Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-21
Washington Ticker
BY the Associated Press.


Undoubtedly the Chief Executive, be-
cause of hts interest in inland water
ways, will outline program for their
development to the regular session OF
Congress in December. and his present
trip along the Ohio River, where the
completion of the 40-year-old task OF
canalization of that stream at a 9-foot
depth Is being celebrated. will give him
first-hand insight into recent improve
mentS in river traffic.
The Government, through its oper-
alton of the Inland Waterways Corpora
ton. with its feet of barges and tow
boats on the Mississippi River and the
Warrior River in Alabama, is the prin-
cipal waterway carrier unit in the coun-
try. although on the Ohio and its tribu-
taries the private barge lines have been
engaged in large operations and recent
ly a company was organized in st.
Louis to run semi-Weekly barge service
from Cincinnati to the gulf
The President has frequently ex-
pressed his views on inland waterway
development and in previous statements
has visualized great inland waterway
transportation system extending from
Pittsburgh on the east TO Sioux City,
Iowa, on the west and from the Twin
Cities of MinneSota--St. Paul and Min
neapoliS-and Chicago on the north to
New Orleans and the Gulf of Mexico
on the south, with standard channels
and standard equipment. A hope of
Mr.. Hoover has been that private CAPT.
tai will enter more extensively into the
field and eventually the Governments
Inland Waterways Corporation will dis
pose OF its properties to private inter-
eStS.
The Inland Waterways Corporation.
in its pioneering efforts in the barge
service since 1924 has demonstrated
the value Of its operation to the American
people of the interior section, although
in the past year its traffic and revenues
have been practically stationary, as
compared to previous years. However,
Government experts estimate that the
corporations operations have saved for
the public millions Of dollars In cheaper
transportation charges. The corporation
also has become Self-suStaining, show
ing a surplus in 1928, together with a
siZeable depreciation fund, after having
recorded a deficit of nearly q million
dollars in 1924.
Outlining some Of the achievements
Of recent years in inland waterway
transportation, an Official of the Inland
Waterways Corporation said that this
system of transportation had made
available to tie Central States of the,
Nation an economic advantage which
counteracts the advantage of the Pan
anna Canal to the Coastal States and
also had awakened an interest in the
value of cities of the Mississippi Valley
as potential points for the establish
ment Of manufacturing industries in
close proximity to the sources of raw
material
Waterway transportation is not con-
sidered by Government officials threat
kn NJ ~
tation. With Joint rail-water rates es-
tablished by the Interstate Commerce
Commission, the waterway barge lines,
1t is felt, can cooperate with railroads
in increasing traffic in their respective
territories. For the most part, bulk
commodities gain advantage in water
way transportation. such as farm prod
ucts, including grain, coal, coke, iron
ore, sand, gravel, stone and lumber,
and, If the waterways navigation facil1-
ties and barge lines equipment are
standardized, as is the hope OF the
President it is believed by officials here
that there will be tremendous increase
in waterway navigation in the carrying
OF such commodities.
While Commerce Department officials
are maintaining close watch on the
of international ,cartels
and combinations in Europe, these
forms Of foreign business organization
do not constitute any grave threat to
the economic welfare Of American bust
ness. in the opinion of such experts OF
the department as Assistant Secretary
Klein and Louis DomeratZky, chief OF
the regional information division OF
the Foreign and Domestic Commerce
Bureau
American industries will hold their
domestic and foreign markets, In the
opinion of DR.. Klein, against interna-
tional cartels, because Of the superior
quality of this Nations products, unless,
of course, the cartelized industries or
ganize such a monopoly in their reSpec-
tive products in Europe that it would
be practically Impossible for American
exporters to undersell them. DR.. Klein
regards European countries have a
handicap in competition with American
industries because Of the lower level
of production efficiency which exists in
many European manufacturing plants
as compared to those in the United
States.
Most OF the cartels have not effec-
lively carried out their program OF
regulation of production and distrtbu-
ton, Dr. Domeratzky asserts. adding
that in Europe at present there are
three major classes of these forms OF
voluntary associations of industries
for the control of prices, production and
purchase of raw materials and labor.
He believes that this inability to put
into effect fully their control of their
respective industries has obviated the
cartels' principal economic weapon
against American competition.
The cartelS are to be studied in the
near future by two informal commit
tees of the League of Nations and the
United States will have observers at
the sessions of both committees. The
Leagues aim in making these studies is
not only to collect data about these
international business organizations, but
to ascertain and make public any abuses
harmful to general interest which its
surve may disclose.
DR.. DomeratZky believes that at pres
ent economic observers should follow
closely the developments of the newest
form Of international business organi-
Zation-the international combines and
trusts. He views the cartelized indus
tries as being held together by quite
loose bonds of association, while the
combines have a much higher degree
Of economic concentration, approaching
in some cases a monopoly. The COM
bine, as compared to the cartefS con-
troll merely of industrial methods, con-
tains the stronger relationship of f1nan-
ctal association. He cited illustrations
of American industries obtaining flnan-
cial interest or control in similar en-
terprises in one or more European
countries and thus being able to exer-
else effective production or distribution
Of their products.