 6 per cent on capital in
vested, and provide that one-third of
all profits in excess of that return be
distributed among the employees on a
protit-sharing basis, or in the form of
insurance. Another third of the excess
would be used in making improvements
to be charged TO capital account of
thte roads; and the final third would
be returned to the roads owning it
as further incentive to increased eff
fciency.
The fundamentals of the entire War
field or security owners plan. as set
before the committee in an elaborate
treatment, are as follows:
IA minimum rate of return on the
property investment in the rail
roads, iixed by act of Congress,
through rates adjusted as occasion
may demand, in order that the securi-
ties, OF the railroads nay be stabil-
ICED and their credit established on
OASIS necessary to secure the money
to provide to the shippers and travel
ing public adequate facilities and
service;
C-Recognition. that a fixed return.
through rates that will enable
the average railroad to receive an
adequate return on its invested CAPT
.al IS not possible without giving to
The more favorably situated railroads
more revenue than the public will
sanction, or more than would repre-
sent fair return on its property.
me earnings of railroads in excess
OF nIed reasonable rate of return
10 be applied as provided in the fol-
lowing section.
"a distribution under the control
and jurisdiction of the Inter
state Commerce Commission of a
percentage of the fund above pro-
vded. that railroad employees shall
receive the benefit of profit sharing.
oy insurance, or by such other legal
methods as may be determined upon;
likewise distribution OF a percent
age thereof among the railroads earn
ing IL, and under the plan, and in
furtherance of incentive and initia-
tive by establishing operating eff
hciency standards; for certain i'm
provements to railroad property,
under restrictions, not to be CAPT
taiized in rate making; and for other
purposes defined in the plan;
Commission to Control
IA corporation, created by Act of
Congress, operated without profit
70 the railroads, and under Federal
control, directed by trustees com
posed Of the nine Interstate Com
merse Commissioners and eight rail
road men, to finance in the present
emergency, such equipment as may
pc purchased by it from the Railroad
administration and allocated to the
railroads, and to furnish an immedi-
aye means for assisting in financing
'he return Of the roads; continued as
permanent means for mobilizing
ana purchasing equipment to be
ieased TO the railroads; to provide
management or agency to continue
or put into effect the joint use Of
terminals, uniication Of facilities,
as,routing OF freight by pooling or
oshsrWise, and TO continue or ADOPT
sueh methods Of operation as may
nave been found to be successful and
sszpedient during Federal control; to
lurnish standing, trained and eff
gent means for immediate mobiliza-
.aon Of the railroads for war purposes
"Hnout additional legislation.
5-Federal regulation extended
= through the Interstate Commerce
commission al at present established,
soordinatlng Herewith subsidiary
egnmigsions as regional commits
sicne the members thereof selected
equally from the two leading political
parties appointed from the sittirp
20 the six traffic territories NJ 81
present defined, giving to such bodies
sne determination Of rates and reQu-
51auong essential TO the operation Of
re q plan. The right Of appeal is
gwen 70 the Interstate Commerce
f1vmmisslons which may be designated
commission Of Appeal
Continuation Of rate committees
!. composed Of representatives Of
sgoth railroads and shippers estab-
nsned In defined Territories of the