The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-08-15
Security Holders Ask Gov
crnrnent Control Guaran-
teeing Flat Return On in
veStrnent.
EMPLOYEES WOULD
GET ALL SURPLUS
Warfield Plan Could Be Put
Into Effect Immediately
Says Attorney for Securi-
ties Holders.

Washington, Aug. 1.-THE Warfield
plan for railroad control with provis-
| ion for q flat return Of six per cent
on capital invested was presented to-
day to the house interstate commerce
commission by Luther M. Walter. gen.
eraI COUNSEL of the< National Associa-
ton of Owners of Railroad Securi-
ties.
The fundamentals Of the plan. in
clutsing division of all surplus over the
fixed returns among employees, the
public and the road earning it. were
explained by Mr.. Walter, who declared
it could be put into effect immed-
lately.
"The keystone of the Warfield
plan.'' the witness said, lis con-
gressionaI direction to the Interstate
commerce commission that 1t shall
make freight and passenger rates suf-
ficient to pay operating expenses.
maintain railroad properties and give
not less than six per cent return upon
the aggregate fair value of the prop
erty devoted to transportation in each
of the principal traffic territories"
Mr.. Walter opposed federal incor-
poration. a transportation board and
a secretary of transportation in the
cabinet. and declared that under the
minimum return plan the net result of
operations in the pre-war last period.
the basis of government rental, some
of the carries would have turned in
a surplus for division between en-
ployes and the public.
Mr.. Walter said the financial struc-
ture of credits depended upon legis-
lation enacted by this congress to deal
with the railroad problem
1t was a fundamental of the War
field plan. the witness said, that labor
should participate in the earnings of
the carriers.
I'VE believe" he declared. that
capital Is entitled to it's return OF six
per cent; that labor is entitled to a
fair wage, and that the surplus earned
by the carriers after paying their
wages and six per cent return on cap
ital. should be divided with labor and
the public. Labor's share should be
USED for the establishment of the in
surance system or profit sharing. BY
reason of the largely increased duties
which will fall upon the commission,
the security holders ask congress to
create nine regional interstate COM
merce commissions. subordinate to the
commission. but with all the powers
of the interstate cor-nerce commits |
sion in their respective territories
Our plan contemplates that these |
regional commissions shall act as |
boards of Cancellation in settling wage |
disputes.
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 |
interstate commerce commissioners /
and eight railroad men selected by the |
railroads.
The great mass of the people," he !
said. are vitality concerned in the in |
tegrity of railroad securities
The association believed the surplus |
over the fixed return should be di-
vided equally among the employees, +
the public and the earning road, one
third TO the road ito encourage incen-
tive and initiative in operation"