The sun., 1915-03-18
WOODROW WILSON AND
AMERICAN BUSINESS.
Major Higginson on the Plight OF En-.
terprise in the United States.

Your letter asks my opinion about
the present relation OF Government
and business, as affecting business en-
terprise and the prosperity of the
country. I 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 1t 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 h. had no
more laws or regulations to offer, and
that he hoped that Congress would
take the same view. dare say tina,
this is not an absolutely accurate
statement Of President Wilson's views.
but II is the way In which I have un-
derstood them. l believe the principle
OF them to be correct.
Certainly business has been very
much discouraged by the attacks on
corporations and on individuals, and
men are unwilling TO undertake any,
thing new on that account, and also.
OF course. on account OF the war.
This may be we'll; for the financial
world OF Auyrica is busy settling its
accounts, putting its loans on long
time, II possible, and, In short. liz
putting its house in order" Mean
while the rate OF interest on good Sc
curlt.es has been rising steadily. and
IN large part because IL has required
more courage to buy the securities Of.
fered. They are as good as ever, but
people are afraid that the Gov, rnncu,
will attack them. Why does short
time money rule at 81. per cent, 20 !
per cent. while excellent bonds sell to
pay 5ia per cent. to 6ts per cent?
II any one will look at the Tele-
phone Company. for instance with its
stock selling nj Sis TO 1920 share.
though the company is paying S per
cent. dividends and earning decent
margin above them, he will see what I
mean. The property Of that company
. has cost much more than the amount
7 ~ It's Geht and sh re capital and L
IS the best conducted corporation IN
the world. 20 far as my knowledge
goes. Il has done In every case ex-
aCtly what the Government asked OF
II: !t has laid the cards on the table, "
and has ha1 a satisfactory settlement,
" all differences With the Govern
ment Il is : necessary as brad TO
every person N the tinted States. Il
extends rs facilities In every direction
and 70 ey~ry class 90 citizens; and Vet
our legislators are continually attack
Ing IL by a suggestion that the Gov
ernment should buy 1t and operate 4.
as a public instead Of a private bust
SO - would simply ruin the telephone
system The best men In the United
states DO not 60 into the service os
the Government. nor Will they. So
long as the" a-s subject 20 being
thrown out at any election. Any one
who knows about business knows that
men work for themselves or for a
company vastly better than they work
for tho United States Whether or
not this fact ia creditabe 10 men Is
beside the question II Ia fact and
must be accepted as such.
All these things produce the dis
couragenent which business men are
now showing The Government IT,
s"if moreover il not sincere and hon
est; Fo. example Il IS requiring indi-
Niduals and corporations to put the
cards on the table" 20 make a full
showing ~ ,hoir affairs ard I, sbo-.
IN he honest and fronk IN ,hoir deaI-
,ngs with II Thcn m. Cove,,nan.
masses an income FAY ,ay ,u,hich 10
GOOD and ASSESSES mon nm ,hs,- ,n-
comes. levvirr III. tax on ,heir nroe,s
bu, no, allowing them "a suh,roc,
. their losses. which IN ;hese las, wears
have been very large This ia a nure
cas-. of dishonesty on .he mar, Of IN.
Government. and - any corno-,,io,
followed ont such ., ~ula 3, ,vo,,d ho
attacked In m. courts nrl Nh, 4, ,be
hands Of A, receiver whe,tor ~ ,o.
.he Government mean. thai tho law,
should lc so interprc;ed :, ia dIshones,
as II is now internre,ed ana en,orcad
/ AID 4 the Governmer, ~ .he t-nI.ed
states canno. he honest. wha. right
have he officers of the United s-a,es
20 expect that the citizens snal he
hon.sto Or 10 M, II the n,her uav
around, WHY MAX. our citizens rerde,
untruthf,ll accounts a, no bidding a,
a United States otrciaI, The case "a
50 prepos,crous that people vii, not
believe IN ns posslbIlity. but u IA a
fact.
Nobody likes 20 nav .Bxrs bu- this
income tax law has Scen accented and
obeved In many cases I, should ne
said the income tax has been maid
under protest because Of this grea,
INJUSTICE: and. lf ANYBODY chose 10
take a case 70 tho Supreme Court Il,
would saom mos. url!Iely that tie
supreme Court wou,d suppor. the ac-