Evening Star Newspaper, June 23, 1923, Page 4

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‘how will Npe e R e il Consolidation Scores Managers’ Refusal To Obey Rail Boqrd Orders Does. Not Hdpe for Compliance on Part| of Employes as Long as Officials I gnore Its The full text of President Harding’s| ®pcech in Kansas City, Mol, on the | transportation problem’ follows: My Countrymen: Stopping as Iram, en route across the continent, to| make an official visit of inquiry to the vast territory of Alaska, I stand before you to offer greetings, and bring, if possible, the federal gov- ernment a little closer to you and the people of the United States closer to their government. I confess it:has been something of a problem to Select subjects for localities, and . take: cognizance of the territorial interést in the spoken word, and at the sdme time keep in mind that the printed speech, in the davs of modern pub- licity, is available to all America, T do not mean that there are any eif: e cumstances under which the {tesie} dent would suy a Kan City that he could not York, New Orleans or San ¥ because our varied national interests | are wholly mutual in their lawt analysis. ¥ thing in {their rights Decision. figures equal to thé burdens of fed- eral taxation. On the other hand there afe some ratiroads in this coun- tfy, the buillding of which would bet- | ter have been; deferred, for they were born out of misguided enthusiasm, or unjustifiable speculation, or the mere purpose of levying a sort of transpor- tation blackmail upon systems al- ready in the fleld. Finally, we have many railroady which, though appar- ently well managed and absolutely nNecessary :to the communities they serve. are finding it difficult to earn a 1i¥ing and quite impossible to pro- yide the necesfary maintenance and the means of expanded facilities. Years Add to Costs. Eve ing year adds to the cost | of ‘producing new railroads. Most of our railroids were begun in a time .when !and was the most plentiful and least valuable thing we possessed, and of way and_terminals 05y, as compared with the present| expense that would be involved in ‘reproducing them, very little indeed. Everybody is doubtless familiar with | the story that a few years ago a great engineer was commissioned to \mgke preliminary calculations of the cost of a complete new trunk line. .[s¥ystem betweeh New York and Chica- | Profit Through Understanding. Ours is a common country, with a common purpose and common pride’sBurchase of real estate for terminals and common confidence. 1 am thiuks ing rather of the enlarged with the marvels of the radio. I wis speaking to you last night in St Louis, precisely as I am speaking to Denvér, Chicago and elsewhere to- night. 'We have come into very close communication in_the United Stace and we shall infinitely profit it brings us into - and ful derstanding. 1 know of nothing which will so promote our tranquil- lity and stability at home and peace throughout the world as simple and | revealing and appealing understand- ing. ls;r()dul'(lnn is the very- liféblood of material_existence, ahd commerce is its vitalizing forc Put .an end to commerce and there Wifl bé no cit and farm life will rpvert to. the me: struggle for subsistence. . Aud the can be no commer¢e’ without tran portation. In_all the which make for commercial lite, transportation is as essential ds pro- duction. Tide of Transportation. Not long ago, while discussing the distressing clump in - agricultural prices which threatened the very ex- Jstence of farm industry, a caller drew from his pocket an old Ohio publication, a weekly newspaper of the early forties,of the last century, and turned to the quotations on live stock, dairy and farm products. Wheat Was 40 cents a bushel, pork 3 cents the pound, butter 5 cents the pound, potatoes & cents the bushel. Not many automobiles in returns like those. But that was before the age of motor. cars, that was in the flat- boat era, when a cargo of farm prod- ucts had to be floated: down the Scioto and Ohio rivers 250 miles to market. The prices were a reflex of the crudity of transportation. .And manufactured products, were corre- spondingly high to the:tonsumer, be- cauve there was the.same crudity of transportation in distribution. “The stage coach, the wagon train and the flatboat were speed:.wpnders of that day, and the canal boat was the last word in luxury on fany waters. The great Missouri valley, was thep un- revealed, and only awakening trans- portation was the revealing agency. In the infinite bounty of the Creator the measureless riches of the ‘west, were bestowed, but they availed lit- tle until the whistle of the steam Jocomotive proclaimed its westward march with the star of empire. Alded, Then Turned to Hamper. is a curious trait of human na- turs ‘that ‘We acclaimed rallroads in the building and then turned to hamper them in the operation. Mis= sourl and Kansas were doubtless like Ohio. We gave from our purses to contribute to needed building funds, We donated vast areas for right-of- way, we witnessed financial exploi- tation with little protest, because of our eagerness to acquire, and ac- claimed the acquisition. 'Marvelous development attended, but we omit: ted the precautions’ which would have avolded many present-day dif= ficulties. Everybody knows how necessary transportation is in this modern world of speclalized industries and extensive exchanges Gverybody | knows that our very social scheme, as now organized, is dependent on the maintenance of adeauate trans- portation media. A good many people, indeed, have latterly come to wonder if it might not be possible even that we have committed our welfare and prosperity too largely to the assumption that it would al- ways be possible to provide all the | transportation that the community ! migh desire, at costs which would not be prohibitive. That we have even staked our very existence on the daily continuity of transporta- tion. There is a new, and I think | increasing, school of thought on this subject. Its adherents are begin- | ning to ask whether, in the long Tun, it would not be’ better to’at- tempt making local communities more nearly self-dependent by di- versifying their range :of Broduc- tion and thus redgeing ‘the amount of transportation -and _éxchango_of products over long distances. But such a course would be a reversion 10 the old order, which nd modern community willingly. would accept— back to the farm self-contained, back to the restrictgd :community, with its candle burning -beneath the half-bushel measure. -~ - Heavy Costs:After War. ' " Of one thing we-may ‘be -reason: ably assured, and that is that since rallroads first began to be bullt in the world there never was & time when so many people, in so many communities, were frankly and intel- ligently questioning the future as regards its instrumentalities of transport. They are asking very frankly and pointedly how they can attain railroads enough in the next few generations to supply along with other agencies. with. the transportation they will require. I doubt if there is a country in the world in_ which railroads have come to be a considerable trans- portation factor which has not some sort of a railroad crisis on its hands right now. There are some. countries which merely need more, railroads, and are willing to . pay almost any price to get them. just as we would have done a genera- tion or two generations ago. There are others which have more rail- roads than current trafic and in- sistent demand for lower rates makes profitable, £o_that they have been made, in some fashion or other, a burden on efther industry or the public treasury. There are still oth- ! ers which have excellent railroad systems but have found, in the in- creased cost of capital and operation which came with the world war up- heaval, that the cost of transpor- tation 'is threatening to become to: heavy for the producing industries to bear it. More Facilities Vital. Our own country, although it pos- Sesscs something like 40 per cent of the world’s railroad mileage, is con- fronted with all of these difficulties. In much of our territory we need more railroad facilities) “and- some- have to supply them in the near future, It is stated on high authority that the indirect losses in industry and commerce, due to in- sufficlent’ transportation, run into audiences: | exchanges | them, ! {b ‘go. He is sald to havé reported the {on Manhattan Island alone Wou 1i- much capital as would -the i physical construction of -the entire] {Tine from New York to Chlcdgo. There couid hardly be a better fl- {lustration of the increasing difficultios which ‘the country must face in any considerable expansion of its rail- iroad system. Of course, this hm thetical new trunk line from® Lake Michigan ‘to the Atlantic coast was not comstructed. If it had been,” it could not have earned returns on its | | enormous cost unless rates had been greatiy increased for its benefit. But fif rates had been increased for it. they Would have had to be increased also for {the lines competing with it. Other- 1 the new.réad would have no at all. An increase of tariffs which. would have permitted such an expensfve new property to earn even expensive properties to ecarn abso- lutély preposterous returns. Would Cost Much More to Replace. | It is worth while to bear.in mind, |in the face of current agitation, that we.could not replace our railroads for a vastly larger sum than the valua- i tion placed upon them by the Inter- | state’ Commerce Commission, and ‘it is fortunate for our people that we do not have to contemplate a rate structure founded upon replacement cost. | I have referred to the previously recited instance because it so per- fectly illustrates the whole situation which the country must meet in deal- with its railroad problem. Events of the last few years have made us all realize that the rallroads must be administered under some policy that will make it possible to find the capi- tal wherewith to expand the exist- ing systems as business shall require, without imposing an impossible bur- den upon iridustry and consumption. . It is no thepretical problem. Jt is not an imaginary thing to be swept aside with the wave of the hand. ‘When . the government undertook operation during the war, and stand- -ardiaed. wages, and was caught the sweeping -current of mounting | cost, Wit “created a. situation to ignore | which would quickly develop a na- tional menace. At an awful cost we | learned the extravagance and mount- ing burden of government operation, | Yet there are today very insistent advocates of government ownership. | Frankly, I do-not share their views. | our- political _system has not reach ed a.state of development when we | can insure proper administration. | “Blunder to Destroy Initiative, | . I:belleve it would be a colossal| blunder which would destroy initia- tive, infect us with political corrup- tion, create regional jealousies, and | impose incalculable cost on the pub- | lic treasury. But we must find al solution of the rate problems and | the necessary expansion of YBciHllesl and find that solution in spite of the prejadices of the present-day spon sars for operations and the present- day destrovers who would bankrupt or confiscate, else government owner- | ship and operation will become an accepted necessity. Nor do I share the views of those who would lower rates without regard to railroad good fortune. The prosperity of the rail- ways s the prosperity of the Amer- ican people, and the property rights in railway investment are entitled to every consideration under our Con- stitution’ which is due to property rights anywhere. Any tendency to- ward confiscation will lead to con- fusion_and chaos, and destroy the véry’ foundation on which the re- public is builded. Wonld Saddle Losses on Treasury. It is easy to understand Wow many people contemplate the abelition. of competitive carrying charges, and the elaborate machinery of government regulation, and argue that the logical step is to put them all in one common pool ~under. government ownership. That would effect an adjustment be- tween the fat and the lean,: if- it dldn’'t make them all lean. It would cqualize profits and losses between favored lines and the less fortunate ones, it would- abolish profits and saddle all _the lesses on the public treasury. More, it would completely disarrange the-eeonomic relationship between our, different communities, upon which 'our present-day com- merce is bullded. ‘It is preferable to preserve initiative and enterprise, to maintain the inspiring competition of service, and 1t 1x.vital that the cost of.-transportation be borne by the commerce which is served. 7 No, my countrymen, I am not pro-| posing nationalization, nor a‘renewed experiment in government operation, the cost of which we have not yet settled. The federal treasury cannot well bear any added burdens until we-have lifted many of those already imposed. I had rather solve a diffi- culty than embrace a danger. i Believes Step Justifiable. I do belleve there Is a ratlonal, justifiable step, full of promise to- ward solution. It will effect a dimi- nutiof4n rates without making a net return impossible. It will make, sdund finance possible for- expansion. i X.refer to the program of cm-xstsl_x:j dating all the rallroads into a smadll number of systems, the whole to be under rigorous government super- vision, and the larger systems to be 80 constituted that the weaker and unprofitable lines would be able to lean upon the financial strength of the stronger and profitable ones un- til the growth of the country makes them all earn a just return upon| capital invested. The transportation’ act of 1920, known as the Cummins- | Esch law, contemplated this kind ot a .consolidation, but made it per- missive rather than mandatory.. In eftect, it left to the railroad manage- Thents, subject to the master plan set up by the Interstate Commerce Com- mission, to arrange the system groupings of the roads. -y - Necessarily Experimental. That provision was adopted only| pelled by the country’s development |Mr. Harding. atter long and detalled consideration y men of wisdgm and experience, and "~ seemed™ to ?:;relen! the best judgment of leaders in both political parties. Its weakness was that it was doubtful whether the railroads|and operate the weak roads and thus'salute of twenty-one guns for the ‘would be able, of their own volition, to reconcile all the conflicting inter- ofRa | world “offers a parallel ; sidering the- vast différences between jthe two countries as to area, geo- | ownership of railroads. a moderate return on its investment | would have enabled the older and less | {to operate that with scant incomes | i T e THE EVENING STAR, WASHINGTON, ilroads 4 ests Involved in ®0 ‘eriormous & reor- ganization. It was frankly recog- nized when the legislation passed that it was necessarily somewhat experi- mental. Likewise, it was extremely uncertain whether the wisdom of a dozen Solomons, sitting as railroad presidents and chalrmen of boards, and as financial backers of these great propefties; would be equal tg the task of organizing a group of systems which would represent fair treatment of all the interests in- volved, including those of the public. There now appears to be no diffi- culty about any constitutional inhi- bition to the voluntary consolidation as authorized by Congress. But the problem of-yeconciling the -interest: of the hundteds of dlfferent owner- ships and managements of lines to be merged into systems has proven a task for which no solution has been, , being seriously pro- posed that. the next step be to fur- thér amplify. the provisions for car- solidation 80 as.to, stimulate the cony sumption. It is my expectation that’ legislation to this end will be brought before Congress at' the next session. Through its adoptloan we should take thé longest step which is now feasi- ble on the way to a solution of our difficult problems of rallroad trans- portation. = Undue Alarm in Some Communitfes, There has been ‘Uundue alarm in many communities, Kansas City ine cluded. concerning, tie effect of such consolidations upon commercial ceh= ters like yours. Let me allay the elarm by “reminding. you that whole question is one of adjustment, and the whole program Is to be con- structive, looking to enhanced serv- ice, and'destruction is as much to be avolded as failure is to be pre- vented. - Though: no other nation in the W in railway development, thdse of us who believe t this program of regional con- solidation ~would produce highly | Leneficlal effects find our belief sus- | tained by recent experlence in Gréat | Britain. " The railroads of that coun- ! try have in the last few years passed | through an experience “which, con- | graphic _configuratfon, industrial and social organization, has more or less raralleled that of Ameriéan railroads. | The United States and Great Britain | were, when the world war flamed, | the only two great couptries which had clung unalterably to private In every other Important country considerable portion o: all of the 1ailfoad mileage was owned or op- vrated by the government. In Brit- ain, as here, the necessities of war | persuaded the government to take | |over the roads, place their operation { under more rigorous control than be fore and extend financial-guaranties, In both countries the’ results were | expensive frem the viewpoint of the asury, and highly unsatisfactory {from that of the public’s.convenience ! and the accommodation of business, | In both countries, again, the experi- | gnce went far to dfspel whatever | illusions had been entertained about | the desirability of government rail- road management. . Mandatory in Britain, The parallel’ does nat- end here. When the war ended optnion in both | countries urged return of the rail- roads to cofporate management as soon as possible. In both this was effected, and—here comes the most striking coincidence of all—in both the return was accompanied by a legislative provision looking to con- sclidation .of -the many. systems into a small group of great ones. The difference was that in Great Britain the legislation was mandatory, re- {quiring that by January 1, 1923, the roads should "be consolidated ' into four great systems; here 1t was per-;| {nissive and, of 'course, a much larger number of systems is pro- j posed. The British program has been: carried into effect; there are now four. systems in the country, all organized around the same general idea of in- |creasing efficiency and providing | their financial gtability. White thie reorganization has heen effect only: a few months, | ¢arly results are reported to justify| fully :the expectation of better con- ditiops under it. It is regarded as a long step toward permanent settle- | ment, on a basis fair to the owners | of the propérties, and to the public | Interést in Eood sirvice at the lowest | Dessible rates. \ ‘The necessity for early adoption of this or some other program to nlsce the rallroads on a sound basis is so | pressing as to make it a matter of ; deep’ national concern. \There is no other issue of greater importance, | for herein lies in large part the so- lution of the agricultural problem,! and ‘with it the assu®ance of our in- dustrial position. Nothing el-e cinf possibly progper with agriculture de- | inr‘i(.""e’d.’o:nd“af:(rtlcuiture is calling 01 relief from pres. ans- portation buiden: PR * 75,000 Miles Earn Little. Quite redently Senator Cummins, the veteran chairman of the Senate interstate commerce committee, made | the startling statement that probably 75,000 miles of our raifroads are earning so little and costing so much | i j in’ its| they cannot be adequately maintained and. expanded. .in, facility to meet ' traffic_requirements. If we realize that this means neir ‘éne-third of| the country’s railroad mileage, we will appreciate the gravity of the sit- uation. . Yet there it is. grimly star- ing us in the face, challenging our| statesmanship and business capacl Not long ago the Interstate Com- | merc . Commission actually ~granted | the necessary authorization to tear | up and abandon one plece of over 230 | miles.of railroad. -It was no frontier line: in an_ undeveloped, uninhabited section; it was in the rith and popu- lous state of Illinois.. If the spectacle of a rallroad literally starved to death! in such a community is. alarming, it yet less a calamity in some ways than it would be in a region possess- ing fewer lines capable of taking over the public service. A majotity of the people tributary to it will, by going a few miles farther, get transporta- tion from other roads. But there is no such solution of the problem for many ~ extensive communities now served by foads, In financial distress, . There:.-are gome roads—many of the smaller dues, in fact—whose con- tinued operation is absolutely vital 'ta many: thousands of peopie, to con- siderable towhs, fo large areas of <€ourtry, whose revenues simply can- ‘not proyvide * filnancial facilities through earning,, pending a consider- able growth in community population, say nothing of earning any return whatever on capithl invested. No legerdemain of court processes, re- ceivers' cértificates, or financial jug- sling, can save them. They must! get Moré revenue or stronger sUPPOrt or quit operating until the country is more largely developed. We shall contribute nothing to solving their problem by agreeing that they ought not to have been bullt so soon. Nor shall we help by talking about the wickedness of men who, years ago, exploited the public, watered stocks and did other reprehensible things. No panacea will be found in statistics proving that some other -roads are earning more than they need, unless we find an equitable’ way to co-or- dinate the activities:of .the strong roads to develop. the .weak ones. Up to Government. The railways have become pub- licly sponsored institutions, and gov- ernment must find a way to avoid confiscation, aveld " starvation and malntain scrvice and a proper Te- turn upon capital which will assurs them a-growth ‘commensurate with the country's development. We are ali’ agreed that to abandon any important share of railrosd mile- age is Inconceivgble. .We.cannot do it b:;uuo xf”o&‘ llren‘gybdepen‘dal;t on railroads woul e ruined; ‘and because, Turther. in & not very distant- futuré ' wé “should be com- to put them back, or their equivalent in capacity for service. They must be ‘saved. ere are just three pos- sible ways to do it: 1. For the government to take bear all the loss without any of the profits of rallrcad management. thél. | Sure the credit of the rallroads, as- | | deficiency by borrowing the ears of nidll s Aames e god e X6 A A st 5 D. 'SATURDAY, igh Lights of President’s Speech At Kansas City on Transportation y Holds consolidation of the railroads of the country into a small number of sy$tems-is a justifiable step, full of promise toward solu- tion of the transportation problem. _ * k¥ Only alternative “the one great committment—government qperation—would be 3 collosaF blunder, which would destroy initia- s tive, infect.us.with.political carruption and impose incalcuable cost “on the public treasury.” 7 - E = © W k% “... Frankly declares of relations between the carriers and their employes that there is little hope for solution until all concerned are ‘ready to ‘comiply prémptly with the Rail Labor Board’s de- cisions; doés not.hope iforcompliance on the part of the employes 50 long as decisions are ignored by the managers. 3 > : ¥ k ok " - “E do notbefieve. it is.possible, under our form of government, to compel men to work against their will, and do not think it desir- able under any form of goverfiment.” : As:cns'p_roposcd consolidation will effect a diminuition in rates without” making a net return impossible. Expects legislation to further amplify the provisions for consolidation will be brought be- fore Congress.at the next season. R R § Terms railroads publicly. $ponsored institutions and the govern- ment responsibje for. finding a.way to ayoid confiscation and main- ain” Service upbii capital’ which will assure them a growth com- mensyrate “with“the:country’s deveiopment. = : * ok ok rges more use of inland waterways on which the federal gov- ernment has expended $1,130,610,000. < oY ; - * ok % . .. "There now appears to be no difficulty inhibition to the voluntary’ but the problem of reconci ferent ownerships. and m: systems has, proved a task B about any constitutional consolidation as authorized by Congress, ling the interests of the hundreds of dif- anagements of lines to be merged into for which no solution has been found.” 2. For the government to take all the rallrouds, convert them Into one | igantic pool, and plunge into the | manding. ex ’I.l‘ the presgnt . state of the publip | tions er shortages of cars follow, and treasury and of tax burders, and in an unfair burden Is Imposed on those the lght of recont sad experianc: | roads which sincerely try to meet the vernment management, this is | demands of - thi, - not to be cnnnI‘d{rml 1 believe it | tion. SR demosallzsdalcon would be politichlly, socially and | economically, disaftrous. | | no company can be certain of com- Proposed Freight Car Pool. To mect this condition, the proposal |of a natfon-wide car pool has lately attracted much attention. The Pull- Iman Company fairly illustrates what fa meant. This great corporation 3. The plan of' consolidations al- ready outlined. bringing economlics In operation, financial stability, abil- ity to secyre: nedded .capltal, adjust ing rates ahd regulations’ to the necessities of the position and pre- sorving the real advantages of com- petition .in service, while avoiding the evils pf govérnment ownership. Little Doubt of Preference. As among these possibilities there can be little doubt preference for th certain kinds of cars, on a rental basis. ' Applylng the ‘sama idea to the provisions of freight cars, you have a rough notlon of the proposed car pool. of the public Orkanization; make possible the en- third program. It lIStment.of adequate capital to pro- is not unjust to the strong roade, for Vide for the w the prosperity of these, like the 2like; place the enti; prosperity of all industry depends Under a .single cen: an Keeping 'the ‘countty o4 & Hhs (which. wWould' Insave: eantey o prosperous. Evefy mile of railroad 0808 and sections. There trackage [n the land helps to make Others who insist it would not business for'every other mile. The L6Ct the present evils, transportation system must ocon- sidered .as a unity, preciscly as the nation iteelf must be' considered, In this manner we will best help to in- | re organization tralized control |In any event the system of consolida tlon would in effect clear up many dificulties in car distribution. sist them to new capital for future | ot oo BOow. to_an entively: alf- gxpansion and inure for the future AT hasaiof e trenagottation B e sort of wildcat and com- | . . potitive rallread construetion which | (080, the continuity, the assurance of Niving baok hins been yoponsible for |nacessgry in tramsportation benl R el Drmo‘“ Yaonemically | €8s that is done today depends on thjustificd. - genomicglly | the certainty that the goods can be yiThere is another. particlar ‘Fenson | qouNeSed tomorrow. | If - there s 4 ";‘l}';;:;he f:;lvvfl!f“mlo? of the |the deliveries being made tomorrow. Jonk step. towart molmg Suid De 8 |there will be unwillingness to bu I ot “Rasornariyioliing the prdb- |ang sall today. . All of Which bringy Jem fldw‘m(g ;llr“ny "»’:T{T.Se‘x’i’:‘n’&-:", to con;lderltlon of the relations weak ronds are unable to provale i el 'Z?.f'p'i"’,?,'e'e“.""“ pIREnlne o rolling stock. they. need. Inade- 2 quacy of ‘car bervice hindered- the re- Suspension Is Fata lief of the-coal sjtuation-last winter: it denied the farmer a market when prices were most advantageous and has Impeded fanufacturing” indu. try time and again. ‘Tt Is fair to say the railwaye- ware, helplesa because they were “financlally“and ofherwise unable to keep np with the demands for service. Previlling practiees fur- ther embarrassed the situation. Roads inadequately equipped make up their a® I know, in which suspension of operations can produce astrous results as-in transportation. The vital importance of this service clusion that it ou absolutely to forbid and prevent rail- road employees from striking. not belleve it form of government to compel men to work against their will, and do not think it desirable under any form of government. I say this, fully recollecting my vote in the Senate in other roads. When a foreign car comes to one of these parasite lines it is not returned promptly, - but often is deliberately retained. President Reaches Hutchinson To Combat Unrest of Farmers (Continued fron® First Pa - | President. told the farmers of the country that| Mr. Harding's speech is scheduled they must frankly take note “of the|to begin at 2 o'clock at the state fair wage developmeni which will yicld | grounds.” Amplifiers have been in- no reduction”in the principal item of | stalled to carry the President's volce operating cost of America’s railroads | to every person in the audience. and seek conditions under which re-| The President's train is scheduled ductions in’other fixed charges may | to depart at 5 o'clock this afternoon be obtained.” He suggests economies | for Denver, in terminal costs and rentals as one factor and general reduction in over- | P “Harding a1d ot fanl to_ take DISGU§S FORMATION OF DIOCESAN CLUB into account the sentiment of the | agricultural region in which he is Episcopal Clergymen Consider Proposal and Appoint Commit- travelingy - Here the revolt of last | vear has not subsided. The farmer tee to Prepare Report. discontent - {8 noticeable and con- stitutes the biggest problem of his political future, especially’.since he now has removed the world court issue and found domestic ‘questions of paramount importanee. (Copyright, 1953.) PARTY IN HUTCHINSON. Feasibility of establishing a dlo- cesan club in Washington was dis- cussed at a meeting of clergymen of the Episcopal Diocese of Washington, in the Kemper Bocock Memorial building, 1075 Jefferson street north- west, last night. A committee was appointed to investigate and report on the proposal. Bishon-elect James E. Freeman presided at the meeting. Dr. Freeman urged & closer relationship between the city and country clergy, as well as among the local clerymen them- selves. . . Rev. Francis Metcalf of Mechanics- ville, Md., told of the need of a social club where the clergy might become better acquainted. Rev..C. W. Whitmore approved of a plan for the raising of a sufficient sum of money for the running of a boys' club, stating that the average clergy- man would find more pleasure in visit- ing a boys’ club as a means of passing away the time than he would attending a clerymen’s club. The Kemper Bocock Memorial build- ing was discussed as a probable home either for the boys’' club or the pro- 'posed diocesan club. The structure, it was pointed out, was built fourteen years ago by Mrs. Margaret Dupont Lee to serve as a boys' club. The donor recently authorized the Rev. H. L. Durrant of the Grace Episcopal Church of Georgetown to dispose of the property and use the funds for the benefit of the church. Bishop-elect Freeman appointed the following committee to report on the matter next September: George R. Wales, a member of the federal ' Civil Service Commission, chairman; the Rev. John S. Moses of St. John's Church, Georgetown; the Rev. D. R. Covell of the Episcopal City Mission, the Rev. D. W. Curran of the diocesan office, the Rev. F. S. Metcalt of All Faith Church, St. Marys county, Md.; the Rev. C. E. Smith of 8t. Thomas' Church, Corcoran Thom, H. L. Ruat, Stephen E. Kramer, Dr. Marcus. Benjamin and Byron S. Adams. - « German women members of the reichstag have adapted themselves with surprising ease to the political duties’ upon the: In debates they excel the men members. President-“Expected to Drive Thresher on Farm. By the Associated Press. HUTCHINSON, " Kan;_June 23.— President Harding, and party arrived in Hutchinson at 9:59 a.m. today for a day's stop in the heart of the Kansas wheat belt and a scheduled address this afternvon op egricul- ture. The President had virtually recov- efed today {rdm’ the sévebe sunburn wiifch® ‘resultéd’ 7from * & . fifteen-mile ride yesterdey at Kansas City, which led him.to cancel some minor events on his schedule there. As the Pres- ident’s train traveled toward Hutchin- son’ tire indicatiofis ‘Were for a con- fifiuaiice of the oppressive heat...The route turns northward to Denver after the visit to Hutchinson; and members of the party were hopeful of encountering: cooler weather. :May Be at Official Opening. Official opening of the Kansas wheat harvest season by the President s on the strenuous program planned for after the President's arrival at 10 o'clock; and a brief_speech to children embled in' a centrally located park. It is planned for Mr. Harding to motor.to the farm of Chester O'Neal eight ‘mlles out, and operate a com- blnation” thresher -and binder of to Thake a shock of wheat, ¥ Sliould the President accede;: it is B Takon 4o 2 milk In Stuscinson and convm:d‘ln&'i Sur td be'! n to the schipf , executive's train chef om, th for biscults. The program includes bestowal of an honorary membership in the Kan- sas Wheat Growers’ Association upon Typographical Union, No. 243, plans to give the President a gold malke- rule at @ public reception. At 12:30 p.m. the lst Battalion of the Kansas National Guard will fire a President and seventeen for J. M. Da. vis, Governor of Kansas, here witl free movement of cars is prevented; ! provides: most of the rallroads with: It is urged by advocates; that it would unify the rolling-stock eak and strong roads | | e | tion. cor- | and would | |divide responsibility and make regu- | |lation and supervision more difficult. | | third party in interest has, down to | righteous adjustment ‘between trains running and | i the employers | __There 1s no other business, so far| such dis- | { | plover and employe for which has brought many people to the con- | ght to be possibla | I doj possible under our| The |favor of the antistrike provision of | ) other prominent Kansans to greet the | | from " Georgia; JUNE 23, 1923. the rcilroad act of 1930. That was not- a provision - denylng men the rliht to strike. It was merely a re- quirement that . before the men should strike or the employer should lock _them out, both sides should submit their differences to a properly constituted and impartial tribunal, empowered to consider the facts, de- termine the merits, and make an award. Would Prevent Eockout. It was belleved that in the vast ma- Jority of cases this procedure would prevent -lockouts and strikes, and, in view of the enormous loss to the car- riers, to their employes and to the public resulting from strikes, I pro- foundly regret that it should not have been possible to give the plan a fair trial. “When I say a fair trial, I mean 2 trial under conditions fully and frankly acceptable to all interests. I do not believe that in such a situation a fair trial Is possible unless both sides have absolute confidence in the fai ness of the tribunal and are sincerely willing to accept its verdict. If human wisdom shall ever be capable of setting up such a tribunal as that, and of in- spiring both sides of the controversy with complete confidence in it, we wiil have traveled a long way toward in- dustrial peace. Personally, I have confidence that the thing 1s possible. 1 belleve so |firmly in the underlying common sense | of both organized industry and or- ganized labor, and in the fairness to- | ward both on the part of the great public on which both of them are final- y dependent, that I belleve at last it will be possible to arrive at settle- ment of industrial disputes in_ public | services by such a method. Let me | say so plainly that there will be no | misunderstanding, that fn most dis- | putes which end in strikes or lock- outs I do not believe the difference Wwhich at last divides the two sides| very often represents any underlying question of human rights and human Justice. U. S. Terms Accepted. There was an interesting illustration {in the strike last year of the railway |shopmen. The government sought to effect a settlemeént that had for its firm foundation the pledged acceptance by both managers and employes of the decisions of the Rallway Labor Board. To such a settlement the | spokesmen of managers and employes | gave their pledge, but the managers | jTelected the agreement on the ground | that it did not do justice to the new employes who were take: strike began. Much was made of the {issue, but in the end all settlements | {were effected on precisely the terms | the government proposed. Yet the | jagreement to abide by the Labor Board | decision was lost in and the separate jwere effected. { It is fncscapable that the govern- ment feels the Importance of public | ilntt-l'(-at and right in connection with | the settlement of such questions. The | vital existence of the nation now de- pends upon continuity of transporta- | tion. In recent years it has come to | be accepted that there are three par- ties, rather than two, to every con- troversy between the employer and | employe of a public service corpora- | The cmployer is one, the em- | ploye is another and the great public, Wwhich _must have the right to con- | sume and to be served, is the third, It we are quite frank among our- | sclves we will have to admit that. in | deallng with such controversies the ! settlements which this time, decidedly received the least‘ consideration. Yet the public is the | party on which finally must be placed | the burden of whatever adjustment is | effected. | Co-operation Not Forthcoming. As a means i of making possible | rail- roads and their emploves, with due | regard for the interest of the public| which pays, the government estab- | lished a railroad labor board. It was | assumed that this organization, re- quired to represent in equal numbers | the employes and the public, would command the confidence | of all’sides and that its determina- tions would be accepted. Unfortun- ately, for reasons which are the sub- degt of no little controversy, the board hds never had the co-operation of em- | its authors hoped. For myself, I am not convinced that the test has been a| complete or entirely fair one, and I| favor, not its abandonment, but fts | continuance under such modifications | as seem most likely to make the plan successful. But there is little to hope for until &ll concerned are ready (o | comply promptly with the board's de- cisions. I am frank to say I do not hope for compliance on the part of APEALSTOKIL INDICTMENT BEGUN Counsel Present Arguments in Lumber War Fraud | Case.- Justice Bailey of the District Su- preme Cburt today took under ad- | visement arguments of counsel in thé war fraud lumber indictment on the question of the invalidating of the indictment by reason of the alleged unauthorized presence in the grand jury room of J. G. Winston, a stenog- rapher of the Department of Jus- tice. Those Indicted are John L. Phiilips, republican committeeman John _Stephens, his partner in the lumber business; Er- nest C. Moore, former sales director | of the War Department; Charles S.| Shotwell, George M. Chambers, Frank | T. Sullivan, Roland Perry, Charles| Phillips, jr., Gus Bitten and Mitchell A. Touart, jr. Counsel for the accused claim that ‘Winston acted only a stenographer | and his designation as a_special as- sistant to the Attorney General was unsound. The government denied this and asserted that Mr. Winston was duly appointed by the Attorney Gen- eral and was thereby authorized to be present in the grand jury room when the witnesses were examined, The lawyers for the accused averred that his presence was unauthorized and that it invalidated the indict- ment. Attorneys Conrad H. Syme and George . Sullivan appeared for the accused. L DENMARK BANKER DIES. COPENHAGEN, June 23.—Emil Gluckstadt, state councilor and former manager of the Landsmans- bank, is dead in prison. He was arrested last March for publishing a false balance sheet. Pastor Uses Own Ring to Prevent Wedding Mix-U p! Speclal Dispatch to The Star. MARTINSBURG, W. Va., June 23. —Resourcefulness of the Rev. W. T. Hall, averted embarrassment at the marriage of Miss Myra Blake to John D. Kern-in the First Baptist Church here. 5 The ring bedrer, a little girl, playfully unpinned the wedding ring during the prayer and it rolled off the plate. When the mo- ment arrived for the rin the minister slipped off his own signet ring and proceeded with the service. Not more than a score of persons In the church realized what had happened. The wedding ring was found half an hour later. | the country could Sur‘e. Government Operation Would Be Colossal Blunder Failure of Grouping, However, Will En- force This Costlier Experiment, Chi f Executive Warns Nation. emploves go _long as decisions areevolution from the oxcart to motor ignored by the managers. age. The automobile and motor truck There is another highly important|bhave made greater inroads on railway phase of the transportation problem |revenues than th very much worth our attention. I be- lieve the usé of our inland waterways offer the one sure way carrying charges on basic materlals, | tion. heavy cargoes and farm products. Probably all of us acknowledge the|WIth the raflways, rather than urgent need of diminished cost agricultural shipments and many bulk cargoes essential to manufactur- ing industry. While it is well estab. lished by the Boston milk case de- cislon Yhat public necessity justifie carrying a commodity at less than cost, the service at less than cost on the ‘larger tonnage of the country on to reducad | backward step in does ot offer the righteous solution. | We ought to try the experiment of co-ordinating rail and water ship- ments, we ought to avall ourselves of penditures of enormous public funds and we ought to give the waterway carriers a chance to prove their c pacity for helpful service. $1,130,610,000 Spent on Rivers. The federal government has ex- pended approximately $1,130,610,000 on river and harbor improvement. Only last spring the Congress appro. priated $36,589,910, in spite of a bud- get recommendation of less than half. For the sums spent on harbors we have most beneficial results. The mil- lions expended on inland waterways, on rivers and canals, have brought small returns because we have put them to no practical use. Though we and to facilitate transportation, we have failed in co-ordinating service and have allowed the rallroads discourage every worth-while devel- opment. ~ Where barge and packet been such an unfair divisiof of the joint carrying charge that waterway development has been impeded, and Where service lines by water have been established the hoped-for dim- inution of rates has been denied or avoided until the plea of cheapened transportation by water has seemed a mockery. 1 believe we should encourage our water service, we should encourage and enforce co-ordinated serv should see to an equitable division of rates and exact rate reductions when- fully under rate reductions. It 1s a very discouraging picture to contemplate the expenditure of $50,000,000. of public funds on an in- that waterway has diminished more than half, while the waterway itself is made better and better year by year. We have eiteher wasted many hundreds of millions in blind folly or have been inexcusably remiss in turning our expenditures to practical account. 1 wish leadership of ee the need of this employment of our water routes as an essential factor in perfected transportation, and join in alding the feasible plan of co-ordinating service and cheapening charges, not alone the raflway clent public service, but as a means of ending the peril of their own for- tunes, Motor Truck Makes Inroads. No thoughtful sentiment in Amer- ica will tolerate the financial ruin of the railroads But the people do wish, now that exploitation has been ended, to have their transportation adequate to the country’s needs, and desire all our facilities brought into efficient service. They wish to make sure of the ample agencies, and they demand the least carrying charge which will make an adequate return to capital and at the same time per- mit extenslons and additions and en- hmnced equipment essential to the best transportation in the werld. We have not fully appraised the Cannibal Stigma Is Erased From Fireland By the Associated Press. CHICAGO, June 23.—Living for more than a century under the stigma of being cannibals and with- out religion, the Yaggan Indians of Tierra del Fuergo, or “Fireland,” the | southernmost inhabited land of the globe, recently have been revealed as & moral people, never guilty of cannibalism and possessing a highly developed religion and a beautiful language. This_ knowledge was obtained through the investigations of Father Willlam Koppers and Father P. M. Gusinde, vice president of the philo- logical museum. JUDGE IS LENIENT Father Who Killed Son Dur- ing Quarrel With Wife Given Temporary Liberty. Justice - Stafford, in Criminal Division 1, today continued until Oc- tober 5 the imposition of sentence on Andrew Griffin, colored, convicted of manslaughter in connection with the killing of his five-year-old son Wil- bur during a quarrel with his wife. The court éxplained that the law does not permit probation, but the man has been severely punished by the loss of his child to whom he was much attached. Grifin had been drinking at the time of the tragedy. The justice wishes to see how the; man, who is at liberty on bail, con- ducts himself in the interim. Clemency -extended by the court some months ago to two young white men convicted of violating the “dope” law was revoked todiy by Justice Stafford, Sentences of one year each at Occoquan were imposed on Edward C. Fanning and James F. O'Cennor on complaint of. the probation officer that they were not living up to the terms of the probation. Justice Stafford extended clemency to four other prisoners by suspend- ing sentence and placing them under the care of Probation Officer Steele. Two were charged with housebreak- ing and two with violating the anti- narcotic A&w, and they will be on their good behavior for three years. Walter Jones, colored, and Raymond A. Truitt, white, were the ones charged with housebreaking and Thomas H. Noonan and Guy R. Knott the alleged dope user: | | the waterways developed through ex- | mend on after the | ©Xpended to cheapen carrying charges | | to the days of anxfety | Service has been established there has | {land waterway when the tonnage on | {as a means of popularized and efi- | | inheritances and | iever practicable to operate success-| Put it e electric lines with intimate appeal to the locai There will never be a motor transpo: But we shall do better if find a plan to co-ordinate this service en- In motor transport already promises relief to our congested erminals through better co-ordina- jon. We have come to the poinr where we need all the statecraft i businese to find the way of making transportation in its varied form adequate to the requifements of American commerce, to afford transportation its due reward fc ervice, without taking from produc- tion and trade a hindering exaction. Confiscation Not Solution. I cannot too greatly stress the im- portance of this great problem. It cannot be solved by those who com- the policy of confiscation destruction, nor_can it be solved b those who makeé a prejudiced appeal for political favor. We must frankly ecognize the exactions imposed upon the American farmer during the war expansion of rates, take note wage development. which will no reduction in the principal of operating cost, and seek tions under which w. have the requisite reductions in fixed charges which will afford- encouraging re- lief. If consolidations with din sts, with terminal prov- ed and terminal charges greatly re- duced, will not afford the solution then our failure will enforce a costlier experiment and the one great commitment which I hope the United States will forever escane. We are dwelling now am fsing return to prospe tions. I do not share the ng that the recovery is a m n- porary one. with impending relapse. The guaranty of permanence lies cur doing the things essential the cquitable shar of _our good fortune. There can no abiding prosperity in indust centers, in transportation or elsewhere, unless it is properly shared by American agriculture. Government can ma no direct bestowal of good fortun is the duty of government tn tain conditions under whic oppertunity for good fortur the heritage of ev Ameri everywhere. their community. courage destructive competition. deed, the 1a grati- be mai equ: Arnect of Government Lost. Under our representative demo- cracy we find ourselves absorbed in issues which more or less concern ue in our individual affairs, but we lose the aspect of government as a whole and take it as a matter of course. It is our accepted practice rather than a deliberate intent. Americans ought ever be asking themselves about their concept of the ideal republic. I take it to be one of univerzal good fodtune, where freedom is as complete, under the law, as pustice is unfailing Within the iaw’ as justice is unfailing witnin the freetdom’s opportunity nd the re- ward of merit are held as sacred citizens are made fit to embrace beckoning opportunity Above all else, since w are the great exemplars of rdpresentative democracy, ours should be a land of unquestioned loyalty to the great fundamentals on which we are buili- ed, to which Americans are com- mitted by birth, or declare allegiance when they are adopted. We have achieved most notably in develop- ment; let us make sure of the preser- vation and hold ourselves equipped for the continued triumphs of prog- ress at home and unafraid to play a great people's becoming part In the affairs of the world JEWELRY AUCTION mdians - PERMIT REVOKED Better Business Bureau Makes First Move in Clean-Up Campaign. The Commissioners have revoked the permit of one downtown jewelrs auction house in connection with the campaign of the Better Business Bu reau and the Merchants and Manu- facturers’ Assoclation to prevent al- leged misrepresentation at such jew- elry sales. Corporation Counsel Stephens said | today the revocation was based on TOWARD SLAYER the act passed by Congress in 1916, under which the Commissioners were given authority to control the repre- sentations made at auction sales as to the quality ‘and character of the goods sold. The corporation counsel said steps probably will be taken to present th case to the Police Court next week but a warrant has not yet been ob- tained. The action taken yesterday follow- ed a_conference between Commission- ers Rudolph and Oyster and the com- mittees from the merchant's associa- tion and the business bureau. At that conference R. B. H. Lyon, attorney for the bureau, outlined the laws applying to auctions, while Frank Black, acting director of the bureau, cited Instances of alleged violations. “We are greatly gratified with the prompt and efficient -co-opération of the District officials,” Mr. Black stat- ed, “and the Better Business Bureau will continue its active surveyance of questionable sales with a view to immediately reporting violations of either the advertising or the auction- eering acts to the proper authorities. where we are assured prompt action will be_ taken. “In jewelry auctions it is practi- cally impossible for the consumer to judge value as the auctioneer exhib- its the article preparatory to bidding and therefore the buyer must depend entirely upon the representations as to quality and value put forward by the_auctioneer himself. “Not only is there the tendency to misrepresent the value and quality of the goods offered for sale, but it has been found in the past that there is the temptation to bring outslde merchandise into the stocks for which the auction license was issued.” PERSIA SEEKS LOAN. TEHERAN, Persia, June 23.—The national assembly, by a vote of 50 to 23, has authorized the finance depart- ment to raise a $5,000,000 loan. The loan would run for a period of from elght to fifteen years, with interest not exceeding 8 per cent. The finance department also may try to negotiate with American banks a further loan at $35,000,000 pending ratification of the project by the na- tional assembly.

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