Ashland weekly tidings. [volume] (Ashland, Or.) 1919-1924, 1919-11-19

follows. Without new economies or
new business the profits the next
year would be only $250,000,000,
and the employees and the govern
ment would receive only half the
amount of the year before. But de-
creased rates mean more business;
and also, the reduction in dividends
would stimulate the employees to i'm
prove their operation by applying bet
ter methods. So the tendency is to
assure constantly decreasing rates,
to add to the volume of business, and
TO give the most efficient service hui
man ingenuity and devotion can pro-
vide. Decreased rates mean cheaper
commodities; and so, through the eff
fectiveness of the railroads, the pur-
chasing power of money is increased,
not only for the railroad man, but
for every wage Garner and every
purchaser.
What does the government do with
its share of the surplus?
1t invests it in improvements and
extensions, thus adding to the value
of the railroads without adding to
the fixed charges. 1t retires the out
standing bonds, thus reducing the
liked charges. Ultimately the public
has its railroad service at cost.
Does the government pay for all
extensions?
No. the community benefited must
nay II it can; If 1t is able to pay all,
he building of the extension is OBJ
igatory, If it only pays part. the
-overnment pays the remainder, but
,nly makes the extension as II deems
wise. And where the general public
md not a local community would be
benefited, the government pays the
whole bill.
How are disputes between officials
md men adjusted?
BY boards, to which the operating
officials elect five members and the
men, five members. In case of fail
IRE to reach an adjustment the case
Is appealed to the directors.
Who determines the rate of
wages?
The board of directors.
Who supervises the purchase Of
the roads?
A purchasing board. composed of
the Interstate Commerce Commission
nd three directors Of the new gov
ernment corporation, one director
from each group.
Who decides the value of the pri-
vate interest in the railroads?
The courts. II is a judicial ques-
ion, and is to be answered only af-
'er an examination of the charters of
The existing companies, the laws un-
Ter which they are created, and the
manner in which the company has
lived up to its charter and these laws
VIII the public have to pay for
watered stock?
No. The public will probably pay
less than two-thirds OF what the rail
roads claim as their value.
Are there other savings?
Yes, the public can obtain the
money to purchase the lines at 4 per
'ent, whereas the public is now
rates to guarantee the roads
g. y per cent on their money. The
saving on the present capital ac-
count OF the railroads would be
,bout 100000, 900, and on an hon
ast valuation would be nearly twice
his sum. The Plumb plan provides
for sinking fund and every year
lne of the fixed charges would be l
oer cent OF the outstanding indebt-
edness, to be used in retiring the
bonds. The government also uses its
profit in retiring bonds. so eventual
y, probably in fifty years. the people
would own the roads debt-free. AL
further saving would be in the oper-
alton OF the roads as a unified sys-
tenn, which permits the interchange
Of equipment, the end OF wasteful
and greater economy in
buying supplies. Under this plan
passenger rates Of / Y cents a mile,
and reduction of freight rates by
40 per cent appear reasonable.
Why is It called the Plumb plan7
Because it was conceived by Glenn
Z. Plumb, general counsel for the
Organized Railway Employees of
America