The Bridgeport times and evening farmer., 1919-08-06

nation of such activities on their part Is one of the best features of his plan. In fact, he wants fund ere ated out of earnings which will amortize the outstanding government bonds in few years time. Then the railroads will be entirely government property, with no interest to pay, and will be able to render service at cor respondingly low cost.
 How much would be saved even before the amortization process has begun Mir. Plumb indicates by some interesting figures. He says the av- craze cost of money from private sources is about or per cent. per annum, while government bonds would pay only 4 per cent. The rail roads are now capitalized at a total of $19,0o0, 100000, and the saving on this one feature alone under the new plan would be s360,0O0,000 per an- mum,
 But while the railroads are capital fzed at s19,Ooo, 100000, MT. Plumb de- nfes they are really worth any such sum. He insists that the country is paying interest charges on six to eight billion dollars of capitalization which Is unwarranted, which either repre- sents fictitious securities'' or Invest ments out of earnings.' He thinks this charge Is supported by the fact that this s19,0oo, 100000 worth of se- curities has shrunk so far below par that it is only worth some S13,700,- 100000 today. Even on this sum he says the saving to the travelling public if the government loaned the money instead of private individuals would be value by just about the amount of $40. 100000 q year.
 Because the market value of rail ''water'' which MT. Plumb thinks has road securities today is below the par been injected into cap1talizations, he would be quite willing to take the railroads over on a basis of present market values. In that case, he says, five billions would finance the entire operation. This is only four times as much as Congress has already appro- pr1ated and will this year appropriate for maintenance of the system.
 The fixed charges which the rail- roads would have to meet each year would, of course. include not only per cent. on the actual value of the properties, but sums for maintenance and renewals. Extensions of railroad lines into new territories would be financed by taxing the territories to be benefited, just street improve ment in most cities is now financed by assessing the property owners in proportion as they are benefited
 When the net profits after these charges have been met amounted to more than 10 per cent. in any one year the Plumb plan provides for an automatic reduction in rates of per cent Up to 10 per cent, the profits are divided equally between the government and the 2,200,0o0 railroad workers but when 10 per cent. is passed the governments half is wiped out by cutting the rates per cent. This reduction in rates, MT. Plumb says, will at once greatly stimulate industrial activity, bring more freight and passenger travel, and result in the creation of greater profits because "overhead' does not increase as fast as gross vol ume of business Then the process would be repeated with another auto
 matic cut in rates when the govern
 nents share again amounted to per cent. The sums the government accumulates in years when it's share is less than per cent. would be used for extensions and Improvements which themselves would bring greater business.
 MT. Plumb denies that under gov ernment ownership the efficiency of the worker would be destroyed. On the contrary, he thinks it would be greater than ever before. There are only two motives for hard and eff1- cient work" he says, in effect. They are hope of reward and fear of pun 1shment. Under the present plan. hope of reward is lacking; no matter how faithfully and intelligently one works, he gets only his wages or sal ary. Under our plan, every. worker would share in the monetary reward of efficien: and intelligent operation. In the past, competition has existed only to increase profits, and not to increase efficiency"
 It is worth noting that when MT Plumb advocated this plan at the A. F. of L. convention he did so with the ref1 ark that it's principles ap- piled not merely to railroad labor but to every industry which is based on g. grant, monopoly or privilege" He referred bitterly to the order of n!- Irector-General Walter D. Hines that no railroad man after Oct. 22, 1915, shall hold a position as a member or officer Of any political committee or organization that soItcits funds for po1it ticaI purposes . (por) as- sume the conduct of any political campaign (nor) be a candi- date for nomination or election to any political office other than a mu-
 nicipaI ofhoe." MT. Plumb para phrased this order to read that no owner of any rad1road securities and
 (Ccnz1nued on Pare Tour.1