The Washington times., 1924-12-03

have assembled an Agricultural
Conference made up of those who
are representative Of this great
industry in both its operating and
economic sides. Everyone knows
that the great need Of the farmer
is markets. The country is not
suffering on the side OF produc-
ton. Almost the entire difficulty
is on the side of distribution.
This reaches back, of course, to
unit costs and diversification, and
many allied subjects. 1t Is ex-
ceedingly intricate, for our do
nestle and foreign trade, trans
.portation and banking. and in
fact our entire economic system,
are closely related to 1t. In time
for action at this session, hope
to report to the Congress such
legislative remedies as the confer
ence may recommend. An APP
preparation should be made to de-
fray their necessary expenses.
Muscle Shoals Project.
The production Of nitrogen for
plant food in peace and explosives
in war is more. and more impOr-
tant. 1t is one of the chief sus-
tanning elements of life. 1t is esti-
mated that soil exhaustion each
year is represented by about
100000 tons and replenishment
by $780, 900 tons. The deficit of
S,550,000 tons is reported to repre-
sent the impairment Of 118,000,-
900 acres of farln lands each year.
To meet these necessities the
Government has been developing
a water power project at Muscle
Shoals to be equipped to produce
nitrogen for explosives and fer
tilizer. 1t Is my opinion that the
support Of agriculture is the chief
problem to consider in connec-
ton with this property. 1t could
by no means supply the present
needs Tor nitrogen, but 1t would
help and its development would
encourage bringing other water
powers into like use.
Several offers have been made
Tor the purchase of this property.
Probably none of them represent
final terms. Much costly expert.
mentation Is necessary to produce
commercial nitrogen. For that
reason 1t IS. field better suited
to private enterprise than to Gov.
ernment operation. / should ia
vor a sale Of this properly. or
longtime lease, under rigid guar.
antics of commercial nitrogen
production at reasonable prices
for agricultural use. There would
be surplus Of power for MANY
years over any possibility Of its
application to developing manu-
Iacture Of nitrogen. 1t may be
round advantageous to dispose of
the right to surplus power sep
arateiy with such reservations as
Will allow its gradual withdrawal
and application TO nitrogen manu-.
facture. A subcommittee of the
Committees on Agriculture should
investigate this field and negotiate
with prospective purchasers. If
no advantageous offer be made,
the development should continue
and the plant should be dedicated
primarily to the production of ma
terials for the fertilization of the
soil.
Railways Make Progress.
The railways during the past year
have made still further progress
in recuperation from the war, with
large gains in efficiency and ability
expeditiously to handle the traffic
of the country. We have now
passed through several periods of
peak traffic without the car short
ages which so frequently in the
past have brought havoc to our ag-
riculture and industries. \ The con-
dition of many of. our great freight
terminals is still one of difficulty
and results in imposing large costs
on the public for inward-bound
freight, and on the railways for
outward-bound freight. Owing to
the growth of our large cities and
the great increase in the volume of
traffic, particularly in perishables,
the problem is not only difficult Of
solution, but in some cases not
wholly solvable by railway action
alone.
In my message last yeartI en-
phasized the necessity for further
legislation with view to expedit-
ing the consolidation of our rail.
ways into larger systems. The
principle Of Government control of
rates and profits, now thoroughly
imbedded in our governmental at
titude toward natural monopolies
such as the railways, at once elm
mates the need Of competition by
small units as a method Of rate adj
justment. Competition must be
preserved as a stimulus to service,
but this will exist and can be in
creased under enlarged systems.
Consequently the consolidation
Of the railways into larger units
for the purpose of securing the
substantial values to the public
which will come from larger OPP
GRAFTON has been the logical con-
clusion of Congress in its previ-
GUS enactmentS, and Is also sup.
ported by the best opinion Of
the country. Such consultations
will assure notA only greater
element of comp tltion as to serv.
ice, but 1t Will afford economy
In operation, greater stability in
railway earnings, and more eco
noimical financing. 1t opens large
possibilities Of better equalization
of rates between different classes
of traffic so as to relieve undue
burdens upon agricultural prod
ucts and raw materials generally,
which are now not possible with
out ruin to small units owing
to the lack of diversity Of traffic.
1t would also tend to equalize
earnings In such fashion as to
reduce the Importance Of Sec
ton 16A, at which criticism. often
Inisapplied. has been directed. A
smaller number of units would
nffAr Lass difficlilfiaa In lahnr "a