The Topeka state journal., 1919-11-22
THE RICH MANS INCOME.


One of the chief causes of the pre-
vailing social discomfort is the primi-
tive, but still prevalent. idea that
rich mans income is kept in a vault,
or somehow withdrawn from the COM
mon use and devoted to the owrcT's
exclusive benefit. The truth is that
everything that can + called an in
vestment, or that is yielding returns,
is necessarily in 'Iblic use. A mans
clothes are an exclusive kind of prop
erty, and so is the house he lives in
and its furnishings, but the productive
wealth of the country is employed for
the common welfare.
Everything that is producing for
the market is producing to meet pub
lie needs. The farming land of this
country is private property, but. re-
gardless of~who owns it. it is produc-
ing for a common supply. The wheat
crop is short of the early estimate, but
that loss under normal conditions
would fall on the consumers rather
than the landowners. The cotton
crop is also short, but there again the
loss falls mainly on the consumers.
The p1blic's great interest is in in
creasing production. and it is to this
purpose that all invested wealth is de-
voted. The great bulk of the earnings
and profits of wealth are being used as
Carnegie used his during his active ca
reer, viz: in developing the means of
production and increasing the supply
of articles of common consumption.
Unfortunately our public discussion
ignores this evident truth, and pro-
sceeds for the most part upon the the
ory that the achievements of the lead
ers of industry benefit nobody but
themselves. and that it is good public
policy to hamper their efforts and de-
prive them of the means with which
they work.
The public gets another chance at
all the profits which it sees flowing
into private pockets. They are not
buried in the ground. The acquisitive
instinct forbids that, and the only way
they can be put into use is by increas-
ing production or public service in
some manner. The story is repeated
over and over again. 1t is no answer
to say that each investment of new
capital exacts profits. for the COM
munity loses nothing in paying profits
which are Immediately devoted to fur
ther service. Except what the capital
list personally consumes the commun-
ity has the total results of his Iabors
The steel business was developed out
of it's profits-the profits which have
been so often criticised. without them
the required capital would not have
been available and steel would be still
unknown to its multiplied uses. 1t is
the same with all the industries. The
great cotton manufacturing industry
has been developed by means of the
profits made in it and the public has
gained more by the investment of
these profits for the cheapening of
production than it would have gained
in having cloth sold to the public at
cost, because in the latter event there
would have been no progress in the in
dustry.
Ogden Armour testified before a
senate committee that 81 per cent of
all the profits of the Armour business
since it was incorporated had been left
in the business for its development.
The profits of the business have aver
aged less than 2 per cent of the value
of the annual turnover. he said, and
only 1S per cent of this 2 per cent has
been withdrawn from the business
less than mills to the dollar of turn
| over. II the government had owned
the packing business 1T would have
had to provide the capital for its ex-
pansion either thru profits or taxation.