Kentucky Irish American. (Louisville, Ky.) 1898-1968, 1920-07-03
American Federation of Labor Fav-
Ors the Resolution by Over
whelming Majority.
Political Management Does Not
Stand And Is Not Part of the
Idea.
RATES REMAIN UNDER CONTROL

! elldTt
Council, with headquarters at Wash
ington, sends to the press the follow,
ing comments on the Plumb plan and
the action of the American Fedora.
ton of Labor approval thereof:
The American Federation of Labor
! in its Montreal convention voted in
favor of Government ownership and
Democratic operation of the rail
roads. The vote was taken to be an
endorsement of the Plumb plan. A
majority of over three to one was
given the resolution, 29,159 votes
favoring it and S,349 opposing it.
The Plumb plan takes its name
from Glenn +. Plumb, attorney for
the railroad brotherhoods. Mr..
Plumb, with the assistance of others,
formulated the plan, and it was inn
mediately taken up by the railroad
unions. The Plumb Plan League
-was-formed to explain the idea and
turing the last year several hundred
thousand people have Joined the
league. 1t conducts a weekly paper
called Labor and sends out speakers
to explain the plan.
According to the Plumb plan the
eminent on the basis of the actual
number of dollars invested. Future
extensions will be at the expense of
the territories benefited with the as
sistance of the Government. The
roads will then be operated as unit,
divided however for easier handling
into districts. A Board of Direc-
tors will have immediate direction of
the railroads. The directors will
number fifteen, five of whom will be
elected by the classified employees,
five elected by the executives and five
chosen by the President. The Board
of Directors will appoint the depart
ment heads, who will then appoint
their subordinates. Rates, will re-
main under the control of the Inter
state Commerce Commission.
After the payment of the ordinary
expenses of running the railroads, a
sinking fund of l per cent will be set
aside to retire the bonds. The rest
will be divided equally between the
government and the body of en-
ployes, the money going to the en-
ployes being in the form of a divi-
dend on wages and salaries with the
executives receiving twice the rate
as the classified employees. If the
Governments income amounts to 5
per cent of the gross operating reve-
nue. rates will be- reduced.
Besides the railroad unions and
the American Federation of Labor
the Plumb plan has been approved
by the Farmers National Council.
The Plumb plan has been called
Socialist proposal, but in.the light of
the fact that the Government owner
ship. of only one public utility is
called for, the charge may be dis
carded as ridiculous. An objection
raised against government owned
railroads that the service would be
and is inefficient because of political
management does not stand against
the Plumb plan because political
management is not a part of the idea.
A now type of joint management is
proposed. The Government, as the
representative of all the consumers,
joins with representatives of the men
who know the railroal industry for
the purpose of directing the opera
ton of the railroads. In place of di-
rection by financiers there is substi-
tuted direction by the agent of the
consumers and the practical railroad
ers
The profit sharing feature in con-
sidered wise addition since 1t gives
money encouragement to the rail-
road workers to bring out their best
efforts. The fear that the influence
of the railroad men over the rail
roads will be so great as to Cypress
the rest of the people is secuted be-
cause of the fact that rates viii still
be under the control of the Govern
ment and will be lowered automati-
cally IL the income reaches certain
point.