The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-06-20
RAIL MEN DEMAND
PUBLIC OPERATION
Will Permit No New Profiteerinu
at Expense of 100000
Employees.
NO GUARANTEE ON WErER
Ownership Plan Proposed by Chief
Counsel Of Brotherhoods Provides
Purchase at Market Value and
Joint Management.

est demands for government own
ership and operation of the rail-
roads comes from the 100000
workers engaged In that Industry.
They are presenting what 10
known as the Plumb plan for
taking over the lines, Glen {.
Plumb being the chief counsel for
the railroad unions.
The railway men have three diff
ferent plans which they will advo-
cate under given circumstances,
but the one they will bring before
congress provides that the roads
shall be bought at their market
value and that the employees shall
have voice in the management.
On the latter point they would
have the wage-workers elect three
of the general directors, the sala-
ried employees three more, and the
president of the United States
appoint three, thus making up the
total of nine.
With congress generally commit.
ted to private ownership, the bill by
Senator Watson of Indiana, or that by
Underwood of Alabama, has good
chances of passage; whereas that by
Senator Norris of Nebraska, provid.
ing government corporation to buy
the roads out, has little prospect.
Return Means Big Expense. -
With regard to the first two bills
providing private ownership plans,
Chief Council Plumb says:
Passage of any OF these bills by
congress will simply open the battle.
The Underwood bill represents the
scheme of the Warfleld committee of
railway security holders. The Watson
bill, more drastic, represents the
scheme of the railroad companies
executives. The Watson bill calls for
minimum return of 61a per cent upon
the property investment accounts of
the companies, while the Underwood
bill, more modest, demands only per
cent as the minimum return to the Sc
curity holders upon the property in
vestment accounts The Watson bill
means that with the cost of operation
remaining where it now. Is, we must
contribute at least $685., 100000 more
annually In increased freight and pas.
senger rates, than we are now paying,
while the Underwood plan calls for in.
creased rates amounting to SAL ,000,.
600.
Wages Cannot Be Reduced.
"Will congress deliberately enact
legislation which will add either Of
these amounts to the present cost of
But let us suppose
that congress does-that it enacts the
Watson bill. That may be done in the
belief that instead of raising the
freight and passenger rates the COM
pantes can reduce wages.
Wages can not be reduced, at the
present cost of living Any attempt
to reduce them will be resisted by the
railway workers because they must
live. If compelled, there will be
strike, and the industrial life of the
nation will be paralyzed.
ION the other hand, If rates are in
creased, the consumer must pay. All
wage-workers must pay, In further
increase in the cost of living Amy
increase in the cost of living will be
met, and must be met, by further
wage demands. In addition, every
increase in freight rates is a direct
obstacle to industrial revival"
wind and Water" Values.
Mr.. Plumb points out what so many
experts have empha-
sized in recent years, that much Of
the so-called investment on which both
Watson and Underwood would have
the nation guarantee interest, is wind
and water. Railroad interests are anx-
ious to have this guarantee because
even if it could not be maintained the
guarantee would raise prices of rail-
road securities and enable them to
unload at big profits.
Original cost" Mr. Plumb says,
must then be modified by taking
from it three factors. These are:
first, the sums dishonesty diverted to
the private profit of individuals; Sec
Ond, sums lost through the bad judy
nent of those who direct expenditures
by the private railroad corporations;
third, failure to maintain the integrity
Of the original investment by proper
for, maintenance and de-
which is equivalent to a
of the original investment.
Organized farmers in general have
gone on record in favor of govern
nent ownership. They want as cheap
rates as possible and, almost as i'm
portant, they want an end of discrim-
nation In rates which is inevitable
under private ownership.
Municipal Plant Reduces Rates.
After becoming so accustomed dur.