The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-01-24
SWOLLEN FORTUNES.


messed the complete or partial dispo-
sition of three so-called <"swollen
fortunes" Andrew Carnegie had
given away large part of his wealth
while he lived. H. c. F'rick left the
bulk Of his great estate to the public.
John D. Rockefeller announced a
Christmas gift of $125, 100000. a
substantial portion of it going to place
the underpa!d teaching profession on
the hod-carrier or 1ongshoreman.
These multimillionaires were praised
for their philanthropy. London edi-
tors lamented the fact that Great
Britain's rich men were so far behind
their American compeers in their
legacies to the public.
(Of far deeper significance is the
economic lesson involved, says the
Wollman Review, and it is a lesson
which all Socialists and Bolsheviks
mighty study with profit. Wealth,
after it passes a certain stage of ac-
cumulation, ceases to be a possession
in the ordinary sense of the term. and
develops into a trusteeship of which
it's titular holder is merely an admin
istrator. Modern economists insist on
at least dual classification of. wealth
that which exists in the form sof
Consumption goods" and that which
is known as capital goods" The for
mer consist of the things we use to
maintain and enjoy life, our food.
clothing, houses, our necessities, our
luxuries and our amusements. The
latter consist merely of the agencies
OF production and distribution, our
mills factories and shops. our mines.
farms and oil wells, our railroads and
steamship lines.
The popular ina gination knows only
oneN standard of wealth-the old
standard represented by ability to pos
sess or purchase Consumption goods"
/ We are prone to measure wealth in
consumption GOODS because until
comparatively recently the wealth of
individuals was not in excess of their
ability or desire to absorb "consump-
ton goods" or provide for their
families after a certain standard. This
is no longer the case. Whereas the
rich man a century ago may have m
creased his income by raising the rent
on starving tenants, the millionaire of
today in a majority of cases is engaged
in some productive industry which is
reducing the cost of things the people
buy.
Ford got rich, not because he in
creased the price of automobiles, but
haOa4Taa Ia 10 Il
Oil millions were not made by raising
the price of kerosene from 60 cents
to above dollar, but by putting it
below 10 cents. The best market is
found in the masses of the people
The producer who caters exclusively
to the rich enters a limited field.
When Socialist orator shouts that
3 per cent of the people pay all the
income tax or that forty thousand
families in the United States own one
fifth of its wealth his statistics may
or may not be correct, but his facts,
so far as they relate to actual condi-
lions. are all wrong. This small ele-
ment Of our population does not con-
sumo an undue proportion of the ne
cessities or luxuries produced today.
Mr.. Rockefeller. for instance, may
have an income of two or three hun
dred million dollars or maybe more,
but who could imagine his spending
that sum on\ food, clothing, shelter,
automobiles. theater tickets and
monographs.
Great wealth today is not a means
for buying up the articles of which
the less fortunate stand in need, It is
chiefly an agency for producing the
things which all the people-rich and
poor alike-consume. The wealth of
a rich man is largely in capital
goods" These are employed almost
entirely in the production and ldistri-
button OF Consumption goods" The
Socialist agitator. inflames the minds
of the ignorant by calling attention to
the estimated value of-the "capital
goods" held by certain individuals, and
drawing the inference that this posses
sion consequently deprives the masses
Of their just share of consumption
goods" His argument is as absurd as
if he should claim that the railroad
security holders were the only ones
who rode, on the trains. the stock
| holders in the Steel Corporation re-
ceived all the steel products and the
big Five" ate all the beef and pork
and mutton turned out OF their pack
ing houses.
|