The Bridgeport evening farmer., 1917-12-03
HENRY CLEWS
 WEEKLY. LETTER

place in the war outlook. On the Western front the Allied army is pro- gressing like a huge glacier, slowly but irresistibly grinding itself forward. Russia is deep in anarchy, out of which Germany gains some advan- tage, including release of a portion of her armies for use elsewhere. Italy is making a magnificent resistance, holding out far better than expected, and is now beginning to receive the aid of Franco British forces. The Turks are being gradually vanquish- ed by the British, and the war as a whole is going steadily adverse to tGermany. Unfortunately, there are no genuine signs of early peace. And there is no use in deceiving ourselves by hopes to the contrary. Germany, though weakened, is not exhausted. Her commanders will probably resist the effort to drive them out of Bel gium and France to the very last de- gree, for without the iron and coal mines of these countries she could not long maintain the war. When these { are scaptured her ability to fight will be Very materially curtai1ed and the 9nd of the war may come more quickly: The great conference of the Allies has commenced and as a result the war will doubtless be pushed with renewed vigor. Lord Lansdowne's peace talk was particularly inoppor- tune at this time because it will en- courage the enemy and embarrass the Allies. Meanwhile President Wilson's opening address to Congress and his utterances on the war. will be looked forward to by the whole world.
 The railroad situation promises to be taken up for serious consideration Immediately on the opening of Con- i gress. Our railroads are going through a rapid process of centraliza- ton. the object in view being the op- eration of the roads on the unit basis. The Railroad War Board at Washing ton is strongly in favor of the pool ing system, which will facilitate handling the traffic and hasten both efficiency and economy. The de- mands of the roads for new equip ment, facilities, etc., are still unpro
 vtded for. These imperative needs are now recognized by the Adminis- tration, and some action may soon be expected. The Interstate Commerce Commission will probably grant the desired 15 per cent to at least some of the lines, but this will not suffice to give the roads a living wage under present conditions, nor will 1t remedy the Fundamental weakness in our rail- road situation, which is lack of unity. Various projects for financial relief are under discussion, such as a direct loan by the government or the guar antee of interest are considered prac- teal while public ownership is neither Feasible nor desirable. Public opin- ion is not ripe for such action. Talk Of reducing dividends for the purpose of meeting necessary outlays is ab- snrd The total dividends paid by American railroads are considerably less than ss50,00O.000 annually on a capital stock of approximately $s,0Oo,- 1 0oO.0 .0o0, or about per cent To re- 4 duce dividends would inevitably i'm pair the credit of even the strongest reads and make it still more impos- sible for them to raise money by either gt0cks or bonds. Supposing the roads were to reduce dividends, say one- < qpaxter, what would be the result Simply a crushing blow to their cred { tt and a saving of less than $1O0,- I 4I|syV0- 4A46 NOu1Q Us d matter compared with the billion or more needed; while any possible re- auction in dividends could have no eff feet whatever upon wages. The only { thoroughgoing solution of the railroad problems is to amend the law so as to permit railroad pooling which will 2 permit operation of the roads as a single system under. government reg ulation, and at the same time abolish the confusion and waste arising from operating under the laws of forty eight different States. For the pur- pose of immediate relief railroad bonds guaranteed as to principal and interest by the government would be the surest and least objectionable plan.
 Financial conditions are less confus- .l ed. than for some time, past. On Mon day Congress opens, and the outlook is for a quieter session than the previous one. for the reason that nearly all emergency legislation has been com !, pIeted and will require less serious at- tenfion hereafter. The most urgent problem of any is that of the rail- roads, which, as said above, promises to be promptly taken up. Many war difficulties have already been solved
 Many questions as to revenue and taxation are settled. Regulation of industry and commerce is almost com pleted, and the country is now on a fhoroughgoing war basis, from the business standpoint as well as that of the military. Business men conse- uuently know better what to expect. Profiteering is classed as unpatriotic and tninica1 to the country's safety and success. Fixed prices and trade regulations are being periodically &C., cepted in nearly all parts of the coun- try ae absolutely necessary to win the war. Trade can consequently go on with less Arrangement. Some indus tries especially those confined to the unneeessaries will suffer from war economy, but the great steel industry and it's subsidiaries will continue in- tensely active as long as war con- tinues; 50 will many branches of the textile industries and the leather in dustry. Price fixing by the govern ment, it should be notedJ is made on the basis of fair profits in order not to discourage output. Thus far MT. Hoover has not succeeded much in lowering prices, because he cannot control the chief cost of production, which is high wages. He has, how ever, lessened profiteering among dis tributers; while the buyers panics. which would have developed in the ron trade but for the preventive ac- ton, are now beyond the range of pro- babilfty
 The course of the security market has been irregular and without any settled tendency in either direction.