New Britain herald., 1919-08-14
WAKEFIELD PLAN FOR
 RAILROAD CONTROL
Provision for Flat Return Of Six
 Per Cent. on Capital Invested

Washington, Aug. 14--The War field plan for railroad control with prOviion for a fiat return of six per cent on capital invested, was present. cd today to the house interstate com merce committee by Luther M. Wal ter, general counsel of the national association of owners of railroad se- curities.
 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 Mr. Walter, who de- clared it could be put into effect inn mediately.
 Keystone of Warfield Plan.
 The keystone of the Warfield plan,' the witness said, 'is a con- gressional direction to the Interstate Commerce Commission that it shall make freight and passenger rates suf- fcient to pay operating expenses, maintain railroad properties and give not less than six per cent. return up on the aggregate fair value of the property devoted to transportation in each of the principal traffic territor- ies"
 MT. Walter opposed federal incor- poration, a telephone board and @ secret Ary of transportation in tho cab inet 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 em- ployes and the public.
 Property Investment Basis.
 MT. Walter said the financial struc- ture of credits depended upon the leg islation enacted by this congress to deal with the railroad problem. The associat ton, he said, used the proper ty investment account of the carriers as the basis upon which to apply the six per cent, because the Interstate Commerce Commission has found that the only available basis for prompt determination of suffiCienCy of the re- turn upon investments.
 It was a fundam ental of the War field plan, the witness said, that la bor should participate in the earnings of the carriers.
 Entitled to Six Per Cent.
 "We believe,'' he declared, that capital is entitled to it's return of per cent; that labor is entitled to a fair wage and that the excess earned by the carriers after paying fair wages and 6 per cent. on capital should be divided with labor and the public. Labors' share should be used for the esta blishment of the insurance sys- tenn pr for profit sharing. By reason of the largely increased duties which will fall upon the commission the se- curity holders ask congress to create six regional interstate commerce com missions, subordinate to the cOmuis- sion 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 body close to the employees, the carriers and the shippers.
 Issuance of Securities.
 "The issuance of securities of all carriers aged in interstate com merce would be vested exclusively in federal authority.
 This plan would create a corpora ton operated without profit to the railroads and managed by the nine interstate 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 unify terminals, would operate equipment such as has been built by the railroad administrator and allo- cated to the individual railroads. Tt would furnish q great clearing house for railroad operation and in times of emergency would constitute the di- ractinp force for the handling of the