The daily banner., 1919-08-13
CHARGES HUGE
RR. INITIATION
Stock Gifts Of Nearly Half a
Billion, Plumb Declares.
BIG INTERESTS IN CONTROL
The Pennsylvania Among the Lines
Accused of Paying Dividends on
"Watered" Issues.

Washington, Aug. 13.-Charges that
eighteen representative railroads OPP
Grating in all parts of the United
States gave away stock bonuses ag-
gregating $45O, O,414,OO0 from 1900 to
1910, and have paid millions in divi-
dends on these bonuses, were made
before the house interstate commerce
committee by Glenn E. Plumb, of Chi
cagO.
He is the author of the Plumb plan
for tripartite control of the roads,
backed by organized labor.
Mr.. Plumb charged "these rail-
roads which have so increased their
property investment account at the
expense of the public, are controlled
In whole or in part by the Morgan in
terests, the Rockefeller interests
and the Gould interests"
"On behalf of all of the employees
of these systems Of transportation
and the public" said Mr.. Plumb, 1--WE
demand congress shall make tho
rough investigation of the charges
ueIcll SCI lOI oO tlAdG CAlO <AAlCLA n
can people may know to what extent
1t is sought to subject them to ex-
ploitation under the plans proposed
to this committee of congress, plans
which would make lawful the fixing
of rates based on the now unlawful
aggregate property investment ac-
counts of these systems"
Specifically, Mr. Plumb charged the
Chicago, Burlington and Quincy, the
Chicago, Milwaukee and st. Paul, the
Chicago Northwestern, the Great Nor
therm, the Illinois Central and the
in bonuses to their stockholders more
than $250,000,0O0 during the ten-year
period mentioned. He added the ac-
tual dividend disbursements on this
excess capital for the year 1918 alone
amounted to more than $11 100000"
He also alleged that the Pennsyl-
vania, Baltimore and Ohio, New York,
New Haven and Hartford, New York
Central and Hudson River railroad,
Boston and Maine and the Delaware
and Hudson company ISSUED new
stock for $101, 100000 at less than its
market value, or gave away this enor-
mous amount in bonuses to stock
holders" and that "the dividends paid
on these fictitious stock issues in
1913 alone amounted to over $4,317,-
OOO."
"You have made certain charges
oix- ,o{a
Representative Esch, Republican,
Wisconsin, chairman of the commit
tee, at the close Of Mr.. Plumb's state
ment. "It is your idea, if an investi-
cation is ordered, to supply speciff-
cations?"
''We either have the evidence or
know where it can be obtained" Mr..
Plumb replied, $50 it will be avail
able if the committee calls for it."
The railroad brotherhoods intend
to have the Plumb plan placed before
the conventions of the two big par
ties, it was intimated They hope it
may be incorporated into the platform
of at least one of the parties.
Warren S. Stone, grand chief of the
Brotherhood Of Locomitive Engineers,
recently said senators and represen-
tativeS would hear from 100000 Of
their constituents within sixty to
ninety days A threat has been made
that Plumb plan congress win be
elected if the present congress fails
to bow to the will of the adherents
of the scheme.
A. B. Garretson, former head of the
order of Railroad Conductors, who
came here to advocate adoption of tne
Plumb plan, was expected to resume
his statements before the house in
terstate commerce committee.
Unlike previous witnesses, Mr.. Gar
retsOn had no prepared statement to
submit. His testimony was entirely
extemporaneOus He asserted he
was no dreamer, but he believed the
adoption of tbs Plumb plan would be
factor in stilling the spirit Of un-
rest throughout the country He de-
MED the rumblings of discomfort indi-
Gated the laboring people wanted to
overthrow the government.
Departing from his testimony, the
witness said he desired to deny the
brotherhoods, with a gun in one
hand and a stOpwatch in the other"
had held up congress.