The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-09-03
RAILWAY SH0PMEh
fCoutinued from Page One.)

senting labor unions and four repre-
senting the companies. Tts decisions
are to be certified to the trAnsporta-
tton board whose findings will be
Anal and will constitute a government
tai Judgment
Profit Sharing Plan.
Another provision makes II obliga-
tory upon the companies to nave
among their directors two represents. .
tives OF their classified employees ana
also two directors representing the
government. The bill further pro-
vides that the companies must use
one-half OF their excess earnings
above a fair dividend for the benefit
of their employees.
When Senator Cummins introduced
the bill In the senate he explained
that enc OF the great causes OF unrest
in the country has been. feeling by
the people that the railroad systems
are. over-capitalized and that their
ca EQUALIZATION represents securities
upon which the people ought not to
be called upon to pay a return. He
said.
lone of the vital things which the
committee has attempted to encom-
pass is the removal of that distrus.
where 1t is not well founded and also
the removal OF oNtT -
cases where 1t exists. We have, there
fore. provided that the reincorporated
companies which will be rein
corporated In much the same way as
the national banks of the country
were permitted to become national
banks during the civil war, shall have
al d basis for their capitalization the
value attached to their properties by
the interstate commerce commission
and no other value.
10 The bill does not attempt to take
existing railway companies and change
their capitalization unless they ask
the privilege Of consolidating with
some other railroad company.
We will never he able successfully
to meet all the problems OF govern
mental regulation until the censolida-
ton of the railroad systems as out
lined in this bill have taken place.
And venture TO say that unless some
such plan as this can be carried into
effect government ownership and gov
eminent operation are but a question
of time. I think 1t is the duty Of the
government to see that adequate
transportation is furnished the people
OF this country at the lowest possible
cost, consistent with fairness to the
capital involved. II I believed that
the government c0uld operate the
railroads. furnishing the people with
transportation at less cost than it can
be furnished through private owner
ship. ! would instantly be for gov
eminent ownership and government
operation. 1t is because | believe and
| know from the experience not only
Of our own country but of others that
it would cost the people of this coun-
try more for their transportation il
it's operation were in the hands Of the
government than through rigidly
regulated private companies, that
am for the latter rather than for the
former"
Senator Cummins explained that
under the scheme OF financing pro-
vided In the bill the government would
take the excess over and above a fair
return on the value OF the property
In some cases, he said this would
mean excessive earnings would be
taken from the strong roads and de-
posted in the fund either for the use
OF the employees or for the betterm ent
of the weaker roads.
Would not the inevitah BILE result be
to force weaker roads into bank
ruptcy?" inquired Senator Lenroot
The weaker roads are In bank
ruptcy. that is the unfortunate part
of the situation Senator Cummlns
replied.