Milford chronicle., 1943-02-12
OOs
Courtesy Industrial News Review

Courtesy Industrial News Review
"The railroads are taking in a
lot of money-and many people
want to share it. Some 1,l50,0OI
employees are asking wage in
creases ranging up to 30 per cent
Owners of stocks and bonds think
that, after many lean years, they're
entitled to a larger return on then
investment" says the Pittsburgh
Press, commenting on the situation
in mastery manner.
1.-The Office of Price Administra-
ton and other government agen-
cies seek a rate cut for the bene'
fit of the public-Or, rather, can
collation. of a six per cent rate in
crease granted after railroad wages
were raised a year ago.
NOW the Interstate Commerce
Commission makes a suggestion
that seems reasonable: That, in
stead of cancelling the rate in
crease, the revenue from it and
from any future increases be put
in a special fund and used only foI
improving present railroad facili-
ties or paying debts.
Everybody agrees that the rail
roads are doing a wonderful wal
job Their greatly increased gross
revenue, largely the result of tre-
mendously increased business, is
only one side of the picture. It's
fair. we think. to consider the other
side.
"Their taxes are up. Their wages
are up. Their materials are up.
They have voluntarily reduced
freight rates on ammunition, sugar,
rubber, petroleum and other criti-
cal commodities. They carry fur
loughed soldiers and sailors at
bargain fares. They are using their
present facilities more intensively
than ever before. And. despite pri-
ority troubles, they have added new
facilities at their own cost.
I'VE don't pretend to know eX-
actly how the railroads money
should be divided up. But we be-
lieve that-fOr the benefit of a
country which has learned how
much it needs good railroads, for
the benefit of employees who will
continue to need jobs and wages.
for the benefit of stockholders who
will need future dividends--they
should be permitted to use enough
of it to improve their equipment
and their credit and maintain their
ability to do a good postwar job. "
/s/s/
Financial institutions of the
country as represented by banks,
savings and loan associations,
mortgage companies, private funds.
etc, are face to face with social
ized credit" which is promoted by
many agencies of government.
The American Bankers Associa-
tion has issued statement oppos-
ing socialiZatiOn of credit on the
grounds that il is not in the pub
lie interest for the government to
engage in the lending business
where local credit is available in
adequate supply and at reasonable
rates" The Association recognizes
that direct relief by the govern
ment in time of serious economic
stress may involve some granting
of loans from public funds as a
temporary emergency eXpedient.
but that 'socializing' losses at the
expense of the taxpayers violates
the principles on which credit
rests.
Up to now a majority of bankers
failed or feared to oppose or CON
denim the Federal specialization pro-
gram that has been pushed in this
country. They have seen its insid-
ious methods encrOach upon other
industries such as electric power,
but they felt secure from attack
themselves. They failed to recog-
nize that specialization of private in
dustry cuts off the opportunity for
private loans; that the surest way
to maintain private credit in this
nation is to maintain private enter
prise. A few outstanding bankers
have long pointed out this danger.
They knew that neither the couptry
nor private banking could exist
half socialized and half free.
Only under a system of private
enterprise can individual freedom
survive. A man who has to borrow
money from a Federal agency, is
no longer a free man-he has no
choice. If the bankers can help
save the free enterprise system
from the encroachments of state
socialism, they will automatically
save private credit and private
banking. 1t cannot be saved other
wise.
/S/s/
Nineteen forty-three will be
tough year for the retail distribu-
tor. Supplies will be short, clerks
harder to obtain, margins will be
fixed that take into consideration
few of the rising costs of doing
business. The United States News
observes that, "It will be year of
many casualties in this field of en-
terprise." There have been other
prophecies of doom for the retail I
er, spoken as if the retail merchant
was a being whose welfare was
irrelevant to the welfare of con-
sumers. AS a matter of fact, the |
merchant is a war worker. The |
retail industry must be kept oper-
ating on a sound basis. And that
goes for the whipping boy of the
distribution system, the chain
stores, no less than the corner gro
cery.
Before price ceilings were adopt
ed the chains were one OF the