The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-12
BANKER CALLS RAIL
PROPAGANDA BUNK
Francis H. Sisson Points Out
Faults and Losses Under
Federal Operation.
OUTLINES NEW PROBLEMS
Says Masses Must Buy Heav.
lily II Victory Loan Is to
Be Success.

the Guaranty Trust Company. in a
fore the Industrial conference held by
the New York Publishers Association in
conjunction with the National Prosperity
Campaign. branded as buncombe the
FEDERAL Governments arguments for
Government control of operation Of the
railroads. Mr.. Sisson declared that the
post war problem presented in tho oper-
alton of the railroads was one OF the
most vital before American business
men. Referring directly to the propa-
ganda for Government control Of opera
ton OF the roads and departing for the
moment from his prepared speech Mr..
Slsson said
Il brand 1t as political buncombe for
tho reason that in the period OF a year
end a quarter wages have been increased
$1,000. 000, 900. which must be offset by
taxation and which was not economl-
cally necessary. Al the same time there
has been at IS per cent increase in
freight rates and SO per cent. Increase
in passenger rates and the service Is
kcttiHs WoiSo oNofy Cdl' nat - Cou-
vincing argumsAat against Government
ownership"
Despite the heavy financial burdens
imposed by the war America IL con-
frontsG with an embarrassment of riches
At least SO far as Indebtedness to
this country is concerned. And thought
full business man are beginning to real
ize that our position as the greatest
creditor nation OF the world has its
serious disadvantages and responsible
ties.
Bound to Other Nations.
I'VE gradually are compromising.
also. that whether or not there shall
be a formal organization of a League
OF Nations, we are bound to other peo-
pies by innumerable and far stronger
ties than those which any international
covenant could impose.
There has. indeed, been no more con-
vlncing proof OF this fact than that re-
Gently provided by the Withdrawing OF
Governmental support from sterling and
franc exchange The larger significance
OF what was seemingly only a financial
operation is daily becoming more APP
parent 1t marks in a dramatic fash
basis. not alone in financing. but also
in practically every economic phase OF
international relations.
1t Is one OF the most immediate
vital post war financial problems. and
concerns the importer and manufacturer
of domestically consumed products as
we'll as the exporter and manufacturer
OF goods which are sent abroad-for 1t
creates an invisible tariff against Amer
lean goods in England and France.
which sooner or later. but inevitably.
will affect our domestic trade. We are
awakening to a realization that the pros
perity of the country to-day depends
upon increased production and. conse-
quently, that IL behooves us to expand
our foreign markets instead OF letting
them contract.
"If We are to increase our production,
which, as have pointed out. is peces-
sary to the maintenance of our pros
perty. We cannot take goods in full ex-
change for our products. Besides We
are nearer than any other people to
economic independence, and do not need
imports in anything like the quantities
necessary to settle the trade balance
in our favor.
Payment in gold Is as impossible as
it Is undesirable The value of the ex-
cess of our imports over our exports in
January alone exceeded the total value
of gold produced in all countries ex-
cept the United States during 1918. In
addition, we now hold more than one
third of the worlds reserve of gold coin
and bullion. having added about $780,
100000 to our store of the precious
metal in the last four years. We could
not with safety drain ether nations Of
their remaining low stock of gold II
we would, for as we are already their
creditors to the extent of about S12,-
o0,00o,0o0 II is imperative for US to
help them maintain their currency on
as sound a foundation as is practicable
under existing circumstances.
THE granting of credits to purchasers
of our goods will very materially aid
in solving the immediate problem of
financing foreign trade, but at best It
can be only temporary expedent.
Credit, as you are well aware. is merely
the giving of present value in exchange
for a promise to pay. 1t serves to
postpone payment of indebtedness to a
more propitious time for the buyer or
borrower. but 1t does not settle the
account.
Proposes Labor Remedies.
DR.. Charles P. Steinmetz. consulting
engineer of the General Electric Com
pany, spoke on Industrial Coopera-
ton" and analysed the four chief
methods by which that is being at
tempted. He found that the initiative
in the matter OF cooperation must come
from the side of capital. but that prac-
problem Is approached more seriously
than employers have so far done. The
four chief methods by which coopera-
tion was being fostered, he said. were
through welfare work among employees,
wage bonuses, the shop committee sys-
tenn and finally by wage or labor dlvi-
dends.
The first method DIR. Steinmetz dis
missed as being offensive and insulting
to the American workman and only
a success for the employers whom prac-
tised as a matter OF corporate interest
and not for welfare.
welfare" said DIR. Stelnmetz us
the most damnable term that could be
employed I'm that connection"
Other speakers were John Calder. a
consulting engineer OF New York. who
has been in charge Of important manu-
featuring work for the Governpaent dur
ing the war; G. A. O'Reilly. foreign
trade expert OF the Irving National
Bank: the Rev. DIR, Charles A. Eaton.
who resigned. a Fifth avenue passionate
10 devote himself to problems Of in
dustriaI reconstruction. and Prof. Irving
Fisher OF Yale, who read an address al
ready published on ''Stabilizing the Dol