The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-08-14
new PLAN FOR
Rail CONTROL
Could Be Put in Effect at
Once, Declares Its
Author.

Washington, Aug. 14.-The War
| field plan for railroad control, with
provision for fiat return of 6 pei
cent. on capital invested, was pre-
sented today to the house interstate
commerce committee by Luther M
Walter, general counsel of the Ma
tional Association of Owners of Rail-
road Securities.
The fundamentals of the plan, in
cluding division of all surplus over
the fixed return among employees, the
public and the road earning it, were
explained by Mr., Walter, who de-
clared it could be put into effect i'm
mediately.
"The keystone of the WarfieId
plan," the witness said, sis a con-
gressional 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 per cent. return upon
the aggregate fair value of the prop
erty devoted to transportation in
each of the principal passenger traf-
fic territories"
Mr.. Walter opposed federal incor-
poraticn, 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 prewar test Pc
riod, the basis of governmental
rental, some of the carriers would
have turned in a surplus for division
between employees and the public.
Fundamental of Plan.
Mr.. Walter said the financial struc-
ture of credits depended upon the
legislation enacted by this congress
to deal with the railroad problem.
1t was fundamental of the War
field plan, the witness said, that la
Dor should participate in the earn
ings of the carriers. ~
1--WE believer" he declared, that
capital is entitled to it's return of s
per cent; that labor is entitled to a
fair wage and that the excess earned
by the carriers after paying their
wages and 6 per cent. upon capital
should be divided with labor and the
public. Labor's share should be used
for the establishment of the insur-
ance system or for profit sharing. By
reason of the largely increased duties
which fall upon the commission, the
security holders ask congress to cre-
ate six regional interstate commerce
commissions, subordinate to the COM
mission. but with all the powers of
the interstate commerce commission
in their respective territories.
Our plan contemplates that these
regional commissions shall act as
boards of conciliation in settling
wage disputes, being a body close to
the employees, the carriers and the
shippers
Mass of People Interested.
THE Issuance of securities of all
carriers engaged in interstate COM
merce would be vested exclusively
in federal authority.
This plan would create a corpo-
ration 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. were vitality interested in the
integrity of railroad securities. The
association believed the surplus over
the fixed return should be divided
equally among the employees, the
public and the earning road, one
third to the road Ito encourage in
centive and initiative in operation"