PROGRAM FOR INDUSTRIAL PEACE
Plumb, Glenn E.
Program for Industrial Peace Needs of Society, Rights of Capital and Labor Must be Recognized in Direction of Affairs; Outline of Proposed Plan. By GLENN E. PLUMB Glenn E. Plumb is counsel for...
...Under the existing system the owners of capital have had placed in their hands a monopoly of the management of all industry with power to fix wages paid to labor, prices paid by the consumer, and profits received by the owners of capital, and have also the power to determine the nature, quantity, and quality of goods produced without regard to any consideration of the right of the public to require that essential products shall first be produced and non-essentials from the surplus of productive power remaining after supplying the need for essentials...
...I SUBMI therefore, to the consideration of the American people as the means by which the end herein described may be successfully achieved, the following political program: First, as to railroads and all means of transportation of persons, commodities, and intelligence, the adoption of a plan for the public ownership and democracy in the control of the operation of the railroads and all such transportation facilities in accordance with the principles of the Plumb Plan, with such modifications of details as may be needed to effectuate the general principles above mentioned...
...if two exceed one, they will exert their excess power to the point of crushing the weaker interest, and with its extinction the industry fails, and can only be revived when the third interest can again be induced to participate in the restoration of the industry...
...Capital, which labor has produced in the past in excess of its living demands, is concentrated in the hands of a few, who had no part in its production...
...The welfare of each industry is essential to the prosperity of all others...
...The interests of agricultural laborers' and tenant farmers will be promoted inevitably by community acceptance of the principles of a fair division of rewards for service which are outlined for industries of large capitalization...
...The public was deprived of its necessities, also for the benefit of capital, no matter what price the public was willing to pay...
...This complete diversity of interest and the total lack of a common interest is responsible for the existing condition of industrial warfare...
...second, the rights of those who furnish the capital to supply tools, material, and equipment from the use of which society's need may be met...
...Profits are exacted from the essential industries, whose products are consumed by the workers in order to support industries whose products they cannot enjoy...
...Conversely, profits wrongfully exacted from those employed in one industry prejudicially affect all of those employed in other industries in direct proportion as the purchasing power of the first body of employes is reduced, and thereby their ability to consume the products of their own and other industries is diminished...
...TIE existing industrial system is crashing about our ears...
...This," she sarcastically explained, throwing a package on the counter, "is the washing itself...
...Under the existing system there is r.o doubt of common interest between society's need, the profit-seeking of capital, and the interest of labor...
...The well-being of those employed in each industry reacts beneficially upon the well-being of all those employed in other industries...
...This complete interdependence of one industry upon all others is the result of the development of cooperative specialized production...
...The reason for its cessation was that under the authority exercised by those owning tools, equipment, and materials, labor believed it was deprived of its share in the industry for the benefit of capital...
...The natural wealth of this country is far beyond computation...
...But the railroad interests forced the Esch bill through the House and the Cummins bill through the Senate to relieve the roads to private control, the government to guarantee profits...
...It's the soap—" "That isn't soap, madam," interrupted the grocery man, examining the package...
...His plan is worthy of the most careful consideration...
...It creates classes in society separated by irreconcilable distinctions and interests...
...THE recent coal strike is a speaking illustration of this principle...
...Fourth, individualistic industries—farms, and productive enterprises owned and operated by the same individuals—shall by the adoption of the three foregoing paragraphs be freed, from all encroachments of privilege under which they are now suffering, and thereby restored to economic and industrial freedom...
...AS each industry is dependent upon the existence and cooperation of these three distinct interests, so every industry is dependent upon all other industries for the production of the tools, equipment, and materials necessary for that industry and as the source of the means by which the public may purchase the commodities of that particular industry...
...This capital represents not only the increased productivity of human effort but also undue profits exacted from consumers in higher prices and from labor in lower real wages...
...Labor is treated as a commodity to be purchased at the lowest price obtainable in the market, just as are all the products of labor, things transferable in the open market...
...Your little girl was in here yesterday for a half pound of cheese and a half pound of soap...
...The prices so fixed bear no relation to the need of society for such products, and the profits so exacted bear no relation to the value of the services actually rendered by the owners of capital...
...Large and increasing percentages of its workmen are now engaged in the production of non-essentials, which they themselves cannot purchase...
...The attempt was a failure...
...Society demanded coal to prevent its suffering...
...and the laborer, being treated as the merchandiser of a commodity, naturally seeks to sell as little of that commodity as he can for as much as he can get, without due regard for the interest of capital or the need of society...
...Editor's Note...
...The industry died and became a corpse, to be revived only when labor again consented to resume its function, after its demands had been met to such an extent as to procure its further cooperation...
...Coal Strike as Example...
...He is the author of the Plumb Plan for railway ownership and control which contains at least the elements of a new industrial era...
...labor and capital ing on an equality in proportion to the of their investments...
...It's the soap that makes washing a pleasure...
...This is the cheese...
...All industries are dependent upon transportation as affording the avenue of exchange and distribution of raw materials, semi-fabricated materials, and finished products...
...that the administration of all such industries shall be left entirely to the individuals owning and operating them, relying upon the restored freedom of the law of supply and demand to protect the interests of the public...
...In every industry there are three interests essential to its existence: first, the need of society for the products of that industry...
...and third, labor, that human impulse which creates out of the tools, materials, and equipment furnished by capital, the commodities or services that society requires...
...Second, as to all industries based upon grants, privileges, exploitation of natural resources, and enjoyment of monopolies, the adoption of the necessary legislative policy through local enactments either to acquire public ownership of such utilities with the extension of the prin-ciples of the Plumb Plan to their control and operation, or the adoption of a tripartite rep-resentation of the public, private capital em-ployed, and labor, in direction and control such industries, with equal authority, and division of the savings of efficiency between the public, on the one hand, and labor and cap-ital on the other hand...
...It was easy to see by the sternness of her expression that she was somewhat disturbed...
...for if one interest exceeds the other two in authority, the one uses its excess power for its benefit at the expense of the other two...
...Third, as to all industries engaged in produc tion not based on grants of privileges or monopolies, the adoption of legislation either local or national requiring all corporations organized for the conduct of such industries to recognize the right of labor as the investors of present human creative effort to participate with capital, the investors of past creative effort, in the control and management of the industry, and to share in the profits of such industries on terms of equality with capital...
...Since these three interests, the need of society, the rights of those who own capital, and the productive capacity of those engaged in industry, are equal in importance to the existence of the industry, it necessarily follows that they must have an equal authority in the direction of the industry...
...ALL ACCOUNTED FOR One morning a woman walked into a village grocery store with a majestic stride...
...The three fundamental interests are held apart by wholly diverse attitudes towards the industry...
...But labor refused to cooperate with the other two interests and ceased to function as the creative power...
...Though individuals may pass from one class to another, their passing marks the end of their possible affiliation with the class they have left, and compels the adoption of the interests of the class which they enter...
...San Francisco Argonaut...
...U—?, that accounts for it, said the woman, as the light of understanding began to glow...
...The wages so fixed by such management bear no relation to the value to society of the services of labor, which creates the products upon which profits are exacted...
...Its organized productive capacity exceeds all present demand...
...Capital seeks to obtain the highest profit it can without regard to the need of society or the rights of labor...
...These bills have gone to a conference committee of the two houses for adjustment of deficiencies...
...By GLENN E. PLUMB Glenn E. Plumb is counsel for the organized railway employes of America...
...the interests of labor and capital in such industries being joined in the same individuals...
...The public seeks to buy as cheaply as it can without regard to profits or wages...
...The public then joined its authority with that of capital to compel labor to serve...
...I wondered all night what made the Welsh rarebit we had for supper taste so queer...
...Capital owned ample tools, equipment, and materials with which to meet that demand...
...Three Distinct Interests...
...It was to give time to study and gain experience that Senator La Follette sought to continue government control of railroads for at least two years longer...
Vol. 12 • January 1920 • No. 1
