The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1919-08-08
PLUMB FOOL PLAN
New York Times)


their purposes. They say in their
latest statement: eve demand that
the owners of capital, who represent
only financial interest, as distinguish
ed from operating brains and energy,
be relieved from management, receiv-
ing government bonds with a fixed
interest return for every honest dol
lar they have invested in the railway
industry" "The owners of capital
invested in railways are not, as the
brotherhood chiefs seem to imagine,
al assembled in Wall street! The
capitalists they propose to dispossess
are the 100000 owners of the six
billions of money deposited in savings
banks; the 100000 holders of life
insurance policies to the amount of
some $25, 700. 200, 900; the multitude
of private owners of railway bonds
and stocks and the owners of shares
in investment institutions.
These capitalists are represented in
railway management-or were until
the government took over the lines
by men elected by their votes, direct
ly or indirectly, to be members of
boards of directors. 1t is the opinion
of the brotherhood chiefs that among
these millions upon millions of per-
sons interested or actively concerned
in railway management there is neith-
er skill, energy, nor brains. The
chiefs say that the men actively en-
gagged in conducting the railroad in
dustry must be chosen "tnot from
Wall street, but "from the railroad
Offices and yards and out on the rail-
road lines." for "these represent all
the brains. skill and energy that there
is in the business" The men of the
offices and the yards and the lines un-
dcubtedly have skill. brains and ener-
gy, they also have experience in the
business of operation. That business,
however, would be to the very last de-
gree easy and simple compared with
the financial problems that would con-
Germ the new democratic" manage
ment of the railways.
AS the brotherhood men see it, this,
too, would be simple. Perhaps they
underestimate the magnitude and diff
ficulty of financing the railroads un-
der a system of joint control by gov
eminent directors, labor party direc-
tors, and officials. Their plan is to
get rid of the present owners of rail
way capital by giving them govern
ment bonds in exchange for their Sc
curities. They talk of a per cent
bond. AS the savings banks, insur-
ance companies, and private owners
might not accept per cent. govern
ment bond. the transaction would
have to be put through by a forced
exchange. This would be taking
property without due process of law
but when characterization" of indus.
tries is in the wind the constitution
of course, would have to be set aside.
In the literature of the "Plumb Plar
League" we are assured that "tht
public can obtain the money to pur'
chase the lines at per cent, wherea:
the public is now charged rates tt
guarantee the roads Ga per cent. OF
their money" Where would "the pub
lie" obtain money to purchase th'
lines at per cent? Nowhere but from
itself; there is in all the world NJ
other source from which it could bt
drawn. What it means is that tn,
brotherhood chiefs would have th'
government issue bonds at 4 per cent
in exchange for the eighteen or TWEEN
ty billions of outstanding railway Sc
lcCrities, and whenever money wa!
wanted to operate or extend the line:
more bonds would be put out. Mel
skilled in finance and of such absolut,
integrity of mind that they would no
attempt to deceive the brotherhood
chiefs will enlighten them, if the!
wish for enlightenment. as to tn,
certain consequences of an attemp
by the government to issue per cent
bonds in the amount of 10000, ,0O0, ,00I
in addition to its present war debt o.
more than $25, 100000. For ma
tional defense, to deliver the govern
ment of the United States and tn,
liberties of the citizens from dir,
peril, that great sum might be OBJ
tained, but not at per cent. Blu
this new debt is to be incurred not fo
national defense, but for an adven
trre in government ownership and il
the characterization" of industr!
which every man of servation ant
lcommon sense knows would be fore
doomed to disastrous failure. To ,ge
money at 4 per cent. the investmen
must be secure beyond all chance O.
! question. With the Russian exampl
lof characterization of industry fresl