Connecticut western news., 1922-11-02
DEFEAT OF REPUBLICANS
 WOULD HURT BUSINESS
Says Roger W. Babson, in An Interview on Effects
 of Election
SEES CHANGES AHEAD
Contests in Future Will Probably Be Between Radiealism and
 Conservatism

what effect the Congressional elec- tions will have upon business, brought from him the following statement:
 ''I see enc interesting issue in the Congressional elections, namely, the number of new radical members sent to Congress. Those of us in the East do not understand the view point of our western people, hence few are awake to the great change which is coming about in our politi- cal line up. Turnout the present generation, the contest has been be- tween the Republicans and Demo- crats. The days of this alignment, However, are numbered. Both of the old parties have suffered exten- sive changes. At least by 1928, and perhaps in 1924, a real contest may be waged between the so-called Con- servatives on the one side, and the so-called Radicals on the other,
 By Radical I do not refer to the I. W. WIS or any group com monly known as Bolshevists. The e\ new Radical party will be more like the Bull Moose party of 1916. The Conservative group will represent a combination of both Republicans and Democrats who are opposed to the extreme measures of the other group The elections Tuesday will serve to show to what extent this new alignment is taking shape.
 "As to the immediate effects of the elections they should not be im- portant unless the Republican ma jority in Congress should be over thrown. 1 do not, however, expect such an event.
 "After alp, continued Mr. Babson, "most of us business men worry a great deal more over politics than we should. Everybody today is looking to Washington for a pres ent. Nine tenths of all the impor- tant bills before Congress this year were designed to help some one group-usually at the expense of the others. Farmer and labor de- mands, railroad financing, state roads, soldiers bonus and the tariff 1 fight are a few examples. This stampede to the Government for assistance is one of the pestilences which always follow a war. The l same mania developed after the Civ il War. From 1865 to 1870 bank CTS and business men spent more energy lobbying in Congress than developing their own business. The Government must mix into business in war time; it is hard to get out of it after the war is over. Eventually people will realize that you can't take out of the Government more than you put into it. For the pres ent, however, the situation presents serious danger-not to those who fail to get assistance, but to those who succeed!
 "Any growth founded upon so fickle a basis as government favor must be precarious. The industries and the individual companies which are really good investments will be able to fight their way thru without having to depend upon exhorbitant tariffs or government capital They may have hard sledding for while, but when the depression is over they will control the field. While others are building up influence at Wash ington, they are building organiza- tions at home. At the time it may seem as if the concerns which get the most protection or assistance from Washington are the winners, but their advantage is only temper ary. Instead of trying to pick the companies which get the most as- sistance from the Government, in- vestors should look for the compa- nies which can get along with the least
 "This factor marks a sharp dis tinction between the railroads today. Under the Esch- -Cummins law the roads have the privilege of calling upon the Government for assistance in their financing. Many investors have looked upon this as a favorable argument. You will notice, however, that the railroads which stand best on the quotation board have very few government obligations" in their balance sheets. The only kind of keg to put your money into is one that will stand on its own bot tom. Perhaps the others will come out all right, but the railroads in which I am interested are now adopting efficient business methods instead of depending upon Govern ment aid. In choosing railroad se- curities, my advice is to let someone else speculate as to what the Govern ment will or won't do.
 "The same applies to industrial securities. At the moment every
 L Al.
 Continued on page S)