The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-14
WAKEFIELD R. R.
CONTROL SCHEME
/. GIVEN TO SOLONS
Plan for Federal Running of
Roads With Six Per Cent
Return to Owners Pre-
Sented by Attorney Walters

WASHINGTON, Aug. 1.-THE War
field plan for railroad control, with pro-
vision for a fiat return Of six per cent
on capital invested, was presented to-
day to the house interstate commerce
committee by Luther NJ. Walter, gem
erai counsel of the National Associa-
ton OF owners Of Railroad Securities.
me fundamentals of the plan, includ-
ing division Of all surplus over the
fixed return among employees, the pub
lie ana the road earning IL, were ex-
pfained by Mr.. Walter, who declared 1t
could be put into effect Immediately.
The keystone OF the Warfield plan"
the witness said, lis a congressional
direction to the interstate commerce
commission that 1t 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 devotedsto trans
portation IN each OF the principal traf-
flc territories"
Mr.. Walter opposed federal incor-
poration, a transportation board and a
secretary OF transportation In the cab
met, and declared that under the mini
mum return plan the net result of
operations In the prewar test period.
h basis OF government rental, some
OF the carriers would have turned in a
surplus for division between employees
and the public.
Mr.. Walter said the financial struc-
ture Of credits depended upon the legis-
lation enacted by this congress to deal
with the railroad problem.
IL was a fundamental Of the Warfield
plan, the witness said, that labor should
participate In the earnings Of the ar
riers.
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 fair wage
and six per cent upon capital, should
be divided with labor and the public.
Labor's share should be used for the
establishment of the insurance system
or for profit-sharing by reason OF
the largely increased duties which viii
fall upon the commission the security
holders ask congress to create six re-
gional interstate commerce commits
sions, subordinate to the commission,
but with all the powers OF the inter-
state commerce commission In their
respective territories.
Our plan contemplates that these
regional commissions shall act as
boards Of Cancellation In settling wage
disputes, being a body close to the en-
ployes, the carriers and the shippers.
THE issuanc Of securities or all car
riers engaged In Interstate
would be vested exclusively in federal
authority. This plan would create a
corporation operated without profit to
the railroads and managed by the nine
interstate commissioners n
eight railroad men selected by the rail-
roads. This corporation would fur
nish expert advice to the commission in
the operation of carriers, would unity
terminals, would operate equipment
such as has been built by the railroad
administration and allocated to the in
dlVidual railroads. Itwould furnish a
great clearing house for railroad opera
ton and in times OF emergency would
constitute the directing force for the
handling Of the railroads as a. single
system"
In %contending that six per cent as the
proper return would not be questioned,
Mr.. Walter said: Even MIR, Plumb, the
great exponent Of low returns, admits
that six per cent Is not an excessive
return under private operation