New-York tribune., 1921-11-01
''Rigid Government Econ
omy'' Urged at New Or
leans Convention Of 500
of Associations Delegates.
Discuss Railroad Affairs
Coordination of Labor Board
and Interstate Commerce
Commission is Suggested
By Mcrrile Stanley Rukeyser

Association OF America plunged to-day
into the subjects of railroading. taxa
ton and other economic matters con-
cerned with the safety of securities.
As soon as Roy G. osgood, Chicago
banker and president of the associa-
ton. called the opening session to or
der the delegates wrested themselves
from the influence of the quaint atmo-
sphere Of this city and began to talk
snd think of the problems and riddles
of work day America.
Even Governor John NJ. Parker of
Louisiana, who described himself as a
lifelong friend of Theodore Roosevelt,
seized the occasion to interest bankers
in his state as 4 business proposition.
He listed the assets of the common
wealth. Among them he named the
lack of radicalism that is bred, he said,
by immigrant labor.
On taxation. which is of immediate
public interest because the Senate and
the House of Representatives will soon
meet in conference to agree upon
new revenue law, the bankers here
found themselves in substantial agree
ment. BY show of hands every dele
gate present at the afternoon session
revealed his advocacy of sales or
turnover tax. The convention was in
formed, moreover, that in the last few
days there has been a renaissance of
interest in the sales tax at Washing
ton, and that believers in the impost
on consumption no longer consider
their battle as hopeless as they had
come to regard it.
Federal Economy Urged
For ha committee ~
the association Julian H. Harris, of the
firm Of Harris, Small G. Lawson, De-
troit bankers, declared that the only
panacea for relieving the present taxa
tion muddle was rigid governmental
economy. He added that, under exist
ing laws, in which 10 per cent of the
voters pay the bulk of the taxes, 80 per
cent bring pressure on Congress for
expenditures rather than for thrift.
The sales tax, he argued, would spread
the burden of taxation and would give
a wider number of persons direct
interest in having the Federal govern
ment strip its expenditures to the bone
to tighten the tax load. Mr.. Harriss
idea is to tax individuals rather than
wealth.
In open discussion of the sales tax
on the floor speakers pointed out that
il was intended to give relief to the
tosCo VI SASoeCSe injustice uuQSE the
existing type of tax law, and that it
involved the elimination of graduated
income taxes and surtaxes. The asso-
citation was hesitant about committing
itself on the sales tax, because it is
assumed that it would not apply to
security sales and it was realized that
this exemption, though economically
justifiable, might lead to criticism OF
motives.
In dealing with the railroad tangle
the bankers revealed an equal willing
ness to lay aside kid gloves and ex-
press themselves brusquely.
Pierpont V. Davis, vice president of
the National City Company of New
York, in reporting as chairman of the
Committee on Railroad Securities,
urged that the Railroad Labor Board
be co-ordinated with the Interstate
Commerce Commission, and the only
criticism of the suggestion made on
the floor was that it was too mild
Board Called "Monstrosity"
The delegates responded more en-
Enthusiastically to the statement of F. :. .
Lisman, q member of the committee, to
the effect that "tha present Labor
Board is a monstrosity." In Mr. Lis
mans absence his paper was read by
Mitchell May, an associate.
Mr.. Llsman proposed that a bureau Of
tie Interstate Commerce Commis sson be
created to supervise the relations be-
tween management and men in railroad
ing. The New York banker asked that
the Interstate Commerce Commission
prescribe uniform accounting methods
Tor the labor unions, and that the books
OF the labor organizations be inspected
regularly by accountants designated by
the public, and that certified accounts
DC made public. He also asked that the
commission supervise the election cf
railroad union officials by secret bal
lot.
The printed report of the railroad
securities committee, in dealing with
the Railroad Labor Board, said:
THE division of authority between
the Labor Board and the 1. C. c.. con-
stltutes the fundamental weakness in
the transportation act. An amendment
to the act to coordinate the work of
the Labor Board with that of the Com
merce Commission is recommended"
AIR. Davis urged that bureau be
established under the commission to
deal with labor questions.
Regarding wages, the committee re-
marked:
"The labor costs on the railways are
beyond the ability of the industry to
meet and we believe the Labor Board
erred IN not abrogatlng Internationally
the so-called national agreements.
"The persistence OF the railroad
problem is due to the acute business
depression and the ensuing maladjust-
ment of wages and prices, and is no
reflection on the value and Importance
OF the transportation act, which we
regard as a most constructive legisla-
tive achievement"
In spite Of the general approval
among bankers and railroad executives
OF the principles behind the transpor-
tation act, John E.. Oldham, Boston
banker, is of the opinion that the act
Will remain unworkable until the rail-
roads are adapted to the purposes of
.he act through widespread consolida-
tlons. Mr.. Oldham presented his own
plan for mergers.
HIS plan would create thirteen uni
Iea systems instead of nineteen, as the
Interstate Commerce Commission has
tentatively recommended.
-, Favors Joint Control
Inc Boston banker would provide
-!oiht control for the New England sys-
.ems, saying, Because of their loca-
aon, the New England roads, neither
.uulViduaily nor as whole, can COM
RTste with any system in the district.
Inc only way the New England roads
ss .sh serve competitive purpose is
through their relationship to and as
saIts of outside systems which COM
pete Tor New England business"
HuoIher Doint of difference is the