The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-14
SHINES PLAN
BRINGS DOOM TO
SPECIALIZATION
Concentration of Industry
Keynote of German
Reorganization.
CONVERTS LABOR MEN
State Trusts Based on Power
Production Rather Than
on Coal.
Special Cable TO THE New York HEaALp.
Copyright, 1890, by THE New York HERALD.
New York Herald Bureau,
Isnr 49,

dustries-not socialization-is Ger
many's hope for the future, according
to the majority report Of the social
ization sub committee of the National
Economic Parliament, meeting at
Cologne. The report is substantial
victory for Hugo SHINES and his
scheme for the reorganization of Ger
man industry. 1t Is signed by two
out OF the three labor members Of the
subcommittee and may mean an end
OF socializa ton in Germany. 1t will
be debated before the Parliament and
when the debate Is closed, DR.. Scholtz.
Minister of Economics. is expected to
draft bill carrying out the prin-
ciples there agreed upon.
Union Leaders ON Committee.
three union leaders, q representative of
the Government and Germany's three
leading coal mine operators. Herren
SHINES. Stoegler and Silverberg. The
lahor representatives were impressed by
the argument of the operators. that the
complete specialization of the mines at
this time would mean reduction In the
coal output.
Almost simultaneous with the publ
cation OF the majority report labor be-
gan a campaign against the SHINES
sociaization compromise, as Il is called.
The first action came from the coal
miners themselves, when the executive
committee OF the National Coal Miners
Union came out against the scheme. de-
claring II did not fulfil the programme
of the union nor OF the International
Miners Conference in Geneva, which
called for complete socialization. The
proposal to issue shares In small de-
nominations Is a clumsy Justification OF
the Socialist idea and means the build
ing up Of private capitalism" the COM
nlittee In n signed statement says.
Repudia ton Sought.
The Freiheit calls the plan "Stinns-
sation--not socidlization," and expects
tie announcements Of the mine leaders
will serve as a reputation Of the labor
members OF the subcommittee who
signed the majority report.
Capitalists and workers will never
agree on socializatlon," Il says. 1.-THE
realization of Socialism is O question
OF might and the Standardization of the
coal mines Is the beginning OF the fight"
The majority report OF the sociallza-
tlon subcommittee adopts Herr Stinness
programme in commencing the building
up of the State trusts on the basis, not
of coal. but of power. such as electricity.
gas. water and motive Also Il adopts
the SHINES theory that the coal mining
industry cannot be treated separately,
but II II Is reorganized the reorganiza-
ton must include all industry. The OBJ
tect II says. must be to produce power
as cheapiy as possible and to use this
power for the manufacture of goods
representing the greatest labor invest
ment possible. The report does not give
an adequate idea OF what aspect the con-
oontration Of Industry will have nor how
1.-THE social servicea biiity will be deter
mined and guaranteed.
New stock companies are TO be formed
and stock Issued In small denominations.
Labor will be represented on the boards
OF directors according TO the investments
by the workers.
More Freedom for Labor.
The report approves of granting labor
more freedom In plant details by the
application OF the existing shop stew
ard rule. but does not specify any spe-
cial changes. The profits OF new stock
companies will be limited, but the State
will have no further participation In the
profits OF the coal mines than Il has at
present. when its revenues from the coal
mines are derived from taxation
The new concentrations OF capital will
be In the form ~ what the Germans call
Unforeseen geneinschafn." the best In
stance OF which was the merger recently
OF the SHINES coal and iron trust with
the Siemens- Halske Electrical Company
q merger which brought under one con-
Germ more than 100000 workers and
which controls power and manufacture
ing from coal In the pits TO electrical
power and the making OF the most COM
plicated machinery.
The SHINES plan IL that all industry
should be grouped together and linked
organ cally with the coal mines In
dustries controlling their own coal, the
report recommends, would receive a
.srst ration OF their own minimum
needs Then the general public would be
supplied and. finally, there would be
used for the manufacture Of goods for
export all the coal prod ced above the
fixed quotas. The Capitalization of In
dustry. however would not be permitted
20 lead to n restr elton OF individual en-
I~rpr1se New mines would be opened
by private companies without limitation
Of capital. and such mining concerns
would be changed into stock companies
only when they proved that they were
profitable organizations.
The report classifcs four kinds OF
mine mergers which will permit the
richer mines to carry the poorer ones and
which will employ the experts of COM
panes whose fields are exhausted in
opening up new fields. II ends by urg-
ting that more attention be paid to
general and technical education.
Minority Suggestions.
The minority report by Herr Werner.
an Independent Socialist. follows the ma
jority report to the point Of the char
acter OF the new organization. He
would substitute for the social trusts an
Institution OF a semi-bureaucrauc pat
tern built upon the present coal council
with a mixed representation Of capital
and labor. The actual management
however. would be left as free as pos
sible from centralized control. but there
would be two bodies with distinct au-
tbority between the national council and
conts~ved e~ Fourth Pogc.