The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-08-28
ANDERSON PLAN
FOR CONTROL Of
THE RAILROADS
Profit Sharing and Doing
Away With Strikes Feature
of the Proposal

WASHINGTON. Aug. 21.--Railroad re
organization under n plan combining
the most desirable factors" Of both
government and private ownership and
operation was Offered today. as solution
&C tho railroad problem by Judge George
W. Anderson. Of tho United States dis
IrICt court. BOst"n. a former member Of
tho Interstate Commerce Commission
who appeared hcfGr" the house inter-
state commerce committee.
Formation Of q federal railroad COM
pAny. with broad powers including emil
n"nt domain 10 take over existing trans
pur'ation facilities. SO as TO provide "a
singl" national highway and carrier
system" WAS advocated by Judge Ander-
son. who admitted his plan contained no
clement not already present in essence,
hut WAS a combination Of elements that
is radically new"
No Strikes And Profit Sharing.
Labor would. by tho proposals Of tho
witnesses, have new statute and re-
sponsih.lity including profit sharing.
but strikes would be illegal. Along with
capital and the public labor would have
equal representation on the board Of d.
rcctorS selected TO manage the roads.
Rates would be initiated on the service
al-co:t principle by the federal company
subject to approval OF the Interstate
Commerce Commission: states would
deal with purely local questions. such as
communication rates, Improvements and
safety precautions.
Present owners OF the carriers. by flIs
plan. would be protected in that all valid
and properly outstanding bonds would
b. assumed Ey the federal company and
guaranteed by the government and the
S'""hhm!dCrS N regular dividend paying
companies would be permitted 10 cx-
change their holdings on b" is not ex-
Cc"dinS the return during federal con-
troll. while others would have due pro-
cess Of law. Stockholders in the new
company. Judge Anderson proposed,
would have an incentive for efficiency,
economy and progress by authorizing a
dividend IN excess of the standard ono
anI pro-rata issues OF new stock at par.
Publ'r interests, his plan held. should
b. secured against undue capital charge
by limiting Il majority Of the capital IN
tho rev company In bonds, issued at the
lowest available interest rate. Stock
certificates of the federal company. no
proposed. should contain provision that
they might be taken over at any time by
h" government at par and the accrued
standard dividend.
U. s. Control Defended.
Government control OF the railroads
during III" war was defended by Judge
Anderson. who asserted that under such
control there was less failure in the
raliTrad business than in any other big
industry" n statement which he said he
recognized was "inconsistent with
produced public scniimcnt."
Several rcpr, ,scntatiYcs OF railroads
appearing before tho committee urged
that equipment purchaser by tho rail-
ru"d administration ut war prices be
sold sold - tho companies when the
roads were returned al reduced prices.
In tn" Scna:" n hill w:IS introduced by
senator l.cnrCot. Republican. Wisconsin,
providing for unification of the rail-
roads into ono privately owned system
With minimum earnings guaranteed and
management shared by the security
holders. T,GBl;c and employees.