The sun., 1919-05-01
Believes Adequate Revenues
and Proper Regulation
VIII Remedy Ills.
HURLEY LAUDS SHIPPING
Paul Warburg Urges National
Budget at Chamber Of Com
merce Convention.

Coliseum n general session Of the Cham |
which Is holding It's seventh annual
meeting here. Taking for his subject
what Railroad Rehabilitation Plan
Should the Country Adopt7" Mr.. Rea
said in part:
I'm responding to your invitation to
give my views on the railroad problem.
I find It rather difficult to present any
new constructive features or arguments,
since every phase OF the question has
been 80 fully and publicly discussed We
have. however, reached the time when
some definite action must be taken, and
when, IL the best results are to be Sc
cured the subject must be treated with
absolute candor. impugning the intelli-
gence or judgment Of no one. but rec
osnixing the mistakes OF the past
with a mass of personal testimony,
experience and information before us,
and with the further results Of sixteen
months operation OF the railroads under
Federal control, we ought to be able
to make some pertinent suggestions to
aid Congress in evolving its own plan
Of dealing with this important question.
Politics and business have not mixed
20 far in any country. and ever, In the
countries under autocratic instltut ons
Government guarantees or direct Gov
eminent ownership have not brought
initiative low rates or anything to COM
mend them TO us here. That is why the
railway executives held fast to the essen
tails renniedta continue nnh1iN IL
tation and make II effective.
Gives Seven Immediate Remedies.
II conclude that the immediate remedy
for the railroad situation is:
II. Adequate revenues on which
railroad credit may be strengthened
and new capital attracted;
20. Concentrated. responsible ma
tional regulation, separated as be-
tween Its executive and administra-
tive functions and its judicial func-
lions. and founded on equitable legis-
lation. that will require our regua-
tors to insure strong transportation
systems. and not weak railroads;
80 All railroads under public reg
ulation to be author lied to lease, ac-
quire or consolidate with any other
railroad corporations. and reasonable
cooperation permitted in facilities.
equipment and train services:
-. Regulation of security issues;
"a Regulation Of wages, with the
employee, the employer and the con-
sumner represented;
IS. Funding Of the capital debts in
Cured during Government control
~. Rehabilitation Of revenues of
the existing railroads should begin
Immediately while they are under
Government control
IT have faith In the ability and In
tsgrity of our business men, hnanciers
and wage earners: but the country
wants protection against those import
cd costly, so-called socializ!ng expert
ments that breed uncertainty and tim
idity, that paralyze private initiative.
and endanger liberty in our personal.
business and political life. Convinced
that the American people. when they
know the real situation. will deal fairly
with the railroads. let US hold fast to
the well tried experience OF Individual
initiative and management or the rail-
road lines owned, not by the Govern
ment, but by the people and their in
stitutons, subject to equitable, respon-
sible regulation"
warburg Urges Budget.
Paul NJ. warburg delivered an address
on Government lcdilS hNd'ioi'
in which he urged the establishment of
a national budget. He said in part:
disastrous results follow from excess
sive Government loans as well az from ex-
cessive taxation. The problem and the art
are then by applying both methods and
by coordinating them to reduce to
minimum the evil consequences OF the
excessive use OF either. and to distrib-
ute unavoidable h rdships in as equitable
Not tao 1F i5 nna
not of theory, but one OF experiment and
practice.
1.-THE more rapidly our national debt
10 genuinely paid for by saving, the
sooner shall we be able to get away
from the necessity OF drastic taxation.
When once our Government loans are
definitely absorbed the question OF taxa
ton for the purpose Of amortization may
be considered from very different point
Of view. Our definite programme OF
amortization. I believe can be dealt with
intelligently only when our postwar pic
ture Is more clearly before us with re-
spect to distribution. prices, including
money and wages and general world
conditions.
II believe that I am voIcing the senti-
rnent OF the majority OF all thinking
Americans when l say that in this re-
spect the hour calls for thorough reform.
A more careful ana SclentinC study OF
on national receipts and expenditures
Is required than has been given here
tofore. Congress must relegate TO the
past its haphaZard methods Of appro-
priating expenditures through number
less committees. all acting independently
from one another and without having
any comprehensive picture OF what are
the available revenues 1t Is high time
that a national budget system be
adopted, such rs enjoyed by every other
great country. and that before granting
the appropriations called for by de-
partments. bolrds or committees Il
thorough investigation and report be
made as to what revenues may safely
be counted upon.
Receipts and expenditures should be
brought into harmony and a complete
budget should be examined and pre-
pared by non-partsan experts. who
would make their report to the Presi'
dent before the latter sends the budget
to Cons ress for further action"
Edward ". Hurley, chr irnan OF the
United States Shipping Board, in his adj
dress expressed conviction that the
American shipbuilding industry had
reached the stage where II can com
pete with foreign countries in cost and
that American ships can be operated
as cheaply as foreign bottoms. He said
these two questions. the most vital tC
deyelopment OF the merchant marine
have to a large extent been solved. and
quoted statistics to substantiate his
statements.
RedneId Sees Competition End.
Ar,arican business in the future vii