The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-02-08
Railroad Labor Interests Pro-
poses Federal Ownership and
Private Ownership in One.
GOVERNNE Int TO
OWN ALI ROADS
Plan Is Then to EntrUst Their
Operation to Private Owner
ship, Satisfying Both.

Washington, Feb. q Railroad
labor interests today proposed
government ownership and private
/ operation by one large corporation.
comparatively organized and shar-
| ing profits with employees, as their
| solution of the railway problem
Testifying before the senate inter-
/ state commerce committee on behalf
of the four leading trainmcns' broth
erhoods and other employees organiza-
tions, Glenn +. Plumb OF Chicago
! recommended that the government ac-
quire all railroad property 1T a price
fairly representing tho physical valu-
tion and entruSt the operation 10 n
corporation to be directed jointly by
employees, officers and the government
Earnings would be divided equally
among employees and the government
and rates would automatically he re-
duced when profits amounted to more
then a fixed rate.
This plan. il was argued. would
provide cheaper financing. give sta
bility or income to security owners
promote efficiency of operation through
sharing profits, remove railroad opera
tion from partisan politics. compose
conflicts between federal and state au-
tharfties. keep rates at a minimum.
1li39' e., II PA te complications III rate sched
Tho ,-hon3,.jde a means of making
regulation by tue sitting by extensions
commission. which would retain Us
present regulating powers.
Brotherhoods Object.
The brotherhoods objected 10 the
railway executives proposal for estah-
fishing a secretary Of transportation,
saving this would constitute .reGu-
Iating the people in the interests OF
capital" They also protested against
the railroad administrations order for
bidding railway employees taking part
in politic4. arguing that the solution
Of the railway problem is a political
issue and that employees are emitted
to participate.
Mr.. Plums suggested organization
of IAN operating corporation where OPP
Grating ability constituted is sois eap-
ital"
a certain agreed percentage of the
not results OF opera ton should belong
to this corporation" he said The
stock of the corporation should be
held in trust for the benefit of the en-
nloves. The corporation would be
administered by n board OF directors
who. we suggese tentatively should he
elected in this manner:
.One- third 10 he elected by tn" class
flied employees below the Si'tAt " ~
,,ointed officials: one-t third by the ar
nointed officials and employees; the H-
nal third being appointed hy the pres
ident Of the United Staes.
Would Promote Etficien
With one half the profits going I"
The government and the other haii
10 the corporation TO be distributed
among employees Mr.. Plumb said. the
men would be actuated by a desire TO
promote efficiency and economy -
means of increasing profit
such a scheme he said would
render TO the public all Of the benefits
of unified operation i would eilmI-
nate all the costs Of competition With
out losing any OF the benefits OF com
petition
..rbis would remove the operation ot
tho railroads from politics. Govern
,,,cnt officials could not possibly have
anvthinr 10 say about the employment
NJ men or officials of The roads. The
would have nothing TO say - 10 con-
sfruc4iar or extension OF new lines
The government would have ~
,,ov,ar 10 exact from the public z re
f,,rn witch was more than adequat"
Tar the maintenance and operation 81
+Fa service and the public could not
naed to be protected against high
rates and diversion of protits TO pri-
continued from Page One)