Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-29
TALKED ON ECONOMICS
Annual Convention Of the
American Association
IN CITY OF MADISON, WIS.
Many Interesting and Instructive
Papers Read.
SUBJECTS OF GREAT IMPORT
Transportation, Government Owner
ship, Railway Legislation, Pri-
mary Elections Among Topics.
SUBJECTS OF GREAT IMPORT

ship, Railway Legislation, Pri-
mary Elections Among Topics.
MADISON. Wis, December 2S-At the
American Economic Association conven-
| ton today the subject of Economic
Theory was discussed Irving Fisher of
Yale University read paper on Are Saw
ings Incomes?' The paper was discussed
by Winthrop N. Daniels, Princeton Uni
versity: Frank A. Fetter. Cornell Univer-
sity; Fred H. Taylor. Michigan uniuer-
sity; Herbert J. Davenport. Chicago Uni
versity, and Robert LEHMAN. University
of Freiburg.
Late this afternoon Davis r. Dewey OF
the Massachusetts, Institute of Technology
delivered speech setting forth the asset
currency plan of the American Bankers
Association.
| Transportation Discussed.
| The subject of transportation was dis
cussed by Harrison s. Smalley of the
University of Michigan. Mr.. Smalley'
speaking on the theme 1.-The Basis of
Reasonable Railway Rates." said in part:
II believe that we would take long
step forward If we should abandon the
idea of justice in rates and should frankly
recognize that under system OF private
ownership and operation rates must OF
necessity frequently work 1nJustlce' anu
that in all such cases the proper t rdlea
when the burden of injustice has peen
properly placed or distributed. Inc I'M
portant question then. Is as 70 the pro
portionate burden Of injustice "nlch
No Hnrn
roads on one hand and by the pupllc on
the other. -
"Two widely differing conceptions OF
rate legislation are possible: On the one
hand it may be thought or as ptf ths
remedial function designed to correct the
evils apparent in railroad administrator;
while on the other hand it may be regarded
as a positive constructive agency OF ioIce
toward the great ends OF social ana III
dustrial DEVELOPMENT. OF these two views
doubtless the first has. up to date, exer-
cised the more important influence upon
public discussion and upon legislation.
Public Opinion Bills.
George e. Haynes read paper on the
Massachusetts, public opinion bills J.
Allen sith of the University of Washing
ton discussed recent institutional legisla-
tion and James w. Garner of the Uni
versity of Illinois Jesse Macy of Iowa
College. Thomas F. Moran of Purdue uni
versity, and Charles E. Merriam Of the
University of Chicago discussed various
phases of the primary election leglslatlon
w. S. U'Ren of Oregon also spoke on
Tho Initiative and referendum of that
state.
President jerks Remarks.
Taking as the subject of his address
1.-The Principles of Government Control
of Business President Jeremiah W..
jerks said 1t Is a fit time now. with SO
many different opinions prevalent IN the
country regarding the relationship OF the
government to business enterprises OF va
rious KINDS, to inquire whether any Iun tCa-
mental principles in connection with this
question can be recognized as having
permanent application
| I'm all civilized countries" said MI
jerks the fundamental condition OF sta.
Bile government ana, M IN conservation N econtrolline
the Individual members of society and IN
directing their activities the government
must act as it thinks best"
AS the principles OF government. MT;
Jerks said. the theory of Natural
rights" of individuals is harmful All
arguments for social reform should be
made on the basis that the welfare of
society will be improved thereby.
The Moneyed Classes.
I'VE have heard much talk within the
last few years." he continued. "of the
ownership of our government by the mon
eyed classes, and the impossbility Of hav-
ing wealthy malefactors brought to JUS
tice. No one questions that few of
our officials have been corrupted, but
| the remedy is at hand in the selection of
upright officials. Some instances OF sue
cess are before us. such as the Northern
| Securities case, the recent investigation
| ipc, cnrnnania9 in New York
| the exposure of the trusts by the bureau
of corporations, ETC.. which show us clear
| Iy and finally the all-important truth that
the government can rule.
The question whether control of the
railways of the United States should be
state or federal should not be answered
primarily along the line Of legal prece-
| DENTS it Is rather matter of economies.
If our railways are federal IN their activi-
ties eventually the federal government
will control
Government Ownership.
Industries directly connected with gov.
eminent business should ordinarily be
managed by the government. Some other
lines of industry, while not directly con-
nected with governmental action. are still
of so grave importance to the general
welfare that they cannot be trusted to
the management of individuals that are
| controlled by the desire of personal profit
No general answer could be given to a
question regarding state ownership OF
railways or the monopoly of water ~orHs
and street railways by the cities. Each of
such cases must depend on the nature OF
the industry in part-in part on the nature
of the government concerned. There is
however, no general conclusion to be
reached. No policy of socialism or an
archism could be expected to change ma
| terially human nature.
Effects Upon the People.
"Of vastly more Importance than the
economic results in every enterprise I'M
dertaken for the government are the ef-
fects upon the temper and training OF
the people. The government is in a posi-
ton to lead public opinion along many
| lines; it should set a standard in quality
of work, In conditions of labor, in up
right management; it may in many cases
make experiments, industrial as we'll as
political. Generally, however. in ad-
vanced countries, competition as found In
private enterprises affords the best stimu-
lus to effort. The government can thus
most often perhaps secure the public
| welfare best by encouraging private en-