The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-06-23

Willis II. Booth, at the convention
of the National Association of Credit
Men: The government must awaken
TO the fact that we cannot continue
10 do peace business on war-cost
basis. Common sense. but rigid,
economy is imperatively needed.
Business men today are learning the
meaning of Benjamin Franklin's sage
observation. Gain may be temper.
airy and uncertain. but expense is
constant and certain" And were he
alive now he might amend his cpl
gram by adding thanks 10 govern
ment extravaganza and sociological
approximations" In fact, we are
discovering that the economic cost of
peace is almost as heavy burden
as the economic loss of war.
Consequently, it would have been
far more sensible and serviceable If
the government had stabilized ex-
penditures. under proper budget,
instead of vainly endeavoring to sta!
bilize the prices of commodities, for
every unjustified and reckless expen-
lditure by the government not only
adds to the already heavy burdens of
the taxpayer but also increases the
cost of living and exacts monetary
their earnings for a so-called ''pater-
nalistic' government to squander.
The fact that seven months after
the signing of the armistice the war
expenses OF the United States have
continued without abatement de-
mands prompt and effective measures
of economy. In April the govern
ment's expenditures were approx
mately 1929 600. 600. as contrasted
with 81 ,190 zoo. 900 in February. They
were s1,0S6 100000 in May.
The Railroad Deficit.
There was certainly no Justification
for the railroad administration grant
ing blanket increases of wages to its
employees aggregating 100000 900
and l advocate giving TO labor all
that it is justly entitled to-when
the deficit of the railroads under gov
eminent control was increasing daily
at an alarming rate, and when the
roads were unable to pay their ma
terial bills. despite very substantial
rate increases. That certain classes
of railroad employees were entitled to
larger wages was undeniably true.
but that the government proceeded
basis in making general wage
awards without due regard for spe-
cific cases is equally true.
And l respectfully invite your con-
sideration OF the estimate recently
submitted to the house of represen-
tatiyes by the director general Of
railroads, which set forth that the
government will require 100000
600 to meet the railroad deficit for
1918 and to finance the requirements
of the roads for 1919. In presenting
this estimate the director general
called attention to the fact that the
operating deficit of the railroads for
1913 amounted TO more than $780,
$50, 900. and that, I quote him own
words, "sas6, 100000 represents the
aggregate loss to the government up
to April 80, 1919" What the less
may total before the roads are re-
turned to their owners by the end
of the current year. as President Will
SON has announced will be done, is
matter of speculation which does
not appeal pleasantly to the imagi-
nation of the already heavily bur.
dened taxpayers.
Some indication of the prospect,
however, was given by the April
deficit of s58,0O0,0 900. and by the
director general in another state
ment, in which he said: There has
not been included in the months of
January, February, and March (of
this year, the sum of approximately
Sc, 900 900 per month for back pay on
account of wage orders recently
issued. These amounts of back pay
will appear in the next few months,
and, of course, will result in dimin-
ishing operating income for those
months"
In addition, the director general
has stated: zone other item needs to
be mentioned. Under the contract
made between the government and
the American Railway Express com
pany in the summer Of 1918, the gov
eminent undertook to assume any
operating deficit which the express
company might incur during govern
ment control. Such operating deficit
for the first year will not be ascer-
. tainable OF technically chargeable
against the railroad administration
until the end of twelve months from
the effective date of the contract
H. e., July /, 1918. The amount of
this deficit, however. should be borne
In mind For the six months ending
December /, 1918. such deficit was
approximately s9,5Oo.o00. and for the
months of January and February,
1919 including allowance for back
pay to be hereafter paid on account
of those months) 1t is roughly estt-
mated that such deficit will be ap-
iproximately s5,G40,00o, MAILING The
operating deficit now in sight for the
first eight months of the year, which
will end June 80, 1919, approximately
s14,540,000."
The telegraph and telephone sys-
TENS, also, have not been se'f,sus-