Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-31

policy. They concern the field Of
legislative Interference and admins
trative investigation through commits
sious and bureaus charged with regu
IatorY functions,
Take, for example. the railroads of
the United States. They can be
changed overnight from paying prop
ositions 10 heavy losers If the sources
If theil incomes are suddenly changed
The roads today are in better condi-
ton than they have been at any time
since the war. Their opportunity to
earn what they consider "A fair return
has not been impeded. notwithstand-
ing the general cry from the West
for a reduction in freight rates.
Vital Prosperity Factor.
This has been a vital factor in
American prosperity, because the hold
erS of railroad securities are scattered
far and wide, Not only are the own
ers Of railroads to be found among
numerous individuals who have put
their savings in railroad securities.
but institutions which have funds to
invest have invested heavily in rail
road stocks and bonds.
Now. it may be that this wide dis
tributjon of securities has had an in
tiuence, or it may he that in the gen.
eral confusion of the farm problem
the matter OF lower freight rates has
not been given the emphasis Of other
years, but the fact remains that a
year has gone by and the railroads
have been, in "A large sense, let alone.
And they want to be let alone, argu-
ing that under recent decisions OF
the Supreme Court the valuation of
their properties must take into con-
siderati0n spot reproduction values, -
or the cost Of replacement in present
day terms.
Take the next fieId-the manufac-
turing industries of the country. The
Government has provided certain adj
vantages which have stimulated ex-
port trade, as. for example, the COM
binations made possible under the
Webb law. Prices can be fixed for ex-
port, and agreements made in the for
eign field which would not be allowed
in domestic trade.
Reaping just Begun
America. is Just beginning to reap
some of these advantages In fact,
some big business men are beginning
TO ask that something be done to per-
NIT them to pool data on costs OF pro
duction and the fixing of prices in do
mestic trade. Some Of them suggest
that on some Of the larger products a
regulatory body could be set up to pro-
tect the public against exorbitant
prices. The wastefulness of competi-
ton in huge industry is really at the
bottom Of this theory-for it is as yet
n theory, though it shows which way
the wind is blowing. 1t is blowing
toward combination, efficiency and
economy of production.
Next III Importance is the operation
Of the tariff law, Here. too. while
there may be differences of opinion on
The wisdom of certain tariff schedules
and domestic prices may be higher
in some instances than they would
be If foreign competition We're to be
allowed, the dependence which Amer
ican industry has pat on the tariff
wall cannot be overestimated. and
whenever year goes by and the tariff
is not tinkered with, these captains Of
industry breathe q prayer Of thanks.
There is, nevertheless, much more
agitation about the tariff than the
protective tariff school would like, and
the outlook with reference to tariff
revision cannot be said to be as clear
as it might otherwise be in a period Of
Republican rule.
Changes Are Requested.
For the requests for q change in
tariff are coming from elements in
the Republican party. Some are in