The Washington herald., 1907-12-18

New York. Dec. 1.-THE current talk
which flowed smoothly for the most part
at the second days session OF the NaQonaI
Civic Federation meeting. from the lips
Of labor leaders, sociological experts, and
others, again struck a rock at the close
OF the afternoons concluding session ~
day. Alfred o. Crozier, of Wilmington,
Del. author of The Magnet" and fresh
from an interview with the President. was
the rock.
Mr. Crozier, who stirred up things on
the currency question the day before. got
q chance to ask August Belmont point
ed question or two about overcapitaIiza-
tion.
GOmpers Makes Objection.
The currency resolution was the only
resolution adopted by the meeting, 1t had
been drawn up by Isaac n. Seligman
the first day, and was referred to a COM
mittee, one of the members Of which was
Samuel Gnmpers. At the morning session
Horace White. the chairman of this COM
mittee. started to read a resolution, which
seemed TO be Of a somewhat different form
than Mr.. Selgmans, which caused Sam
uel Gompers to get up and object to il.
Just as row seemed Imminent, Dr.
Slicer got busy and had ii referred back
The resolution finally proved to be Mr.
Seligman's. and simply called upon Con-
gress to provide for a more elastic sys-
tenn without approving OF any of the plans
for this now under discussion.
Mr.. Crozier was on his feet Immediately
with an amendment. providing that all
power TO expand or contract the cur
rency should be exercised exclusively by
the Federal government, "and not by
banks, clearing houses. or private par
ties"
The Rev Mr. Slicer got so excited that
he moved to table the resolution while
Mr.. Crozier was talking. Several other
members called for fair play. Samuel
Gompers said that he personally was in
entire accord with Mr.. Crozier, and that
be thought the resolution, in not speci-
Tying anything. was all right Finally
the amendment was lost
The other chance tnat Mr.. Crozier got
70 interrupt the current OF harmony came
when August Belmont got up to talk
about trade agreements. Most Of the
labor men seemed to think they were the
solution of the labor problem.
Mr- Belmont said that the trade agree
ment might work all right in some cases.
but that he believed that it was not A
safe remedy in connection with the diff
culties arising in public service corpora
tons.
'Inasmuch as the law cannot enforce
such an agreement" said he, I'VE did not
dare to run the risk Of making a new
one. The law ought 10 treat "a man en-
tering the service of n transportation line
as having by that fact entered into the
service Of the community, and require
him to give reasonable notice OF any in
tention TO leave the service"
Mr.. Crozier was on his feet before Mr.
Belmont sat down.
Should not a corporation which OBJ
tains franchise for nothing be prevent
ed from capitalizing that franchise at
$l0OO0O,OO0, and charging rates to the pub
lie accordingly" he asked.
Belmont willing to Answer.
Mr.. Belmont seemed quite willing to
answer
In the first place. said he, they
don't obtain franchises for nothing. You
will find that the taxation on those fran
ehises is very onerous. In regard to
capitalization, it is impossible for cor
poration to have the means of develop
ment. and they can be obtained only from
investors. They are obliged to give the
investor the kind of securities ne will
take In the case of most Of these ANAL
carnations It has been necessary 20 offer
them a chance to earn on the investment
II they succeed. The great difficulty in
New York transportation. gentlemen. is
going TO be that money can't be obtained
TO give il The hostility shown toward
it. while it may be justified, is such that
when you are asked to give additional
facilities it may be impossible
Mr.. CroZter wanted TO ask some more
questions, but the chair shut him of.
August Belmont resigned as president
at the meeting. He said TO his great re-
gret his executive duties had prevented
him from giving the federation the time
that Its president should have devoted
Ex-Mayor Seth Low was elected to sue
ceed him. Secretary OF War Taft was
elected head OF the committee on public
employees welfare.