The Barre daily times. (Barre, Vt.) 1897-1959, 1919-08-14
LABOR'S SHARE IN
INSURANCE OR IN
PROFIT SHARING
Keystone of Plan Is Author
ity from Congress to Make
the Freight and Passenger
Rates Sufficient to Bring
Income to Carry On the
Business as Above Con-
templated.

Washington, D. c., Aug 1.-THE War
field plan for railroad control, with pro-
vision for a fiat return of per cent on
capital invested, was presented to-day to
the House interstate commerce commit
tee by Luther NJ. Walter, general counsel
of the National Association of Owners of
Railroad Securities.
The fundamentals Of the plan, includ-
ing division of all surplus over the fixed
return among employees, the public and
the road earning it, were explained by
Mr.. Walter, who declared it could be put
into effect Immediately.
"The keystone Of the Warfeld plan,
the witness said, "is congressional di-
rection to the interstate commerce com
mission that it shall make freight and
passenger rates sufficient to pay pperat-
ing expenses, maintain railroad proper
ties and give not less than 6 per cent re-
turn upon the aggregate face value OF
the property devoted to transportation in
each of the principal traffic territories. .
Mr.. Walter opposed federal incorpora-
ton, telephone board and secretary
of transportation in the cabinet and de
eared that under the minimum return
plan the net result of operations in the
pre-war test period, the basis of govern
ment rental of some Of the carriers
would have turned in surplus for di-
vision between employees and the public
Mr.. Walter said the financial structure
of credits depended upon the legislation
enacted by this Congress TO deal with
the railroad problem. The association
he said, used the property investment
account of the carriers as the basis upon
which to apply the 6 per cent, because
the interstate commerce commission had
found that the only available basis FOL
prompt determination of the sufficiency
Of the return upon investment.
1t was a fundamental of the Warfield
plan. the witness said that labor should
participate in the earnings of the car.
riers.
eve believe" he declared, "that cap
ital is entitled to its return of per
cent; that labor is entitled to fair
wage and that the excess earned by the
carriers after paying fair wages and G
with labor and the public, Labor's share
should 'be used for the establishment OF
the insurance system or for profit shar
ing. By reason of the largely increased
duties which will fall upon the commits
sion, the securities holders ask Congress,
to create six regional interstate com
merce commissions, subordinate to the
commission, but with all the powers Of
the interstate commerce commission ir
their respective territories.
"Our plan eontemplates that these re
gional commissions shall act as board:
of Cancellation in settling disputes, being
body close to the employees, the carrier;
and the shippers
"The issuance of securities Of all car
Ters engaged in interstate commerce
would be vested exclusively in fedora
authority.
This plan would create corporation
operated without profit to the railroads
and managed by the nine interstate com
merce commissioners and eight railroad
men selected by the railroads. This cor
poration would furnish expert advice t.
the commission in the operation of car
riers, would unity terminals. would oper
ate equipment such as has been built by
the railroad administration and allocatet
to the individual railroads. 1t woult
furnish a great clearing house for rail
road operation and in times Of emergen
cy would constitute the directing force
for the handling of the railroads as 4
single system