The New York herald., 1920-01-06
c. NJ. SCHWAb SAYS
SHIPPING LAWS
must Be AMENDED
Steel Manufacturer and Sena-
tor Edge Speak at Rubber
Association Dinner.

Congress must amend the shipping laws
to enable private capital to make profit
or there will never be a real American
merchant marine. Charles NJ. Schwab de-
clared in a speech at dinner of the Rub
Der Association at the Waldorf-Astoria
last night Although Mr.. Schwab did not
Say SO directly, he intimated that a SUBJ
sidy for American ships might be desit-
able. He declared that fair treatme of
labor by employers was necessary for sue
cessful industrial development and as
serted that the people Of the Uniteo
States were passing through a period Of
extravaga CANT expenditure which must be
curbed before business could be re-estab-
lished on firm basis
I'VE have built great merchant ma
rine,'' said Mr.. Schwab. 1T cost us three
us under normal conditions. That should
be charged to the expense Of the war.
I'VE may dot the oceans of the worlS
with merchant marine. but il won't
be real merchant marine unless il has
the business men OF the country behind
it. Congress sllies at the word Subsidy,
but the United States viii never have
merchant marine worthy OF the nans
unless Legislation is passed TO enable
private capital and private enterprise to
make a profit
Chief Industrial Problem.
Mr.. Schwab said that most of the cost
of every manufa ctured article was 70"
labor and that the principal industrial
problem Was the management disposition
and encouragement Of labor. Treat iabo,
well" he said. Make your wolkmen
partners; allow them TO have represen-
tatives in the conduct Of the business and
do not permit agjtators to tell you what
to do. Then you viii establish business
upon solid basis
Referring to the period of extray agar'e
through which he said this country "
passing Mr.. SchWab said that the remedy
was to live more simply. Il believe, p"
said, that We will only get back to the
true basis OF economy through some great
crisis which will make us realize what
the true basis Of economy Is 3"
Senator Walter E.. Edge. Of New Jersey.
who discussed the industrial situation,
stated that he believed that the function
OF the federal government wae not to run
private business but to cooperate with
and help business in every way. He said
that the government has shown total
suggested that it should not attempt to
run private business until it had learned
to run its own. He declared that govern
ment management Of railroads had been p
failure financially and stated that the ul-
innate result of less than two years OF
government operation would be defjcit
of billions Of dollars.
Senator Edge said that he was opposed
to further extension OF the government
credit to foreign nations, although he saio
he believed it to be the governments duty
to prepare the vehicle with which Amer
lea can, do business abroad. He gave n
summary Of the Edge bill, which Presi-
dent Wilson signed on Christmas Day and
which Is designed to expand the American
banking system to international propor-
tons by amending the Federal Reserve
act by providing for the acceptance OF
corporations organized under the federal
charter OF collateral satisfactory to the
Federal Reserve Board 10 enable impov-
erished foreign customers to purchase
American goods.
Debentures against this issue, he said.
are to be sold TO the American public
under this scheme. and all the actual cash
kept in this country "It is an 'Americsl
first measure" he said. 1T is not mere
Iy n financial measure. 1t is the embodi-
ment Of a plan designed to maintain tne
war pace OF American industry, and even
to increase IL by enabling penniless for
eign customers to buy for cash American
goods they need to re-establish their own
industries. It helps Europe TO find Its
financial and industrial feet and 70 heiG
itself, yet with profit to America rather
than the imposition of additional burdens
upon our people through the ADVANCING
OF government ca shor credit