The labor world. [volume] (Duluth, Minn.) 1896-current, 1919-11-01
PLUMB EXP0UNDS
DEM0CRAT|C.PLAN
Makes Big Hit at Duluth Armory
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equal. Without the grant you could
not have investment nor productive
effort; without investment you could
not supply the need of society, nor
would there be employment; and
without the use OF human effort the
investment would be useless and So
c:ety would go unserved. The lack Of
any one OF thes+ three elements makes
the other two powerless to function,
therefore, we conclude that these
three elements are Of equal import
ance.
I'VE treat the first element, the
grant of society. as an investment just
as much an investment as the invest
ment of capital. 1t has been con-
sidered an asset by those to whom
the privilege has been granted-a
valuable asset. When the railroads
obtained from the states the rights
to serve the public by Offering trans
portation they capitalized the value
of that grant which they received,
and they issued stocks and bonds to
the extent to which they figured they
could make dividends on the security
so issued. They treated it as an in
vestment. but an investment belong
ing to them. We treat it as an in
vestment made by the public, and it
was made by the public because
through this cooperative effort of pro-
ducers and capitalists greater service
rOlll6 no ronHnrnH in o,,f;
ties and of better quality than could
be rendered, if left to individual eff
fort.
Service at Cost.
'Sooiety makes this investment of
it's privilege in order that it may OBJ
tain more service Of better quality at
less cost. That is the inducement for
making the grant; that is the way in
which society receives it's return on
the investment which it has made in
the enterprise.
Nov capital is an investment. The
owner of capital being secured in the
integrity of his investment and a con-
slant return which induces him to-
make it, if he purchases bonds: he is
then no longer interested in the man.
agement of the industry because he
does not suffer if it be poorly man.
aged; he does not profit if it be we'll
managed.
1--WE have today II billions of bonds,
par value, which represents in fact the
total actual investment in our rail-
ways, and the holders of those secur-
ties have no voice in the direction of
the industry.
Nov if the public guarantees to
the owners of this capital their prin-
cipal and interest then the men who
furnish that capital. just as the men
who furnish capital for railroads on
bonds are disinterested spectators of
the way in which the industry shall
be conducted.
Acquire All Private Interests.
But we have two interested ele-
ments left. We have the public-so-
ciety-dema nding better service, more
service, at less cost, and tho produce
ing element of society for better serv-
ice, more service at less cost, we pro-
vide that the government shall &C.
qure all of the private interests out
standing in railways.
Let me deviate there for just a
moment. We have been led to con-
slider railroads as entirely private
property. That~is a mistake. They
are public highways, and our supreme
court has always held that the only
difference between railroad and this
street nearby is in the manner of it's
use. The very acquisition of the prop
erty for railroad purposes dedicated
it to the use of the public for ever, as
a railroad highway. It could be ac-
quired only for that purpose, used
for only that purpose, and such rates
were to be charged for the service as
the people would permit, so that they
are public highways in which private
terests must be measured by the terms
Of the grant, the charter of the rail-
way company and the law. under
which the company operates.
Certain Public Interests.
1--WE have certain public interests
in these highways that are well-de-
fined, because everything which did
not pass by the grant is reserved for
the benefit of the public.
$50 we provide that the government
shall acquire all Of these outstanding
private interests; that the value of
those interests shall be determined by