The Washington herald., 1920-02-29

equipment during the war. =
I would like, however. to recall
another partial remedy for this sit
uation advanced many times by
our engineers. That Is, the possi-
BILE help from improving of the
waterways from the Great Lakes
to the Atlantic seaboard by way
of the st. Lawrence River so as to
pass full sea-going cargoes. II has
already been determined that the
project is entirely feasible and at
moderate cost. The
result would be to place every
port on the Great Lakes on the
seas.
Fifteen states Affected.
Fifteen States contiguous to the
Lakes could find an outlet for a
portion Of their annual surplus
quickly and more cheaply TO the
overseas markets. The result would
bo to take OFF a considerable portion
of the packload on the trunk line
railways during the great crop
movement season. 1t would con-
tribute materially to reduce this
effectual structure in the free flow
OF the farmers commodities to the
consumers. OF far greater import
ance, however. Is the fact that the
costs of transportation from the
Lake ports 10 Europe would be
greatly diminished and this dimin-
ished cost would go directly into
the farmers pockets. 1t is my be-
lief that there is a saving of or 6
cents a bushel in the transportation
of grain, although a comparatively
small proportion of our total grain
production flows to Europe.
Il am convinced that the economic
lift on this minor proportion would
raise the price of the whole grain
production by the amount of saving
in transportation. The price of ex-
port grain in Chicago in normal
times is the Liverpool price, less
transportation and other charges,
and IL We decrease the transport
In a free market the farmer should
get the difference. Not only should
there be great benefits to the agri-
cultural population, but it should
be- real benefit to our railways
in getting them a better average
load without the cost OF maintain
ing the surplus equipment and per-
sonnel necessary to manage the
peakload during the fall months. 1t
has been computed that the capital
saving in rolling stock alone would
pay for the entire cost of this
waterway improvement over a COM
paratively few years.
Mercantile Fleets Use.
The matter also becomes of ma
tonal Importance in finding en-
ployment for the great national
mercantile fleet that we have Gre
ated. In other words, instead OF
eXpending vast sums on the deveI-
opment of our T. acks. rolling stocks,
terminals, of the trunk line rail-
ways, that, We should effectually
substitute the other arm of trans
portation which We have already
built, that is, our fleet.
Another factor in transportation
bearing upon the problem of mar
keting, is the control of food man
ufacturing and marketing concerns
OF refrigeration and other special
types of cars. This special con-
troll has grown up largely because,
owing to seasonal fluctuations over
different roads, no one railway
wished to provide sufficient special
cars and service for general use
by all manufacturers. The result
has been to build up the domina-
ton of certain concerns and stifle
free competition. Much the same
results have been attained by spe-
cial groups in control of stockyards
and, in some cases, of elevators
Where such formal or informal
monopolies grow up, they are pub
lie utilities. and if the farmer is
to have a free market they must
be replaced by constructive public
service.
Believes I'm Regulations.
The second point of attack in re-
duction of the cost of marketing
farm produce lies in the insistent
removal of every impediment to free
trade in produce. We have some
commodities where manufacture
has grown into such units that these
units exert such an influence thai
they consciously or unconsciously
effect the price levels of the farm
er's produce. Again, / am not a be-
lever in Naturalization as the solu-
tion. but l am a believer in regu-
lation. The experience which I
gained in the Food Administration
on these problems during the war
led TO the feeling that 1 have ex-
pressed at that time, that such busI-
ness should be confined to one line
of activity just as we have had to
confine our railways, banks and in
surance companies. Even this may
not prove to pe sufficient protection
to free market by free transporta-
ton.
IF we have to go to regulation,
however. ii is my belief that il
should be confined to overswollen
units. and that the point of depar-
ture should not be the amount OF
capital employed. but the proportion
of a given commodity that is con-
trolled. The ratos must depend upon
the commodities in point. When
such a concern obtains dimensions
that 1t can influence prices or domi-
nate public affairs, either with de-
liberation or innocence. then it must
be placed under regulations and re-
straint.
Il think our people have long since
realized the advantage of large
business operation in improving
and cheapening the cost of manu-
tacture and distribution, but when
these operations'have become so en-
larged that they are able to domi-
nate the community, 1t becomes of
sociaf necessity that they shall be
made responsible to the community.
Suggests a "Test.,
The test that 1 would apply
therefore, is not the size of the in
stftution or the volume of capital
that it employs, but the proportion
of the commodity that it controls In
its operations. 1t is my belief that
If this were made the datum point
for regulation, and If regulation
were made of a rigorous order. this