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The Collectivist State in the Making

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The Collectivist State in the Making HX 59 ms ffioraell Hmmsitg Jilratg BOUGHT WITH THE INCOME FROM THE SAGE ENDOWMENT FUND THE GIFT OF Hettrg m. BaQit 189X ({A^m^ id^fj. 3777 ' The date shows when this volunte.was|U Tp renew this book copy the call No. and give to ~. the tibrarian. HOME USE RULES. , ^ '.,<dl>; ^ All Books subject to Recall. AU books muBt be returned at end of col-i lege year ^ for inspec- ' - tion and repairs. Students tnust re- turn all books before JANi leaving town. ^Officers ^95/ should arrange for_ the return of books wanted during fheir ^' t^' , absenceaosence fromirom town. 4 f'^ I , ^ , ^ ^ii\ ^ 1QR7 D(^f Books needed bj ^S^f ijt ^ more than one person "^ : Eire held on the reserve MAY 4 1967 M^ 'volumes of periodi- cals and of pamphlets are held in thC: library '- *s as pbssible. ^^_^^^^0^f~ much . : flllim "l"HT^7 i*II XT Po^ special purposes j™p>*TrU/ V they are given out '"'^ to a limited time. Borrowers should not use theit library privileges for the bene- - fit of other persons. Books of special value and gift books, when the giver wishes it, are not allowed to <9rculate.> Readers are asked to report all cases of - . iJooks marked or muti- , ' ^' - ^'l" ^ lated. ~j Do not deface books by marks and writing. ^' Cornell University Library HX59 .D25 The collectivlst state in the making. 3 1924 030 324 945 Clin Cornell University Library The original of tliis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030324945 THE COLLECTIVIST STATE IN THE MAKING " En etudiant les grands services de I'Etat qui fbnctionnent a pr&ent, on se fait quelque idde de ce que pourront fitre plus tard les modes socialistes de production et, quand on aura inter- rogi de cette fa^on sur un assez grand nombre de points le present et le passe de I'industrie humaine, on decidera sur des probabilitis, k ddfaut de certi- tudes, si le coUectivisme se r^alisera un jour, non parce qu'il est juste, car il n'y a aucune raison de croire au tri- omphe de la justice, mais parce qu'il est la suite nec&saire de I'etat pr6sent et la cons6quence fatale de 1' evolution capitaliste." Anatole France {"Sur la Pierre Blanche") THE COLLECTIVIST STATE IN THE MAKING BY EMIL DAVIES CHAIRMAN, RAILWAY NATIONALIZATION SOCIETY author of 'the nationalization of railways," "the case for railway national- ization," "pitman's GyiDE to business customs and practice ON THE CONTINENT," "tRAMWAY TRIPS AND RAMBLES," "off beaten tracks in BRITTANY," ETC. LONDON G. BELL & SONS, Ltd. 1914 E,V. fe-fe-H^ ^.^?s^^^ CONTENTS CHAP. PAGE INTRODUCTION vii I GENERAL CONSIDERATIONS I II THE LIMITS OF COLLECTIVISM . l6 III THE STATE OR CITY AS OWNER OF LAND AND HOUSE PROPERTY AND MEANS OF COMMUNICA- TION 21 IV THE STATE OR CITY AS OWNER OF FORESTS, PRODUCER OF RAW MATERIALS, MINERALS, FOOD, DRINK, TOBACCO ..... 40 V THE STATE OR CITY AS PRODUCER OF LIGHT AND POWER, OWNER OF WORKSHOPS, AND MANU- FACTURER 56 VI THE STATE OR CITY AS CONTRACTOR OF PUBLIC WORKS, OWNER OF WAREHOUSES, COLD STOR- AGE DEPOTS, GRAIN ELEVATORS, MARKETS, ABATTOIRS 64 VII THE STATE OR CITY AS RETAILER . -72 VIII THE STATE OR CITY AS TOURIST AGENCY, OWNER OF BATHS AND SPAS, HOTEL AND BOARDING HOUSE KEEPER ...... 76 IX THE STATE OR CITY AS OWNER OF THEATRES, PICTURE GALLERIES, MUSEUMS, LIBRARIES, SPORT CATERER, BOOKMAKER AND LOTTERY OWNER 80 vi CONTENTS CHAP. PAGE X THE STATE OR CITY AS BANKER, PAWNBROKER, ETC. 86 XI THE STATE OR CITY AS EDUCATOR, RESEARCH STUDENT, DOCTOR, ETC. 9^ XII THE STATE OR CITY AS SPECULATOR, COMMERCIAL TRAVELLER, ADVERTISING AGENT, PUBLISHER 103 XIII THE STATE AS INSURANCE OFFICE . .Ill XIV THE STATE OR CITY AS UNDERTAKER AND TRUSTEE. " FROM BIRTH TO DEATH," INTER- NATIONAL COLLECTIVIST TRADING . I20 XV STATES AND CITIES WITH SURPLUS ASSETS OVER LIABILITIES . .129 XVI HIGHLY MUNICIPALIZED TOWNS .... 144 XVII INTERMEDIATE FORMS OF COLLECTIVISM. THE STATE OR CITY AS SHAREHOLDER OR PROFIT- SHARER. ENDOWMENT FUNDS . -159 XVIII METHODS OF EXPROPRIATION .... 169 XIX THE GROWTH OF COLLECTIVISM AND RATES OF INTEREST . ..... 177 XX WHAT PROFIT SHOULD A COLLECTIVIST UNDER- TAKING EARN? ... ... 182 XXI COLLECTIVISM AND THE LABOUR PROBLEM I90 XXII NEXT STEPS IN COLLECTIVISM .... 203 APPENDIX 214 INDEX ........ 261 — ; INTRODUCTION The only claim that I care to make for this book is that it is not academic. To some readers that will be a great drawback ; to others, an advantage. Although taking no particular side in politics, I, like the Persian poet "... when young did eagerly frequent Doctor and Saint, and heard great argument." I soon observed that the supporter-of-things-as-they- are, when pressed, would invariably reply to the contention that the community itself should administer a service or carry on an industry, that while it would be very nice if it could be done, it was not practicable whereupon the advocate-of-things-as-they-ought-to-be would proceed volubly to explain how, in theory, the whole thing was as simple as losing money on the Stock Exchange. Unlearned in all these theories, but with some practical acquaintance of foreign business affairs, I would marvel how it was that neither party to the argument was aware that in some country or the other the precise thing regarding the possibility of which they were arguing was actually in existence. Theorists—even great theorists—are apt to ignore facts. I have heard Bernard Shaw, in a public debate, enlarge upon the iniquity of a social system which resulted in rulers, pens and other office appliances being locked away each night in the office safe, and G. K. Chesterton, in a Voluminous reply. viii INTRODUCTION proving why this was just and equitable; whilst I and a few hundred other ordinary persons were burst- ing to explain that it was not the custom in any office to lock away such appliances. Being of a practical turn of mind, it seemed to me that both coUectivists and their opponents would do better to study the success and failure of those numer- ous coUectivist undertakings which were actually being carried on throughout the world. I resolved, therefore, to collect examples of those branches of industry and work which had already, in one country or the other, come to be carried out by the community in coUectivist form, be it by the state, the province, the city or commune; and the following pages are the result. Each man measures a thing by the standard with which he is most familiar; and the many examples given in this book have been ap- praised from the point of view, not of a professor of political economy, but of a man engaged in finance who has to estimate the value of things from the commercial or business side. On this account more attention has been paid to finance than would otherwise have been the case. It was my intention originally to indulge in no theories, but to content myself with a collection of facts. The work has, however, proved bigger and has occupied many more years than was anticipated, and it has been found impossible to refrain from making some generalizations ; and out of the mass of examples of coUectivist activity that have been examined, the following broad currents appear to emerge. Through the invention of machinery, the small craftsman and manufacturer has become almost extinct, and has been superseded by the great factory. ; INTRODUCTiaN ix producing by and for the million ; by the adoption of the limited liability company principle the small business is rapidly dying out and is being replaced by the great store, the multiple shop, and the amalga- mation of a number of mercantile houses, all owned by a large number of shareholders. The units of industry a:iid commerce are growing larger and larger the big and financially strong concerns gradually destroy the weaker and absorb the tougher among their competitors, until in many cases the whole trade of the world in an article is controlled by a few giant undertakings, e. g. petroleum, sewing cotton, tobacco. So much for production or manufacture. In the realm of distribution, we have the growth of the huge department store, such as the Harrods, Whiteleys and Selfridges of London, a class of business which has developed even more abroad, e. g. the Bon March^, the Magasins du Louvre, and the Printemps of Paris, the great Tietz stores which are to be found in all the great cities of Germany and Belgium, the Wanamakers of New York and Chicago, the Eatons and the Robert Simpsons of Toronto and Montreal, the Gath and Chaves of Buenos Aires, and so on ; all of which are gradually rendering more and more precarious the existence of the small retailer with his insufficient capital, who retains customers only because he gives the credit which they cannot obtain from the department stores. Then, in countries of great distances, there is that great form of department store, as yet almost unknown in European cities, namely, the mail order business, like that of Montgomery Ward & Co. or Sears, Roebuck & Co., both of Chicago. The first-named business, for example, states that it has over three million customers throughout the United States and Canada. X INTRODUCTION Yet. another form of eliminating both middleman and retailer is that rapidly increasing method of great manufacturers opening their own shops throughout the country. In the United Kingdom in one trade alone, namely the boot and shoe trade, we have manu- facturers like Freeman, Hardy & Willis, Ltd., supplying the public direct through their 475 shops.
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