Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-12-05
DILL SPEAKS TOR
PLUMB SCHEME Of
RAIL OPERATION

CONTRARY TO popular impression, the
railroads under federal control have
been operated at a profit, and not Al
loss during the war; according to
'C. C. Dill, ex-congressman' from the
state of Washington, who spoke at the
armory last night in favor of the
Plumb plan for taking over and OPP
Grating the railroads of the United
States. And this was accomplished,
he said, despite the fact that the
roads were not owned by the govern
ment; that the properties were merely
placed under federal control as a
means of. aiding in winning the war;
that the old officials had remained in
charge and. furthermore, that the
government had guaranteed the roads
a certain financial return. consequent
~ there was no incentive on the part
of responsible officials to make eco
nomeal operating records.
THE popular impression is, said
the speaker. that while the private
owners of railroads have made large
profits out of the business, the gov
eminent has not made profits but has
lost money. This is entirely wrong.
This impression is due to the fact
that the government has been paying
approximately $1,000, 900. zoe a year
to railroad owners as profits, This
is the rate of profits the railroads
We're making out of the war business
previous to government control. When
the government took the railroads It
agreed to continue the same rate of
profits to the owners.
THE government operated the rail-
roads the first year primarily to win
the war, regardless of everything else.
Yet during that period the profits
were approximately $750,000, 900.
This was S250,00O,O0O less than the
government guarantee, Thus the
statement has been made that there
was loss of $250,000,0 700, when in
reality that was the difference be-
tween the governments guarantee
and the profits made out of the rail-
roads.
Since that time the profits have
gradually increased until since July
1, 1919. the government has been
making this billion dollar profit out
of the railroads, and during Septem-
Der had a surplus Of approximately
SO, 500, 600 in excess of the profit or
billion dollars. This means that the
government is making the greatest
profits out of the railroads that have
ever been made in peace times, This
has been done too in spite of the fact
that all of the equipment which had
to be bought has increased in cost as
much as 800 per cent; that wages
have gone UP as high as so and 60
per cent and that freight rates have
only been increased 4S per cent since
1913. Had railroad rates been in
creased even rs per cent there would
be the most enormous profits under
government control ever known in the
history of railroading."
The speaker then analysed the
Plumb plan, under which the proper
ties would be purchased at their true
valuation, estimated at about eleven
billion dollars, Mr.. Din said, instead of
twenty billion dollars the amount for
which they are capitalized. Govern
ment bonds would be issued to obtain
money to buy the roads. Congress
would be authorized to create a cor
poration consisting of five members
appointed by the president to repre-
sent the public; five chosen by the Of
ficials to represent the officials and
five chosen by the employees to repre-
sent the employees, The Interstate Com
merce commission would be empow-
cred to adjust rates so that the reve-
nues would equal the expenditures.
Whatever saving effected under the
estimated expenditures would be di-
vided equally between the employees
and the government
And, lastly, the employees propose
creating a sinking fund of / per cent
observation-disclosures nv
in purchasing the railroads. TO this
would be added a part of the govern
ments share of the surplus. This
sinking fund, it is estimated, would
pay off the bonded Indebtedness in
thirty-five or forty years, leaving the
railroads free of debt and the public
would have transportation at cost. He
said no one ever heard of private own
ers of railroads paying off bonds, be-
cause if they did they would have no
excuse for asking for higher freight
rates from time to time.
DR.. Dill read excerpts from an edi-
torial published in Thursdays Journal
on 'Democratization of Industry" said
most of the big newspapers were con-
trolled by the railroad interests or
like the railroads, are PROTECTING, and
in conclusion said 1t was not the inten-
ton of the Plumb plan to confiscate
the railroads. but to buy them for
what they are worth, operate them
economically and give both capital and
labor their share of the profits.
The crowd attending the meeting
was not large. due probably to the fact
that rain, which began falling late in
the afternoon, continued until after
the hour set for the meeting to begin
last night. 3...s....-