The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-08-14
RETURN To
? PRIVATE
OWNERS
Americas Railroad Security
Holders Ask Congress to
Return Systems to
Former Managers.
SIX PER CENT RETURNS
Fair Wage to Labor and In Case Of
Excess Earnings, Division
With Workers and
Public.
SIX PER CENT RETURNS

| UNITED Press Leased Wire Service. ]
1 WASHINGTON, Aug. 14-America' S
railroad security holders today told
! congress they favor return of the
roads to private ownership with a
rate structure providing fixed maxi
mum return.
I! Luther NJ Walter, general counsel
of the National Association Of Owners
! Of Railroad Securities, testifying be-
| fore the house interstate commerce
committee, declared that under this
plan, all surplus funds earned over
the fixed minimum return, would be
divided equally between labor the
! public and the roads earning the sur.
! plus.
| He declared that labor should par
| iticipate in the earnings of the carriers
and that such participation was a
| fundamental of the plan.
Walter opposed the stand taken by
| the chamber Of commerce and rail-
road executives providing for federal
incorporation, transportation board
and secretary OF Transportation in
the cabinet.
| The security holders plan, Walter
said, provides for congressional d.
IcCIlOu VI Ilc luISloIdlC Io
commission; that it shall make freight
and passenger rates sufficient to pay
operating expenses, maintain railroad
properties and give not less than
six per cent return on the aggregate
fair value Of the property, devoted to
transportation in each Of the prin-
cipal traffic territories.
1--WE believe capital is entitled to
its return OF six per cent; that labor
is entitled to fair wage and that
the excess earnings by the carriers
after paying fair wages apd six per
cent upon capital should be divided
with labor and the public" he said.
by reason of the largely increased
duties which will fall upon the COM
mission, the security holders ask con-
gress to create six regional inter-
state commerce commissions, subor-
dinate to the commission, but with all
the powers of the interstate COM
merce commission in their respective
territories
Walter said these regional commits
sions would act as boards of con-
ciliation in settling wage disputes
being absolutely close to the en-
ployes, the carriers and the shippers.
The plan provides further, he
stated, that the issuance Of securities
of all carriers engaged in interstate
commerce should be invested In fed
eral authority.
"Finally the plan would create
corporation operated without profit
to the railroads and managed by nine
interstate commerce commissioners
and eight railroad men selected by
the railroads. continued Walter.
He declared the plan also would
continue the present rate commit
tees composed of representatives Of
both railroads and shippers primarily
to consider and pass upon all changes
in rates, requested by either rail-
roads or shippers before being filed
with the regional commission or the
interstate commerce commission.
MANY shippers and manufactur-
ers' organizations have approved our
plan" Walter said ut Is simple
easy of application and can be made
effective Immediately. Under it in
vestors will feel secure. labor will
receive fair wage and the shipper
will obtain the service he pays for"
Sixty Per Cent Raise-
CIlEVEL4 4AND, Ohio, Aug. IA
raise of sixty per cent in wages is
necessary to equal the level Of living
expenses" said Timothy Shea, presi-
dent of the Brotherhood Of Locomotive
Firemen and Enginemen here today at
the meeting Of delegates drafting a
new wage scale.
This was the first intimation given
on the extent of the increase to be
asked by the brotherhood. Officials
had said 1t would be the highest yet"
The scale committee has been in
session for two days. 1t was expect
ed to complete its work late today.