The Waterbury Democrat., 1941-08-11

tation Association of America today of the proposal to all members of co civic organizations throughout the
 Calling attention to the program adopted by the Public Ownersnlp League in 1923, the Association pointed out that the construction of subsidized power projects during the past ten years follows closely the plans of the League. and that the St. Lawrence Waterway, the ArkaIl- sas Valley Authority, and the many other little TWAS now before Con- gress, are simply part of an in- genious socalistic scheme to de- stroy the profit motive in American industry. The report points out tnae the St. Lawrence project IS put an other link in the chain which IS slowly but surely throttling the er1- terprise system in the United States.
 "When properly presented m treaty form to the Senate in 1884. the proposal was rejected" said Ronald b. conn, executive vice president of the Transports Association of America. "NoW, It IS clothed in the garb of a defense measure and its adoption is sought by questionable procedure In Con gress during the very period when money and labor are required for real defense Eeeds-no political ex- perimentS."
 Doubtful Power Project
 In its letter to all Members of Congress, the Association pointed out that appropriations for the St. Lawrence are being requested at time when the total national debt Docal, State and F'ederaD plus au- thorizationS by Congress since Jan.1, l941, aggregate approximately $123,- poo. GOO GOO or the equivalent of over $3,7O0 per average family of four persons. "Isn't it time that our citi- zens begin to think in terms of how they are going to pay the pub lie debt? !S the added revenue de- rived from the huge emergency tax bill now being considered by the Congress to be used for actual de- fense activities, or is the equivalent of 25% of 1t to be squandered on just one of the many doubtful power 
 projects?"
 No small part of this Federal debt" said MT. Conn, "iS due to ex- penditures for dams, rivers, ditches, and other forms of public works, the majority of which can never pay out end the primary excuse for whica was to relieve unemployment, not because of their economic use- fulness, No such reason exists so far as the St. Lawrence is con- cerred."
 The report of the Association shows that the capacity of the Great Lakes ship building facilities IS already absorbed by the conStruc- tion of smaller naval craft and ore carriers for some years to come; that the project will not benefit the Western farmer because ot the de- clining export demand for the types of grains produced in the Lake States: that since 1920 it has not been possible, as general rule, for the American farmer to retain, as added profit, any reduction in trans portation costs.
 "He has been subjected" said MT. Conn, ito buyers market and when ever transportation costs have been reduced to assist in his export trade, foreign markets immediately reacted downward, he received less on the farm, transport agencies lost the revenue, and the foreign buyer re- ceived the benefit"
 "Regardless of all of the argu- ments," continued MT. Conn, both for and against the project from 8 transportation viewpoint, one fact Is clear. The actual return to the American farmer is fixed by the De partment of Agriculture on the basis of maintaining the farm income in relation to domestic costs and Stan- dards of living. Subsidy has been used for ten years to piece out the difference between the world mar ket price level and what is judged to be a fair and just return to the domestic producer. If such doctrines of paternalism become permanently entrenched in this country, the actual export all-water transporta- ton cost of Northwest grains will have little bearing on the individual farmers income.
 Asks Congressional Probe
 The Association advocates that Congress direct the Interstate Com merce Commission to make thor ough and complete study of the project to determine its value from the transportation standpoint.
 It also recommends, because of the wide variance in the cost figures submitted from time to time, that Congress employ recognized prt- yate agency to check the estimates of the War Department.
 The Report shows that the ori- vinal estimate of the Panama Canal was $16O.0O0,00O and the final cost to 1920 was over $500 O,0O0,0 900.
 Consideration of this project and that of the many other proposals for public works now before Con- gress, should await determination of their value to the domestic economy, and the ability of citizens to pay for them, after the war Is over