The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-28

profits of the system. the measure pro-
vides, would be divided between the
public and the employees.
This bill Is the Joint production of the
Wisconsin Senator and Nathan l.. Am
ster, president of the Citizens National
Railroad League.
The outstanding feature of the Len
root plan, wherein 1t differs materially
from the Plumb plan, Is that 1t creates
in lieu Of existing separate systems one
national corporation to own the rail
transportation of America, and reposes
the control Of the system in the hands
CT mixed commission.
Would Have Eleven Directors.
The corporation management, it Is
provided by the bill, shall be under the
supervision Of the Interstate Commerce
Commission and shall consist of eleven
directors appointed by the President and
confirmed by the Senate out of a linn
tied number of names to be proposed to
the Chief Executive by various classes
of citizens.
The subdivision of the directorate
under the terms of the Lenroot bill would
he as follows: Two from the employees.
TWO from commerce and industry AND
from the shipping interests as repre-
sented by the Chamber of Commerce OF
the United States two from the farmers
as represented by recognized farmers
ORGANIZATIONS three from the holders of
securities of the railway companies; one
from the Interstate Commerce Commits
sion and one from the State Railway
commissions
The measure leaves the choice OF a
director-general to the vote of the direc-
torate ard limits his tenure of Office to
the period of their pleasure
The following is the financial plan
proposed under the Lenroot bill:
The valuation of all the railroads by
averaging the original cost less depre-
citation, the reproduction cost less de-
probation, and the net earnings over
the last ten years capitalized at per
cent. per annum, varied by urgent equi-
| ties. Procedure is provided for expe-
diting the valuation and for an early
judicial determination of the fairness of
such valuations. Unearned increment
| for the future will be excluded
Existing bonds will not be disturbed
new stock with maximum dividends of
per cent per annum will be exchanged
| for existing stock as valued by the In
terstate Commerce Commission. Earn
| ings in excess of 6 per cent will go 40
per cent. to labor. 80 per cent. to the
| public for improvements and retiring
| outstanding stock. thus reducing rates,
| and 80 per cent. to the stockholders.
The Government will guarantee divi-
dends of 4 per cent. on all stock issued
by the corporation. No stock can be
| issued without the consent OF the In
| terstate Commerce Commission. 1t will
| be crime TO try to use political in
| fiuence to obtain promotion or employ
ment with the corporation
| League Favors Plan.
| The Citizens National Railroad League
| gave out a statement subsequent to the
introduction of his bill by Mr.. Lenroot
| to-day in which it said: I'VE believe
that the Lenroot bill for the solution OF
the railroad problem should receive the
| approval of all interests which are de-
sirous of seeing the problem settled in
a spirit of fairness to all. We believe
that labor is entitled to voice in the
| management of the railroads and a
| share in the profits. We believe that
the real value OF the railroads in public
service should be determined as soor
as possible and in a manner fair e
those whose money has made trans
| portation possible
THE bill as introduced by Senator
Lenroot represents months of careful
| ana ny OUT dssOCltlt
counsel. Samuel Spring. Senator Len
root collaborated in the preparation OF
the bill. and we believe that as it now
stands 1t is sound and adequate and
represents n careful consideration of al
of the economic and legal features of the
railroad situation"
| After many years of opposition tho
Public Utilities Commissions of the
States are at last moving to acquiesct
In the establishments ref ~aS Federal con.
troll that will effectively natioaalize rail
road administration. The executive com.
mittee of the National Association OF
Railroad and Utility Commissioners
after three days session here, ha.
adopted plan which 1t wants incorpo
rated in the legislation for return o.
the roads to their owners.
Unwllingness of the state commits
sons to surrender any OF their powers IN
favor of the Federal administrative au
thority has been an obstacle to perfected
national control. The growth of the In
terstate Commerce Commissions power,
has been viewed askance, and State iniu
ences have always been arrayed agains
, measures likely to increase the Fed
eral and lessen the State authority. Tha
the State organization of commissioner
has at last yielded Is regarded as highl,
important development.
Charles L. Elmquist of Minnesota
chairman of the executive committee o
the States organization, was instructe,
to present the plan TO the Senate ant
House Interstate Commerce Committees
: 1t is based on the Esch-Pomerene bill
; now pending in the House. Interstate
and State jurisdiction are to be CO
I ordinated.