New Britain herald., 1919-02-07
WANT COOPERATIVE
RAILROAD CONTROL
Labor Interests Urge Government
Ownership and Private Operation
ON PROFIT SHARING PLAN
Railroad Employees Advocate That
Government Buy Roads, Have
Joint Managers and Divide Earn
ings Upon Some Fair Basis.

S'N~>
ings Upon Some Fair Basis.
Washington, Feb. 7.-Railroad la
Dor interests today proposed govern
meat ownership and private operation
by ono largo corporation, cooper
2tively organized, and sharing profits
with employees. as their solution of
tho railway problem.
Want Joint Management.
Testifying before tho sonates inter-
state commerce committee on behalt
OF the four leading trainmen's broth
crhoods and other employees organiza-
tions, Glenn i. Plumb OF Chicago
recommended that the government
acquire all railroad property at a
price fairly representing the physical
valuation and cntrust the operation
to corporation to he directed joint
ly by employees, officers and the gov
ornment. Earnings would hc divided
equally among employees and the
government and rates would auto
matically be reduced when profits
amounted to more thar q fixed rate.
Benefits Arc Explained.
This plal it was argued, would pro-
y vide cheaper financing, give stability
of income to security owners promote
efficiency of operation through shar-
lug profits, remove railroad operation
from partisan politics. compose con-
1lictS between federal and state au-
thurities, keep rates at a minim un,
eliminate complications in rate SChed-
uIGs and provide a means Of making
= communities bCnertting by extensions
pay for them. The corporation Woula
be subject to regulation by the inter
state commerce commission which
would retain it's present regulating
powers.
RAILROAD Men Object.
Tho brothcrhoods objected to the
railway executives proposal for es-
tabIishing secretary of tra1sporta-
tion, saying this would constitute
regulating the people in the interests
Of capital. They also protested
against the railroad administrations
order forbidding railway employees
from taking part in politics, arguing
that the solution of the railway prob |
lem is a political issue and that em'
ployes are entitled to participate.
Mr.. Plumb suggested organization
of an operating corporation WheroI
e. operating ability constituted its sol9I
capital.
Trust Fund f'or Employees.
"A certain agreed percentage Of tho
net results or OpefaI1OD SnOuld Dc1OnS
TO this corporation" he said. Tho
stock of the corporation should bol
held in trust for the benefit of tho
employees. The corporation would bo
administered by Il board of directors
=. who, we suggest tentatively should be
selected in this manner: One-third
to be elected by the classified em-
ployes below the grade of appointed
officials; one-third by the appointed
officials and employees; the final third
being appointed by the president OF
the United States"
With half of the profits going to
the government and the other half to
the corporation to be distributed
among employees, Mr.. Plumb said, tho
men would be aCtuated by a desire to
promote efficiency and economy as u
means OF increasing profits.
Wage and employment disputea
would be settled by wage boards and
boards of adjustment similar to those
now maintained by the railroad ad |
ministration. !
Enormous Saving Possible.
The government could provide capi-
tai from one-fourth to one half |
cheaper than private investors said
Mr.. Plumb and this should mean an
annual saving under government
ownership in the cost of capital of)
'from four to six hundred million dor |
lars"
The result might be reduction OF
10 per cent. in rates, he declared.
Railroad security owners would
have a fixed rate of return and this, |
he predicted, would eliminate conttn- |
ual agitation before congress and
state legislatures for measures affect
ing financial interest of railroads.
- Against Federal Department.
Attacking the proposal for a federal
department of transportation, Mr. |
Plumb said if this were done for
railroads. it would soon be demanded |
for the steel business, packing busi-
ness and other industries and very
quickly we would have d sovereign
people enslaved by regulations to pro-
: tect in the hands Of a few, the capital
which they had accumulated from the
labor of all"