Your anecdote is touching. I think Barry would say, however that men like your father are gfew and far between. There are, no doubt, good capitalists. (read my recent posts, for example, about my cousin the entrepreneur and about the mining owner who became a hostage in place of his employee.) The point is, however, capitalism makes it difficult to maintain principles. It rewards bad things and denigrates the good.
Speaking for myself, I would first of all oppose large scale capitalists, because I believe that that mode of production is by its very nature undemocratic and inimical to society. I would place a limit on comapny size and wealth. Your father would probably remain untouched, because Davis Tool isn't a large scale national company- or am I wrong?) In any case, he would probably be kept on as a lieutenant of teh State, running his business on behalf of the state in such a way that the proceeds were shares fairly and equitably with the workers. Job rotation would involve him, as well as everyone else; but it wouldn'tt be Stollerist job rotation, rather it would be a kind of labor tax, whereby everyone (with certain exceptions for the sick, the disabled, etc.) would be required to donate a day each week to the state.
Good proprietors like your father would be allowed to mainatin leadership positions, as long as 1) they shared proceeds fairly and equitably, 2) did not rise too high above the workers, and 3) did nor commit immoral actions for teh sake of profit. If they DID become corryupted by teh system, they would be harshly dealt with.