Observe that Hertzka reckons with the fact that in an industrial society, access to machinery is just as important as access to the land, since, in a manner of speaking, all our modern activities, even agriculture, are parasitic upon machinery. Hence the collection and distribution of capital is managed in the interests of the whole community; the first being taken care of by a yearly tax, which obviates the need--and perhaps the possibility--of individual savings, whilst the capital is distributed without interest to the companies that make application for it. The community pays for the plant through the added charge which is laid on consumers; the credit advanced is cancelled out through production. This arrangement does away with the standing charge for capital which is maintained under present day production for profit even after the original capital has been paid off in dividends; and above all, it does away with the practice of capitalizing increased returns in such a way as to enlarge the amount of the standing charge for capital. The social use of capital to advance production, rather than to provide fixed incomes for a rentier class, is recognized in Freeland. Since our visitor is an engineer, he turns to a plant devoted to the manufacture of railway equipment; and notes that it is run under the following statutes. 1. Everyone is free to join the first Edendale Engine and Railway Manufacturing Co., even if he also belongs to other companies. Everyone is also permitted to leave the company whenever he chooses. The board of management decides in what branch of the works the members shall be employed. 2. Every member is entitled to an amount of the net proceeds of the company corresponding to the quantity of work which is done. 3. The amount of work is calculated according to the number of hours, to which two per cent. is added to that of the older members, and ten per cent. to foremen, and ten per cent. for night work. 4. The engineers are paid as if working from ten to fifteen hours, according to ability. The value of the manager is estimated in the general assembly. 5. Out of the company’s profits a deduction is first made towards repayment of capital, and after this the tax to the state is deducted. The remainder is divided among members. 6. If the company is dissolved or liquidated, the members are responsible in proportion to the amount of profit which they get from revenues of the company, and this responsibility for the amount which is still pledged is proportionately laid upon new members. When a member leaves the company, his responsibility for debt which has already been contracted is not extinguished. In case of dissolution, liquidation, or sale, this responsibility corresponds to the claim of the responsible member to the means of the company which are in hand, or to his share in what is sold.