Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-08-19
TALK TO MEN
ON PLUMB PLAN
Carl Thompson Tells Work
erS About Government
Ownership

roads is one of the big factors in
the Plumb plan for control of rail-
roads. This fact was brought out
last night by Carl Thompson at
Tech High School Auditorium. He
talked for nearly two hours on
Public Ownership and Democracy
in the Operation of Railroads."
Mr.. Thompson is secretary of the
National Public Ownership League
and is making a tour of the coun-
try in behalf of the Plumb plan now
before Congress. The speaker was
introduced by William B. McNalr,
president of the local Federation
Advisory Board. In attendance was
large representation of the six
crafts of shipmen and many other
railroad employees and citizens.
Capital City Lodge of Boilermak-
ers No. 1874, whose regular meeting
was held last evening, cut business
short and marched in a body too
Tech Auditorium. An interesting
feature before the speaker was i'll
hamer. In explaining the Plumb
plan Mr.. Thompson said in part:
Many Are Interested
"An entirely new plan for the So
luton of the railway problem Is be-
ing urged by organized labor.
The fourteen railway brother
hoods representing 100000 en-
ployes, practically the entire labor
force of the railroads, are back Of
the plan. The American Society of
Equity, the Grange and Cleaners
farmers organizations representing
a million members-have substan-
TALLY endorsed the plan and both
the Nonpartisan League and the
new Labor party are considering It.
The Public Ownership League
which is a strictly nonpartisan fed
GRAFTON of all forces working for
public ownership has supported the
plan from the first.
The eight outstanding features OF
the plan presented by Glenn E.
brotherhoods, before the Interstate
Commerce Committee of the Senate,
were outlined and discussed by Mr..
Thompson SIS follows:
First: A New Theory of Valua-
ton. AS everyone knows, the rail-
roads of this country are over
capitalized. 1t is the first and fun
damental feature of the Plumb
plan of railway reorganization and
ownership to determine the actual
value of the properties, the amount
of money actually invested and at
work in the transportation system
of the nation. Just how much
fictious capital there is in the rail-
way property of the country it is
hard to determine. 1t is variously
estimated at from one-half to one
third. In the case of the New
Hartford and New Haven Railway
it has been established that the
| capitalization claimed by the COM
pany was 100000 and the ac-
tual capital really invested and used
in the transportation service was
only $93,00O,00O. The valuations Of
some of the smaller roads recently
reported by the Interstate Com
merce Commission shows that in the
cases covered nearly one-half OF
the capitalization claimed by the
companies was fictitious, 'watered
stock'-values that did not exist.
Public Ownership
Second: Public Ownership. Tho
government is to take over the rail-
way properties, paying the present
owners all that may be judicially
determined to be their due The
government is to issue bonds to the
owners for the values thus deter
mined which will guarantee to them
not only the principal but also tile
interest or income on their invest
ment. They would thereby be
wholly divorced from any just claim,
to a voice in the management.
Third: Copartnership Operation.
The plan for the operation of tho
roads is a form of copartnership. A
corporation is to be formed for the
sole purpose of operating the roads.
having no capital and no financial
investment in the enterprise.
Fourth: Profit Sharing. The
profits arising from the operation
of the roads to be divided, one-half
to the government as owner, am
one-half to the employees to be di-
vided among them in proportion to
their wages or salaries. The portion,
that goes to the government will
be applied naturally to paying off
the Indebtedness so that the public
will ultimately have complete and
absolute ownership.
Reduction of Rates
Fifth: Automatic Reduction of
Rates. Arrangement is made for an
automatic reduction of rates. under
the plan, by provision that when
ever the net profits received by tie
government shall exceed five per
cent. of the gross operating rev.
epues, the Interstate Commerce
Commission shall Immediately rG-
duce the rates so as to absorb the
excess profits.
Sixth: Extensions to be Built by