Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-12
Ousting the Capitalists
From the New York Times.

are frank in explaining their purposes. They say
in their latest statement: 1--WE demand that the
owners of capital who represent only the fnan-
cial interests as distinguished from operating
brains and energy, be relieved from manage
ment, receiving government bonds with a
fixed interest return for every honest dollar
that they have invested in the railway industry"
The owners of capital invested in railways
are not as the brotherhood chiefs seem to
imagine, all 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 $25,000000; the multitude of private
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. directly or indirectly, to be members Of
boards of directors. 1t is the opinion of the
brotherhood chiefs that among these millions
upon millions of persons interested or actively
concerned in railway management there is
neither skill, energy, nor brains. The chiefs
say that the men actively engaged in conduct
ing the railroad industry must be chosen not
from Wall street, but from the railroad offices
and yards and out of the railroad 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 undoubtedly
have skill, brains and energy, they also have
experience in the business of operation That
business however, would be to the very last
degree easy and simple compared with the
financial problems that would concern the new
democratic" management of the railways.
AS the brotherhood men see it, this, too
would be simple. Perhaps they underestimate
the magnitude and difficulty of financing the
railroads under a system of joint control by
lab
and officials. Their plan is to get rid OF the
present owners of railway capital by giving
them government bonds in exchange for their
securities. They talk of 4 per cent bond As
the savings banks, insurance companies and
private owners might not accept per cent
government 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 Plan
league" we are assured that "the public can OBJ
tain the money to purchase the lines at per
cent whereas the public is now charged rates
to guarantee the roads 6k per cent on their
money" Where would "the public" obtain
money to purchase the lines at per cent? No
where but from itself; there is in all the world
no other source from which it could be drawn.
"a What it means is that the brotherhood chiefs
would have the government issue bonds at
per cent in exchange for the $4,000 100000 or
S2O00O,000000 of outstanding railway securities,
and whenever money was wanted to operate
extend the lines more bonds would be put
out. Men skilled in finance and of such abso-
lutte integrity of mind that they would not at
tempt to deceive the brotherhood chiefs will
enghten them, if they wish for enlightenment,
as to the certain consequences of an attempt
by the government to issue per cent bonds
to the amount of $20000O0000 in addition to
its present war debt of more than S25,000000
000 For national defense to deliver the gov
of the citizens from dire peril, that great sum
might be obtained, but not at per cent But
this new debt is to be incurred not for national
defense but for adventure in government
ownership and in the characterization" of in
dustry which every man OF observation and
common sense knows would be foredoomed
to disastrous failure. To get money at per
cent the investment must be secure beyond
all chance or question. With the Russian
ample of characterization of industry fresh III
mind and still before its eyes, the American
public would not be very eager to supply money
at 4 per cent or any other rate for the purpose
of putting the railroads into the hands of the
representatives of labor and the politicians.
1t is very evident that the radical wing of
the labor party in England has impaired its
ideas to the representatives of the brotherhoods
The program of that party declares that the
lllulF luudlS[ System Vi tdpIldllSl plootStiol
based on the private ownership and competitive
administration of land and capital has or will
have received death blow" Also 'the labor
party stands not merely for the principle of
the common ownership of the nations lands to
be applied as suitable opportunities occur, but
also specifically for the immediate nationalism
of railways, mness and the production of cleo
trio power"
1t is plainly a venture into radical socialism
that the brotherhood chiefs propose; more than
that it is very long step toward the principles
of Lenine and Trotzky and of soviet govern
ment The plan is so violently at war with all
human experience and human reason that the
impression gains strength that the brotherhood
chiefs who are men of undoubted intelligence,
do not for moment believe that they are 60
ing to put it through. It is coming to be looked
upon as method they have devised for
frightening congress into granting their new
demands for wage increase, which it is estl-
mated would cali for an appropriation by con-
gress of about $80OOOOoO0 of the taxpayers
money.