The labor journal. [volume] (Everett, Wash.) 1909-1976, 1919-07-18
PLUMB PLAN LEAGUES SCHEME FOR
PUBLIC OWNERSHIP Of RAILWAYS
SInoorted by Organized Labor and All Others Who Believe
in Industrial Democracy

Nv llIdNOll lC4l
Labor's solution of the railroad
problem finds official voice for the
first time through the organization
in Washington of the plumb Plan
League" This organization is plac-
ing before the nation a plan for
public operation and democracy in
control of the railroads. The
League is supported by the two mil
lion organized railroad workers;
, the Executive Council of the Amer
lean Federation of Labor has been
instructed to cooperate with it.
Samuel Gompers, President of the
American Federation of Labor, is it's
. Honorary President, and nineteen
high officials of National and In
ternational Labor Organizations
form the corps of officers.
The railroad question is of vital
interest not only to the railway
workers, not only to labor in gem
eral, but to every person. The cost
of all articles of dress, or building
material and fuel or foodstuffs, is
affected by transportation rates.
Every dollar paid in past years has
gone in part to pay dividends on
watered stock, and so the price of
coal, cotton, potatoes-has gone up
millions of dollars, taken from the
people to enrich owners of specu-
lative securities.
Every $4,000 salary paid to an
unnecessary or incompentent rail-
road official adds just that much to
the selling cost of transported arti-
cles. The past era of private own
ership and control has seen many
such salaries.
The nation is rising against these
evils, which have become synonym
Gus with private control and opera
tion of its railroads. Now labor
provides a new system for the rail-
road industry, wherein these evils
will not exist. Briefly, the Plumb
plan provides:
Purchase of the Roads
An issue of Government Bonds
with which to pay for the legiti-
mate private interest (actual in
yestments) in the railroad proper
ty. This does not mean purchase Of
watered stocks. The public prob
ably will pay less than two-thirds
of what the railroads claim as their
value.
Determining the Real Value
The Courts are to decide the real
value of the private interests in the
railroads. 1t can be determined
only after examination of the
charters of the existing companies,
the laws under which they were
created, and the extent to which
each company has lived up to it's
charter and the laws.
Control of Operation
Operation will be by a board of
fifteen directors; five named by the
President to represent the public;
five elected by the managerial Of
ficers; five elected by the classified
employees. This plan is free from
the evils of Government operation.
1t eliminates the opportunity for
control by an inefficient, politically
appointed management. 1t gives
each man in the industry a voice
in the management of the railroads
Disposition of Surplus
Any surplus above operating eX-
penses and the payment of fixed
charges Gncuding interest on out
standing Government securities) is
divided equally between the Gov
ernment and the men. This pro
vides a stimulus to the employees,
since a surplus may be secured only
through increases in efficiency and
by the creation of new business.
Sharing the Surplus
The share of the surplus going to
the Government is to be used for
improvement and extensions, and to
retire outstanding bonds.
The share going to the men will
be divided among the managerial
and classified employees, but the
former class receives double the
rate of the latter.
Safeguarding the Public
BY giving the official employees
twice the rate of dividend going to
classified labor, the etra responsi-
bility of management is recognized
and the public is protected against
a combination of employees for the
purpose of unduly increasing
wages For the official EMPLOYEES