Evening star., 1925-05-22

difficult to arrive at method where
by the differential in costs NAV be
paid to the Shipowner or to the shin
builder, or both, for the reason that
subsidy has lately been looked upon
with great disfavor.
we should always keep In mind
that foreign trade is carried on in a
free and open market and that the
shipowner who is handicapped by
high construction costs. and conse.
quently excessive capital charges.
cannot compete in this trade.
There Is serious doubt as to
whether the subsidy principle can be
rehabilitated in our country. The
difficulty is partly that our experience
with 1t has been tainted by scandal;
IN other words, it is popularity be.
lieved that subsidy more or less i'm
plles graft. Therefore. it is doubtful
whether the distinction can be
plainly drawn between an unquestion-
ably good subsidy and a possibly bad
one. II. finally. the subsidy principle
should be definitely abandoned, 1t
would seem impossible to extend the
principle Of protection to the mer-
chant marine in a manner and to the
extent that will be necessary to place
our ships on a competitive basis with
their foreign rivals. 1t follows that
practically committed to Government
operation indefinitely.
Government aid based on the
principle Of flag discrimination on in
ternational routes, unquestioDably in
vites and brings about retaliation. The
immediate effect may be advanta-
geous, but the result in the long run
Is likely to be bad
A request for study of the freight
rate problem as it applies to the
farmer was made by Secretary of
Agriculture Jardine.
On the basis of such a study" he
SAID, 1t should be possible in adjust
Ing freight rates to take into con-
sideration both the market value of
farm products as reflected over a rea-
sonable period of years and the in
Huence inevitably exerted by freight
rates over the economic development
OF particular regions and the coun-
try as a whole. l am convinced that
the value Of service to the shipper
is Of equal importance with the cost
Of carriers in rate making"
Farming is the oldest big indus
try we have" Secretary Jardine con-
tinued, land the farmer knows his
business from centuries Of experience.
Any individual or group that tries to
is certain to suffer for that rashness."
Farm Outlook Improves.
The agricultural bad luck which has
afflicted business in the West since the
war seems definitely at an end, Carl
r. Gray, president of the Union Pa
ciflc Railroad, told the chamber.
The West Is dependent fundamen-
tally on agriculture, Mr.. Gray said.
and the depression due to the hoof and
mouth disease, drouths and greatly
decreased snowfall, which depleted the
irrigation reservoirs, has been felt
everywhere. Last Winter, he said,
was unusually severe, with greatly in
creased snow, and this is having
benef1cent effect, although some fruit
crops were hurt and wheat injured by
Winter kill.
The Pacific coast cities, he said, for
the first time, were beginning to draw
from the Middle West for food prod
ucts, with the result that railroad
prosperity seemed on the increase.
Mr.. Gray was introduced by Presi-
dent Grant as one of the most out
standing self-made men in American
industry. having risen from a tele-
graph operator to the head of one Of
the Nations greatest rail systems.
Hoover Wants Waste Ended.
Elimination of waste in overlapping
governmental agencies through reor-
ganization Of administrative functions
was advocated by Secretary Hoover
at last nights session of the conven-
ton. Former Representative Samuel
E. Winslow of Massachusetts,, who
was chairman of the House commerce
committee, also was a speaker.
What we need said Mr.. Hoover
''is three primary reforms: First, to
group together all agencies having
the same predominant major purpose
under the same administrative super
vision; second, to separate the semi
judicial and the semi-l> rive and
advisory functions from the admins
trative functions, placing the former
under joint minds. the latter under
single responsibility, and. third, we
should relieve the President of a vast
amount of direct administrative
labor
Opposition of vested officials, the
disturbing Of some vested habit and
the offending of some organized
with paid propagandists
aroused, the Commerce Secretary as
serted, have thwarted such a pro-
gram, although every President
from Roosevelt to Coolidge has urged
upon Congress a reorganization Of the
executive arm of the Government"