Evening journal., 1921-12-16
VIRTUE INA SURPLUS.

66TF Messrs. Lenin and Trotsky and their fellow Boil
shevisis in the United States would listen to rea-
they would find rather convincing facts in the
recent financial statement OF large corporation engaged
the manufacture OF railway locomotives" declares the
Republican Publicity Association through It's president
Hon Jonathan Bourne Jr According to that statement
this is in strong financial position notwthsisnd
ing the large amount OF credits extended during the past
year. Ability to weather business depression with
such satisfactory results to stockholders may be arb
ued to the enterprise and foresight Of President Vau-
who utilized his large surplus to get business
a deferred basis ;"
As everybody knows there was great depression in
lines OF manufacturing industry due 10 lack OF
orders The lack OF orders not due to lack Of de-
mand but 10 lack OF money A concern that in
position extend credit could get orders and this
done by the locomotive company just mentioned. The
company had built up large surplus out OF net earn
ings and TO a expression kept this surplus
FOR "on rainy day"
Leuin and Trotsky and their Bolshcvk friends the
United States do not believe in surpuses. They would
have the government only the surplus but
the capital Itself Many others who would entirely
oonnscate capital all OF the surplus, would never
heless Impose almost conhscatory tax which would
leave corporation without surplus funds which to
extend credit during depression.
It will be noted that the financial statement quoted says
that this credit business done with advantage to the
stockholders III mSnl also nave just a. tiuNiNa
that 1t was done with advantage TO wage earners, With
out mat surplus the concern would not have been abe
10 extend credit there would have been fewer orders for
ocomotiyes construction Of locomotives would have
been curised and the workmen would have been thrown
out Of employment Instead OF that the locomotive
works were operated on credit orders and the men re
ceiyed compensation OF very slightly under wartime
wages.
It is pertinent to remark also in this connection that
this locomotive organization had been operated the
Plumb Plan, with control by the workers there would
have been surplus built up The management
ectcd by the workers. desrous OF curryng favor with
The workers by making monthly large pos
sibe would have distributed the surplus in the form OF
bonus The internal politics OF the management
OF large concern whose managers selected by the
employees would have forced the distribution OF all the
profits leaving no surplus be utilized in time OF
cial depression.
Frequently in The past few monthss" the association
adds have had the suggestion that industry be kept
moving by extending credit But il credit Is to be ex-
tended, there must be to put up the money to
meet the monthly weekly payroll Money 10 meet a
payroll when credit to be extended cannot be secured
only through surplusthe surplus OF the concern it.
self money borrowed from some other surplus The
facts in this oust 10 impress minds OF an those
who look upon accumulated surplus as an evidence OF
criminal pronieering. There is much virtue in a sur
plus"