Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1919-08-27
PLUMB ACCUSES
IS BIG RAILROADS
House Committee Told That
Roads Gave Away Huge
Stock Bonuses.
GARRETSON ALSO TESTIFIES
Tells Body That Railroad Officials
Who Acted for Government Tried
to Show That Private own
ership 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
S450, 4l4O00 from 1900 TO 1910 and
have paid millions in dividends on
these bonuses were made before the
house interstate commerce committee
by Glenn f. 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 ut the expense of the public, are
now controlled i'm whole or In part by
the torgan 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 thor
ough investigation of the charges here
in set forth. SO that the American peo-
pie may know TO what extent II is
sought to subject them to exploitation
under the plans proposed TO this com
mittee 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 $25O,O00O00 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 $ll000o00.'
He also alleged that the Pennsyl-
vania, Baltimore X Ohio, New York,
New Haven & Hartford, New York
Central & Hudson River railroad.
Boston & Maine and the Delaware &
Hudson company ISSUED new stock
for SOL 100000 less than It's market
value"
A. Il. GarretsOn, former head of the
Order of Railway Conductors, told the
committee that operating officials in
charge of railroads during government
control were actuated by the one de-
side of demonstrating that government
ownership was not best for the coun-
try. Exactly the same operating force
that built up great surplus before
the war created 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
waite 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 it utterly demolished cap
ital account, while the other plans sub
mitted to congress, added 10 il until
the grandchildren of the present gen
Grafton would stagger under the load"