The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-08-30
RAILROAD
PLAN OUTLINED
Judge George w. Anderson Of
fers Possible Solution

Washington, Aug. 27.-Railroad re-
organization under a plan combining
.'the most desirable factors" Of both
government and privtae ownership
and operation was offered today as
solution of the railroad problem by
Judg ge George w. Anderson Of the
United States district court. Boston,
"a former member of the interstate
commerce commission, who appeared
before the interstate commerce COM
Fnittee.
Formation Of federal railroad.
co.i. pany, with broad powers is1t1i:d ::
ing eminent domain to take over ex-t:
isting transportat ton facilities so as
to provide "a single national high,
way and carrier system" was advocat-
ed by Judge Anderson, who admitted
his plan contained no element not
already presented in essence but as
a combination Of elements that is
radically new"
Labor would by the proposals of the
| witness have a new status and re-
sponsibility, including profit sharing,
but strikes would be illegal. Along
with capital and the public, labor
would have equal representation on
the board of directors selected to
manage the railroads. Rates would
I be initiated on the service at cost
principle by the federal company,
subject to approval of the interstate
commerce commission. States would
deal with purely local questions. such
as Communication rates. improvements
and safety precautions.
Present owners of the carriers, by
his plan. would be protected in that
all valid and properly outstanding
| bonds would be assumed by the fed
eral company and guaranteed by the
government, and stockholders in reg
ular dividends paying companies
would be permitted to exchange their
holdings on basis not exceeding the
return during federal control while
Others would have due process OF
| law. Stockholders in the new COM
pany. Judge Anderson proposed
would have an incentive for efficiency
! economy and progress by authorizing
| a. dividend in excess of the standard
one and pro-rata issues of new stock
at par.
Public interests. his plan held
should be secured against undue cap
1 ital charge by limiting a majority OF
1 the capital in the new company tc
1 bonds, issued at the lowest available
interest rate Stock certificates Of the
federal company, he proposed, shoulc
contain provision that they might be
taken over at any time by the gov.
ernment at par and the accrued stand
ard dividend.
Government control of the railroad:
during the war was defended by
I Judge Anderson, who asserted tha
under such control there was LESS
failure in the railroad business thar
in any other big industry" a state
ment which he said he recognized wa:
Inconsistent with produced public
sentiment
Several representatives of railroad
appearing before the committee urgec
that equipment purchased by the rail-
road administration at war prices b.
sold to the companies when the road
were returned at reduced prices-
In the senate a bill was introduced
by Senator Lenroot. Republican. Wis
consin. providing for unification o
the railroads into one privately own
/ ed system with minimum earning
guaranteed and management shared
| by the security holders, public ane
i employees.