The Washington herald., 1916-04-09
NATIONS TRADE
in wage Fight
Neither Railway Workers Nor
Managers Permitted to
Strange Business.
PUBLIC MUST BE HEARD
Transportation Is Vital Factor in Ex-
tending Country's Commerce at
Home and Abroad.
PUBLIC MUST BE HEARD
By JOHN ). rARwELL

John v. Farweli, of Chicago, who
heads the great business house bear
ing his name, Is recognized as one
Of the leading merchants Of the coun-
try. As such he is particularly we'll
qualified to speak for the business In
terests of the nation. Mr.. Farweli
has been In active business In Chicago
for a quarter of century and has
been Identified with many important
public movements He was presi-
dent of the National Citizens League
which organized and carried through
the business mems campaign that re-
suited In the adoption of the Federal
Reserve Law. He Is a member of
the Yale Corporation, president Of the
BoaAa Of Trustees of Lake Forest
University and president Of the Board
' of Trustees of the Y. M. Q. A,
Transportation and credit are the life
blood of commerce. Stop either of them
and the industries Of the country would
quickly die. Check them and business
everywhere would feel the stagnating ef-
feet The whole scheme of production
and merchandising In operation today
would be impossible without our rapid,
efficient and cheap railway transporta-
ton, and our highly and excellently or
ganized credit system.
Much thought and discussion are being
devoted to the extension of our trade
to foreign markets, and to the credit.
transportation or other means to en-
able US to retain q share In the trade
Of other countries after the present abb
normal conditions have passed. For all
American growers and manufacturers ex-
cept those located directly upon the sea-
board, the factor Of a railroad transpor-
tation 10 one of the determining infiu-
ences affecting their ability to compete
for foreign trade.
Railway Rates and Business.
The ibility of the North Dakota farmer,
the Michigan lumberman or the Texas
cotton-grower to sell his product profit
ably in Liverpool or any other foreign
market may depend largely upon the rea-
sonableness OF railway rates Other ma
tions have appreciated this and have
made use of 1t in extending their foreign
commerce. The great success of Ger
many, in the period preceding the pres
ent war. in building up her trade in high
ly competitive outside markets was due
in some measure to her readiness to
make very low railway rates on export
products.
To the business men of the United
States foreign trade, important as it Is.
remains a matter Of far less Importance
than domestic business. No merchant or
manufacturer needs to be told of the i'm
portant role played by the machinery of
transportation in the latter field. There
is not a chamber OF commerce or board
OF trade in any city of size but has its
special traffic bureau or committee, and
that is usually the busiest department Of
the whole organization. Questions Of
traffic facilities and rates engross a great
part of the attention of every man doing
an extensive business. In hundreds Of
cases his ability to sell in a particular
market is determined by this factor
alone.
Great general credit disturbances have
undoubtedly been prvented by the pas
sage Of the Federal Reserve Act and the
organization of credit made possible by
its provisions.
This other great factor in commerce,
railroad transportation. Is still subject to
great disturbances. and there is need Of
fore the difficult problem will be equally
we'll solved. At present We can only
move slowly and carefully toward the
final conclusion. Many facts, however,
stand out prominently.
Three Billions for transportation.
The people Of the United States paid to
the railways last year a transportation
bill of 5000 100000. OF this amount ap-
proXimately three-fourths was for the
carrying of goods. This sum seems
large one, but 1t sinks to a very modest
percentage when compared with the total
value of the goods handled. The point of
importance is that all railway income,
and consequently all railway outgo, is
paid by the business public. In view of
the vital relation of transportation serv-
ice to business welfare, 1t Is obvious
that whenever the cost of transportation
rises above a normal and legitimate level
1t becomes a tax upon the business COM
munity. Anything that affects trans
portation cost becomes a matter of direct
concern to all business men and to all
consumers.
The money that the railroads collect
for their services is expended for a va
riety OF purposes. The largest single
item Of expenditure Is for wages. Statis-
tics show that So cents out of every dollar
paid out by the railroads goes to meet
the payroll. Aside from the wages, the
cost OF equipment and other improve
ments, taxes, pensions and interest upon
Indebtedness account for some of the
larger expenditures. II anything is left
over after costs have been met 1t goes
to the creation of a reserve fund or In