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Show HEARD Warfield Plan of Railroad Rail-road Control Submitted to House. AH0RM EXPLAINS Flat Return of Six Per Cent on Investment Proposed. WASHINGTON, Aug 14 -The War-field War-field plan for railroad control, with provision for a flat return of 6 per cent on capital invested, was presented today to thp house interstate commerce com-merce commission by Luther M. Walter, Wal-ter, general counsel or the National sneiatlon of Owners of Railroad Se-j 1 euritles. The fundamentals of the plan in-eluding in-eluding division of all surplus over the fixed return among employes, the public pub-lic and the road earning it was ex-' plained by Mr. Walter, who declared 11 1 ould be put into effect immediately. "The keystone of the Warfield plan." the witness said, "is a congressional direction di-rection to the Interstate commerce; commission that it shall make freight and pa8Seng r rate- sufln lent to pay ' operating expenses, maintain railroad' properties and give not dless than 0 1 per cent return upon the aggregate fan value of the property devoted to transportation in each of the principal traffic territories." Mr Waller onnosed federal lnrornora- Itjon, a transportation board, a secretary secre-tary of transportation In the cabinet, and declared that under the minimum return plan t h p net. result of operating in the pre-war plan, some of the ear ritra would have turned in a surplus of earnings for division between employes em-ployes and the public Mr Walter said the financial structure of the plan de-penedd de-penedd upon the legislation enacted bv this congress to deal with the railroad plan The association, he said, used the property investment account of the carriers as the ba,sis upon which to apply the 6 per cent, because the ! interstate commerce commission had found that the only available basis for prompt determination of (sufficiency of the return upon investment. Capital Entitled to 6 Per Cent. "We believe," Mr. Walter said, "that capital is entitled to its return of 6 per cent, that labor is entitled to a (fair return and that the excess earned by the carriers after paying fair wages and ( per cent upon capital should be divided with labor and the public. Labor's La-bor's share should be used for the ea tabiishment of the insurance system or for profit sharing By reason of the largely increased duties which will fall upon the commission the security holders hold-ers ask congress to create six regional I interstate commerce commission subordinate sub-ordinate to the commission, but with jail the powers of the interstate commerce com-merce commission in their respective j territories. "Our plan contemplates that these 'regional commissions shall act as J boards of conciliation in settling wage ! disputes, being a body close to the 1 employes, the carriers and the shippers. ship-pers. "The issunnce of securities of all carriers engaged in interstate commerce- would be vested exclusively in federal authority. "This plan would create a corporation corpora-tion operated with profit to the railroads rail-roads and managed by the nine interstate inter-state commerce commissioners and j t ight railroad men selected by the ! railroads." In contending that 6 per cent as the proper return would not be questioned. Mr. Walter said: "Even Mr. Plumb, the great exponent expon-ent of low returns, admits that G per Cent is not an excessive return under private operation." The association believed the surplus over the fixed 4uru should be diviA- I led equally among the employes, the 'public and the earning road, one-third j to the road "to encourage lncentivo and initiative in operation." |