The Washington times., 1919-08-02
gen. COXEY
HAS PLANFOR
D. c. UTILITIES
Would Have 25-Iear Bonds-Is-
sued With Redemption Fund
To Cancel Obligations.
BY BILL PRICE.

By BILL PRICE.
Gen" Jacob S. Coxey. known in
Washington and throughout the
country because he brought hun
dreds Of hungry men here many
years ago and walked on the grass
IN the Capitol grounds against regu-
lations forbidding such conduct, is
proposing to Congressman and to
All others who have inclination to
listen 10 him plans Of his devising
Tor relieving the burdens that are
ptiing upon the masses, who are al
mittedly growing FESTIVE under
present conditions.
There will be those who will take
the ground that the man who led
Coxey's army as a peaceful pro-
teet against conditions that existed
in those days may be dangerously
theoretical. There will be others
VINO foresee serious conditions in
the future, with the masses of the
people discomfort unless relief does
come speedily, who will listen to
CoXey or any other man with ideas
that may prove to be a solution.
Somebody must originate con-
structive legislation or action that
viii bring relief. No man or set
Of men has so far proposed what
looks to be the solution. They are
them deliberately trying to fool the
public for political advantages.
SO until something saner or more
practical is brought forward the
Coxey idea Of relief may be consider
Cd along with dozens Of others.
Co1ey Tells His Ideas.
Coxey visited The Times this morn
ing and turned loose some of his
thoughts. All of them are too much
to print at one time.
The central idea is that the con-
sumer pays everything in the final
analysis. Take this demand OF rail-
road employees for higher wages. The
employees want something like ST.
0OO.O00,O 900 more in pay each year.
CoXey comedies that they should have
an increase and they will probably
get goodly portion Of their demands
Who pays the increase in the end?
CoNey or any other man can tell you
that Il is the consumer, who pays ii
TO the grocer, the clothier, the timer,
or any other dealer who has paid the
increased freight rate that will be
charged TO make up for II.
But Coxey thinks that the greatest
burden falling upon the people is the
millions OF money they pay yearly in
interest upon bonds and stocks of
railroads, because they pay ii through
freight or passenger rates.
Then Coxey reaches the conclusion
that the huge interest obligations
could be wiped out by the process of
the Government issuing money with
which TO buy all the railroads and
getting rid Of the mill ons of yearly
interest. Instead Of paying these huge
interest charges to capitalists who
own the bonds and stock. Coxey would
have the Government set aside each
year about 4 per cent in a retirement
fund, which in twenty-five years would
fully retire the money printed to buy
the roads, thus leaving the Govern
ment in full ownership OF the proper
ties without a penny of debt and re-
lieving the people OF the interest
charges they now pay.
Coxey would do identically the same
thing as to public utilities in the Dis
tFict Of Columbia, some of which are
now causing the greatest anxiety.
His plan calls for the District OF
Columbia depositing with the Secre-
tary of the Treasury non-interest
bearing twenty-five year bonds to any
amount not exceeding one-half the
assessed valuation OF real property.
Having done this the Treasury would
issue to the District Treasury notes in
various denominations, to the face
value OF the bonds.
With these notes the present owners
Of utilities would be paid for their
properties under fair condemnation
proceedings. The District would pay
TO the Treasury each year per cent
I. into a redemption fund to cancel the
bonds and wipe out the notes. at the
end of which the people would own
the utilities and have no interest OBJ
LEGATIONS to pay. This is now done
through fares or rates charged them
so that the utilities may earn returns
sufficient to meet this interest.
he Circulating Medium.
In the meantime the notes issued
would be a circulating medium, good
for all obligations.
Coxey would extend the right TO
all incorporated communities Of the
United States to deposit bonds for
notes with which to meet public i'm |
movements OF all kinds, with the |
proposed retirement fund OF per
cent attached.
The tax payers, instead Of having |
TO nav taxes TO meet yearly interest /
upon bonds such as are now issued /
and taxes to pay the principle, Of these !
bonds when they fall due. would pay
taxes sufficient to retire the bonds |
and notes at the end Of twenty-five
years.
Coxey would apply a similar idea |
TO the banking system OF the United |
States. He points out that the cir |
cuIating medium of national banks |
is based on Government bonds on |
" hich interest must be paid by the |
people. who, in turn, pay heavy in |
terest for loans made to them by the |
banks.
Even the huge bonded debt of the |
United States, now way up in the |
billions Of dollars, would be handled /
by Coxey on the basis of his ideas. |
The people, he points out, must pay
the interest on these bonds every |
year, and when the bonds mature il /
f. the taxes paid by the people in some |
form that must retire them. Instead /
Of these bonds he would issue notes. /
good as a circulating medium, upon /
which the people would pay 4 per /
cent into a retirement fund each
year, wiping the notes out in twenty
Eve years.