The New York herald., 1922-04-29
Daniel Willard Defends
Confiscatory Power of
Act of 1920.
FAyORS FIVE YEAR TRIAL
Walker ID. Hines Ind0rses His
Views at Meeting Here of
Political Scientists.

rrelEht rates must come down un-
less there is to follow an immediate
and profound resdjustment" of agri-
cultural production. The transporta-
tion act OF 1920 should not be tam
pered with or amended at this time
but have at least five years in which
to prove its value.
These wers the outstanding opin-
ions impressed on the Academy of Po-
litical Science at it's semi-annual meet
ing at the Hotel Astor yesterday. The
first was voiced by Henry c. Wal
lace, Secretary of Agriculture, and the
second by Daniel willard. president
of the Baltimore and Ohio Railroad,
The general topic was Railroads and
Business Prosperity" Walker d. Hines,
former Director-General of Railroads,
Endorsed Mr.. Willard's plea for thor
ough trial of the transportation act
before amending or modifying it's pro-
visions.
About 600 men and women members
and guests of the Academy heard the
three principal addresses at luncheon
hour. Various other phases of the gen.
eral topic were treated In discussions
through the day.
Debate ON Conhscation.
act OF 1890. establishing statutory rule
Of rate making for the Interstate Com
merce Commission and setting up the
principle Of confiscation by the Govern
ment of earnings in excess OF O. per
cent. of the net operating income. were
the chief subjects considered. The argu-
ments revolved around what had been
accomplished since the railroads We're
returned TO private control and what
progress has been made toward their
reha bilitation: whether the industry is
drifting toward Government ownership
and what the labor provisions OF the
law have developed.
THE most hopeful sign of the present
time Is the apparent recognition of the
railroad management that our present
high rates cannot be continued without
disaster to the railroads themselves
and that rates must come down to a
point not far. If any. above the pre-
war levels" asserted Secretary Wallace.
whose remarks were said to prophesy
an early reduction OF rates by the In
terstate Commerce Commission.
The probable effect of maintaining
present rates for any considerable time,
To favor the farmers OF South
America and Australia at the ex-
pense of American farmers, the more
so because of the substantial de-
crease In ocea- -ates.
To keep pri~ns on farm products
In the large surplus producing States
at figures lower than are justified
by the investment in land and equip
ment and cost OF production.
IT,. 10 narfnd rf daGutfr-
faction among farmers. and encour-
age advocates of economic fallacies
of all sorts.
To shift industrial enterprises
gradually westward. nearer the sur
plus food producing territory.
To promcss sectional rather than
national spirit and make more diff
cult large national policies with re-
spcct to International affairs.
Mr. willard OF the Baltimore and
Ohio said he did not believe 1t possible
for rrivate ownership of the railroads
10 endure unless the confiscatory fea-
ture of the transportation act were
allowed to remain.
Roads Entitled to EnIarge.
He sad re believed the act had pro-
vided for The effective mobilization OF
the railroad sncilities In time OF emer-
.ency and addec
1T is manifest'y important that there
should be regularity anS continuity OF
service by the railroads. and one of the
Important problems before Congress
was to insure. IL possible such con-
tinuity by guarding against Interrupt
ton of service which might be caused
by Observation-Disclosures and disputes
arising between the railroad managers
and their employees.
1T was urged py some that this pro-
vision Of the act should be so written
as 20 prohibit strikes on the railroads.
Personally do not believe that we
have reached stage where we can
feel confident that such law would
or could be effectively inforced. The
matter was therefore, dealt with. I
think. in the wisest way possible under
the circumstances.
II believe that the Transportation Act
OF 1890 affords workable basis for the
future successful operation OF the rail-
roads in the United States. in harmony
v;th our long established policy Of pri-
vatc ownership and operation.
~ firmly believe that ~ the act Is per-
mittcd TO remain as II is for period oi
five years. and II the railway managers
could b.. assured that Il would not
bc changed within tnat period OF time
..vch knowledge would have most
stimulating and encouraging effect. not
'HlN bpuH Aut runway Ahhha@'t"s pHs
upor investors as we'll. and would in
itself 90 far TO assure the success OF
the act"
NFr. Hines. while indorsing Mr.. Will
lard's plea for thorough trial or the
Transportation Act. thought he was too
conservative in estimating that the roads
would have to attract capital of $500. 200 :
600 a year. Mr.. Hines believed 10000, 900
nearer the figure required.
Prof Frank ~ Dixon OF Princeton
University. In talking OF the labor pro-
visions OF the Transportation Act IA
vorcd eventual compulsory arbitration
after labor has been protected adequate
~ by n code OF fundamental principles
other speakers included w. ". Doak,
Ncc-presidcnt OF the Brotherhood oi
Railway Trainmen: Henry r. Hunt, for.
MGR member OF the Railroad Labor
Board. and n. H. Ashton. president OF
the American Railway Association of
Chicago and former regional director OF
4hc northwest region under Government
control and Prof Henry X. Seager OF
COLUMBIA University. Prof Samuel Nc
runc Lindsay, president OF the Academy.
presided al tho luncheon. and Albert
shaw. editor OF the Rcricr ~ Rericios
NJ the afternoon discussion on freight
rates.