Askov American., 1919-05-08

1T seems clear that the present In.
dustrial system Is destined to last for n
| long time In It's main outlineS-that is
| to say, private ownership Of capital Is
not likely to he supplanted by coIlec-
twist organization of Industry at q
date sufficiently near to justify any
present action based on the hypothesis
of its arrival. This forecast we recog
nize as not only extremely probable,
bKt as highly desirable, for, other op-
| jections apart, Socialism would mean
bureaucracy, political tyranny, the
helplessness OF the individual as fac
tor in the ordering Of his own life and
In general social ineiiiciency and de-
| cadence.
Defects Of Present System.
| Nevertheless the present system
stands in grievous need OF consider.
able notifications and Improvement.
| Its main defects are three--enormous
inefficiency and waste In the produc-
| ton and distribution Of commodities,
| insufficient incomes for the great ma
| jOrity Of wage-enrners and unnecessa-
rily large incomes for a small minority
| Of privileged capitalists. The evils In
production and in the distribution Of
| goods would he in great measure abOl-
ished by the reforms that have been
outlined In the foregoing pages. Pro.
duction will be greatly Increased by
universal living wages, by adequate In
dustrial education and by harmonious
| relations between labor and capital on
the basis Of adequate participation by
the former In all the Industrial aspects
OF business management. The wastes
Of commodity distribution could be
| practically all eliminated by cO-opera-
tive mercantile establishments and CO.
operative selling and marketing associ-
| atiOns.
Cooperation and co-partnership.
! Nevertheless the full possibilities OF
Increased production will not be real
lied so long as the majority Of the
| workers remain mere wage.earners.
The majority must somehow become
! owners or ut least In part of the in
struments OF production. They can be
| enabled to reach this stage gradually
through cooperative productive socie-
ties and co-partnership arrangements.
| In the former the workers own and
| manage the Industries themselves; in
the latter they own substantial part
| of the corporate stock and exercise a
reasonable share I'm the management.
| However slow the attainment OF these
ends, they will have to be reached be-
| In x-o hn n,rl, .ffi ,nt
| system of production or an industrial
and social order, tnat will he secure
from the danger of revolution. II is to
be noted that this particular modificn-
| ton OF the existing order though far
reaching and involving to a great ex-
| tent the abolition Of the wage system,
| would not mean the abolition of pri.
vate ownership. The Instruments OF
| production would still he owned by in
dividuals, not by the State.
Contro, Of Monopoiies.
| "For the third evil mentioned above.
excessive gains by n small minority OF
privileged capitalists, the rain RENE
| dies are prevention of monopolistic
| coutrol of commodities. adequate gov-
ernment regulation of such public serv-
Ice monopolies as will remain under
private operation and heavy taxation
! of incomes. excess profits and Inherit
ances. The precise methods by which
! genuine competition may be restored
| and maintained among businesses that
are naturally competitive cannot he
| discussed here, but the principle in
| clear that human beings cannot be
| trusted With the immense opportuni-
ties for oppression and extortlnn that
| go with the possession OF monopoly
+, power. That the owners of.public serv-
Ice monopolies should be restricted by
| law to fair or average return on
their actual investment has long been
recognized principle Of the courts,
the legislatures and public opinion. II
| Is n principle which should be applied
to competitive enterprises likewise,
with the qualification that something
more than the average rate of return
should he allowed to men who exhibit
| exceptional efficiency. However. good
public policy as well as equity de,
| mandS that these exceptional business
men share the fruits of their efficiency
| with the consumer I'm the form Of lower
prices The man who utilized his abil-
| il. to produce cheaper than his conf
petitorS for the purpose Of exactinS
from the public AIS high price for his
| product ms Is necessary for the least
| efficient business man Is a menace
| rather than beneil, to Industry and
| society,
| "pur immense war debt constitutes
particular reason why incomes anti
excess profits shnald continue to be
heavily taNed. In this way two impors
tani ends viii be obtained, the poor
/ NiiI he relieved o' Injurious tax h,rs
| ,ieas and the small class Of specially
| arisis.gssl capitalists viii be coinpc'3S
! - retura a TART Of their unearncs
gaiHs to SocsI.,f.