Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1919-08-19
IS BIG ROADS ARE
ACCUSED BY PLUMB
Declares They Gave Away Huge
Stock Bonuses.
MUCH TRIcKERY is CHARGED
Garretson Tells Congressman Rail-
road Administration Officials Who
Acted for U. S. Tried to Show
Private Ownership Best.

Washington, Aug. 13.-Charges that
eighteen representative railroads oper-
ating in all parts of the United States
gave away stock bonuses aggregating
$3.50, 414,000 from 1900 to 1910 and
have paid millions in dividends on
these bonuses were made before the
house interstate commerce committee
by Glenn E. 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 at the expense of the public, are
now controlled in whole or in part by
the Morgan interests, the Rockefeller
interests and the Gould interests"
Demands Inquiry by Congress.
"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 it is
sought to subject them to exploitation
under the plans proposed TO this COM
mittee of congress, plans which would
make lawful the King 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
Al
Chicago & Northwestern, the Great
Northern, the Illinois Central and the
Southern Pacific railroads gave away
in bonuses to their stockholders more
than $250,000,000 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 $11,000000."
He also alleged that the Pennsyl-
vania, Baltimore & Ohio, New York.
New Haven & Hartford, New York
Central & Hudson River railroad,
Boston & Maine and the Delaware &
Hudson company ISSUED new stock for
$101, 100000 less than its market value,
or gave away this enormous amount in
bonuses to stockholders" and that
'the dividends on these fictitious stock
issues in 1913 alone amounted to $4,-
317,O0O"
Railway Trickery Is Charged.
A. B. 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-
sire of demonstrating that government
ownership was not best for the coun-
try. Exactly the same operating force
that built up a great surplus before
the war created a 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- |
vate management was best.
when the railroad official prays he !
turns his face to Wall street, but once |
it is demonstrated, for instance, that |
management in future will center in !
Washington, I 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.. Gaar-
retson said it utterly demolished cap
ital account, while the other plans SUBJ
mitted to congress added to it until
the grandchildren of the present gen.
Grafton would stagger under the load"