Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-08-07
SOLONS FEAR
SOVIET GERM
IN RAIL PLAN
Capital Uneasy Over De-
mand Of Workers for
Matchmaking Roads.
BY DAVID LAWRENCE,
Copyright, 1919, by The Argus.)

L 3 81
Washington, D. c., Aug. 7.-While
It would be wrong to give the i'm
preston of panic or chaos in the
national capital, nevertheless there
is no Understanding the gravity
and concern with which the more
thoughtful members of congress as
veil as President Wilson view the
economic crisis of the nation The
implications of the demand made
by the railroad brotherhoods that
they be permitted to take over the
railroads in partnership with the
government has caused many leg
islator and official to ask whether
the oft-predicted agitation for a
soviet management of industry has
not reared it's head in America at
last.
Fear for Own Welfare.
To date nothing concrete has
been put forth by the Democratic
administration or Republican con-
gress to meet the situation, but the
first flush impression that petty
politics has something to do with
the projection of the problem at
this time is rapidly disappearing
and in its place is coming a sober
second thought that both Republi-
can and Democratic parties must
work together for their own COM
mon interest or out of the present
situation may grow a radical third
party recruited from the ranks of
labor as well as liberals and rad
feals who think the high cost of
living is a sequel to monopOlistic
control and excessive profits.
But it is precisely because the
government in all its branches has
been aroused and the president has
abandoned for the moment the
League of Nations conferences that
some of the most alert minded Of
6eials here believe the crisis will
grsdually solve itself To confirm
.tSffs line of thought, they point
significantly to the drop in stocks
on Mondays market and the gen
eraI decline, especially in commod-
ity stocks.
Specific Remedy Expected.
This is not saying that specific
remedy will not be proposed. Def
mite measures will be laid before
congress by the president and it
would not be surprising to see e
/
ers granted during the war where
by the prices of food were regulat-
ed be continued. And the depart
ment of justice, too, will proceed
against those profiteers against
whom convincing evidence can be
collected though the difficulty is to
accomplish such a task in the
present state OF American bUsi-
ness, interviewer as it is with per-
mission granted under war time
conditions and abuses practiced in
reconstruction days which are
technically war days as the peace
treaty has not yet been ratified.
But the belief that much more
immediate good will come out OF
the simple agitation for lower
prices accompanied by the threat
,of legislative action is beginning
% be more pronounced daily. The
drop in some prices already OBJ
served since the mere announce
ment was made that the president
had decided to take a hand in the
situation has not escaped atten-
ton here and while there are many
hopeful officials who believe the
government can provide some def
mite remedies there is also a group
which believes that the business Of
reducing the cost of living is too
complicated to be managed by leg
islative act OF executive fiat and
that an appeal to the conscience
as we'll as the good business sense
of producers and consumers will
have a soothing effect on the sit
uation before long.
Europe Demand 0TerwOrked.
Two factors are advanced by Of
ficiaIs who follow the latter trend
of thought. First, they declare
European demands have been
grossly exaggerated. Second, men
like Frank Vanderlip, Henry P.
Davidson and others have come
back with plans to finance Europe
which has given the American ex-
plorer the impression that unlimit-
ed credits are going to be available
to purchase American goods.
With respect to the first cOnsid-
Grafton, it is contended that many
American manufacturers have nat
uralIy been holding large quanti-
lies of raw materials before fabri- |
eating them into finished products
because they have expected even
higher prices. Consequently pro-
duction has been curtailed and |
prices have risen. Speculation in !
cotton, food products, wheat and
other basic commodities involved in |
the cost of living has continued |
since armistice day in lively fash
ion.
Truth VIII Come Out.
But just as soon as the true na-
ture of the European demand is
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