New-York tribune., 1919-05-01
Tells Commerce Chamber
People, Facing Heavy War
Debt and Taxes, Should
Have Rigid Accounting
Rea in a Plea for Roads
Best Solution Would Be to
Allow Fair Revenues and
Just Treatment

Federal Reserve Board; Samuel Rea,
president of the Pennsylvania Rail
road; William C. Redfield, Secretary of
Commerce; Edward N. Hurley, chair
man of the United States Shipping
Board, and Governor Walter E. Edge
of New Jersey were the speakers here
to-day at the sessions of the seventh
annual convention of the United States
Chamber of Commerce.
In his address Mr.. Warburg urged
the immediate adoption of national
budget system to facilitate detailed &C
counting to the American people in the
retiring of war debts. He advocated
the appointment of a permanent bud
get commission.
country that must submit to the
heaviest possible taxation to amortize
war debts, he asserted, should have
definite assurance that the government
will use extraordinary precautions to
avoid wasteful expenditure, and "thus
do its own full share in readjusting
the watered balance sheet
Must End Haphazard Method
Il believe that am voicing the sem
timent of all thinking Americans when
! say that in this respect the hour
calls for thorough REFORM" Mr.. War
burg asserted. "a more careful and
scientific study of our national receipts
and expenditures is required than has
been given heretofore. Congress must
relegate to the past its haphazard
methods of appropriating expenditures
through numberless committees, all act
ing independently of one another and
without having any comprehensive
picture of what are available revenues.
ut is high time that a national bud
get system be adopted, such as is en-
ioyed by every other great country, and
that before granting the appropriations
called for by departments, boards or
committees a thorough investigation
and report be made as to what reve-
nues may safely be counted upon''
Says Thrift Is Essential
The fundamental remedy for our eco
nomic ills, Mr.. Warburg said, lies in
thrift, which means increased produc-
tion and decreased consumption. AS
dehation takes place prices will find
their proper levels, and problems of
equitable and reasonable taxation will
solve themselves, but the creation of
new assets, he asserted, is predicated
upon individual and national economy.
"The most immediate and most tam
gible result of successful economy"
Mr.. Warburg added, would be the
elimination of the item loans on gov
ernment securities from the balance
sheets of both our banks and trust
companies and the Federal Reserve
banks. in eliminating these items we
strike at the very root Of imitation"
Mr. Rea said that neither govern
ment ownership nor government guar
antees were an ingredient of the anti
dote for the relief of the railway situa-
ton in the United States His sub
Ject was "Thc Railroad Problem" and
ne gave seven remedies for it, chief
among which were adequate revenues,
sane Legislation and the encouragement
Of Individual enterprise.
Mr.. Rea's Rail Solution
The seven suggestions offered by the
speaker were:
l. Adequate revenues on which rail-
road credit may be strengthened and
new capital attracted.
e Concentrated, responsible national
regulation, separated as between it's
executive and administrative functions
and Its judicial functions, and founded
on equitable legislation that will re-
quire our regulators to insure strong
transportation systems and not weak
railroads.
3. All RAILROADS under public regula-
tion to be Authorized to lease, acquire
or consolidate with any other railroad
corporations, ana reasonable coopera-
ton to be permitted in facilities. eouin-
ment and train service.
4. Regulation Of security issues.
b. Regulation Of wages, with the en-
p'oyer, the employe and the consumer
represented.
T. Funding Of the capital debts in
Cured during government control
:. Rehabilitation Of revenues Of the
ss@isung railroads should begin imme-
oiateiy while they arc under govern
ment control. "'''i"-
Guarantee Is Not Necessary
In discussing government ownership
ana tho possibility of q government
guarantee Mr.. Rea said:
Neitner confronts us unless we hava
reached the conclusion that Tho AmerS
'can people so undervalue the nuhlic
seryice. OF their railroads, and are 40
determined not TO allow fair rctnrn.
On the railroad Investment. that the;r
iegislators., their regulators and their
courts. expressing their will, can m
longer be tr-cxted 70 deal equitably with
tne railroad inreztraent which affects
ING. welfare Of fully one-half our citi.
zcns W direct Ownership, or ownership
Mrougn their participation In tho sav-
snss: insurance. trust. education and
.nas1taDae corporations and institu-
s1ons; that the states will continue to
increase taxation or railroad gross and
ret results and will not concedc ade-
euabs railroad rates. that labor win de-
mand tho hiGhcgt wages and rive the
icasr return and take no interest In tho
socssss or failure OF their EMPLOYERS:
Inzt tho producers will insist upon their
prices and profits, and with tho con
euMeys viii decide that 4x.n.rn.4..fr