Evening journal., 1915-03-22
(From the Market World and

Chronicle.
Your letter asks my opinion about
the present relation OF government
and business. as affecting business
enterprise and the prosperity of the
country. | have really nothing to say
about the relation OF the government
OF the United States to business, fur
ther than that the government has
discouraged business to a remarkable
extent. This began some years ago.
and II has been carried to the limit
by the present administration
At various times President Wilson
has stated that he wished very much
to encourage business: that he had no
more laws or regulations to offer, and
that he hoped that Congress would
take the same view. dare say that
this is not an absolutely accurate
statement OF President Wilson's views.
but II is The way in which ] have un-
dcrstOOd them. believe the principle
"a them to be correct.
Certainly business has been very
much discouraged by the attacks on
corporations and on individuals. and
men are unwilling 10 undertake any
thing new on that account, and also
- course on account cf the Wr~
This may be well: for the financial
world Of America is busy setting its
accounts, putting its loans on long
time. If possible. and, in short. is
putting its house in order" Mean
while the rates of interest on good Sc
curities has been rising steadily. and
In large part because II has required
more courage to buy tho securities Of
fered. They are as good as ever. but
people are afraid that the government
will attack them. Why docs short
time money rule at IA per cent. TO 4
per cent. while excellent bonds sell to
pay IL per cent. TO 1-2 per cent ?
If any one will look at the Tele-
phone Company, for instance, with its
stock selling at S11S TO S120 a share,
though the company is paying 8 per
cent. dividends and earning a decent
margin above them. he will see what /
mean. The property Of that company
hase cost much more than the amount
of its debt and share capital and It
is the best conducted corporation in
the world. so far as my knowledge
goes. II has done in every case ex-
actly what the government asked OF
It, it has laid the cards on the table"
and has had a satisfactory settlement
of all differences with tho govern
ment. II is as necessary as bread to
every person in the United States; it
extends its facilities in every direction
and TO every class of citizens: and yet
our legislators arc continually attack
ing 1t by a suggestion that the gov
crnment should buy II and operate Il
as public instead Of a private busi-
ness. II the government should do
so IL would simply ruin the telephone
system. Tho best men in the United
Statoe do not go into the service OF
the government; nor will they, 50
long as they are subject TO being
who knows about business knows thai
men work for themselves or for
thrown ont At any election. Any onl
company vastly better than they worl
for the United States. Whether Of
not this fact is creditable to men il
beside the question. IL is a fact an,
must he accepted as such.
All these things produce the dis
couragement which business men arr
now showing. The government il.
self, moreover Is not sincere and hon
est. For example. It is requiring indi
viduals and corporations to put thi
cards on the table TO make a full
showing Of their affairs. and. in short
10 be honest and frank in their deal
ings with 1t. Then the governmen
passes an income tax law (Which 4
good, and assesses men on their pro
fits but not allowing them to subtrac
their losses, which in these last year
have heen very large. This Is a pur
case of dishonesty on the part of tn
government; and II any corporation
followed out such a rule il would b
attacked In the courts and put in tn
hands OF receiver. Whether or no
the government meant that the la,
should be so interpreted. il is dishon