Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-04-28
RUSS|A'S
ECONOMIC SYSTEM
Leon Trotzky Declares Fac
tory Owners Are Limited to
s Per Cent Profit.
PROTECT SOCIAL WELFARE

NEW YORK, April 27.-Profts OF
Russian factory owners are to be lin
tied to or per cent on their invest
ment and the manufacturers are to be
: required to reinvest a quarter of their
profits, under the bolshevik economic
plan as outlined by Leon Trotzky, now
Russian minister of war and marine, In
an interview with Prof. E. A. Ross OF
the University of Wisconsin.
Prof Ross was sent to Russia by the
American Institute Of Social Service to
study the social conditions of that coun-
try and has reported his conclusions to
the institute. The bolshevik revolution
took place while Prof Ross was in
Russia. Trotzky was foreign minister
when he explained the bolshevik eco
nomic program.
as it the intention of your party to
dispossess the owners of industrial
plants in Russia?" Prof Rosse asked
him.
To Take Over Industry.
NO. Trotzky replied. I'VE are not
ready yet to take over all industry.
That will come in time, but no one can
say how soon. For the present we ex-
pect out of the earnings of a factory to
pay the owner or per cent yearly on
his actual investment. What we aim
at now is control rather than owner
ship"
What do you mean by control?"
II mean that we will see to it that the
factory is run not from the point OF
view of private profit. but from the
point of view of social welfare demo-
cratically conceived. For example. we
will not allow the capitalist to shut up
his factory in order to starve his work
men into submissiveness or because 1t
IL not yielding him a profit. If it is
turning out economically a needed
product 1T must be kept running. II
the capitalist abandons it he will lose
1t altogether for a board of directors
chosen by the workmen will be put in
charge.
again control implies that the books
and correspondence of the concern will
be open to the public SO that hence
forth there will be no industrial secrets.
DO you propose that the profits
earned by concern shall be divided
among its workers." asked the pro-
fessor.
Paid Adequate Wages.
NO." said Trotzky. Notwithstanding is
4 bourgeois notion. The workers in a
the profits earned will belong to So
ciety. 1t is only pure profit that would
be divided" /.
Where will the money come from
that will build new factories?'
we can impose on the capitalist to
whom we allow a dividend of or 6
per cent on his capital the obligation
to reinvest in some industry part, say
% per cent, of what he receives"
IF in Russia you hold the capitalists
down to or per cent, while in other
countries they can hope for twice or
thrice as much return, won't Russia be
stripped of capital?"
They won't be allowed to remove
their capital from Russia at WILL" said
Trotzky. significantly.
Il submitted this bolshevik program
to various Russian economists and all
agreed that the Russian workmen are
too ignorant and short-sighted to con-
form to the sound principles which may
be held by their leaders," added Prof.
Ross. Conscious of being masters of
the industrial properties. they will not
submit themselves to indispensable dis
cipline. They will not follow the coun-
sci Of technical men and they will eat
up the capital SO that before the fac
tories have been long in their hands
it will be impossible to keep them
going"