Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1919-08-15
House Committee Told That
Roads Gave Away Huge
Stock Bonuses
GARRETSON ALSO TESTFIES
Tells Body That Railroad Officials
Who Acted for Government Tried
to Show That Private Own
ershlp Was Not Best.

Washington, Aug. 14.-Charges that
Is representative railroads operat-
ing In all parts of the United States
gave away stock bonuses aggregating
$3.50, ,414.000 from 1900 to 1910 and
have paid millions In dividends on
these bonuses were made before the
house interstate commerce committee
by Glenn e. Plumb of Chicago. author
of the Plumb plan for tripartite con-
troll of the roads.
Mr.. Plumb charged further that
''these railroads, which have so In
creased their property investment ac-
count at the expense of the public, are
now controlled in whole or In part by
the Morgan interests, the Rockefeller
interests and the Gould interests
"On behalf of all of the employees
of these systems, of transportation and
the public" said Mr.. Plumb, 1--WE de-
mand that congress shall make a thor
ough investigation of IKE charges here
In set forth. so that the American peo-
pie may know to what extent 1t Is
sought to subject them to exploitation
under the plans proposed to this COM
mlttee of congress, plans which would
make lawful the fixing of rates based
on the now unlawful aggregate prop
erty Investment accounts of these sys-
TENS"
Specifically, Mr.. Plumb charged that
the Chicago, Burlington & Quincy, the
Chicago, Milwaukee & st. Paul, the
Chicago & Northwestern, the Great
Northern, the Illinois Central and the
Southern Pacific railroads gave away
in bonuses to their stockholders more
than $250.00o,000 during the ten-year
period mentioned, and that the actu-
al dividend disbursements on this ex-
cess capital for the year 1913 alone
amounted to more than $l1.00OO0O."
He also alleged that the Pennsyl-
vania, Baltimore & Ohio. New York,
New Haven & Hartford, New York
Central & Hudson River railroad,
Boston & Maine and the Delaware &
Hudson company ISSUED new stock
for S101. 100000 less than its market
value"
A. b. Garretson, former head OF the
Order Of Railway Conductors, told the
committee that operating officials In
charge OF railroads during government
control were actnated by the one tie
side of demonst ating taat government
ownership was moi pest for the coun'
try. Exactly the same operating force
that built up a great surplus before
the war created a big deficit. Garrett
son said.
"There could be no real test as to
government operation so long as the
future disposition of the roads had
not been determined. Every effort was
made to convince the people that pri-
vate management was best.
"When the railroad official prays he
turns his face to Wall street, but once
IL is demonstrated, for instance, that
management In future will center In
Washington, | am sure he will serve
the government as earnestly as he
served the old masters In the past"
Discussing the Plumb plan for tri-
partite control of the roads, Mr.. Gar
retson said 1t utterly demolished cap
ital account, while the other plans sub
mitted to congress, added to 1t until
the grandchildren of the present gen
GRAFTON would stagger under the load"