The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-01
GERMANS PLAN
TO REORGANIZE
ALL INDUSTRY
Power to Be Greatly Cheap
ened and Economic Par
lia.-nnnt to Control.
MINES ELECTRIC FIELD
Current to Be Distributed
to Large Number of
Plants.
EACH TRADE ASSOCIATED
Labor to Share in Manage
ment and to Participate
in the Profits.
MINES ELECTRIC FIELD
EACH TRADE ASSOCIATED
BY RAYMOND SWING.


Special Cable to THE NEW Yoax HERALD.
Copyright, 1920, BY THE New York HEaALp.
New York Herald Bureau,
Berlin. Oct. 81.
German employers have just brought
forward their scheme for the reor-
ganization of German industry. 1t is
comprehensive programme. built on
the distribution of greatly cheapened
power, and the foundation on which it
Is built is tantamount to an industrial
state ruled by an economic parliament.
but at the same time maintaining pri-
vate initiative and working with I,
minimum of Government control.
The scheme. which it is believed will
be accepted, aims at giving Germany
an advantage in competing for trade.
Not only Is it substitute for the
scheme for specialization Of the coal
mines of this country, which is now
being debated, but also 1t is a broad
outline for a complete reordering Of
the nations economic system. A
unique feature of it is that it advo-
Gates the idea of electrical power
rather than of coal.
Under the scheme the country is
divided for administrative purposes,
into economic districts, each with one
power source. This power, which
would be distributed in the form of
electricity wherever such power would
be serviceable. This would involve
the construction of great number OF
power plants and stations, which. the
employers say. can be completed in
three years. and in the Rhineland and
in westphaiia in one year. Each in
dustry. including agriculture. in each
district would organize, negotiate for
its share Of power and undertake the
equitable distribution of this power
within it's own particular industry.
Manufacturers to Combine.
For instance there would be formed
an association Of textile manufacturers
for all the power ratonable for that in
dustry in the district embraced in the
association. This association would
then proceed TO apportion the power
among It's members as II might choose.
The shares of this colossal enterprise
would be owned by the private compa-
nles mining coal. by the national and
State governments by municipalities
and workers. Labor would have repre-
sentation on the board OF directors of
the company and, further. would have
indirect participation in the company's
profits through the investment of It's
savings now in municipal savings banks.
The actual management of the con-
Germ, however would be left In private
hands. while the leadership would stay
with the employers. at least for the pres
ent. Later. employers say. when labor
has been coached IN administrative work
by improved application OF the shop
steward law. II would share in the ac-
tual administration of the company.
Middlemen to Go.
The scheme. II put into effect. means
the disappearance OF the middleman In
the coal business in Germany and also
an end OF the independent power SER
vice. which, especially IN the Rhineland
district. has grown 20 formidable dimon-
sions. But tho saving OF the middle
mans profit would mean reduction In
the prices current and consequently n
reduction in the cost Of manufacture
Tho saving which would be Effected in
the transportation OF coal would mean
an increase in the actual amount Of
power available for German industry
The economic districts would. as a result
OF the scheme. become local units. or
election districts in national economic
..-tf. q.
then replace the somewhat nondescript
institution of the present time, because /.
would comprise. in 80 far az industry
was concerned "a completely inclusive
and representative body.
However, there would be a spur 10 in
creased production. The manufacturer
would receive the power apportioned to
him at low rate. which would be made
possible by the concentration In the in
dustry. Too. the manufacturer would
be entitled to more power, az mini
mum ration. under certain circum-
stances. but would have to pay for this
additional power a price several times
greater than he was called on to pay
for the power purchased under his
original contract This higher price
would encourage the mine owner to ex-
tenu his itliiltS anu invest IN lUlprONe-
ments.
This feature Of the scheme Is intended
chiefly for the manufacturer OF goods for
export. II is held that he could afford
TO pay more for power than could the
manufacturer OF goods for domestic
consumption. since the export manu-
facturer, selling his goods Ia world
markets. still would have safe mar
gin to compete with manufacturers in
countries whore power costs more than
in Germany.
The scheme was laid before tho Ma
tional Economic Parliament by three Of
the strongest German mine owners,
SHINES, voegler and Silverberg. They
were appointed members of a commit
tee OF seven TO report on socialization.
Behind their advocacy OF the scheme
stands a united employers group Of
the economic varIiament. This group
is advocating SapticDAof the sehsris