Alma record. (Alma, Mich.) 1878-1928, 1922-11-09
SEES POLITICAL
CHANGE COMING
ROC ER BABSON TALKS ON THE
ELECTION AND ON BUSi-
NESS PROSPECTS.

Roger W. bdhSVu, INT Hn'Ntloh VI
what effect the Congressional cleo
tions will nase upon business,
brought from him the following state
ment:
81 sec one interesting issue in the
Congressional elections, namely, the
number Of new radical members sent
to Congress. Those Of IL in the East
90 not understand the viewpoint OF
our western people, hence few are
awake TO the great change which A.
coming about in our political line up.
Throughout the present generation,
the contest has been between the Re-
publicars and Democrats. The days
of this alignment, however, are num-
bcrcd Both of the old parties have
suffered extensive changes At lcaEt
by 1928, and perhaps in 1924, a real
contest may be waEed between the
so-Gallod Conservatives on the one
side, and the so-callod Radicals on the
other.
by Radical do not refer to the
l. W. VS.. or any group commonly
known as Bolshevists. The new Rad
zeal party will be more like the Bull
Moose party If lJl6. The Conscrv-
ative group will represent combina-
ton of both Republicans and Demo
Gratis who are opposed to the extreme
measures Of the other group. The
elections tomorrow will serve TO show
to what extent this new alignment IS
taking shape
CAS- 70 the immediate effects Of the
elections they should not be import
ant unless the Republican majority in
Congress should be ovcrthrown. ! do
not, however, expect such an event.
after all" 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 present. Nine
tenths of all The important bills be
fore Congress this year were de-
signed to help some one group-us-
ually at the expense Of the others.
Farmer and labor demands, railroad
FINANCING, state roads, soldiers bonus
and the tariff fight are few exam
pie. This stampede To the Govern
mont for assistance is one Of the pes
tilenccs which always follow war.
The same mania developed after the
Civil War. From 1865 to 1870 bank
crs and business men spent more en-
orgy lobbying in Congress than de-
vcloping their own business. The
Government must mix into business
in war time; il is hard TO get ont Of
r. l. O. t.,tl T.
people will realize that you can't take
out Of the Government more than you
put into it, For the present, how
ever, the situation presents scriou
DANCE to those who fail to get
assistance, but to- those who succeed,
"Any growth founded upon so
tickle a basis as government favor
must re precarious. The industries
and the indis idual companies viii h
are really GOOD investments viii be
able 90 fight their way thru without
having t. depend upon cXhorbitant
tariffs or government capital. They
may have hard shedding for while,
but when the depression r. over they
will control the field. While others
are building up influence at Wash
ington, they are building organiza-
tions at horne. AZ the tim, it may
seem as if the concerns which get the
most protection or ASST stancc from
Washington asc the winners, but
their advantage is only temporary
Instead Of trying 60 pick the compan-
les which yet the most assistance
from the Government, investors
should look for The companies which
can ret along with the least
This factor marks sharp distinc-
tion between the railroads today. Tn
der the E5ch-Cummins law the road
have the privilege Of calling upon the
government for assistance i'm thcii
financing. Many investors have
looked upon this as favorable argu-
mcnt. You will notice, however, that
the railroads which stand best on the
quotation board have very few gov
ornmcnt obligation" in their balance
sheets The only kind Of key tc
put your money INTO is one that will
stand on its own bottom Perhaps
tho others will come out all right, bat
the railroads in which J am interest
cd are now adopting efficient business
methods instead Of depending upon
Government aid. In choosing railroad
securities, my advice is to let some
one else speculate as to what tn,
Government will or cont do.
"fhc same applies to industrial sc.
curities. At the moment every one
is much exercised over the new tariff
rates. Some industries have secured
greater protection than Others. II
the long run, however, the business
which receives the greatest tariff pro.
lection may not be the best invest
ment. If its operating costs anc
overhead charges are increased on no
safer basis than legislation, it is not
a business in which to risk your
money. Business concerns, like indi
viduals, get their strength from fight
ing their own battles. Too much pro
lection is far more dangerous thar
too little