The New York herald., 1922-10-10
BANKER CALLS VETO
OF BONUS BRAVE ACT
Beebe, Head of Investment
Men, Praises Harding's
Stand.

DELMoNTE, Cal, Oct 9.-President
Harding deserved the nationwide COM
mendation he received for the honesty
of purpose and political courage he dis
played in vetoing the bonus bill" How
ard f. Beebe of New York. president OF
the Investment Bankers Association of
America, told the association at the
opening here to-day of its eleventh an
nual convention.
Mr.. Beebe charged that union labor
had refused to accept it's share of the
readjustment burden" He remarked
that the Federal and State legislatures
had rushed forward with measures
designed to control business" and said
the efforts of Congress on the tariff
have apparently met with little ap-
proval from men of sound business
judgment and unprejudlced view."
Frederick r. Fenton of Chicago, secre-
tary of the association, thanked the
press of the country "for bringing to
light those people who are operating un-
der the guise Of investment bankers and
who are annually swindling the people
of the country out of hundreds of mill
ions of dollars"
The annual report of the Marine Sc
curities Committee, presented by Chair
man L. G. Tillotson of Cleveland, said
there appeared to be unanimous feel
Ing in all classes of business that the
Government should retire at once from
the shipping business and that the Ship
ping Board and Fleet Corporation should
be promptly dissolved.
THE committee feels that the Amer
lean business interests as whole have
not taken time to consider fully the
subsidy matter now pending in Con-
gresS,' the report continued
The committee on railroad securities,
Pierpont V. Davis Of New York. chair
man. held that the important rail hold
ings of the country were undercapital-
lied.
''As with every question that is not
well understood" the report said, this
rate problem has it's peculiar effects on
the general public in various ways. Dur
ing recent months. but before the rate
reduction by the Commission, effective
July 1, 1922, the shippers in general in
sisted that the high rates retarded busi-
ness, and owing to this attitude of the
shippers the rates probably did so to
some extent. although 1t was practically
denied by the railroads executives. who,
however. admitted that rates were too
high In many cases and should be re-
duced as soon as practicable.
high rates. 1t is safe to say that not
within the last twenty years have the
railroads made application for rate in
crease for any other reason than that
they were confronted with the necessity
for raising additional needed revenue to
meet their legitimate charges. They
know only too well the effect of rate in
creases on business and industries along
their lines. Moreover, every increase of
this kind is made the excuse to exact
higher prices, whether there may be any
real justification for 1t or not.
The total operating revenues for 1921
were S5,563,232,215. Reduced by 10 per
cent. they would have been less by $685.
100000. If the cost Of living were low
cred to the entire extent of this saving.
it would have meant S5 for each of us.
Obviously this would not have gone a
great way to reduce our living expenses.
Were IL not for the attitude of the public.
particularly the shippers. II would not
have the slightest effect on business.
When business is good little attention is
paid to rates.