, 1923-12-06

Of prime Importance. adequate means
for national defense second. adequate
service to American commerce. Until
shipping conditions are such that our
feet can be disposed Of advanta.
geously under these conditions, 1t Will
be operated as economically as pos
sible under such plans as may be ad-
vised from time to time by the ship
ping board. We must have a merchant
marine which meets these require
ments. and we shall have t pay the
cost OF its service.
Public improvements
The time has come to resume In a
moderate way the opening Of our in
%tracoastal waterways; the control Of
flood waters of the Mississippi and
of the Colorado rivers; the improve
ment of the waterways from the
Great Lakes toward the Gulf of Mex
leo: and the development of the
great power and navigation project OF
the st. Lawrence river. for which eff
forts are now being made to secure
the necessary treaty with Canada.
These projects cannot all be under
taken at once. hut all should have the
immediate consideration OF the con
gress and be adopted as FIST as plans
can be matured and the necessary
funds become available. This is not
Incompatible with economy, for their
nature does not require so much a
public expenditure rs Il capital Invest
ment which will be reproductive. as
evidenced by the marked increase In
ven from the Panama canal. Upon
these projects depend much future in
duStrial and agricultural progress.
They represent the protection of large
areas from food and the addition of a
great amoun of cheap power and
cheap freight by use of navigation,
chief Of which IS the bringing Of ocean-
going ships IL the Great Lakes.
Another problem of allied character
Is the s%uperpower development of the
northeastern states, consideration of
which is proceeding under the dlrcc-
tion of the Department of Commerce
by Joint conference with the local au-
thoritles.
Railroads.
Criticism of the railroad law has
been directed. first, to the section lay
ing down the rule by which rates ure
fixed, and providing for payment TO
the government and use Of excess
earnings: second, to the method for
the adjustment Of wage scales; and
third, to the authority permitting con
solldations.
II has been enormously assumed
the net undertakes to guarantee
earnings. The law requires
That rates should he just and reason
able. That has always been the rule
under which rates have been fixed.
To make n rate that does not yield n
fair return results In confiscatlon. and
co~nfiscatory rates are OF course uncon-
s,itutLonaI. Unless the government
adheres Ia the rule Of making a rate
that Will yield n fair return. II Il
abandon rate making altogether. The
new and Important feature OF that
part Of the law Is the recapture and
redistribution of excess rates. The |
,onstitutionnlity OF this method Is now
the Supreme court for adJudi-
Their decision should be
awaited before attempting further leg
on this subject. Furthermore.
The Importance OF this feature Will not
be great II consolidation goes into
The settlement OF railroad labor dis
nutcs Is n matter Of grave public con
cern. The labor board was estab-
lished TO protect the public In the en-
ioyment of continuous service by Mt
tempting to insure justice between the
companies and their employees, II las
been a great help, hut is not alto
gether satisfactory to the public. the
employees. or the companies. II n
substantial agreement can be reached
among the groups interested. there
should be no hesitation in %enactins
such agreement into law. II It Is not
reached. the tabor board may very
well be left for the present TO protect
the public welfare.
The law for consultations II not sum
GENTLY effective TO be expeditions. Adj
dltionni legislation Is needed giving
authority for voluntary consultations.
both regional and route. and provid-
Ing government machinery TO aid and
stimulate such action. always subject
TO the approval OF the interstate com-
mcrce commission. This should nu-
thor'zc the commission to nppoln, com.
mi,iees for cnch proposed group. rep
~rcsentlng the public and the compo-
ncnt roads. with power 10 negotiate
with individual security holders for
nm exchange Of their securities for
those OF the consolidation On. such
terms and conditions ms the commits.
sion mny prescribe for avoiding my
conascntlon and preserving fair val
ucs. Should this pormisslvc consolida.
ton prove Ineffective nfter n limited
period. tn. authority Of the govern
men, will have 10 be directly invoked.
Consolidation npusnrs 10 be the oniy