The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-02-11
OPPOSE POLITICAL ORDER
Spokesman Says This Virtually
Ties Hands of Employees in
Assisting in Development of
Railway Question.

n
agement. eileen f. Plumb. of Chica-
go, spokesman for organized rail-
road labor, told the senate inter
state commerce committee. Twenty
one months of government control.
authorized by the present law. will
not be sufhcient time for working out
solution. Mr.. Plumb said, but rail-
road employees are hostile to five
year extension unless the railroad
administration revokes it's order for
bidding railway employees to par
ticipate in politics.
FOR permanent solution the la
Dor forces proposed the following:
Government ownership Of all rail
road properties; operation by a sin
gle corporation, dividing profits
equally between employees and the
government. and directed jointly by
represen tatives of employees. operat-
ing officers and the public: automat-
ic reduction OF rates when profits
exceed certain amount: and reten-
ton by the interstate commerce COM
mission of present power to regu-
late rates
Merits Of the plan, il was argued.
are that it would promote efficiency
through the profit sharing feature
and through unified operation: take
railroads out of politics. stabilize in
vestments, eliminate conflicts be-
tween states and federal authority.
and provide local means OF financing
extensions
AS prerequisite to government
ownership, the !ahc! interests pro
posed that railway properties be ap-
praised without the big allowances
claimed by railway companies for
land values based on costs OF acquir-
ing them at present.
Much OF the questioning of Mr..
Plumb revolved around the opposi-
tion to the railroad administrations
political order. Mr.. Plumb said
this virtually tied the hands of rail
road employees in assisting in devel-
oping a solution of the railway
question.
Senator Cummins. Of Iowa. inquir-
ed hoy the interstate commerce
commission would determine under
the labor plan what would constitute
fair rates to provide share of profit
for division among employees. Mr.
Plumb suggested that the beginning
rates might be placed on a level TO
render l per cent OF gross operating
revenues as net earnings to be shar-
ed among employees. and / per cent
for the government When the gov
ernment's share exceeds per cent.
the interstate commerce commission
should readjust the rates.
Arguing for profit sharing. Mr.
Plumb said:
IF you want efficiency. why not
go to the men who have efficiency
TO sell? Capital does not produce
efficiency. The efficiency OF labor
would he quadrupled under this plan
because they would not be hamper
ed by the inexperienced officers who
control capital"
ndIltS T.. tolterlll OF AtlaNta.
general counsel for the Southern
Ira Tic league, protested TO tho com
mittee against any federal action Hf-
fecting interstate rates in the south
Mary i"bbers in southern cities
would have their business ruined by
competition with northern firms If
the scale OF intrastate rates were dis
rupted. he said, since these jobhcrs
do much business with their states
on rates which the railroad admin
istration's proposed mileage scale
would greatly increase
There Is a mistaken assumption
that stae rates in the south are low
er than interstate rates" said Mr.
Coterill This is rot true. Neither is
IL true that the interstate rates hav.
been based on the intrastate rates
Jobbing businesses have been built
up on a system of both intrastate
and interstate charges. and to modi-
fy this system radically would ruin
their business or would confine them
to local territory"
He said his organization OF ship
pers was opposed to government
ownership and to the fve-year ex-
tension He proposed that the rail
roads be returned TO private manage
ment pending final solution OF the