The Washington times., 1918-12-02

sound foundation for the financial
operations of the year.
Would Connne Taxes
/ entirely concur with the Secretary
Of the Treasury in recommending that
the two billions needed in addition to
the four billions provided by existing
law be obtained from the profits which
have accrued and shall-~accrue from
war contracts and diStinctively war
business, but that these taxes be con
fined to the war profits accruing In
1913, or in 1919 from business origi-
mating in war contracts. l urge your
acceptance OF his Recommendation that
provision be made" now, not suose-
qusntly. that the taxes to be paid in
1870 should be reduced from six to
four billions Any arrangements less
definite than these would add elements
OF doubt and confusion to the critical
period Of Industrial readjustme ut
through which the country must now
Immediately pass,~and which no true
friend Of the nations essential bust
ness interests can AFFORD to be re-
sponsible for creating or prolongtng.
Clearly determined conditions, clearly
and simply charted. are indispensable
to the economic revival and rapid in
uCNClOpulCuN may WI
fidently be expected IL we act now
and sweep all interrogation points
away.
/ take it for granted that the Con-
gress will carry out the naval pro-
gram which was undertaken before
we entered the war. The Secretary
of the Navy has submitted to your
committees for authorization that
part of the program which covers the
building plans OF the next three
years. These plans have been pre-
pared along the lines and in accord
ance with the policy which the Con-
gress established, not under the ex-
ceptional conditions of the war, buI
with the intention of adhering to
definite method of development for
the navy. earnestly recommend
the uninterrupted pursuit OF that pol
icy. 1t would clearly be unwise for
us to attempt to adjust our programs
to a future world policy as yet unde-
termined.
Question of Railroads.
The question which causes me the
greatest concern is the question Of
the policy to be adopted toward the
railroads. / frankly turn to you for
counsel upon IT. / have no confident
Judgment of my own. l do not see
how any thoughtful man can have
who knows anything of the complex
ity of the problem. II is a problem
which must be studied, studied i'm
mediateIy. and studied without bias
or prejudice. Nothing can be gained
by becoming partisans Of any partlc-
ular plan Of settlement.
II was necessary that the admins
tration of the railways should be
taken over by the Government so long
as the war lasted. II would have
been impossible otherwise to estab-
Iish and carry through under a single
direction the necessary priorities OF
shipment. It would have been i'm
possible otherwise to combine maxi
mum production at the factories and
mines and farms with the maximum
possible car supply to take the prod
ucts to the ports and markets; i'm
possible to route troop shipments
and freight shipments without
regard to advantage OF disadvantage
of the roads employed: impossible to
when necessary, all ques-
tions OF convenience to the public
impossible to give the nee
essary financial support to the roads
from the public treasury. But all
these necessities have now been serv-
Gu, anu the -QhC1NlOu To- "hdN IL OCbL
for the railroads and for the public In
the future.
sces Peace by Spring
Exceptional circumstances and ex-
ceptional methods OF administration
were not needed to convince US that
the railroads were not equal to the
immense tasks OF transportation i'm
posed upon them by the rapid and
development OF tho IN.
duEtrias OF tho country We knew
that already. And we knew that
they were unequal 10 n partly be-
cause their full cooperation was
rendered impossible by law and their
made obligatory, so
that Il has been impossible to as
sign TO them severally the traffic
which could best be carried by their