New-York tribune., 1919-08-14
Stillman Says
Labor Will Cain
! By Price Changes
Head of National City Bank,
in First Public Statement.
! Calls for Temperate te
Speech and Patience

gamer James, A. Stillman,l president
Of the National City Bank, declared
yesterday, in a statement prepared
social conditions.
Labor" the new president of the
bank explained, generally loses OF
the rising scale but gains on the fall
ing scale, and the gains last longer
than the losses. l venture tt predic-
tion that the wage earners Will come
out of the situation the gamers, be-
cause the decline in what they buy
will be greater than in wages. 1t has
always been So All the improvements
in industry, by invention and the ac-
emulation of capital. work for the
benefit of labor
Mr.. Stillman's statement, which was
his first public ~tterancc since he sue
ceeded Frank 4. Vanderlip as presi-
dent of the City Bank on June of
this year, was received with much sur
prise, as hitherfore both Mr. Stllman
and his father, who also had been
president of tn, bank, had been averse
to publicity and were known as "silent
men" of Wall Street. Officers If the
Stlllman's remarks constituted the
beginning of a changed policy toward
the press.
"The general situation at this time"
said Mr.. Stillman, "is one which calls
for temperate speech. No man who
has any sense of social responsibility
will want to say or do anything that
will increase the confusion and ex-
citement which exist.
Patience Virtue
Patience is a great virtue just now.
The world has had enough of fight
ing. Organized labor has offc ally
indorsed the league of nations. on the
theory that the world has reached a
to be able to devise a better way of
settling disputes between nations than
by war. That is just as true in IN
dustry and between classes as it is
in international affairs Everybody
votes in this country, and should bow
to the will of the majority. There
fore let us all respect and support tn
government, and settle differences
without threats or violence, as be-
comes n free people. Every fair pro-
position will win out in thi. coun-v ~
in the lorr ruN
"The war" the new president o.
the bank explained, ~n4s y 's.0.
industry and made manF condition.;
abnormal 1t is responsible for .ne
high cost Of living by causing a treat
scarcity of all the necessaries. 1t 's
just what was to be expected after
the -ithdrcwal of 50 many millions
is in orderly industry. The whore
situation Will right itself as produc-
tion is increased Food will 20 down
and clothing will be cheaper
This country went through
similar situation after our Civil War
At first there was scarcity and high
prices, but when industry was fully
resumed we had a long period of fall
ing prices. 1t is true that IN many
commodities when the latter are ris-
ing, but on the other hand wages do
not fall as fast as commodities when
the latter turn downward.
"As for the proposal of the railroad
brotherhoods. that is not d matter to
be discussed in hot blood. 1t is
question Of national policy. to be set
tied by fair discussion. not considering
railway owners or railway employees
alone, but the interests OF all the
people. How can the railways be
most efficiently operated so that the
transportation charge which the pub
lie must pay shall be as small as is
consistent with just treatment of IN
vestors and just treatment of en-
ployes? Railway investors ere en-
titled to have a fair return on their
capital as compared with investors in
other Industries and employees are en-
TITLED to fair compensation as COM
pared with employees in other in
dustrles. This is the general principle
upon which the railroad problem
should be solved.
II don't believe the railroad men
want any more than what they believe
to be fair, but the leaders are in the
position of advocates and attorneys.
hey see one side Of the case only,
and are misled by the vast amount of
mlsinformation, distorted statements
and half truths that are current.
Rail Security Owners Safe
THE owners of securities of the
fear from any fair inquiry into the
value of the properties. The railroad
investments Of this country as class
are certainly as clean as any other
form of Investments. Vastly more
money has been made by the people
who followed the construction of new
railroads in land and industrial oppor-
'"i'''iSS cildH uAS Deen maze BY IN
vestors in railroads. The rewards on
the average have not been excessive.
measured by the return upon other in
Vestments. There have been unscrupu-
ious promoters IN railroads as in other
iines OF business, but the stockholders
nave suffered most from them. The
great body OF railroad financing has
neen honest and sound on the whole,
and the public has received full value
and the best service in the world.
The idea that the government can
borrow IN billions of dollars at per
cent under present conditions is mis-
taken one. With only small public
oebt, as formerly, government bonds
1ree OF all taxation were in demand by
small class of investors at low
rates. That proves nothing as to abil-
ity to float great sums. Let anv one
ask himself how many persons he knows
VINO want per cent investment 1t
would be unjust and a practical repudi-
atlon Tor the government after ascer-
tanning the fair cash value of railroad
property to forcibly take it over for
government security which would not
Drlng It's face on the public market
According to the argument of the rail
road men, money has so deprecated
that per cent on given sum is no
more than per cent five years aro.
This is not a matter which directly
concerns commercial banks so much as
1t does savings banks, life insurance
companies and private investors, but
whoever has invested in good faith in
railroad securities should have just