Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-08-19
RAILROAD SECURITIES.
Representative Of Owners Outlines
Plan of Government pie.

Plan Of Government Pie.
A plan devised by S. Davies War
field Of Baltimore, under which the
government, in the reorganization Of
railroads, would provide minimum
return of six per cent on invested cap
ital. with division Of all surplus over
that amount among employees, the pub
lie and the earning roads, has Just
been outlined before the house inter-
state commerce committee.
Luther M. Walter Of Chicago, gen.
eral counsel for the national associa-
tion Of owners of railroad securities.
who sponsors the plan, discussed its
various points with the committee at
a five-hour session. and declared 1t
could be put into effect at once. or GER
tainly with the return Of the roads to
private control at the end of the war.
The right of labor to share In the
profits of the roads was laid down by
Mr.. Walter as one of the fundamentals
of the plans. He sharply challenged
the contention of Glenn E. Plumb,
author of the labor plan for tripartite
control, that the property investment
account of the railroads would not ex-
ceed 10 to IL billion dollars. The to-
tai would reach 19 or 20 billions, Wal
ter said, at tho same time expressing
confident belief that the courts would
uphold substantially this valuation.
In the general exchange OF views
on the present day transportation sit
uation, Mr.. Walter declared the roads
would have been more successfully
managed for war purposes under pri-
vate control. To turn them back now,
he said, replying to an inquiry as to
whether this might help reduce the
growing deficit, would shift to the
roads a burden the government should
bear.
The Warfield plan would have the
interstate commerce commission fix
rates on a basis which after paying
the operation would net the minimum
return of six per cent. Discussing this
provision, Chairman Esch, who for six
months has been making detailed
study of the problem, wanted to know
if this congress enacted law making
the return six per cent whether an
other congress might not increase or
reduce it. Mr. Walter thought not. 1t
was not possible, he replied, and when
pressed! further said he did not think
this ever would happen.
The Plumb plan was characterized
by Mr.. VIZ tier as "a shiboleth" which
had attracted some people, but which
he declared was impossible.
"It is not IN line with out institu-
tions," he added, land could not help
If adopted"
Depends Upon Legislation.
Mr.. Walter said the financial struc-
ture of credits depends upon the legis-
lation enacted by this congress to deal
with the railroad problem.
1t is fundamental Of the Warf1eld
plan, the witness said that labor
should participate in the earnings OF
the carriers.
I'VE believe" he declared, that cap
ital is entitled to its return of six per
cent: that labor is entitled to a fair
wage, and that the excess earned by
the carriers after paying their wages
and six per cent upon capital should
be divided with labor and the public.
Iabor's share should be used for the
of the insurance system
or for profit-sharing.
Six Regional Commissions.
by reason of the largely increased
duties which will fall upon the COM
mission, the security holders ask con-
gress to create six regional interstate
commerce commissioners, subordinate
to the commission, but with all the
powers of the interstate commerce
commission in the respective terrific
ries.
"Our plan contemplates that these
regional commissions shall act as
boards of conciliation in settling wage
disputes, being a body close to the en-
ployes, the carriers and the shippers.
1.-THE issuance Of securities OF all
carriers engaged in interstate COM
merce would be vested exclusively IN
federal authority.
This plan would create a corpora
ton operated without profit to the
railroads and managed by the nine in
terstate commerce commissions and
eight railroad men selected by the
railroads"
The great mass of the people, ne
said, were virtually concerned In the
integrity Of railroad securities. The
association believed the surplus over
the fixed return should be div,deo
equally among the employees. the pup
lie and the earning road. one-third TO
the road ito encourage incentive ana
initiative in operation"
Keystone of Plan.
THE keystone Of the Warfield plan'
the witness said, lis a congressional
direction to the interstate commerce
commission that it shall make freight
and passenger rates sufficient to pay
operating expenses, maintain railroad
properties and give not less than SIX
per cent. return upon the aggregate
fair value of the property devoted 70
transportation in each Of the principal
traffic territories"
Mr.. Walter opposed federal incor
poration, a transportation board and
secretary of transportation in the
cabinet, and declared that under the
minimum return plan the net result
of operations in the pre-war test pc
riod, the basis of government rental
some Of the carriers would have turn
ed in surplus for division between
employees and the public.