The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-06-20


roads Under Federal Control" was
delivered by Robert w. Wooley mem
Der of the Interstate Commerce COM
mission. before the annual conven-
ton OF the Virginia Bankers assocfa-
ton at the Hotel Chamberlain, Old
Point Comfort. Thursday:
Mr.. Woolley spoke In part as fol-
lows:
Uncle Sam has expended approx
mately five billions OF dollars on a
merchant marine, and is about to ex
pend at least half million more.
Europe Ia Frustrated, and our moral
obligation as we'll as our business OPP
portunity is to furnish her all that we
can of the products of our fields and
our mills The markets OF the rest
of the world never before beckoped to
us so earnestly or so attractively. The
ports of The seven seas are demand
ing that vessels flying the Stars and
Stripes come bearing them foods and
goods
High Labor Costs Confront.
Great Britain and other important
industrial and maritime powers are
confronted with high labor costs; out
Of the war has come a new day In
which we bid fair no longer to he
handicapped by cheap manpower of
'PifiPSAAetf Japan tlitl G'hiiih
possibly excepted. Yet, bankers of
Virginia We hear a demand going UP
all over the land that a, step be taken
which would inevitably start in this
country a. rise in prices the apex of
of which no man could truthfully
predict. 7 refer to the proposed re-
fura OF the railroads to their owners
for operation and control. This in
crease would start because Mr.. Theo-
dore Cuyier. testifying for the rail-
road executives before the senate COM
mittee on interstate commerce and
Mr.. Daniel Willard, president of the
Baltimore and Ohio, quoted at Bos-
ton recently, have stated that immedi-
ately upon the resumption OF private
operation the carriers would have to
ask for higher freight rates. The
measure of this increase was not indi
GATED: some trhffic men have ex-
pressed the view informally that it
may have to be as much as 80 per
cent. Uncle Sam now guarantees ap-
proximately l2 per cent on the
book value Of the carriers securities;
the executives say the railroads should
be allowed to earn . per cent on their
capital stock. 7 am sure I don't
know the degree or kind of increase
TO he asked, but in view OF the fact
that in the present period of read
tustment there Is a condition OF van
ishing traffic, resulting from natural
causes and easily explained. which
would obtain no matter what earthly
mortal was directing the railroads. the
Interstate Commerce commission,
after due showing of loss easily made
by the carriers, would have to grant
a reasonable advance in rates. This
advance would be reflected about
ErSIr1 b, sS.3s ) -
in the finished product. Then the
consumer; in the shape of labor, would
complain that the purchasing power
of tho dollar having been further re-
duced, he can not longer live on the
wages he is receiving. Enter in due
time more strikes: then an increase
IN raw material because of the higher
cost Of labor. and, 10, we are back
again TO the railroads. These would
he forced to return to the Interstate
/! Commerce commission because not
only would their labor have justly de-
manded more, but the vicious circle
or mounting triangle that r+arted
with the increase of rates so recent
granted, would have come to plague
| 1t in the shape of higher fuel. higher
steel higher everything. and the
showing they would make OF need for
more revenue would he just as con-
| vincing as the first one. Our great
| dailies and financial weeklies would
| then denounce the Interstate Com
merce commission as merrily as ever
for pausing while in the interest OF
| humanity II asked the time honored
| question:; Where do we go from
/ here
Europe Getting Busy.
! Now, as bankers, you know where
we would be going. If this course is
! TO be pursued, it is inevitable that
/ we shall get the cost of production
so high. no matter how much inven-
! ton may increase our productivity per
naan~-Esurope is preparing to install
| labor saving machinery on a scale
never dreamed of before this war
that we would be stopped from com
peting beyond our shores once our
| allies, not to speak Of our present
enemies, are on their feet again.
| Great britain saw the danger OF
this sort of thing, not only when she
took over her railroads for the period
/ of the war, hut when she went into
| business on large scale, buying raw
| materials from abroad at war prices
| selling them at cost or less to manu-
facturers, and taking care OF the de.
felt INCUR ed out of the national treas.
ury. For such foresight her states.
men were PRAISED ny the very critics
| that are now danouncing this govern,
ment for holding the railroads and re-
framing from increasing rates. Bear
| ing in mind that the three principal
| elements in the cost of the finished
| product are the price of the raw ma.
terial. the price of labor. and the
| price Of transportation. aren't VIC. by
! retaining control of the roads and re-
| framing from increasing freight rates
| pegging dnwn enc corner II the Wei.
| Gus triangle"
isn't 1t far sounder economies tc
take care of any defitit fror. carrier
| operations out # the national treas
! ury. whose Golfers are rep!enished
| through taxes levied where they can
best be Borne. than - make higher
and higher IMAM ever the fign cost
| OF living Moreover. 'sn's /, our
! sacred duty TO stricken Europe TO do
all in our power to keep down the
| cost of everything we are to sell to
her in these days OF depleted store
houses. inflated values and woefully
crippled credit?
Willard Is Quoted.
"Atr Willard is further quoted as
having stated at Boston few weeks