The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-08-09
PLAN TO
REDUCE RATES
Labor's Railroad Bill Can Cut
Rates to | IL Cents Mile,
Says Author.

Washington, Aug. 9.-Under his
plan for government ownership anc
! tripartite operation, railroad passen'
ger rates could be lowered to l l.
! cents a mile, one half of present rate
and freight rates cut 40 per cent.
declared Glenn e. Plumb, who now
holds the center of the stage ir
Washington in labor's fight for pub
lie ownership of the transportation
systems, in an interview today.
"The people want to travel" Plumb
said. ut is part of their standard
of living. How much more woult
they travel at lower rates? The
roads are crowded with exeursionistf
whenever the chance offers. Or
sound capitalization, with returns
equal to those paid on liberty bonds
passenger rates could be 1 IL cents
a mile and freight rates cut 40 pei
cent"
The deficits being borne by the
government in its operation of the
railroads would be turned to profits
II the "water" were squeezed out OF
the railroad stocks and there were O
proper capitalization, asserted Mr.
Plumb, who is counsel for the four
and author of the Plumb bill for gov
ernment ownership.
"In 1914 the railroads OF the coun-
try" he continued, learned approx
mately $500, 1000, 900, or 5 per cent, on
their capitalization-wate and all
The government pays the railroads
water squeezed out, this would
- hn1 Ip.ufnaA nf n
deficit last year we would have made
make $150,O00 900. But we will pay
pay dividends on the water"
The organization which has been
set up here to further the Plumb
plan of railroad control, 1t was
learned today, was in no way sur
prised by President Wilson's rejec-
ton of the "tripartite" plan.
1t was Chief Stone. of the Brother
hood of Railway Engineers, who first
brought the Plumb plan to the at
tention of the president more than a
week ago. The president did not de-
nounce the plan then, but he did take
vigorous issue with Chief Stone on
the latter's statement that the
Country faces revolution II economic
conditions are not Immediately cor
rected. The president then said, It
was learned today, that there might
be some revolutionary thought in the
United States, but there need be no
revolutionary action. because the
American people are conscious of
their democratic powers and do not
need to resort to violence to gain full
justice-soctal, political or economic.
The president, his close advisers say,
is indignant at what he calls the
irresponsible" and Exaggerated"
statements OF the prophets of dire
times ahead.
Plumb contended that surplus
earnings on profits of railroads re-
invested in the properties by the
management in past years belong to
the public and should not be in
cluded in any plan of compensation
for such properties IL taken over by
the government.
He reiterated that there could be
no efficient operation OF the rail-
roads by the railroads direct, hold
ing that such operation would not
be democratic" He said there was
efficiency in the postofi1ce department
management. but not democracy. He
claimed there could be no democracy
in industry under a political govern
ment because of the existence of Sc
cret or hidden influences.
Would you include in property
rights the surplus earnings Of rail-
roads reinvested in the property by
the railroad management asked
Representative Montague.
Il would not" said Plumb, but
this Is a question to test if the
courts. / would hold that these sur
plus earnings belong to the public
and should not be compensated for
by the government. An exception
would be where a charter grants the
right to railroad"
THE success or nonsuccess of vour
plan depends in the directorate YOU
propose" said Montague.
That is true. Our bill makes no
provision for method of selection Of
officers, leaving that to the president
under general directions" replied
Plumb.
You can't eliminate from men the
desire to increase their profits" oh
Jected Montague.
We regulate that In the bill I'm.
DER our form of directorate" said
Plumb.
Plumb estimated that in tho fret
year the net surplus under the Plumb
plan would be from $4,000. 900 to
900 ''''V0 "
Concerning the provision in the b,u
LOT purchase of railroad properly Mr.
Montague asked: 'ii'
Would YOU pay for a double track
track?r single
NO all money put back in sucb
property out of the payment bv the
public for service belongs TO tbe n,,hijc
ana should not he included -
Success or failure of the plan Plumb |
SAID. must be found in the fifteen dirncS
tors-ten OF whom would be named nv |
railway employees. Discussing the tre- !
mehdous power vested in the director |
ate. Plumb said there was no fear IN |
the part of labor OF creating a sit,,a-
uon beyond control OF the people
Have YOU ever found undue re- |
preston In the management Of railroads |
10 prevent the rise of employees 10 bipb- |
est rank in the serviCe?" Mr.. Montague /
mo repression in certain kinds of fri
tlative," the witness said
Aren't the majority of highest priced