Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1914-06-11
THURSDAY JUNE II, 1914
BusINESS AND POLITICS.


II A. VANDERBILT, president of the National City
i Bank Of New York and also recognized universal
~ one of Americas greatest nnancers delivered
address today. business and Politics before the
New York State Bankers Association Convention at
New London, Conn. II contained utterances which
well worthy of the consideration of all business
and OF all patriotic Americans who value the wel-be-
ing their country realize what prime essential
well being is the protection of honest business
against tho assaults Of domagogues and predatory and
consconless politicians That readers may enjoy
the benefits which result from such an admirable
address take pleasure in printing several particular
by striking paragraphs herefrom Mr.. vanderlp said
in part:
There a time when we used TO gauge the out
look for business by the statistics of the production
and the distribution of products and manufactures;
by the state Of the money market; by the record OF
accumulated stocks; by the condition of credits
With such statistical data of business in hand and
correlated. Il was then by no means impossible to
make fairly accurate prediction Of what the future
had in store for tweyemonth. We most of
remember time when If given an accurate picture
OF the crop situation; the statistics bank clear
nes deposits and reserves the data of foreign trade
the status of transportation and the statistics the
great industrial factors-such as steel, textiles ana
umber-we could have formed pretty intelligent
conception of what was ahead OF Us in business
way
Then the statistics of business were measure of
the business outlook II is almost startling to note
how far from true that Is today how important has
become the adventitous factor of legislation and legis
latNe tendencies We can no longer measure the out
look In the terms with which business men are made
familiar through their daily routine. The Congress
siona Record Is crowding ont of It's place OF import
ancc The Financial Chronicle We watching and
wung for Executive and Congressional actions rather
than the Comptrollers Abstract to gauge the
OF banking affairs The attitude mind of the Inter
state Commerce Commission has become more import
ant than the statistics of railroad traffic We read
the totals of foreign trade 10 learn the effect OF
changed tariff law rather than of trade tendencies.
Reports Of the attitude Of mind Of the Attorney
General vie in interest with the crop predictions Of
the Secretary OF Agriculture. Investigations by
Bureaus, Commissions or Congress form a more inn
portant feature in gauging market outlook than
do the plans for development or expansion formu-
lated by the executive committees of corporations
Plans for DEVELOPMENT or eNpansion of railroad or
business enterprises have indeed been heard Of but
little. The factors that we have mostly IN mind are
how new laws are going to work what new laws are
next to be passed. what is the prospect not of crops
but of Congressional action
We are tod that the trouble of business is psyche
logical In sense, believe that the statement is
correct believe that the lack Of enthusiasm about
the future the state of pessimism that surrounds
many phases OF business. the disposition toward eX
treme conservatism, the lack Of plans for capital
expenditure for railway Improvement and extension
for new Industrial conquest all have their roots in a
state of mind rather than i'm the statistics of actual
business data; but am not certain that this state OF
mind is grounded in unfounded fears, that Il ia
caused by legislative ghosts that it is engendered by
baseess apprehension concerning legislative tenden
cies and the trend Of public opinion
The obstacles in the of business recovery may
perhaps be truly intangible factors, and still feeling
OF apprehension regarding them may manifesto
ton of sound business sense in compromising III,
true meaning of the political economic situation
III, for moment. we could forget these factor,
snG attempt to gauge the business outlook by onl!
the old time standards which used to pe sufficient
would looming large the prospect of q grea
agricultural yield, giving promise in directions
OF bumper crops nov almost assured, and az amos
every point. Of an exceptionally bounti;ul yea
The most important entry would make on th
d.bt side ot the business outlook would be in con
necton with the operation and financing of the rail
roads In spite of easy money market, many rail
ND M 10 fund gho Torn
obligations, and continue to keep going-like a jug
gler playing with balls-by rapidly and dexterousl
throwing a short term obligation into the marko
to take the place OF another short term obligation
maturing Higher expenses. increasing wages take
that have doubled in a decade the burden of ne'
terminals and the demand for improved service hav
all had to be met by the railroads. while there ha
been withheld from them the permission TO increas
their income The investor hesitates 10 consider
long term railroad security the safest form of in
vestment for his funds.
The railroads have been unfortunate I'm having
two legislative theories of quite opposite an
unrelated character. and in having both of thes
theories applied simultaneously. On the sid
there has been the theory OF control through the xn
of rates by commission the supervision OF accountin
and the direction in the greatest detail of the manage
ment; the other SIDE there has been the theor
OF compelling competition through the prohibition
combinations and by forbidding cooperative ACRE,
ments One the other of these theories NAV !
right, but both applied at the same time cannot b
The result Of the application both of these theor
at once has been to bring the railroads into a mo
serious situation.
II may be frankly admitted that the progress
the railroads toward that unfortunate position h,
been FASTENED here and there by mistakes Of udgme
II their management, by oyer-enthusiasm and som
times downright dishonesty in the emission of secur
however the management Of American railroads vi