Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-07
SOVIET THREATENS
TO SEIZE PIVOTAL
/. PLACE IN INDUSTRY
Success of Wheat Confer.
ence in London Depends
Upon Russian Attitude.
FRANCE HAS ADVANTAGE
IN ECONOMIC STRUGGLE
Rumored Trade Pact With Moscow
Would Change Situation on
Continent.
BY JOHN F. SINCLAIR.


Special Dispatch to The Star
NEW YORK. June 6.-The Euro
pean powers and their satellites have
begun maneuvering at the League of
Nations meeting in Geneva. where
the Pan-European Union and other
economic plans are the issues at
stake. Americans will do we'll to OBJ
serve the strategy of these maneuvers
and their results. The succession of
international conferences during the
past three or four years and the
worldwide extent of the business de-
preston have brought home to them
how involved they are in world eco-
Monies.
Although Berlin has forced the
French hand by its tariff union with
Austria, 1t may we'll be that Paris
still holds the best cards. The failure
of the CreditanStalt Bank in Vienna
gives France an additional advantage,
for she will provide Austria with cash
II Austria will renounce the German
trade alliance. At the same time,
there is a report from excellent sources
that France will surprise the world by
trade agreement with Soviet Russia.
Should France succeed. even partially.
in b-th moves. the situation on the
continent will be entirely changed.
It looks as though Russia is becom-
ing the pivotal power in European eco
nomic developments. The result of the
wheat conference in London can easily
become a moderate success or a dismal
failure, depending on Russia's stand.
Russia has stood by the Austro-Ger-
man treaty. but may alter her position
in return for wide credit favors from
France. Thus France would hold an
other club over the Central European
states.
In breaking up their solidarity,
France would also checkmate the trade
pact of Austria Italy Hungary. One
obstacle in the way of French loan to
Austria is the fact that the recent
S460O0,000 loan to Jugoslavia was
ccncern.
Railroads Economy.
M J. Gormley. executive vice pres
ident of the American Railway Associa-
ton. saws 20 per cent cut in
operations. during the past 10 years.
saved American railroads from showing
a deficit last year of about $l00,000.000.
Speaking of the need of railroads
for increased earnings, Mr.. Gormley
said:
Il would like tn ask some one how
they are to get them. If the roads
90 not obtain the increases in times
of business expansion, and do not get
them in times Of depression, I know
of no middle ground :. Looking back
now at the reductions that were made
in 1922, when the railroads were not
earning anything near what they
should have been, I wonder if we
might not term that reduction as the
result of a lack of constructive view
on the part of the general public who
demand it,"
Mr.. Gormley is evidently trying not to
spike propaganda in favor of rate re-
duction during the present depression,
but to create public opinion favoring
an increase, as recently suggested by
the Eastern roads. The railroads are
facing extremely difficult times.
Calls Depression Mental"
DR.. William Foster. of the Pollak
Foundation for Economic Research. and
author of several books on business,
continues to insist that the depression
is only mental.
If it were not for the mental atti-
tude of the people of this country"
says DR.. Foster, prosperity would be
here now. and. the depression would
not have occurred"
But the man out of work wants to
change his condition, not his mind.
He has had a good many theories, or
the depression, both plain and fancy.
and the demand for theories is getting
pretty low.
DR. Foster is right about the right
mental attitude. The present bewil-
derment is evidence enough that Amer
leans never gave the subject of eco
nomic Sterilization a thought before
hand. But the present situation needs
strong medicine and the elimination OF
theories.
Real Estate. Taxes.
The National Association Of Real
Estate Boards wants other forms OF
wealth to carry a greater share of
taxes. The real estate tax is a simple
one to put on. Property cannot, like
bonds. stocks, notes, ETC., be concealed.
Tax bodies are human. They 60 along
the line of least resistance That's
why real estate taxes are so popular
with them.
Something must be done about 1t
right away, say the realtors. They con-
tend that real estate taxes in many
places are confiscatory The present
Chicago tax debacle is a case in point.
Inheritance taxes and income taxes
based on ability to pay, are much
more just and fair than any real estate
tax. which can now be imposed, they
insist
Henry Georges single tax idea was
much more practicable so years ago
than it is today. Since then, much
wealth has escaped from the land.
(Copyright, 1881, by North American News
paper Alliance, Inc.)