Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1959-07-10

Most of us think of the national defense,
and the arms race with the Soviet Union in
terms of the weapons of war-planes, mis-
siles, naval vessels, and the like
But the ability of nation to defend it
self or to make the prospect of war so dread
full that no other nation will dare attack it,
depends on much more than that. 1t depends
on its ability to produce and to move goods
and people on a gigantic scale.
Here is reason why the present predlc-
ament of United States railroads is grave
problem to the military planners. In World
War IL and in the Korean War the work
done by the Iron Horse was absolutely in
dispensible, and our dependence on rail
roads will be equally great if another war
should come, big or little. But the railroads
cannot improve themselves to the extent the
nation needs so long as tax and regulatory
laws and policies keep them in state of
financial depression, as is the case today.
Our enemies know the worth of railroads
Russia is spending billion year to expand
and improve hers. We spend about the same
amount-but our railroad money is spread
along 100000 miles of line as against about
$4,000 in Russia. And Red China also is con-
Quoting an intensive program of railroad
development She has built $3.50 miles of
new line in only eight year. Already we have
seen the passenger equipment situation de
teriorate to a point where if we have Worl6
War III with a transport demand similar to
World War II, the rail passenger situation
could result in utter chaos. 1t is late in the
day to rescue the railroad passenger equip
ment situation from defense standpoint
The freight car situation is the one that is
really vital With a constructive attitude on
the part Of the United States Treasury and
the Congress; it can be put into shape with
out too much loss of time. They cannot es-
cape the blame for failure to act.
HARMFUL CONTROLS
In recent polling of 1900 economists
40 per cent indicated they would be in favor
of some kind of peacetime price controls.
This illustrates the widespread interest in the
matter, but it is in the political field that
serious pressures for controls have arisen.
Members of Congress have suggested govern.
ment action if prices are not soon stabilized.
The President has been asked in press con-
ference for his views on this subject.
The reason for this interest can easily be
seen when one considers what has happened
to the consumer price index in recent years
Average prices, as measured by those Bu-
reau of Labor statistics, have advanced from
1875 in 1862 to 1885 in 1858. Many thought
this advance would finally be checked by the
57-58 recession, but this did not happen.
The bleakest prospect appears for the flu
ture. Few Informed persons expect the pres
sure on prices to diminish. Wage increases
not tied to greater productivity, and the huge
national budget, both appear ready to boost
prices further.
A sense of resignation, feel that little
can be done through persuasion or the exer-
else of common sense, has led to the consider
alton of peacetime price ceilings. But it
would be most unfortunate if Congress were
to come under this influence. For while in
fated prices hurt many, peacetime price con-
trolls would ultimately hurt all.