Vernon Parish Democrat. (Leesville, La.) 1917-193?, 1919-08-16
The Plumb" plan
for the Railroads

The Plumb Plan" for the purchase
and operation Of the railroads Of the
country has been placed before the
American Congress and people with a
suddenness and earnesmess which has
perhaps, never before been experien-
ced in the history Of the country. More
over this extraordinary plan, which is
said 10 be the creation Of Glenn E.
Plumb. General Counsel for the big
railroad brotherhoods. apparentlf has
the absolute backing Of between five
and SIX millions Of members Of labor
organizations, who have already Sec
ured the introduction in Congress Of
a bill covering the plan in all its de-
tails, and are undertaking nation-
wide campaign to bring influence to
bear upon Congress which viii tend TO
force its quick passage.
Yesterday the author Of this plan
appeared before the Interstate and
Foreign Committee of the House Of
Representatives in advocacy of the
proposed legislation. Nh. Plumb is abb
out SO years Of age, a graduate Of
Oberlin College and the Harvard Law
School. While member Of Chicago
law firm. and subsequently, he has de-
voted his time to the careful study Of
railroad operation and legislation. In
1906 he was retained by the United
States Attorney at Chicago in a suit
involving the Chicago railway systems.
His first employment BY the railroad
brotherhoods occurred about four years
ago when he made an argument on
their behalf before the Interstate Com
merce Commission. AT the present
time he is General Counsel for the or
ganized railway employees Of America
which includes the four brotherhoods
and ten affiliated railway organiza-
tions.
Since Mr.. Plumb's plan for railway
purchase and operation apparently has
the endorsement and support not only
of the 100000 men Of the railway
labor organizations but also Of the 3,
100000 members Of the other labor
unions Of the country and also sine
its adoption or rejection will affect not
only the interests Of the railway em-
ployees themselves but also, and ii
most far-reaching manner, the welfare
Of the people of the whole country, it
is of great Importance that all shall
be fully advised as to the nature Of the
plan.
In brief, the Plumb Plan provides
that all of the railroads Of the country
shall be purchased by the Federal Gov
ernment and paid for through the issu-
ance of Government bonds. While the
value Of these roads, as indicated
by the amount Of outstanding issues
Of stocks and bonds, is estimated al
about $40, 600. 600, 600. the Plumb
Plan undertakes to provide for their
purchase by payment of from$l0.
600. 600. 600 to $l2. 600, 900. 600
which amount, according to the report
made by Mr.. Plumb before the House
Committee yesterday. fully covers the
honest value Of the roads, After the
roads are purchased by the Govern
ment. they would. under this plan. be
leased to corporation which would Be
operated by a board of directors hav-
ing fifteen members, five to be elected
by the classified" employees Of the
railroads, five by the operating officers
and five to be named by the President
to represent the Government.
The earnings Of the roads would first
be applied to the payment Of operating
expenses and fixed charges. including
interest on government bonds (Which
it is proposed to put out at four per
cent and the remainder, if any, to be
divided equally between the Govern
ment and the officers and employees
of The roads, and to be in addition
to their regular salaries and wages; the
theory being that it will serve as a pre-
MUM for efficiency The officials. un-
der the plan, would receive twice as
much as the other employees. although
Continued on Col. |. Page 81