New Britain herald., 1917-12-01
Henry CLews
Weekly Letter
Especial to the Herald)

New York, Dec. mo decisive
changes have taken place in the war
outlook. On the Western front the
A1lie1 army Is progressing like a huge
glacier. slowly but irreaisttbly grind
Ing Itself forward. Russia is deem In
anarchy. out Of which Germany gains
some advantage. including release Of
a portion Of her armies for use else
where. Italy is making a magnificent
resistance, holding out far better than
expected, and Is now beginning to re-
ceive the aid of Franco-B British forces.
The Turks are being gradually van
uuished by the British, and the war
as a whole is going steadily adverse to
Germany. 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 Belgium
and France to the very last degree, for
without the iron and coal mines Of
these countries she could not long
maintain the war. When these are
captured her ability to fight will be
very materially curtailed and the end
Of the war may come more quickly
The great conference of the Allies has
commenced and as a result the war
viii! doubtless be pushed with renewed
vigor Lord Lansdowne's peace talk
was particularly inopportune at this
time because it will encourage the
enemy and embarrass the Allies.
Meanwhile President Wilson's opening
address to Congress and his utter
ances on the war will be looked for
ward to by the whole world.
The railroad situation promises to
be taken up for serious consideration
imm ediately on the opening of con-
gress. Our railroads are going
through a rapid process of centrali-
nation, the object in view being the
operation of the roads on the unit
basis The railroad war board at
Washington is strongly in favor of the
pooling system, which will facilitate
handling the traffic end hasten both
efficiency and economy. The de-
mands of the roads for new equip
ment, facilities, etc, are still unpro-
vided for. These imperative needs
Sre now recognized by the administra-
ton, and some action may soon be
expected. The Interstate Commerce
Commission will probably grant the
desired 5 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 or dividends by the
government. These proposals are
considered practical, while public
ownership is neither feasible nor de-
sirable. Public opinion is not ripe for
such action. Talk of reducing divl-
dends for the purpose of meeting
necessary OUTLAWS is absurd. The total
dividends paid by American railroads
are considerably less than $350,OOO.-
900 annually on a capital stock of APP
$9,OOo,OOo.ooO, or about
per cent. To reduce dividends
would inevitably impair the credit of
even the strongest roads and make it
still more impossible for thenp to
raise money by either stocks or bonds.
Surprising the roads were to reduce
dividends say, one-quarter, what
would be the result? Simply crush
ing blow to their credit and a saving
of less than s100,oOO,000. This
would be a trifling matter compared
with the billion or more needed; while
any possible reduction in dividends
could have no effect whatever upon
wages. The only thoroughgoing So
luton of the railroad problem is to
amend the law so as to permit pooling
which will permit operation of the
roads as a single system under gov
eminent regulation, and at the same
time abolish the confusion and waste
arising from operating under the laws
Of forty eight different states. For
the purpose Of Immediate relief rail-
road bonds guaranteed as to principal
and interest by the government would
be the surest and least Objectionable
plan.
Financial conditions ara less con-
fused than for some time past. On
Monday Congress opens, and the out
look is for quieter season than the
previous one, for the reason that
nearly all emergency legislation has
been completed and will require less
serious attention hereafter. The most
urgent problem of any is that of the
railroads, which, as said above, prom
lses 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
completed, and the country is now
on a thoroughgoing war basis from
the business standpoint as we'll as that
of the military. Business men con-
sequently know better what to expect.
Prof1teering is classed as 'unpatriotic
and inimical to the countrys safety
ard success. Fixed prices and trade
regulations are being periodically &C
cepted in nearly all parts Of the coun-
try as absolutely necessary to win the