Evening star., 1935-01-27
Longs "Share-Wealth'' Plan Succeeds
Townsend's as Administration Worry

pld1. 4Ney point OUT LIldL EuRlAQQ
seriously considered modest capital
levy a few years ago when a Labor
government was in power, but quickly
backed away when the implications
of the policy became evident.
Practical problems quickly are un-
covered. The New Deal analysts
would like to have Huey explain how
his plan would work in a particular
case One they directed attention to
was that provided by Henry Ford.
Mr.. Ford has huge wealth. His
individual income from that wealth,
retained for his own use, may be rela-
lively modest and little affected by
the proposed 100 per cent income tax.
But he is the principal owner of the
Ford Motor Co., with its huge reserves,
its vast plant, and its Nationwide
organization.
Under the share wealth plan,
Mr. Ford would be compelled to dis
pose of all these holdings down 10
$4,000, 900. Now it is asked:
Who would step in to buy from Mr..
Ford all this property? Who pos
sesses the hundreds of millions of
dollars that would be necessary? And
Mr.. Ford is just one case. Through
out industry there would be the same
forced selling to escape a confscatory
tax. Billions of dollars worth OF
property would have to be sold.
This leads officials to conclude
either that property would have to be
Hquidated for song. or the Govern
ment would have to step in to do the
buying. But If the Government
bought, then there would be Govern
ment control of industrial enterprises.
That is Socialism, and Huey Longs
share-our- wealth plan would resolve
itself simply into a scheme to bring
about a Socialistic state.
If the present owners OF corpora
tions were forced to give up control.
the question Immediately would arise
concerning who would operate the
country's vast industrial enterprises
A man like Henry Ford, deprived of
control over his property, hardly
would have an incentive to apply his
genius to its further development.
The same situation would apply
throughout industry. As present Gov
ernment officials view the matter. the
country, if it is heading toward Social
ism, should do so with its eyes open,
rather than be pushed into it under
the guiSe of taxation.
They think that the people Of the
country are confusing wealth and in
come as they look for solution Of
their problems.
They point out that much wealth
now produces no income. Coal mines
represent great wealth, but may be
operating at a loss. The same applies
to other property. Railroads repre-
sent a vast amount of wealth, but are
producing little income. 1t is income
that the average man is concerned
about, as that provides him with the
means to acquire things he wants.
Senator Long has contended that If
income were parcelled out evenly, in
stead of going in large measure to
what he asserts are relatively few,
then everybody could have $4,000 a
year. That leads to the question: Is
there anything to show whether the
Senator is right?
x r n
The Department Of Commerce has
made study of national income. dis
closing its distribution. This study is
complete for the years from 1929
through 1892. It shows that in 1929,
during prosperity, labor received an
average of 81 $50 of income. The a.
100000 gainfully employed workers
earned $50 1000, 100000. At the same
time, 100000 entrepreneurs - the
owners of businesses, the manufac-
turers, storekeepers, farmers and other
employers-earned $28, 00000, 900.
Now If you add their earnings to
those of the workers and divide up the
$81 ,000, ,000, 900 evenly, you get an aV-
erage income of $3.50. That Is long
way from the 5000 level promised.
BY 1882 the income Of workers
was down to q $1,270 average, and
for all income receivers the average
was $1,430
But Treasury Department figures
disclose that to pay these wages to
individuals and to pay dividends to
other income receivers, industry in
the United States was compelled to
draw on its savings to the extent OF
about $4,000, ,O00,0 q year. So even
those incomes were not JUSTIFIED on
the basis of the earnings OF industry.
This leads officials to conclude that
if Huey Long can promise homes to
everybody, new cars for all, radios.
furniture, college educationS and old
age pensions, along with soldiers
bonuses and other gadgets. he must
know Of some hidden corporation in
come not disclosed by the Govern
ment's figures.
kCopyrisht, 1882