Gilpin observer., 1916-09-07
WASHINGTON NEWS
BY Edward Heating

problem is too big for him. He has
saved the country from one of the
most disastrous strikes in its his
tory and has laid the foundations of
an enduring peace between the rail-
roads and their employees.
AS usual, when the crisis was reach
er TO get at the heart of the prob
lem. He called tie representatives
CT the railroads and OF the brother
hoods to the White House and amaz-
ed both sides by his mastery of tie
details CT an intricate and perplex-
ing issue. Then he swept aside the
non-sssentials and put his finger on
tlfe main question.
When tie railroad presidents re-
jected his suggestions he appealed
to congress. The rest is history.
Congress, wittcnt regard to party
lines, sustained him, because his pro-
pcsals were Enthusiastically those of a
statesman and not of politician.
Another Wilson Triumph.
/ When the European war began the
marine insurance companies increas-
ed their rates to a point where Ann
erican exporters were unable to do
business because they could not af-
ford to purchase insurance. The sit
uation was a most serious one. The
president turned 10 congress and sug-
gested that tie government should
go into the marine insurance busi-
ness
Our Republican friends made a
great fuss over the plan. 1t was So
cialistic, they said, and might involve
this country in unfortunate complica-
tions with the belligerent nations.
Wilson laughed at their protests
and tLeir fears. Congress passed the
bill establishing the war-risk insur-
ance bureau and American cargoes
began to move to Europe.
The bureau hes been in operation
for two years now ard l have its
second annual report before me.
Insurance amounting to $4,000, 900
has been written. Tie net losses
have been only SIP, 600, while the
premiums collected have amounted to
$2,S50,000. Tms Uncle Sam has
made net profit of s2,2SS.O0O. /The
total cost of operating the bureau
fer two years has been $4,000, and
the government proposes to reduce
its rates one-third-
In addition to the profit mention
ed, the government. has saved ship
pers millions in insurance premiums
by provi ling competition which has
compelled the old companies to keep
their rates within reasonable limits.
"old Glory" on the Sea.
The president signed the shipping
bill the other day and the Democrat
ic party took the first step looking
to the permanent restoration of the
American merchant marine.
During fifty years of Republican
rule the United States has been grad
ually driven from the seas. American
ship yards have been dismantled and
the American sailor has become a
land-lubber.
Wien the war broke out we found
ourselves witkcut slips to carry oar
exports.
Without wasting time On vain ef-
forts to fix responsibility for cur sad
plight, the president urged congress
to appropriate enough money to pur-
chase a fleet of merchant ships At
that time there were a great num-
ber OF vessels in American ports
which could have been purchased for
a very low price. The president saw
the opportunity and pleaded for per-
mission to take advantage of II. But
the Republican minority in the SEN
ate, aided by few Democrats. initia-
ted Sillibuster which prevented the
passage Of the bill during the Sixty
third congress, and before the Sixty
fourth congress convened there had
been such boom in shipping as the
world had never witnessed.
II the presidents advice had been
followed the government would have
made a profit of not less than $780,
100000, besides forcing a material
reduction in ocean freight rates.
The bill as passed places fifty mil.
lion dollars at the presidents dis
posal for the purchase and construc-
ton Of ships, which will be operated
through leasing companies. 1t is a
long step in the right direction, but
1t only serves to emphasize tie loss
VIC sustained when the presidents
original plan was rejected by politi-
clans who could not be statesmen.
even when their country was facing
q great crisis