New-York tribune., 1921-06-02
Rails Are Kew
To Prosperity.
Says Coolidge
Plan for Sterilization OF
Roads Expected Soon 10
Solve Problems of Trans
portation. He Declares
Price Reduction Urged
National Ownership Re-
iected as Additional Bur-
den to the Taxpayers
BY Carter Field

WASHINGTON June LIN a care
s,ylv dictated interview Vice-President
calvin Coolidge to-day pointed out the
,,au,endous importance OF the railroad
situation in connection with the coun-
+rvss prosperity. He left no speculation
necessary 10 determine why the Cabi-
ret hss given such earnest attention
to this problem, nor why the President
sss been holding so many conferences
on the subject. concluding to-day with
ueTsonal visit TO the. Interstate Com
merce Commi ssion.
The statement by Mr.. Coolidge is Of
especial interest. AS il is known that
Il vas the Vice President who first
brought the raiirpad situation TO the
s.tentiou Of the President and the Cab
met Since then it has been regard
cd bv the Admir- Illustration as an obstacle
to the returu o9 prosperity second only,
and that perioI has passed, to the Ger
man reparatiohs settlement.
Readiustynent Called Essential
Conditions must be adjusted" Mr.
Coolidge declared, so that the rail-
roads can make living and be able
to transfsct public business at s rea-
nroducs e cannot be moved because the
cost Of nsportation is so high. The
Railroad Labor Board and the Inter
state Commerce Commission are giving
thetr best thoughts 70 the solution O.
this problem and it IS expected that
: plan Of sterilization will soon be
@The railroad problem is the key to
+he whole industrial situation, since
e represents such tremendous in
yestment and involves the employment
Of so many men. Naturally this brings
10 the question of public ownership
At present this does not appear to offer
any solution
No one can say where the tire
r.endous sum OF money necessary for
the purchase CT the railroads, the
eauivalent Of our war debt, could be
secure5 Certainly it would not result
IN anv less charge for capital than is
row paid. The saving in taxes would
be merelg a shifting OF the burden,
and it does not appear from experience
that other operating expenses would
be less So do not see that govern
ment ownership offers an easy avenue
Of escape.
~Thc nation has not liked, and would
not Ike, being taxed for the direct
maintenance of transportation Some
solution must be found in the reduction
Of expenses. for II is obvious that
thare can be no increase IN rates. In
tact. the demand IS all for decrease.
Mutual Concessions Urged
"The relations between labor and
capital are adjusting themselves by
mutual concessions. A highly salts
tactory and reasonable. attitude is gem
orally being evidenced on the part Of
employer and employee. Each recog~
nainta ned in industry, that the time
tor war wages and war profits has
passed
"This IS regretted more. on the part
Of the employer than on The part OF
ihe employees. since business vas
never so prosperous and profits So
large as during the time of greatly
sdyancing wages. There was every in
eentive on the part of ths employer to
20 on. In fact, they did go on far into
ls20 Increasing wages III industry and
transportation.
at IS perfectly apparent that the
Employer would be delighted to con-
TIME this operation, but about year
age manufacturers found that they
could not market their products. Can
esllatiors began and there has only
been hand to mouth markes since.
a little too much emphasis has been
pat OIL the rate Of wages. What the
employer wants is the ability TO mar
tet his products. The employer does
not care now hign wages are SO long
aa he can proftabr market his output.
Ihe employee is more interested in
what his wages will purchase for HIM
lnan he is in the number of dollars
taey amount to, which are frequently
Two very different tnings.
lhe rate of wages IS only one of
the conditions OF economic welfare.
ANY attempt on the part of employer
or employee to make it the sole con-
Triton Will only result in disaster The
condition which exists is rot subject
TO the control of either employer or
employee. 1t is brought about by the
attitude Of the public and by the public
alone
In the race for great profits and
large increases Of wages no one stopped
to think of what the public attitude
would be. 1t finally developed that the
public, which alone can control and
winch had not been considered, re-
lased to trade further on the existing
oasls. There is nothing to do but to
recognize that as the outstanding fact
and everybody govern themselves ac-
eordingly.
The public makes tae market. There
Is little that can be done except to
cooperate IN meeting these matters
For their own well-being and their own
person. advantage both employer and
employee must make such readjust-
ment as will enable them to resstab-
liSa q mutual exchange of products
FoF their mutual benefit.
There is every indication to-day
nat the industrial situation in the
COUNTRY ls improving. We must solve
ali tnese problems, and we will They
are being approached by the govern.
MehS in spirit Of optimism and with
determinations"