The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-08

of that country which they love guar |
anteeing per cent. returns on $4,000 |
100000 OF railroad securities. of which
at least half is fictitious II the Interstate
Commerce Commissions figures on i've
small roads are to be taken as char
aateristic OF the entire industry, repre-
ssnting no service to the public, thereby
depreciating their securities, for which
they paid par value by 80 per cent. can
you expect them TO maintain that patrizi
otto belief In their country which moved
them to such sacrifice in time of its
need7
These wage earners, as bondhclders,
together with the otAAr individuals in
the community who have subscribed to
the Liberty loans, are closely scrutinis-
Ing the course Of evefIs In Congress on
railroad matters with an intelligence
equal to that of the banking interests.
We are deluged with inquiries In regard
to this matter.
Put yourself in the place of q man
owning $4,000 worth of war bonds which
he purchased at par. He notes that
there are pending before Congress many
propositions whereby the public IL asked
to guarantee either in rates or returns
an interest OF not less than per cent
| upon $40. 0o0. 100000 Of outstanding rail-
way securities. which now have mar
| ket value not exceeding f13,000,0o 5000.
| He hears It claimed by those urging this
guarantee that q return of not less than
per cent. will place these securities
at par and provide market where many
seeking investments can be induced to
| serve the public in return for the fur-
| Their Issuance OF such securities Such
q guarantee will mean an advance In
value Of from s13, 900. 0o0. 900, their pres
ent value, to 10000. 100000, their par
| value.
would you not ask yourself what
effect this would have upon the bonds
(which you held on which the same Gov
eminent had guaranteed only an to AZ
per cent? Would you not believe that
| such action merely transferred from
the market value of war bonds to the
market value of railroad securities six
or seven billion dollars7 Would you not
| believe that your Government bonds, IL the
| desire of the railroads and the financiers
was fulfilled, would be quoted at the
average Of present railway securities
while the railway securities would be
quoted at the present market value OF
| Government bonds?
This committee may suggest n salts
factory answer TO the question of these
| Liberty bond holders, but II must be an
answer that will be satisfactory to mil
| lions of widows and orphans. to every
life Insurance company. savings bank
and trust company. and to every holder
of these bonds who has paid for them
at par and who will not witness their
fallen values with any sense of salts
faction or with any feeling that his
sacrifices have been entirely justified
for the preservation of the Government
that could work such iniQuity. His
sense of injury will also be deepened
when he realizes that the securities to
which his value has been transferred
do not in every case, In fact, admittedly
In many cases. represent an equivalent
sacrifice by the one to whom they were
lnitially issued.
Speaking for Citizens,
THE representatives of railway Sc
curites. the railway security holders.
and the United States Chamber OF Com
merce, appearing before you have ascer-
tained that they speak for half of the
citizens OF the United States as being
Interested in the value in maintaining
the credit OF railway securities BY
what basis they reach this conclusion
1 cannot tell. But they assert that
savings banks. trust companies and life
Insurance companies have large invest
ments in railway securities, that every
depositor In such a bank. every holder
one in any way affected by the net as
sets OF such institutions are represented
by them.
IF fifty million people are indirectly
affected by the market value of twenty
billions of railway securities held by
100000 individuals how many people are
affected by the market value of twenty
billions Of Government bonds held by
twenty-five million individual subscrib-
ers? And to what extent are the hold
ers of life insurance policies and de-
positors In savings banks interested in
seeing that the assets of those insti-
tutio1s are not damaged by shrinkage
in the market of Government bonds
which they hold7
Never before have so many individu-
ais united in single presentation. and II
the value Of labor investment be cal
culated by the return which II receives
in the same manner In which a capital
investment is determined then that labor
inv estment measured financially approx
imates a value OF $50. 900, 000, 900. In ad-
dition to that at least three million citi-
gems appear here as capitalists owning
large proportion of the national debt
and seek to have their interests as such
owners likewise considered and justly
protected. Never before have so many
capitalists appeared before Congress to
assert their interests in any capitalistic
! venture"
Referring to labor's plan for public
ownership Mr.. Plumb said:
This vast army of producers for
whom 1 appear are not divided. They
present no conflicting plans, no diverse
theories for the solution Of this prob
lem, but appear before you united
force profoundly convinced OF the eco
nomio soundness of the principles upon
which their plan is built, imbued with
|. the crusaders spirit to support the pin
ciples upon which their faith is founded
,, 1.-THE progress Of recent events ha:
brought US face 70 face with crisis oil
tremendous Importance. The constantly
rising cost of commodities to the con-
! sumer has far eutstrtpped the purchas-
! ing power of the consumers wage. This
difference between earning power and
srending power OF the great mass OF the
! workers has compelled corresponding
: lowering of the standard OF existence
This Is an influence entirely hostile 70
the interests of humanity and to be re-
sisted by all the powers Of mankind
Resistance Il Inevitable.
/ "Such resistance is inevitable. Human
? nature cannot do otherwise than oppose
! the universal lowering of the standard
} of living To avoid the deprivations
: which loss of purchasing power necessar-
ily infiicts the first natural reaction Is
, tho demand for increased purchasing
> power through demanded raises In
, wagea. yet this demand Is acknowledged