Evening Star Newspaper, August 26, 1923, Page 37

EDITORIAE‘_PQDE NATIONAL PROBLEMS o SPECIAL ARTICLES" Part 2—20 Pages LONGER PRESIDENTIAL TERM CURB TO BURDEN Indecision in Early Days of U. S. to Make Tenure Seven Years With Ineligibility to Re-election Is Recalled. BY WILL F. KENNEDY. HE sudden passing of Presi- dent Harding as a martyr to public service has called popular attention again to the durdens of that office and leaders in Congress are studying measures to afford necessary rellef. Senators Cummins of lowa, Harris of Georgia and others already have issued state- ments on this subject. The Institute for Government Research, which has been making a scientific study of the problems of public administration, also advocated progressive im- provement. Now comes Senator Simeon D). Fess of Ohio, recognized as an authority on government, who says that the most natural proposal is to change the tenure of oflice to six or seven vears and forbid immediate re- election, a change which would require an amendment to the consti- tutfon. “Doubtless early action will Le ‘taken by Congress and the states will readily ratify the proposal when once made.” Senator An additional propo gate much of the detail «thers, which could be done by legis- lation The has 1l is to del work to first the convention on the tenure of the ident was seven years and in- eligibili for re-election, Senator Fess recalls. After discussion this was changed to four years Wwith cligibility for re-election. The pre- vailing argument that led to the change wa: prot bitious report in constitu- tive had not & semblance of the power of the British king. and w the governor of New Jersery. Argument Against Re-election. Against ineligibility to re-clection the argument set forth the following *(1) A diminution of induce- ) s less than York or New reason ment to good behavior in office; it would remove the temptation to pordid views to peculation and to usarpation: (3) the deprivation of the public of the valuable experience ac- quired in office; (#) the banishment frogm power of a leader at the time of an cmergency that pectedly arise when his leadership would be imperative, and (5) it would onerate constitutional interdic- tion of stability on administration. At the time might unex- this line of reasoning was decisive and the tenure was re- duged to four years with the privilege of re-dlection so often as the electors chose. In tfe 136 years of national growth that ded changes have occurred. powers of the Executive show the American President possessed of greater power than any ruler in any other constitutional government, Sen- ator Fess emphasizes. This power has constantly increased until he is the most powerful officeholder of the world, while that of the British king he is merely sinee n many The relative constantly decreased until gurghead. Every year Congress adds by legislation to the President’s duties in the enact- ment of laws authorizing the Presi- dent, thus and so. Since the war numerous commis- sions, many permanent in character, have been created. Each looks for appolntments and organization to the President, to whom it reports. While much of the detail is handled by heads of departments, bureau chiefs, etc., it all comes back to the Presi- dent for final decision. Postofiice Department Cited. As a good example, Senator Fess cltes the Post Office Department. Here is a government agency doing over a half billion dollars of business each vear, employing more than 332,000 persons, touching the public at every Ipoint. The President has been un- ‘able to detach himself from final di- pection of this great service. As an Yxagmple of added burdens by legis- Jatlon—witncss the President's re- pgnsibility for the federal budget. Bp very genius of this legislation was to make the spending depart- ment, which is the executive, respon- sible for expenditures, to be audited by an independent auditor not subject to’ the executive, but to Congress, gwhich alone can remove him by im- cachment. The operation of this law most wearing upon the President. Fince it went Into operation Presi- aent Harding felt it necessary to call info conference more than once the watious bureau chiefs to instruct if ot to lssue orders. Executive orders have been issued directing many items of detall. Only recently one was ls- sued which required the return of unexpended balances back into the Treasury, instead of, as heretofore, permitting these heads to issue or- ders that no balance was to be unex- pended. It has been suggested that this bur- den should be shifted from the Presi- dent to cabinet heads. This cannot be done safely, Senator Fess and other ‘students of political economy protest, because each cabinet head is too apt to fall in with the unneces- sary demands of departments, espe- cially such as the Army and Navy. As a pertinent example we now have tho Navy Department demanding $350,000,000 for next year, which the budget director announces must be reduced to at least $30,000,000. Objections are Offered. A recent suggestion is to have this function given over to the vice presi- dent. To this substantial objections are offered, not the least of which is that under our system at the present time we have no vice president. Just now the presiding officer of the Sen- ate until March 4, 1925, will not be vice president, but a senator, who, as such, votes on all questions, but does not have a deciding vote in case of a tle as has the vice president. A that the shorter term was n against an avaricious, am and dangerous executive. The discussion ranged from clection for one year to life. Much was heard about the despotism of George IIT and the dangerous power of the king. Hamilton showed the proposed Execu- |be to-make the budget director the head of a bareau of which the chair- man of the House appropriations com- mitteo and the chairman ‘of the Sen- ate appropriations committee would be members, to administer this system. Steps must be ‘taken to lessen the burdens of detall now carried by the President. This can be partially remedied by the President himself without further legislation. It has executive responsible for his office wishes to exercise the power that goes with the responsibility. He is reluctant to delegate to others even the detalls in which official influence resides. It serves as the connecting link between leaders of the party in power and the President. The situa- tion is greatly aggravated by the eligibility to re-election. Not infrequently much of the energy of the head of the adminis- tration during the first term is ex- peuded in getting ready for re-elec- tion. This is not necessarily the wish or judgment of the President. It is not his cheic but the case is made out for him by the exigencies of the office and party responsibility. In the case of our lamented Harding. who never was enamored with the Presi- dency, who had many times expressed his preference to remain in the Sen- and who was so indifferent personally to re-election that a portion of the press persisted that he would not stand for renomination—much of his time had to be given over to leaders and issues, national and state, looking to party success. This Involved the President, whether he willed it or not. His own wishes were not and could not be considered. To deny him a renomination, or for him to decline it, in either case would be tantamount in the public mind to a confession of failure, and would render valueless the party nomination to any one else. Prevents Sound Judgment. This situation has Senator Fess argues, to prevent the exercise of sound and indepedent judgment in the face of great clamor and enthusiastic advocacy of meas- ures. In the case of Harding's bonus veto tremendous pressure was cen- tered upon him to take that stand. It was placed by leaders .on party necessity. A less .courageous man would not have taken his position. It was urged that he should not act as a man of independent judgment, but rather as a leader acting in party in- terest liability feels.” Ineligibility would remove the grounds which today make the Presi- dent too much the head of the party rather than the head of the govern- ment, no matter how much he might detest the discrimination. The six or seven years term is long enough to develop a real policy, advocates of this reform contend, and would en- able an administration to accomplish better results than two terms of four years each, because of the over em- phasis of party success rather than of the general good. This applies to too much legislation fully as much as to the character of legislation The objection to ineligibility pre- viously enumerated will not hold. No man who reaches the high office of President needs the spur of re-elec- tion to insure good behavior or to guard against usurpation and sordid views. Nelther would a longer term deprive the country of experience, but rather Insure it.’ It has.been demonstrated that no man has been so indispensable that when he left office the country did not continue, and without much of & jar-to its machinery.” Our strehgth is in our system of government, our institutions, our popular -loyalty, rather than in the type of leadership. When a change in the latter takes place, the government goes on.’ The longer term would not defeat but insure greater stability of admin- istration. If for no other reason tHan the necessary rellef and protection of our President, the burdens of whose office coula not have been foreseen when the constitution was adopted, the longer term without re-election the tendency. of re-clection, Senator Fess to the-constitution, Senator Fess says, “The untimely death of President Harding, who died.as much a martyr to his country as any man who fell in battle, accentuates the importance of the change.” Origin of Man €ause of Wars? 1s the end of war at hand or will the tribes of humanity continue to fight each other until the race is de- stroyed? Sclence begs the question. It all depends, says Dr. Karl Pearson, fel- low of the Royal Soclety of Great Britain, in a paper prepared for the Smithsonian Institute here,” on whether man's first ancestor was a near relative of the gibbon or of the {chimpanzee. If the latter, Dr. Pear- son holds, there is little prospect that wars will end until many generations more have passed, and then only it the chimpanzee strain can be bred out of man, for the troglodyte tribe have fighting in the blood and never can be satisfled long without killing each other. If, on the other hand, the first man was something like a gibbon, the probability is that wars are due purely to economic reasons and caw be done away with by improving It ing conditions and placing trade rivairy, on another basis, G Then there s the possibility that some_ straine«sespe:from the gibbon- ke creature and others from the Drimaté;>Who ‘could scarcely be dis- mold Soke &t the-Zpa, not been done in the past because an | where he was happy and satisfled | Herein lies the weakness and | must be provided by an amendment{. Injects Business Into Operatlon BY G. GOULD LINCOLN. NEW policy, designed to pravide for greater efficlency in the operation of the United States Shipping Board vessels and to malke it possible eventually to have them transferred to private owner- ship and operation, is to be put into ef- fect provided President Calvin Coolidge approves. The plan has been lald before President Coolidge by Chalrman Ed- ward P. Farley. It contemplates the establishment of from twelve to eighteen subsidlary corporations, located in American ports, whose bus- iness shall be the operation of the government owned ships. The govern- jment will own all the stock of these corporations and will name the dtrectors Each of these corporations will have control and ownership of the vessels assigned to it, and will own and control all the terminal facilities which it uses. Bach will be complete, in that the business and good will lattached to the lines it operates will be part and parcel of the asscts of the corporation. 014 Contracts to Disappear. The old manager-operator contr: !under which the shipping board sels have Leen and are being operated will go by the board. The question not unnaturally arises: Is the government going in for direct government operation of the Shipping Board vessels in its new venture? In the first place, there has never been -anything but government opera- |tion of the Shipping Board vessels. It Las gone by the name of the manager- agent system. But the word of the gov- ernment has been law under these con- tracts. The government has paid all the losses and has allowed-the mana- ger-agent or operator a certain per- centage—5 per cént of the gross re- ceipts on outward-bound frelght, ex- cept bulk cargoes, on which the rate is 21 per cent, and 2! per cent on in- bound freight. Now the proposal is that the ships shall be operated by subsidiary cor- porations. The government will con- tinue to pay such losses as there may be—though it is believed that these losses under the new plaa will be {constantly reduced. Dut the govern- {ment on the other hand will not be | l l ! paying any percentage of its receipts on its shipping business to manager- agents. Under the existing plan the manager-agents have the terminal facllities, they have the business and the good will that goesiwith it, al- though the *government's mogey been used to acquire these a¥sdts. Will Meet Desired Ends. | TUnder the law, the Shipping Board |is directed to do all in its power to | bring about the private ownership land operation of the vessels now owned and operated by the govern- ment. The new policy advanced, it is contended, will go far toward bringing such results. In the first place, when the govern- ment next begins to look for a purchaser for the vessels—or a purchaser tackles the government with = proposition to buy—the government will have something to sell. It will have a going concern, owning vessels, terminals, business and good will, in fact, an attractive property. The government has made ineffec- tual attempts to sell its existing lines, operated under the manager-agent e EDWARD P. FARLEY plan. It has offered them for nlel at low terms, provided the purchasers | will agree to malntain the lines of trade built.up under the present gov- ernment operation for periods of | three to five years. But no pur-| chasers have been found. This is| easily explainable. The. manager- | agents have no incentive to buy. They | are receiving their -regular percent- | age on the gross business the S are doing. The. government is pay- ing all Josses. In othen words, they | ! the business bulit up by a railroad company and the good will attaching thereto, and its termina) facilities. Better Propesition Possible. But when the government subsidiary corporations have ships, terminal fa- cilities, business and good will all to offer, the proposition is a vastly dif- ferent thing: It ‘is confidently expected that the new plan will result in greater ef- ficlency; that the deficlt of $40,000,000 now faced by the Shipping Board for the operation of the vessels each year will be reduced greatly, and that when private interests ‘are aware of this and the growing business of the merehant marine corporations, there will be purchasers. In 2 measure, the new plan-provides for decentralization of the present method of government operation of the shipping. board vessels. . The Emergency Fleet Corporation will continue in Washington. It will, in one sense, be the parent corporation. It will be the connecting link be- tween the Shipping Board and the various subsidiary corporations. It will be possible, however, to reduce the number of employes of the Fleet Corporation here. But the decentrali- zation plan will bring with it a re- duction also in governmental rcd tape. It will permit of the decision in mat- ters of policy and administration to meet certain particular local condi- tions. The new plan has been considered so far in general terms. One detall, however, that may be worked out is the appointment of members of the +| Shipping Board as directors of the have a sure thing. Why not con- tinue it? Other persons outside the manager-agents could scarcely be expected to buy, since all they could purchase from the government would Le the vessels themselves, Terminal tacilities, business and good will the: could not obtain from the govern- ment, for those are controlled by the present ‘manager agents. It would be just as reasonable to ex- | pect a ready sale of rallroad tracks and rolling stocks, without fncluding WhyOnce Proud U.S. Ships Fled From the Seven Seas BY W. H. SMITH. One of the great desires of Presi- dent Harding’s heart was to re- habilitate the American merchant ma- rine, and it is understood President Coolidge has the same desire. There was a time when the Ameri- can merchant marine covered every sea; its flag was seen in every port; its sallors were the best scamen afloat. ‘What change? What drove American vessels into hiding? Was it because American sallors brought about the great merchant lost their knack of superior seaman- ship? Was it because merchants and ship owners lost their hold on pub- lic confidence, or was this disaster brought about by the lack of states- manship on the part of our law- makers? The simple story of the rise and decadence of our merchant marine will answer in strong and unmistak- abls terms each of these questions. ‘When we were still colonies of Great Britain in the mother country came to America to have all her vessels | subsidtary corporations located in the section of the country from which the Shipping Board member comes. In this way the Shipping Board itself will be In close and constant contact with the subsidiary corporations. The method of selecting the members of the boards of directors, as & matter of fact, is yet to be finally settled. But the suggestion has been made that prominment interested persons in the varlous ports tvhere the corpora- tions are located will be asked to serve. The executive officlals of the corporations will, of course, be sal- aried officlals of the government. Eighty Lines, Forty Agents. The Shipping Board now has some eighty lines of cargo vessels, operated hy forty agents. These forty agen- cies will be consolldated when the new plan goes into effect, into frem twelve to elghteen subsidlary cor- porations. It is no secret that the Shipping Board vessels today are carrying a very considerable propor- tion of the commerce, of the world, and this has been brought about largely through the efforts of the gov- ernment and the expenditure of its money. The new plan, while itis to be gov- ernment operation, is to be a new kind of government operation—with the end always in mind of selling out to private interests willing to main- tain the American merchant marine as a business venture. The subsidi- ary corporations will be compelled to conform to commercial practices. There will be more business in gov- ernment. Under the old plan, there has been waste of money due to { duplication of work. There have been government auditors to check the work of the auditors of the operators (Continued on Third Page.) (Continued on Third Page.) Needs of the Nation, Not Politics, President Coolidge’s Chief Concern BY N. 0. MESSENGER. RESIDENT COOLIDGE'S political ad- visers and supporters are disposition to make a little hay while the 'sun shihes. . That is to present “era of good feeling” in the republi- can' party, manifested by the policy of repub- licans of all factions to “gne President Cool- zdge a chance to make good’ in his adminis- tration, politicians .are busying laying the foundation »ior.promoting his re- nomination. The expectation cf many of President Coolidge’s supporters is that he may become so well intrenched in popular favor by the time other possible aspirants for the nomina- tion get ready to shy their hats into the ring they may find he has gained a start which will be difficult to overtake and pass. * %k X X In the meantime, President Coolidge is devoting himself to the tasks of his office, and there is no indication of his pldying his own hand, politically. It is said visitors call upon him from-other.states he does not inquire about political but wants to know what the people are con-' cerning themselves- with} what can'be done. for the farmers; what is thought abeut lead- ing domestic and foreign issues, and*all that sort of thing. * k K K. p'oli\i:ian who h many people surrounding and President 'tell him either what they want him to believe or what:they may fancy Heé wants * to hears. “President Coolidge welcomes the opin- ions, views and judgment of others,” Pitalked with him: 2 e him, you want to.'tell tell what you think he may o hear at"trait of his, as it de- w vclops. will be a world of service to him and keep him from many a misstep. “The best friend of any Chief Executive, in his official family or out of it, is he who tells him the truth about conditions.” showing a . say, in the .nomination. themselves Coolidg “He has mhzmed the Harding organization es, and logically should be support- ed for the nomination precisely as his pre- decessor would have been had he lived. * Per- haps no man in the United States is as well qualified by, temperament and experience for the duties 'of the presidency on short notice as ‘President Coolidge.” Secretaty Work went on to point out that “he has-been closer to the President than any previous Vice President, and is as inti- and poli mately advised .of our that when net, with whom he_sat * conditions,, cans throughout the said a there.” the politicidns. So visiting a started in the middle way. - Politicians were much interested in the course of Secretary Work of the Department of the Interior in pronouncing for his're- The Secretary of the Interior is the first member of the cabinet to come out openly for his renomination. Dr. Work was a close friend and devoted admirer of President Harding. - In aletter to a political associate in Denver he wrote of President relations. and the procedure and hopes of President Harding as ‘members of the cabi- Sk kL Coincidently with the publication of Sec- retary Work’s ‘communication, Gov. Baxter of the.state of Maine started a movement for “Coolidge-for-President” He.sent telegrams to important républi- wish“to show the country that republicans of our slate believe we have the right man in the White House and.intend to keep him . New.Enj Iand’s practically unanimous. sup- port of his-cangidacy is taken for granted by Some of his backers will be interested in secing @ movement for him % Is Henry Ford really in favor of beer or is-the report.being circulated to that effect = element of * % ing visage can sniff candidate They also an effort to “double-cross” him with the dry the democratic party and the pro- hibition farmers and dry agricultural states? This question is understood to be worry- ing the boomers, ing to sandbag the leaders of the democratic party into accepting Mr. Ford as the nominec of the regular democratic party. As the sub- ject is broached, they shudder at the frown- who are alleged to be seck- of William Jennings Bryan, who a beer-odor on a suggested further than any man alive. have in mind the recent sad ex- perience. of Gov. Alfred E. Smith of New York when his wet candidacy was proposed to middle-west leader Tom Taggart and dry- south leader Senator McKellar. * ¥ Kk ¥ Suppose Henry Ford should decide to run as an independent candidate on'a light wine and beer plank; on his popularity with labor, seeking votes among the teeming millions foreign and domestic politicians for two years.” in Maine. state suggesting “we hawk. west and gain head- of the industrial regions and cities? That would giveMthe politicians in both the old parties something to worry about, it is suggested. The best judgment among is that neither of the old parties will dare take up, the near-wet cause, and that if it is espoused by any one running for the presidency he will have to be an independent with plénty of nerve, resources and courage to stake his all upon one throw for the prize. Democratic politicians are described as holding the view “that William J. Bryan is going to be mighty hard to suit with any candidate,” and they are looking forward to having a lot of trouble with him in the con- vention, They say it would seem only neces- sary for Mr. Bryan to rise in his seat and cry “Wall street” to scatter a lot of delegates fike a bunch of chickens at the hovermg of a With that two-thirds rule always at hand to be invoked, they realize he possesses a powerful lever for overturning any one to whom he may find objection. But they feel * * they are not likely to get rid of either Mr. Bryan or the rule. They are not very cheer- CONFLICT OF AMERICANS IN CUBA CAUSE OF ROW But for Hint From Washington Mooted Tarafa Rail Bill Would Have Passed, Even Over Veto. BY BEN McKELWAY. NTERPRETATIONS of Cuba's lat- est row with American Interests depend solely upon the point of view. There are those who whis- per confidentlally that it is a plot to boost the price of sugar. Others pro- fess to see another indication of what they term a growing desire on Cuba's part to kick over the traces, take the bit in her own mouth and depart on an unfettered run for parts unknown. Opponents of the Tarafa consolida- tion bill, cause of all the uproar, de- clare the proposed lezislation will confiscate milllons of dollars’ worth of American property. Proponents of the bill maintain just as stoutly that it is a simple move on the part of Cuba to protect herself agalnst a “menace to the future of the island.” Regardless of interpretations, what adds double interest to the dispute is | the fact that boiled down it resolves itself largelv into a fight between American interests in Cuba, and American capital will profit by tory on either side. The Tarafa bill, which takes its name from its sponsor, Col. Jose M. Tarafa, was passed almost unan mously by the Cuban house of repre- sentatives a little while after Am- | bassador Crowder left Cuba for Wash- ington. There was little or no dis- cussion, and its opponents allege the ways had been well greased for its passage. Indlcations were that if it reached the senate it would pass im- mediately, with enough votes and to spare to pass it over the president's veto, should he take such action. Be- fore it reached the senate the United States indicated that a little delay in the matter would be highly appre- ciated. The Tarafa bill proposes in effect to consolidate the public service rail- ways of Cuba by establishing a hold- ing corporation which would acquire a majority of the shares of at least three such railways. Two of these railwaye, the bill stip- ulates, must be Cuban companies; whose lines are connected and cover| 400 kilometers of road in operation. These “consolidated railways” would make a reduction of 20 per cent in existing rates for sugar hauled more than 150 kilometers. Privately owned rallways in municipal districts where the consolidated lines operate could not be opened to public service or ex- tended unless they joined the con- solidation. Classifies Twenty-five Ports. The bill classifies twenty-five ports in Cuba as “national port and an- nuls the rights and concessions pre- vlously granted all other ports to import or export. These other ports, however, may continue to export sugar until they are connected with a public railroad. paying. in the meantime, a tax to the state of 15 cents per hundred pounds. The effect of the bill, it is main- tained, would be a virtual confisca- tion of all ports except those de- clared *national ports” through the tax of 15 cents per hundred pounds of sugar they export, for this tax in every case, it is stated, would ex- ceed the difference between the cost of shipment through the private ports and over the consolidated railways. American interest in the bill re- sults from its effect on the Ameri- can's pocketbook. Americans have invested in sugar in Cuba to the extent of $1,031,069,766, Americans Flour Now Made Of Humble Herring Flours of many varieties have been marketed from time to time, but it remained for the Scandinavians to produce one from fish, Consul Gen- eral Letcher at Copenhagen reports. The catches of herring have reached such proportions that enormous sur- pluses have been left over after the demands of the market for salt her- ring have been filled. Some means of disposing of this surplus was needed and experts worked out a method of powdering the fish and producing a “strength food” highly prized by the natives. It is very rich in fats and proteins, reaching a percentage of about 70 o these two essentials combined. Fac- tories have been erected for the manu- facture of herring flour. Caught O Iceland. The fish are caught largely off the coast of Iceland, and in the summer months the size of the catch seems only limited by the abilities of lho’ fishermen to throw over their nets and drag them in. Incidentally, herring flour has cre- ated a market in another country 1orl an entirely different purpose. Japan famed for its beautiful gardens and wonderful flowers, has found that herring flour makes the finest of fer- tilizers and great quantitles are im- ported for this purpose. A still further use has been found for the surplus herring. A process has been perfected for squeezing out the oils of the fish, which, upon belig “hardened,” become odorless and tasteless, and are used as a basls for margarine production. Unlike other butter substitutes, the oil of the fish is so rich in body bullding properties that the objection of undernutrition by the use of the substitute can hardly be supported. The two products, herring flour and the margarine are producing a grow- inz demand in Europe where concen- traiton of food values seems of great- er importance than in America. . Re- search is still going on to work out further uses for the fish as from past experience, they may be caught in any quantity that the market may demand. SO vie- own outright sugar mills and estates fn Cuba worth $621,219,766. Sugar estates in Cuba controlled by Ameri- cans because they are dependent en- tirely on American money are valued at $125,000,000, while Americans have invested something like $156,250,000 in Cuban industries which are entire- 1y dependent upon the sugar indust ‘The: investments include the Cuba rallroad, which runs through section where most of the located. It is entirely dependent upon the sugar mills both in hauling canc to the mills, taking fintshed sugar to the ports and hauling merchandise to and from the mills. The Cuba rail- road is a Delaware corporation in which Col. Tarafa is a large stock- holder, and is one of the threc rafl- roads which has agreed to enter the proposed consolidation. The two other Cuban railways which, it is und would join the consolidation financed to a large extent w fcan money. Other T. Othe whose sugar the mills are S. Tnterexts American istence industry, inte; depends include ts in upon stee! ¢ 1 | works, steamship companies, locomo- tive compdnies, electric distilling and warehous ]ana represent investmen of dollars. Roughly speaking, therefore, the two opposing interests affected by the | Proposed legislation are the public railways and raflway equipment c panies, largely fin A {can money, w would pro | through passage of ‘the bill, and the sugar companies proper, which own thefr own shortline railways docking facilities, also financed b Americans, who would stand to suffer if the bill were passed. There are forty-seven private, sub-ports, which opponents of the leg- islation claim would be confls the bill is passed. Propone legislation argue that these are simply piers built out into the the sugar land compan compantes of millions ced with and ater adja nd connected with the plantations by privately owned short-line railroads. The sugar com- panies own all the land surrounding the sub-ports, with the result, it is stated, that no community or town can grow up there. They have de- veloped to such an cxtent, it is pointed out, that if allowed to con tinue they will constitute a menace to Cuba, for, it is argued, If cach o the 150 sugar “centrals” in Cuba we allowed a private or sub-port, there would be no industry in Cuba except the American sugar ry. If the policy of allowing the ports to continue or to cxpand continued. it Is pointed out, the rail roads of Cuba will be bled to death ang Cuba will have no public wealt! If the American government is fu- duced to prevent Cuba from levying a tax upon the sugar industry, it i stated, Cuba will be left without any means for the payment of her bonds, held by American citizens, and th sources of her taxation will be dr up. indus Would Yleld The proposed upon the ports, it is contended, would yield in the neighborhood of $900,000 annua to the Cuban government. It w. not be a confiscatory tax, it is argued because the forty-seven sugar trals”, which own their private ports, gave about 80 cents a bag in the ship- ment of sugar because of owning their own ports. The tax would mean that the Cuban government would collect 5 cents a bag out of the §0 cents the companies save, it is stated. On the other hand, opponents of the bill have arguments just as con- vineing. First, it is stated that the only three rallroads whi can an- |swer the qualifications necessary to VL‘QHEO“L\L\((‘, are those in which Col Tarafa is interested as a stockholder The provision for lowering the freight | rates on sugar, it stated, would only be legislating a reduction ready in effect on the railroad of which Tarafa is president. The bill would raise no revenue for the Cuban government, it is pointed out, becaus the tax on the ports would be con- fiscatory and force their closing. The bill would simply put a sugar hauling monopoly in the hands of the con- solldation railways and provide an in- rease in revenue where none ‘is needed. Opponents point out' that present raflwny facilities in Cuba are inade- !quate in trackage and in equipment to haul the large Increase in traffic ‘They haul at present only €9 per cent of the sugar, it is stated, and expen- sive delays occur in furnishing ‘Xlll handling the cars. The port facilitles in the “national ports,” which would be established under the law, are al- ready stralned and serious congestion ccurs every year. Shipping all sugar through these ports would increase expense threugh demurrage, multiple handling and warehouse charges. The mills which own their own ra ways and port facllities, it is stated, ’are known as the low production cort {mills o Cuba, and they produced 31 per cent of all the sugar produced in Cuba last year. Such s the situation which has led to frantic appeals to the State De- partment for protection of American interests in Cuba. Coming as 1t does on the heels of the passage of the Cuban lottery bill, interpreted {n some quarters as a direct slap at what Am- bassador Crowder has been trying to do in the way of purifying Cuban politics, it is not a situation which arouses keen enthusiasm at the State Department. The argument probably will be settled when railroad men and sugar men in New York get together and declde on a compromise which will prevent either party from com- lm"llng suicide over financial difi- culties. 2900,000. tax sul-