The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1919-08-15
NEW RAIL CONTROL
PLAN W0UL D GIVE
OWNERS 6 PER CENT
WAKEFIELD PROPOSAL WOULD d.
VIDE PROFITS BETWEEN LA
BOR AND THE PUBLIC

Washington, Aug. 1.-THE Warfielt
plan for railroad control with provi
sion for a flat return of per cent or
capital invested, was presented today tc
the house interstate commercs com
mittee by Luther NJ. Walter, general
counsel of the National Association OF
Owners of Railroad Securities.
The fundamentals of the plan. includ
ing division of all surplus over the fixed
return among employees, the public and
the road earning it, We're explained by
Mr.. Walter, who declared that it could
be put into effect Immediately.
The keystone of the Warfield plan
the witness said, sis 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 8 per
cent return upon the aggregate fair
value of the property devoted to trans
portation in each of the principal traffic
territories
Mr.. Walter opposed federal incorpo
ration, transportation board and Sec
retary of transportation in the cabinet
oiiu ucNistitu llitll tiiN
return plan, as the net result of OPP
erations in the pre-war test period, the
basis of government rental, some OF
the carriers would have turned in a
surplus for division between employees
and the public. Mr.. Walters said the
financial structure of credits depended
upon the legislation enacted by this
congress to deal with the railroad rep
resentative.
A fundamental of the Warfield plan,
the witness sail, is that labor shall par
tcipate in the earnings of the carriers.
I'VE believe" he declared, that cap
ital is entitled to its return of per
cent; that labor is entitled to a fair
wage, and that the excess earned by the
carriers after paying fair wages and
per cent upon capital should be divided
between labor and the public. LaborS
share would be used for the establish
ment of the insurance system of profit
sharing By reason of the largely in
creased duties which will fall upon the
commission, the security holders ask
congress to create six regional inter
state commerce commissions subordi-
nate to the chief commission, but with
all the powers of the Interstate Com
merce Commission in their respective
territories
"Our plan contemplates that these re
gional commissions shall act as boards
OF Cancellation in settling wage disputes,
being body close 10 the employees, the
carriers and the shippers.
"The issuance of securities of all car
riers engaged in interstate commerce
would be vested exclusively in federal
authority.
This plan would create n corpora
tion operated without profit to the rail
roads and managed by the nine inter
state commerce commissioners and eight
railroad men selected by the railroads.
This corporation would furnish expert |
advice to the commission in the opera
ton of carriers. would unity terminals,
would operate equipment such as has
been built by the railroad administra'
ion and allocated to the individual rail
roads. 1t would furnish Il great clearing
louse for railroad operation and in
lines of emergency would constitute the
Erecting force for the handling of the
as a single system"
In contending that per cent as the
proper return would not be questioned,
,Ir. Walter said:
Even Mr.. Plumb. the great exponent
# low returns, admits that + per cent
$ not an excessive return under pri-
ate operation"