The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1918-12-06
sound foundation for the financial

sound foundation Tor the financial
operations of the year.
/ entirely concur with the secretary
of the treasury in recommending that
the $2,000,000,000 needed in addition
to the $4,000, 900 provided by, ex-
listing law be obtained from the profits
which have accrued and shall accrue
from war contracts and distinctively
war business, but that these taxes be
confined to the war profits accruing
in 1913 or in 1919 from business orig
mating in war contracts. / urge your
acceptance of his Recommendation
that provision be made now, not SUBJ
sequently, that the taxes to be paid in
1920 should be reduced from six to
four billions. Any arrangement less
definite than these would add elements
of doubt and confusion to the critical
period of Industrial readjustment
through which the country must now
Immediately pass, and which no true
friend of the nations essential bust
ness interests can afford to be respon-
sible for creating or prolonging. Clear
ly determined conditions, clearly and
simply charted, are indispensable to
the economic revival and rapid indus
trial development which may conf
IDENTIFY be expected if we act now and
sweep all interrogation points away.
Pleads for Navy Program.
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 committee
for authorization that part of the pro-
gram which covers the building plans
of the next three years. These plans
have been prepared. along the lines
and in accordance with the policy
which the congress established, not
under the exceptional conditions of
the war, but with the intention of ad-
herring to definite method of develop
ment for the Navy. / earnestly rec
ommend the uninterrupted pursuit Of
that policy 1t would clearly be un-
wise for us to attempt to adjust our
programs to future world policy as
yet undetermined.
The question which causes the great
est concern is the question of. the pol
icy to be adopted toward the railroads.
l frankly turn to you for counsel upon
it. have no confident judgment of my
own. / do not see how any thoughtful
man can have who knows anything of
the completely of the problem. 1t is
problem which must be studied,
studied Immediately and studied with
out bias or prejudice. Nothing can be
gained by becoming partisan of any
particular plan of settlement.
Railroads Up to Congress.
1t was necessary that the admins
tration of the railways should be taken
over by the government so long as the
war lasted. 1t would have been impos-
sible otherwise to establish and carry
through under single direction the
necessary priorities Of shipments. 1t
would have been impossible otherwise
to combine maximum production at the
factories and mines and farms with
the maximum possible car supply to
take the products to the ports and
markets; impossible to route troops,
shipments and freight shipments with
out regard to the advantage or disad-
vantage of the roads employed; i'm
possible to subordinate, when neces-
sary, all questions of convenience to
the public necessity; impossible to
give the necessary financial support to
the roads from the public treasury
But all these necessities have now
been served, and the question is, what
is best for the railroads and for the
public in the future?
Peace Treaty In 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
continued development of the indus
tries of the country. We knew that
already. And we knew that they were
unequal to it, partly because their
full cooperation was rendered inn
possible by law and their competition
made obligatory, so that it has been
impossible to assign to them several
ly the traffic which best could be
carried by their respective lines in
the interest of expedition and national
economy.
"We may hope, believe, for the
formal conclusion of the war by treaty
by the time spring has come. Twenty
one months, to which the present con-
troll of the railways is limited after
formal proclamation of peace shall
have been made, will run at tho far
thest, take it for granted, only to
the January of 1921.
Rail Revenue Problems.
"The full equipment of the railways
which the federal administration had
planned could not be completed with
in any such period. The present law
does not permit the use of the reve-
nues of the several roads for the
execution Of such plans except by
formal contract with their directors,
some of whom will consent, while
some will not, and therefore does not
afford sufficient authority to under
take improvements upon the scale
upon which it would be necessary to
undertake them. Every approach to
this difficult subject-matter Of deci-
sion brings us face to face, therefore,
with this unanswered question: What
is right that we should do with the
railroads, in the interest Of the public
and in fairness to their owners?
Let me say at once that have no
answer ready. The only thing that is
perfectly clear to me is that it is not
fair either to the public or to the own
ers of the railroads to leave the ques-
tion unanswered, and that 1t will
presently become my duty to relin-
quish control of the roads, even be-
fore the expiration Of the statutory
period, unless there should appear