The sun., 1919-08-14
INCREASE OUTPUTS,
ADVISES STILLMAN
National City Banks Head
Lays High Prices to Work
ers Diverted to War.
SEES LABOR GAIN IN END
Decline i'm Food and Clothing
Looked For as Production
Becomes Greater.
SEES LABOR GAIN IN END

ant situation Of high living costs. James
A Stllman, president OF the National
city Bank. said yesterday. The with
travail OF many millions Of men from
PRODUCTION. he believes. Is the chief rea-
sn for the shortage Of necessities Of
NE. which. he says. is largely respon-
7 sble for present high prices
Mr.. Stillman's interview was a great
surprise to Wall Street and the 1nan-
cial community generally. Like his
father. the head Of the worlds largest
Institution of it's kind has always been
ureedingiy reluctant 10 express him.
eelf publicly on any subject. and Il was
common knowledge In Wall Street that
the frequent interviews with Frank A.
Vanderbilt. who Immediately preceded
the younger Stillman as head Of the
5 hank, were subject to no little criticism
among others of the bank officials.
Since the retirement of Mr.. vanderlip
from the presidency of the National
City Bank. there has been much specu-
lation as to who would be selected to act
as spokesman for the institution and
the opinion has been freely expressed
that the future policy of the bank would
in all probability be one of silence.
The general situation at this time"
said Mr.. Stillman, lis one which calls
for temperate speech. No man who has
j all 1hC VI NJ ACCRODSADiAAly win
want to say or do anything that win in
crease the confusion and excitement
which exist
Have Had Enough of Ffghting.
Patience Is a great virtue just now.
The world has had enough of fighting.
Organized labor has officially indorsed
the League of Nations on the theory
that the world has reached a stage of
/ civilization WHARF n 0nCht tn he aha 60
devise a better way of settling disputes
between nations than by war. That is
Just as true in industry and between
classes as It is in international affairs.
Everybody votes in his country. and
should bow to the will of the majority.
Therefore let US all respect and support
the Government, and settle our differ
ences without threats or violence, as
becomes a free people. Every fair prop
osition win win in this country in the
long run.
The war has interrupted industry
and made many conditions abnormal.
II is responsible for the high cost of
living by causing a great scarcity of
all the necessaries. 1t is just THAT was
to be expected after the withdrawal of
20 mani millions of men from produc-
ton The remedy is in orderly industry.
The whole situation will right itself as
production is increased. Foo will go
down and clothing will be cheaper.
This country went through a similar
situation after our civil war. At first
there were scarcity and high prices. bu,
when industry was fully resumed we
had a long period Of falling prices. II
Is true that in many instances wages dc
not keep pace with commodities when
the latter are rising. but on the -other
hand wages do not fall so fast as COM
modities when the latter turn downward
Labor generally loses on the rising
scale. but gains on the falling scale,
and the gains last longer than the losses
! venture the prediction that the wage
earners will come out of this situation
the gamers, because the decline in what
they buy will be greater than in wages
n has always been so. All the improve
ments in industry. by invention and the
accumulation Of capital. work for the
benefit OF labor.
Demands of Railroad Men.
"As for the proposal of the railroad
brotherhoods. that Is not a matter to be
discussed in hot blood. II Is a question
Of national policy. to be settled by fail
discussion, not considering railway own,
es or railway employees alone, but tht
interests OF all the people.
How can the railways be most ef.
hciently operated SO that the transpor
tation charge which the public must pay
shall be as small as is consistent with
Just treatment OF investors and jus
treatment of employees? Railway in.
vestors are entitled to have a fair return
on their capital as compared with in
vestors IN other industries and employee:
are entitled to fair compensation as com
pared with employees in other indus
trles. This Il the general principle upor
which the railroad problem should b
solved
81 don't believe the railroad men wan
any moro mar they believe to be fair
but the leaders are in the position o
side Of the case only, and are misled b,
the vast amount Of misinformation. dis
torted Statements and half truths tina
are current
The owners Of securities Of the prin
l. opal railroads have nothing to fear fror
any fair inquiry INTO the value Of tn
properties The railroad Investments o
this country as a class are certainly a
clean as any other form of investment
Vastly more money has been mad b,
the people who foliowed the construc
ton Of new railroads in land and indus
trial opportunities than has been mad
by investors IN railroads. The reward
on the average have not been excessive
measured by the returns upon other In
ves:mentA
There have been INSCRIPTIONS pro
moters in railroads as In other lines o
business. put the stockholders nave suf
fered most from them. The great bod.
Of railroad financing has been homes
and sound on the whole. and the publ
has received full value and the best serv
Ice in the world.
Government borrowing Changed
"The idea that the Government ca
borrow in billions of dollars at 4 pc
cent under present conditions is a mis-
taken one. With only a small publ
debt as formerly, Government bond
free OF all taxation were in demand b
a Enali class Of investors at low rate,
That proves nothing as TO ability to hoa
great sums Let any one ask himsel
how many people he knows who want
4 per cent. investment.
1T would be unjust and practical r.
pudiation for the Government after as
eertainiag the fair cash value OF raj
road property to take II over forcibly 70
q Government security which woul
not bring its face on the public marke
According to the argument Of the raj
road men money has so deprecated tina
Z per cent. on a given sum Is no NOR
tan 2 per cent. five years ago.
This is not q matter which direct
concerns commercial banks so much q
It does savings banks. life insuranc
Companies and private investors. bl
Soever has invested in good faith 1
ailroad securities should have jui