The Daily Worker Newspaper, April 11, 1924, Page 4

Page Four RUTHENBERG WILL Zinoviev Reviews the Main Points of Difference TELL PARTY ROLE IN F.-L. MOVEMENT Important ‘Meeting on Tactics April 22 Rurhenberg, Executive Sec- the Workers Party, will | address the Chicago membership raecting Tuesday, April 22, 8 p. m.| at the Imperial Hell, 2409 Hal. sted street, on the “Decis Stage of Our Labor Party.” The campaign for a class Farmer-Labor Party is the most important task before the Workers Party today. Ruthenberg will point out and urge that, every party member must ve ful ac quainted with the United Front tac- tics and policy of the Workers (Communist)’ Party in the Farmer- Labor Party campaign, the struggle for the proletarian dictatorship and a soviet government. Workers Party and June 17 The Workers Party is the driving foree behind the campaign for th formation of a class mass Farm Labor Party at the monster conven- tion to be held in the Tv§n Cities, on June 17. Why is the Workers Party giving every energy for a successful June 17th convention? How will the forming of a national mass Farmer-Labor Party uffect the Workers (Communist) Party? What are you, Party member, doing to build the Farmer-Labor Party and the Workers Party? These issues are more alive and important today than ever before for every Com- munist and for the Workers Party, and must be made clear to every Party member. Every party member is therefore } instructed to be present at the mem- bership meeting on Tuesday, April 22, 8 p. m., at Imperial Hall, 2409 N. Halsted street. Discussion will be open to all members. Learn to know why the party is working for a class Farmer-Labor Party and thus for the best interest of the Workers Party and Communism. Attend the membership meeting April 22. . Edwards—Cannon Debate Sunday. On Sunday, April 13, 1924, 2:30 pr. m., at the North Side Turner Hall, 820 North Clark street, will take place the debate between James P. Cannon, of the Workers Party, and Forest Edwards, of the I. W. W., on the subject: “Resolved, That the Workers Party Must Fail to Achieve Anything of Importance for the Workers.” Affirmative: Ed- wards. Negative: Cannon. The I. W. W. members are going to be at the debate in full force. Every Wobbly is on the job and we can be assured that hundreds of them will be there. We expect every member of the Workers Party to rally to the debate and hear Communism explained to the Wob- bliss, Admission is 25¢. If you want to be inside, be sure to pur- chase your ticket in advance. Trachtenberg Speaks April 18: Alexander Trachtenberg _ will speak in Chicago Friday, April 18, at North Side Turner Hall, 820 N. Clark street. The DAILY WORKER has carried a good deal of publicity regarding his lecture so it is unnec- esary to detail here. Admission to Comrade Trachtenberg’ Iccture is 25e. vance, Subject to be “Conditions in Germany and Russia and the Inter- national Situation.” Trachtenberg Tour | Friday, April 11, 7:30 p. m., Cleve- land, ©., Labor Temple, 2536 Euclid Ave. Sunday, April 13, 2:30 p. m., Cleve- land, O., Royal Hall, 5217 Woodland. Monday, April 14, 8 p. m,. Toledo, 0., Labor Temple, Jefferson and Mich- igan. Tuesday, April 15, 8 p. m., Detroit, House of Masses, 2101 Gratiot Ave. | Wednesday, April 16, 8 p. m., Det- roit, House of Masses, 2101 Gratiot Ave. (Russian T: Unions.) April 17, Grand Rapids, full details to appear later. Friday, April 18, 8 p. m., Chicago, North Side Turner Hall, 820 N. Clark St. Saturday, April 19, Milwaukee, full details to appear 4 ary, Ind., full 2 Join the want to make THE DAILY WORKER grow” club. Purchase your tickets in ad-} EDITOR’S NOTE:—Today we continue publication of the famous report by Gregory Zinoviev, chair- {| man of the Communist Interna- | tional, made to the session of the Executive of the Communist In- | ternational held on Jan. 6. Zino- | viev’s report deals with the main points of difference in the Russian | Communist Party, clearly erystal- | lizing the discussion that has so far been published in the DAILY WORKER. In order that our readers y get a broader view of | this dis ion, we are publishing enlarged installments. This re- port is divided into seven sections. | Today we publish the fourth sec- j*tion. It is as follows: | se oe Iv, “Degeneration” of Old Guard. | ey THE midst of the discussion, Trotzky surprised us with an article something to the following effect:* ) We are being everlastingly both- ered with these accursed scholars of Lenin. Were not Bernstein, Kaut- sky; and Guesde scholars of Marx and Engels and did they not degen- erate? Did they not gradually de- velop into traitors? Who can give us a guarantee that Lenin's scholars THE DAILY WORKER Friday, April 11, 1924. are immune against degeneration, Spirit of Rank and File. | Trotzky naturally clothed — this mene tekel in a more: elegant form, in the form which we are accus- }tomed to see him utilize, and which is admirable when used against the bourgeoisie, but most. when applied against the old Bol- shevist guard. Trotzky here oper- ated with insinuations only, and believed that nobody would under- stand him, thus proving that he does not yet thoroly know our Party. tim was s.ncere among the ranks |of our best workers, who declared openly: “Comrade Trotzky, we all love you, we all respect you, but we beg you to let us alone with such insinuations. We know our Belshevist guard, which has created our Party; we know it thoroly, and we nnow that you, Comtade Trot- zky, were a Menshevist for a long time—Trotzky .came over to us from the Mensheviki, we did not go over to him—so please make an end of all such insinuations. unhappy | Scarcely a week has passed after | the publication of his article, when a storm of indignation against Trotzky’s procedure broke out in the - Party. As you have seen, Comrade Radek bas confirmed this. The indigna- Combat Degeneration. “If you really seriously believe that our old guard could follow in the ‘footsteps of Bernstein and forwardly, but not in the form of vague insinuations.” As I have already said, a real {storm of indignation broke out, |Trotzky was obliged to publish three further articles**, in order to define his views more precisely. Now, this clearer definition did not }clear up the matter at all, but rather aggravated it. No proofs can be adduced that our old guard is on the road to de- generation. To be sure, there exists no absolute guarantee against de- generation, 4 i We have said again and again that, should the speed of social revolution slow down, seen from the historical standpoint, we may very well be threatened by the danger that our dictatorship gradually as- sumes the aspect. of a petty bour- geois state. And we repeat it here once more: This danger exists. As Marxists, we observe it, but at the some time we seek #9 counteract this danger by every possible means. But the final result of our exer- Kautsky, kindly state this straight] tion depends in the end, not upon the preventive means adopted by the Party, but from the course taken by world events, from the develop- ment of the world revolution. But Trotzky did not speak of this gen- eral danger, but permitted himself to, be drawn, in the heat of the dis- cussion, into a concealed attack against the political bureau of the Central Committee, And thus he avoided a detailed designation of those scholars of Lenin against whom he directed" his arrows, and omitted to name Kam- eneff, Stalin, Zinoviev and Bucharin, precisely the men whom he had in his mind’s eye when speaking of the degenerated Bernstein, Kautsky, Guesde, ete, Now, I think we are a little’ bet- ter than Bernstein and Kautsky, and believe too that precisely this com- parison should induce . Comrade Trotaky to regret having made it. (To Be Continued Saturday.) (Tomorrow—V. Economic Questions.) “See letter from Comrade Trot- zky, “The New Policy,” in Special Number, Russian Party Discussions TIf, Vol. 4, No. 1, page 84. **See the articles, “The New Pol- iey” in Special Number, Russian Par: ty Discussions IV, Vol. 4, No, 16, page 133. The Limits of the United Front | Letter to the District Executive Committee of District 7 (Michigan) Authorized by the Cen- | tral Executive Committee of the Workers Party. Chicago, April 4, 1924 | District Exeeutive Committee, | District Number Seven, | 2101 Gratiot Ave., | Detroit, Mich. Dear Comrades: The Central Ex- ecutive Committee has given careful consideration to the statement of the minority of the District Executive Committee in reply to the instruc- tions of the Central Executive Com- mittee that the District Executive Committee proceed immediately with the work of organizing local and a state Farmer-Labor Party in the state of Michigan. The objection of the minority. of the District Executive Council seems to be based upon the following points: The Minority Position. <2 (a) ‘The Michigan State Federa- tion of Labor and-the Detroit Fed- eration of Labor are committed to the Conference for Progressive Po- litical Action and support the July 4th Convention. A campaign for the organization of local and a_ state Farmer-Labor Party will bring*us into immediate conflict with the lead- ers of these organizations and the minority is against provoking such a fight. It is the opinion of the minor- ity that if we proceed with the or- ganization of a Farmer-Labor Party under these conditions that the sup- port of such a party from the trade unions will be of a limited character. (b) The minority argues that if |we wait with this organization cam- paign until after the June 17th Con- vention and “a man who will be big enough to grasp the significance of that convention” is sent to St. Paul by the Detroit Federation of Labor, \it may have a much better chance than now. In the statement of the minority we also find the following: “The pri- maries for the gubernatorial nomina- tions take place in September. With- in a month or two, therefore, a stand will haye to be taken on Bakers’ candidacy for governor on the Re- publican ticket. A decision to fight his candidacy would involve us in a {fight with the trade union leaders. But regardless of our possible deci- sion to make this candidacy an issue later on, it is the opinion of the min- ority that nothing should be done now to provoke a fight.” Cc. E. C. Opinion. The Central Executive Committee is of the opinion that in this state- ment, particularly in the phrase “re- gardless of our possible decision to make a fight,” there is a very dan- gerous manifestation of opportunis- |tie tendencies on the part of the min- ority of the District Executive Com- |mittee, tendencies which must be ; Stamped out wherever they appear in jour Party. |. The Central Executive Committee | believes that the objective conditions \the District Executive Committee faces should have made clear the jcorrectness of the policy prescribed |by the Central Executive Committee even aside from the question of cor- rect application of Communist prin- ciple. In the state of Michigan the situation is the following: Both the Michigan State Federa- tion of Labor and the Detroit Feder- Chicago, Illinois. for 50; $3.50 per 100. Send In Your Here Comes ‘The May Day Special’ THE DAILY WORKER, 1640 W. Halsted St., _copies of “The May Day Special” Edition of the eed ee to be dated ergy ss I 1924, at the rate of five cents per copy; $1. aah Page I want to help the workers and farmers learn the real meaning of the world struggle of Labor on its International Holiday. Order! 4 , y; 4 73 4 , y % 73 A; 4 y % ation of Labor are giving their sup- port to the Progressive Votérs League. It is the announced policy of this organization to enter into the jold party primaries and to support |“good Republicans or Democrats” in these primaries. Both the Michigah State Federation of Labor and the Detroit Federation of Labor and also the Sxogressive Voters League are part of the Conference for Progres- sive Political Action, which is the ex- pression of the third party move- ment. Our Party, on the other hand, is giving its support to the movement for a class farmer-labor party which expresses itself in the convention called for June 17th in St. Paul, Minn. We are fighting for the forma- tion of a class farmer-labor party as against the third party and as against the policy of going into old party primaries. The Issue. of development as the means of di- vorcing the rank and file of the work- ers from the influence of their pres- ent leaders and bringing them Com- munist influence, and the present situation in Michigan demands that this be done. United Front Has Limits. The committee must also empha- size that the United Front has its {limits. The minority of the District Executive Committee, when it even considered the possibility that we could support or would not fight against the candidacy of Herbert Baker for governor in the Republi- can primaries, overstepped the limits of the United Front. We cannot go that far, ever’ tho the masses of workers and farmers still lack class- consciousness 80 much that they are ready to support a candidate of the Republican ticket. For us the limits of the United Front is expressed in the question whether any particular ; struggle of the workers and farmers Hoste poy Bastion and fhe derac, develops class-consciousness and class ers‘of the state of Michigan shall|#¢tion on their part. We can sup continue to support the Conference for Progressive Political Action or whether we shall make a fight-to win them for the class farmer-labor party. What have we to lose in such a situation by proceeding with the work of organization of a class farmer-labor party and fighting to secure the support of as many work- ers and farmers as we can? We have nothing to lose, for if we make no fight, then we leave the field to our enemies; if we do make the fight we are certain to make gains because we will take part of the workers and farmers from our enemies. The pro- posal of the minority to delay action until after the June 17th Convention would simply mean that we permitted our opponent to entrench himself further to make our task after June 17th harder. Of course, the Central Executive Committee cannot lose its policy on the hope, as expressed by the minor- ity of the committee “that the De- troit Federation of Labor may send to the June 17th convention a man who may be big enough to grasp the significance of that convention.” It is not a Communist viewpoint to base our struggle and principles upon the hope that some progressive person may be in a certain strategic position and serve us as a Moses in realizing our aim. What Is the United Front? The statement of the minority, however, raises a broader issue than the question of our immediate policy in forming a Farmer-Labor Party in the state of Michigan. It raises the question of what is our (United Front policy? Why do we enter into a united front? What should be our tacties in the United Front? And what are the limits of the United Front? If we conceive the United Front as merely to establish friendly rela- tionships with certain progressive labor leaders and then to work in harmony. with .them, the United Front and policy would be indeed a th along which we would find noth- ing but smiling roses. If this were the United Front then we could go on forever in the United Front and have the plaudits of progressive lib- erals and even of the reactionary la- | bor leaders and finally find ourselves supporting the candidacy of Herbert Baker on the Republican ticket. But this is not a Communist conception of the United Front. We are not in ‘the United Front for the purpose of maintaining friendly relations with leaders z the cata gt oasoghe ade pose in ente! into a |Front is to fight with the workers in itheir immediate struggle and during jthe process of those les to make the workers more class-con- _seious and to win their support for our Communist principles, Unléss we can, in a United Front movement, win greater support, influence, lead- ership, as Communists, the United Front is a failure so far as we are concerned. » “Under such a conception of the United Front, this policy cannot lead us alon, yp of roses. If we fight within the United Front for our prin- ciples, and we must fight, we are bound to come in confliet with both reactionary and progressive leaders of the labor movement. These con- |flicts are not to be avoided, but rather welcomed at a certain stage port and do” support the Farmer- Labor movement because it repre- sents the growing class-consciousness of the workers and farmers in this country. The development of class political action by the workers arid farmers against the ruling capitalist power is a great step forward. We therefore join in this movement and form a United Front to hasten its development. Once workers and ex- ploited farmers are fighting against the capitalist class as a class, one of the conditions exists without which we could not even dream of a pro- letarian revolution in this country. While we can enter into United Front struggles such as those de- scribed above, we cannot under any circumstances participate in a United Front which has the opposite effect and leads back to non-class conscious action, For us to support a candi- date on an old party ticket would be a denial of the fundamental theories of our movement. For us, the Re- publican and Democratic parties are the instruments of the class rule of the capitalist class. Whether the in- dividual elected on the Republican or Democratic tickets is a particu- larly good or a particularly bad man is of no importance to us, The Re- publican and Democratic parties are part of the capitalist machinery of government. “How can we be part of a United Front which asks the work- ers to vote for the Party of their enemies? The parties which express the class rule of the enemy we are seeking to overthrow? To state the question it is sufficient to make clear that we cannot enter’ into such a United Front. Concrete Proposals. We trust that this statement will make clear to the District Executive | minority members of the Commit- tee that we must at all times advo- cate our Communist ideas, have our own Communist policies for which which we it inside of the United Front, and that in directing the Dis- trict Executive Committee to begin a campaign for, the launching of a Farmer-Labor. Party in the state of Michigan, that the Central Executive Committee instructed District Executive Committee to form the only kind of United Front which is of any value to us as Communists. Concretely, the Central Executive Committee instructs the Ex- ecutive Committee to immediately Committee and particularly to the PAPER RUBLE TO BE WITHDRAWN AFTER APRIL 25 Prices Dropping to the Delight of Peasants By JESSICA SMITH.: (Staff Correspondent of Federated Press) MOSCOW, April 10.--The Rus- sian paper ruble is stabilized at last. For a brief period it will bridge over the difficulties in getting enough small thange of the new currency into circulation but by April 25 it will be entirely withdrawn from circulation and will leave the field to the new stable treasury notes, chervonetz, and metal coin- age. The Russian paper ruble ends its phenomenal career at the exchange of one billionth of one cent, accord- ing to the old calculation. ~~ The paper ruble was known in Russia in the days of the czar, when unbacked paper money was issued at harvest. time each year io 1neet the increased demands. on circulation but never in large enough quantities to endanger the gold ruble. In 1914, however, began the huge govern. ment deficit which had to be covered by paper money and was accom- panied by the disappearance of metal money. Inflation Since 1917, Before 1914 there had been less than two billion rubles in paper money in RuSsia. At the time of March, 1917, revolution this increas- ed to 22 hillions. The civil war, blockade, destruction of the old gov- | labor ernment apparatus and creation of the new all meant enormous ex- penditures at the begining of the soviet regime. Having no other sources of income, the soviet gov- ernment had to continue the emis- sion of paper money, with the re- sult that the paper ruble decreased 50 billion times in value during the last years. ‘ During the period of military Communism money was not an im- portant factor, and the depreciation did not mean fhuch. But with the introduction of the New Economic Policy, the revival of trade, and the operation of -private capital within certain limits, some stable unit was necessary, Experts have arrived at the sum of 100,000,000 gold rubles as the! sum that may be issued during the coming year in small denominattons without endangering the stability of the new money. Future emissions will be based on the increase in the turnover and the corresponding de- mand for more money in circula- tion. +The government is making every effort te cut down expenses and increase its revenue and will undoubtediy be able to cover the budget during the coming year. Prices Coming Down, of the’ mo: reform are obvious, Every Any the papers carry long lists of price reductions, such as rave: to 26 per cent; textiles, 10 to 16 Per cent; metal goods, 20 per cent; butter, 20 per cent; eggs, 36 per cent; milk, 20 per cent; meat, 10 per cent, etc. Prices on salt, kerosene and sugar make them easily attainable for the peasants. The money reform is doing more prepare and publish a_ statement| than an: else to bri against the erties of the progres-|the much | talked oN cn sive Voters gue. the Canference for Progressive Political Action, the candidacy of Herbert R. Baker. 2—That the District Executive Committee immediately proceed with the organization of local and state Farmer-Labor parties in Michigan and the calling of a convention for the formation of a State Farmer- Labor Party. Fraternally yours, William Z. Foster, Chairman. C. BR, Ruthenberg, Executive: Secretary, Our Advertisers helo make this Paper possible, Patron- ize our Advertisers or them you saw their Ad in The Daily Worker. — - — - ? and| The (union) between town and village. Peasants can. save enough money to buy some of the things they need, and the prices of those bom are st last within their reach, Italian Communists Poll Heavy Vote Despite Violence ROME, Tealy, April 1002.t'ommun- ists in lections over 300,000 votes, latest Pica , returns show, In spite of fascisti kilir and wholesale stealing of votes ‘the ition votes counted against the fi ) these. n page ey cept Feet The immediate beneficial results 1 a Defense Office Raided in Frisco; 5 Wobblies Seized (By Defense News Service.) : SAN FRANCISCO, Caiif., April 10.—Five I. W. W, members were arrested here when the “Red squad” of the police department raided the local office of the General Defense Committee of Chicago, All were | charged ith vagrancy - altho they were employed at the titne of ar- rest. The jive include Ed Delaney, defense secretary; Archie Sinclair, speaker for the committee; Herman Dreschler, Herbert Mugge and Chas. Mageson, Friends of the defendants see be- hind this raid the hand of the American Ship Owners’ Association, which apparently is fearful that the Marine Transport Workers’ Union of the TI, W. W. will call a water- | front strike May 1. Marine workersi |in Pacific ports have many griev- j ances, and the union has been stead- ily organizing in all western harbors since the big strike on the San Pedro docks last year. Trials of 1. W. W. members ac- cused under the state criminal syn- dicalism law are coming up at Eureka, Sacramento and Los An- geles in mid-April. Ku Klux Klan Is Petering Out on The Eastern Coast (By The Federated Press) NEW YORK, April 10.—The *w Klux Klan is petering out in the east. . Weakened by internal fights and no longer able to frighten its opponents with its night shirt an- ties, the klan is making desperate efforts to stay in the limelight. Un- successful meetings to lure back the rapidly deserting membership have heen held in New Jersey at Bavonne, Syracuse and Jersey City. A free for all fight broke up a West Hobo- ken meeting. * P _ Taking advantage of a students’ dispute at Co!umbia University, New York, a band of klansmen set u@ oon the campus and lichted a cross made of mop handles and then ran as fast as their brave feet could carry them. They are now sending letters to a graduate Negro student, Frederick W. Wells,’ threat- ening to kill him unless he moves out of Furnald Hall, a college ‘dor- mitory. The majority of Furnald Hall, including some Southerners, have petitioned that Wells. remain. The college officials stand by Wel's, and have placed three detectives in the building to Watch the bight shirters. IMPEACH COOLIDGE! 44-Hour Working — Week Established by Law in Queensland By W. FRANCIS AHERN. (Staff Correanundent of the Federated Press) BRISBANE, Queensland, April 10.—The 44-hour workiny week is established by law in Queensland. Other legal achievements of the ry fovernment are industrial conciliation and arbitration with the “public” members not loaded against labor; statutory protection for trade unions; wage protection under which there can be no docking from the worker's wage by the employer at the time of payment; increased compensation for workers for acci- dents and industrial diseases The right to work and insurance against unemployment, government employment bureaus, puarantee of full civil rights for all state em- Ployes, homes for workers at rea- sonable cost, and government mon- opoly of workers’ ace‘dent insvr- ance are other measures now on the statute hooks, *‘ The government pronoses legisla- tion for equal pay. for men and women in like employment, and to amend the railway act to safeeuard the rights of the railroad workers more completely. Many Mine Deaths Force Workers to By W. FRAN # cay LURING Am S. W., April 10.— i a coal ithert considered absolutely wag ’an ‘fool Proof, the miners are demanding sae amendments in the coal mine ws. ‘ Among the amendments demand- bg ae ica com cutters. are not worl in gaseous mine: that electric hells give warning of coal falling down shafts, and that monn ae sae bis the even rivers collapsin, ri winding, be provided, o : ae Shot frers are pr apr igo deri! waste workings examin d Sealed areas close to the working face are to be examined be- fore every shot. Vent. heating, Systematic: sprading ven eating, — matic spraying of dry coal ‘dust with water, sample of gases in sealed areas to be analyzed and taken quarterly. California “U" Bars Liberals. BERKELEY, Cal., A 10,—W, w. peep bel, president University of California, has refused a lecture date before the university to Alexander rng ge ign flag Rew a of wi students refused’ to accept thelr des iy when the trustees fired him. is University of ie been center o! st ep e tion inthis states ”"* er CHICAGO SUPER POWER PROFITS $39,375,044 NET $200,000,000 1923 Loot Of Power Monopolies By LELAND OLDS. (Federated Press Industrial Editor) Article Il. Profits of the super-power trusts in 1923 absorbed about one-third of the hundreds of millions of dollars paid by consumers for their service, according to the annual reports of ten of the sixteen combines named in the first article in thh series. The gross income of these companies for a single year amounted to $60z,- 784,119 of which only $404.182,341 ‘Was necessary to pay for the cost of the service, The remaining $198, 601,777 represented clear profit to the owners. Such profits which gave common stockholders returns ranging as high as $31.10 on each $100 invested are evidence of the unyvarranted rates which private monopoly is im- posing. Insull Combine Got Most. The Insull combine centering around Chicago overtops all others in the magnitude of its gross in- come and profit. The four com- panies comprising this grow ok in $131,456,330 during 1923. be his $11,675,313, representing 10 1-2 per- panies represent the control of Scores of generating plants in 14 states, Illinois, Indiana, Michigan, Wisconsin, Kentucky, Missouri, Kansas, Nebraska, Texas, Okla. homa, Vermont, New Hampshire and Tennessee. Their profits were as follows: Commonwealth Edison, $11,675,313, representin 10. 1-2: per cent on the par value of common stock; Commonwealth Power, $11,- 869,214, amounting to $11.55 a share of no par value common stock; Pub- lic Service of Northern — Illinois, $4,580,673, or. $15.22 per $100 -share, and Midwest Utilities, $11,449,844, giving common stockholders $23.24 on each $100 of investment, “Over 11 Per Cent Without Risk. Public Service Corporation of New Jersey, controlling sll the pub- lic utilities in the larger cities of that state, received a gross income of $79,107,882 “during 1923, of which profits absorbed $20,121,122. This left common stockholders a profit of $5.69 a share. As each share of no par value represents an investment of approximately $50 the return is equivalent to $11.38 on $100. Consolidated Gas Company of New York, which swallowed up New York Edison and other electric light properties in certain suburbs, received a gross income of $123,- 741,998° during 1923. Of this $35,- 808,770 was clear profit. This meant a profit of $7.77 on each $50 share of common stock, more than 15.5 per cent. Some Pickings. North American Company made a Profit of $27,176,069 on a grosm busi- ness of $75,465,265. Its profit’ ap- Pears as a return of only $8.11 a share but the company recently is- sued five shares of $10 stock in ex- change for each $60 share formerly held by, stockholders. hus this Year's profits means a jreturn of $31.10 on each: $100 invested. North American controls utilities in the most important industrial centers of Wisconsin, Missouri and Ohio. The 23 public utility companies in all parts of the country operated by Stone & Webster made a profit of $42,468,428. American Water Works and Electric, forming the Demand Protection |' All fallen strata fo nucleus of super-power in Pennsyl- vania, made a profit of $14,066,361 on a gross business of $34,066,361. giving common stockholders $13.29 a share. What Pacific Gas Got. Pacific Gas and Electric control- ing the majerity of utilities in Northern California, made a_ profit of $16.478,332 on a business of $39,- 971,743, giving common steckholders $10.24 a share. Southern California Edison made a profi of $11,390,068 -|on a business of $20,545,420, allow- ing common stockholders $9.50 a son reported profits of $9,359,726 and $7,670,329, giving their common stockholders $11.83 and $18.07 a share. Injunctions Back Profits. The rate of profits in some in- stances might not be considered ex- cessive in a speculative industry. But under the present rate making theory which is enforced by the ccurts the common stock of these big utilities is no more speculative than an A No, 1 bond, If state of $17,155,956 on a gross business © re. 3 Detroit Edison and Brooklyn Edi- commissions attempt to reduce rates. below a level which will give the public utilities a so-called fair re- se on oir ie they are promptly stopped court injunction on the ground ak such rates are confiseatory, As a result it will te impossible v consumers to escape unneces- sarily high electricity and gas rate! as long’ as the doctrine of private ownership is applied to — public utilities, (The people of Ontario, Can., found this aut and shifted to public ownership of super-power. Gein will be described in the next article.) aie oh ith inflated valuations. , — ( e —