Evening star., 1919-04-20
END-TO-END COMBINE
OF ROADS PROPOSED
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, through the presidents of the cor
: porations. voting in proportion to
! mileage. with the proviso that the
| roads having 1000 miles or more
! should be entitled to cast a vote for
exceeding 1000 miles.
| a. The state railroad commissions
within the district.
The President shall nominate one
| from each of these classes to act as
valuation board.
Bureau on Consolidation.
! 1.-The special bureau of the Inter-
! state Commerce Commission which is
! to determine which railroad COM
! other is to be composed of seven
members. of which three shall be ap-
pointees or members of the Inter-
! state Commerce Commission, three
! shall be appointees of the railroad
! companies. and the seventh member
| by the other six, or be nominated by
| tie United States railroad court of
| appeals.
Zach railroad company should have
! nine directors. of which five should
| be nominated by the stockholders and
| two by the government and two by
! the employees of the railroad COM
| panies. the same as in the case of
the regional valuation board and COM
merce boards.
The 1--WE directors representing the
| stockholders shall select two each
| of these classes from the six names
suggested to be directors to repre-
! sent the government and the en-
! ployes. Any director representing the
j employees must have been a railroad
! employe continuously for at least ten
i years. except for absence on account
| of the war or i'll health. and an en-
ploye of the company for which he
is to be director for at least five
years.
Each director shall be entitled to
an annual salary of $4,000 as long
| AS the company pays only the mini
/ mum dividends guaranteed by the
| government. and shall be entitled to
| $1,000 additional salary for every
4 per cent increase in dividend which
the company may disburse to stock
| holders
Provisions should be made for the
joint use of terminals, of all the sys-
gional and federal commerce commits
sions. Independent terminal companies
! in each of the various cities should be
consolidated and the interest on their
bonds and dividends on their stocks.
according to the. proper valuation.
I
railroad companies, according to their
use.
Disputes as to the fairness of rates
J should be submitted to arbitration.
! Parties interested in rate reduction
| should select from their line of busi-
ness two men to represent them, the
| railroad companies to select two men,
who shall endeavor to settle the mat
| ter. If they are unable to do so they
shall select as fifth man some men,
( H..
sion and if they fail to agree on some
man the United States district judge
shall select a fifth man.
! ANY decision of such an arbitration
| committee, however, may be appeala- :
Bile 10 the regional commerce commis-
| sion. to the federal commerce COM
mission in Washington and to the
railroad court of appeals
Labor disputes as to wages should
! he settled in a similar manner.
"A pension system for all employees
/ is to be established at once and is to
| go into full effect within five years;
| the cost Of this system to be fairly
prorated between the companies and
the employees.
Distribution of Earnings:
! "Net earnings above 6 per cent on
| the legitimiZed value after allowing
proper amount for non-productive
| improvements or obSolescence, to be
! used as follows:
! "One per cent per annum may be set
aside in a reserve fund to meet any
deficiency below per cent during any
subsequent year; any surplus above
| that to be divided to the extent OF
| one-third to the company. one-third
! to the employees and one-third to the
government.
! After a surplus fund of per cent
! has been accumulated, all earnings
| above per cent are to be divided on
| the basis of third each to the
| company, the government and the
employees.
II IF the earnings in any one region
have averaged above Z per cent for
| two years in succession. but not be-
fore then. the regional commission n
| may at its option take up the matter
OF rate reduction, so as to reduce the
average incomes of the companies to
6 per cent.
! "On the other hand, If the average
! return Of the companies should fall
below per cent for two years in sue
cesion. the railroads may at their own
! initiative advance rates. II the in
come should fall below per cent in
any one wear the companies need not
, wait two years. but may advance
rates after the expira tion Of one year.
SO as TO be sure of an income of s
| per cent.
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