Republican farmer., 1919-08-15
WAKEFIELD PLAN PRESENTED TO COMMERCE COM. Walter Explains Division of All Surplus Between Em-
 ployes and Public. OPPOSED FEDERAL
 INCORPORATION Financial Structure of Cred it's Depends Upon Legisla-
 tion Enacted.

Washington, Aug. If - The War
 field plan for railroad control, with
 provision for a flat return of per
 cent. on capital invested, was pre-
 sented today to the House Interstate
 Commerce Commission, by Luther M.
 Walter, general counsel of the Ma
 tiona1 Association of Owners of Rail
 road Securities.
 The fundamentals of the plan, in cluding division of all surplus over
 the fixed return among employees, the
 public and the road earning it, were explained by MT. Walter, who declar- ed it could be put into effect in1me-
 diately.
 t'"The keystone of the Warfield
 plan," the witness said, lis con-
 gressional direction to the Interstate Commerce Commission that it shall make freight and passenger rates suf-
 flcient to pay operating expenses,
 maintain railroad properties and give
 not less than per cent. return upon
 the aggregate face value of the prop erty devoted to transportation in each of the principal traffic territories." MT. Walter opposed federal ;ncor- poration, a telephone board and a secretary of transportation in the cabinet, and declared that unless the minimum return plan the net result of operations in the prewar test period, the basis of government ren- tai, some of the carriers would have turned in 8 surplus for division be- tween employees and the public. MT. Walter said the financial structure of credits depended upon the legislation enacted by this con- +@ lem. The association, he said, used the property investment account of the carriers as the basis upon which to. apply the per cent, because the Interstate Commerce Commission had found that the only available basis for prompt determination of suffi- ciency of the return upon investm ent. It was a fundamental of the War field plan, the witness said. that la bor should participate in the earnin gs of the carriers.
 we believe" he declared, that capital is entitled to it's return of six
 per cent; that labor is entitled to a fair wage and that the excess earned
 by the carriers after paying fair wages and per cent. on capital
 should be divided with labor and the public. LaborS share should be used for the establishment of the insurance system or for profit sharing. By req son of the largely increased duties which fall upon the commission the security holders ask Congress to ere ate six regional interstate commerce commissions, subordinate to the com
 mission, but with all the powers of the interstate commerce commission In their respective territories Our plan contemplates that these regional commissions shall act boards of conciliation in settling wage disputes, being a body close to the employees, the carriers and the shippers
 The issuance of securities of all carriers engaged in interstate com
 merce would be vested exclusively in federal authority.
 l This plan would create a corpor- | alton operated without profit to the l railroads and managed by the nine | Interstate Commerce Commissioners
 and eight railroad men selected by 1 the railroads. This corporation 1 would furnish expert advice to the | commission in the operation of car | riers, would unify terminals, would 1 operate equipment such as has been l built by the railroad administration
 and allocated to the individual rail | roads. It would furnish a great l clearing house for railroad operation 1 and in times of emergency would | constitute the directing force for the 1 handling of the railroads as a single system