The Birmingham age-herald. [volume], August 19, 1919, Page THREE, Image 3

About The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950

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Contends Congress Must
Extend Staying Hand or
Receiverships Arc
inevitable
Washington, August 18.—(Special.)
Forney Johnston deeply impressed the
members of the House interstate com
merce committee when he stated the
case of the railroads to that body last
! Friday.
Following the Johnston presentation
of the national association of owners
of railroad securities, the committee
went into executive session. Mr. John
ston contended that unless Congress
extended a steadying hand to the .rail
roads. general receiverships followed
by enforced government ownership
were practically inevitable.
The owners of securities advocated
what is known as the Warfield plan.
Under that plan, the waferstate com
merce commission will gran*t a 6 per
cent rate increase with the provision
fhat money earned in excess of f» per
cent on the investment will be di
vided between shippers, employes and
the earning company.
A portion of Mr. Johnston's state
ment to the committee is reproduced:
“The proposals of the Warfield plan
to have been formulated on the® the
ory that Congress prefers to extend
and perfect the system of regulation
begun in 1887 before abandoning it for
diastic economic revolutions.
( “We feel that our proposals afford
a common ground on which all con-,,
flicting theories can agree as neces
\ sary to sustain the service of the rail
, roads upon relinquishment of federal
control. That result is necessary while
the proponents of federal consolidations
and of the more drastic formulas are
mobilizing behind their theories. We
are entirely confident that the simplic
ity and stabilizing action of the propos
als we submit will leave the advocates
of drastic action without an Issue. We
are equally confident that without the
remedies which we propose, the rail
roads w'ili show such hopeless disparity
in returns and in service as to compe.
a continuation of the warfare between
the management and organized ship
pers in the unsuccessful struggle for
rates, followed by wholesale receiver
ships and high probability of govern
CHEAP BARGAIN takes
money from the purse.
A just comparison
Causes bargains to
disappear. Remember,
ithe cost "to keep
'going'1 that bargain
costsmore in the end.
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Moving Picture Machines
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Electric Signs
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LVKOI...I* In arl«lnal M'k
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Refute ell aubetltutee.
Hot,
Sultry Nights
rob Nature of the chance
to rebuild, by refreshing
and restful sleep, the
wasted tissues of the
body. That limp and pros
trated feeling caused by
wakeful, restless nights is
quickly relieved by
The Great General Tonic
Said By AH Rmliablm Druggist*
Sole Manufacturer*:
LYKO MEDICINE COMPANY
Mew York Ksau* City, Mo.
ment ownership with all of the sinister (
possibilities of that alternative.
"A ton of any commodity will pur
chase more transportation today than
at any time during the history of rail
roads in any country in the world. Prac
tically alone of all great American in
dustries the cost of transportation is
admitted to be the cheapest value on
the market. Of the railroads under
federal control. 56 railroads, including
practically all of the systems in New’
England, are not paying operating ex
penses. Only 20 are earning the stand
ard rental based on the three-year pre
war period. Based on the figures for
the first six months of 1919, the defi- I
[•it for It 19 under the standard rental
will be $600,000,000.
"If Congress proposes to build a foun
dation for American prosperity, it must
extend a steadying hand to the one
great enterprise without which this
country can not go forward. If Con
gress does not take courageous and
constructive action now, the progress
of a generation toward a regulated sys
tem of privately owned and operated
railway transportation will be de
stroyed and the Sixty-sixth Congress
will have forced government ownership
under conditions and with results which
the future alone can assay.
"We believe that the. association has
presented the only process which will
avbld this fatal and irrevocable step
It ac.cepts the tremendous adance in
restriction and regulation now being j
worked out by Congress. "Where regu- j
lation in the past has been found to '
be inadequate we recommend that it be
extended. Where returns upon the tail- ,
way investment are likely to be ex - !
cessive and unnecessary to enable the
carrier to earn a fair return or to ren
tier adequate service, we recommend
that the excess be ironed out by the
only method that will not force a rate
level which would destroy other sys
tems with vast mileage serving a large
proportion of the American people.
"We submit that the policy of the
fcrced reorganization is as unneces
sjiry. as chaotic and as prolonged as
forced consolidations or government
ownership or the effort to force com
pulsory federal incorporation.
“After the most careful analysis, vc
are assured that a level of rates which
would produce an average return of
six per cent upon the aggregate rail
way property in the several regions
would enable the roads with lowe -
earning power, but large mileage and
of tremendous importance tb the pub
lic to readjust their budgets and their
organization to a sound and whole
some future.
“If any more destructive policy is to
be adopted. It should be the policy of
Congress and not the policy of an ad
ministrative bureau.
"The American people % have invest
ed six billion dollars in permanent rail
road property—road and equipment—
since 1907.
"That sum was added under super
vision of the commission. Yet that
vast sum produced in 1917, the so-calle§l
high-water mark of railroad prosperity,
only about two hundred millions in net
income more than was earned In 1907.
In short, the American railways pro
duced six billions of new money to
earn less than the government paid
for loans secured by a mortgage upon
the American people.
Singular misconception exists as to
th^ effect and operation of the War
field plan. Had it been in effect dur
ing the period of 1915-16-17, the 162
American railroad systems as Class 1
railroads would have earned net income
amounting to only 654,000,000 more per
annum than their actual average. That
sum is negligible.
"Had the Warfield plan been in ef
fect, the Class 1 railroads would have
retained net income equal to only five
and one-half per cent upon their ag
gregate, not their individual, property
investment A six per cent level on
the aggregate investment would have
left, after the surrender of excess earn
ings by the railroads receiving excess
earnings, only five and one-half per
i ent or. their aggregate property in the
treasury of the carMers to be disbursed
by,way of interest or dividends to the
40,000,000 of people who have been in
vited by Congress and by the consti
tution to invest their earnings in rail
way securities upon the assurance of
a square deal.
"In the so-called banner period of
1915-16-17. 120 out of 162 systems, Class
1 railroads, operating a total of more
than 170,000 miles, or over two-thirds
of the total mileage In the United
States, earned less than six per cent
upon their property investments. In
the year 1916, 91 railroads, operating
over SO.000 miles, paid no dividends
whatever.
"Yet, before the committee of Con
gress and in every case brought be
fore the commission to advance rates,
a vast mileage of American railways
lias been choked off with the assertion
that average statistics show average
prosperity.
"In all of these cases, the commis
sion has been actuated to deny general
relief because certain roads were pros
perous and the commission was unwill
ing to add to their prosperity even to
save the large number of roads which
were receiving admittedly inadequate
revenue.
“Under these conditions, opposed in
every effort to adjust rates to meei
proven necessities by powerful mobil
ization on part of the shippers, the
American railroads have been kept in a
bread line before the door of the inter
state commerce commission since 1910
Relief has been denied or grudginglj
and sparingly dealt out because cer
tain roads in%ach region were though
to be affluent.
“The fundamental proposal of th<
Warfield plan is that this continual ba
sis for warfare between the shippei
and the railroads, this constant depress
ing factor against relief before thi
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Today to Be Memorable In
League of Nations Fight
Lodge-Borah Crowd Hopes to Embarrass President.
Democrats Are Expecting Wilson to Surprise Repub
licans—Alabamians Against Daylight Saving.
Senator Thomas’ Attitude on League
!
By HIGH W. ROBERTS
Washington, August 18.—(Special.)
Tomorrow, in the league of nations
matter, is the big day. The Senate
committee on foreign relations will
visit the President at the White House.
It is a case of Mohamet going to the
mountain. ^
The event will be not only of great
importance, but of transcedent inter
est. Senator Hodge, chairman of the
committee, and leader of the fight
against the President and the league
of nations, asked, in his letter request
ing the interview, that nothing of a
confidential nature be said. The Presi
dent. exceeding the request of the
chairman, replied: "Bring your ste
nographer with you.”
It is reported to newspaper corres
pondents that the stenographer will be
“on the job,” and that his copy, for the
press, will be available as soon as his
notes, page by page, can be transcribed.
Every line will be of value to the Amer
ican public.
Here is the situation:
The committee, the big majority of
which is composed of republicans se
lected especially because of their pub
lished bitter opposition to the league of
nations—republicans, it is a significant i
fact, entrusted with shaping the pres
idential campaign next year—has be
come so confident that the Senate will
amend or reject the treaty of peace
and the league of nations, that It is em
boldened practically to the point of be
ing defiant.
And the President, full of fight al
ways. and, in the present emergency,
aroused to the depths on account of the
republican opposition and indicated
chance of victory, is as one who ha*
his back against the wall, determined
to yield life in preference to princi
ple.
It will be a case of Greek meeting :
Greek, although it is certain everyone j
will be governed by rules of courtesy,
and tempered by parliamentary eti- '
quette. the air will be electrified, es
pecially prepared for the match which
will not be struck. ' »
The republicans are preparing to
strike their blow. -"They are certain
?,of their strength. But they have not
decided in exactly what spot to di
rect their strength. They hesitate in
order that they might become better
apprised of the temper of the people.
They dare not do what inwardly they
want to do—reject the treaty and to the
utrpost degree, humiliate the President.
They may decide to amend or simply
to accept the document with reserva
tions. Pending their decision, they wrant
to antagonize the President. They
made Secretary Lansing look "foolish.”
They think that they can do likewise
to Mr. Wilson.
In the meantime the President ob
serves a significant silence. He is go
ing to play a card sometime, some
where—a card which he believes will
win the day. He is confident, his ad
visers say, that the treaty will be rat
ified without reservation. So confi
dent is he that when senators leading
the fight on the floor for the league,
alarmed at republican strength and de
termination, suggested to the President
that he indicate the reservations he
would accept, he promptly and emphati
cally replied that he would insist on
an "unamended treaty without reserva
tions.”
And tomorrow is the big day in the
fight. The Lodges and the Borahs be
lieve that they will push the Presi
dent into a hole, out of which he will
never come. And the democrats are
positive that the President will not only
hold his own, but will send the anti
leaguers back to the capitol-sadder and
perhaps wiser men.
ALABAMIANS AGAINST
DAYLIGHT SAVING
Washington, August 18.—(Special.)
There will be a beautiful fight this
week on "daylight saving."
Congress has made repeated efforts
to repeal the law which turned back
the clocks of the country one hour
Repeal legislation has been coupled to
appropriation bills, and enacted inde
pendently. The President in each in
stance sent back the legislation bear
ing his veto.
Last week the President again failed
to approve the repeal. He admittel the
law distressed the farmers of the coun
try. but contended that it adied the
manufacturers. He concluded that the
farmers could “put up with" incon
veniences in return for the prosperity
manufacturers would produce.
This week Congress will make an ef
fort to pass the legislation over the
veto of the President. Representative
Mondell, republican leader of the House,
states that he has the votes to pass
the repeal, despite the President's
veto. He has drummed up his strength
and is ready to act. Senators arc also
lined up for and against. The indica
tions are that despite a large majority,
the repeal cannot muster enough votes
in the Senate.
Senator Bankhead said this morning
that he would vote for the repeal law—
to pass it over the veto of the President
Senator Underwood will probably vot<
likewise, although he has made nc
statement to that effect. The farmer?
of Alabama have expressed themselve?
almost to a man in favor of repeal
Alabamians in the House will, in a bif
majority, vote to pass the repeal ovc;
the President's veto.
SENATOR THOMAS AS
MAN OF COURAGE
Washington, August 18.— (Special.
Senator Thomas of Colorado, generall:
credited by the local press with fear
commission when relief is necessary
j must be removed by a regulation of ex
cess earnings which will relieve th
t shipping organizations of their appre
hension and the commission of th
odium which would be visited upon i
if affluent railroads were given rate
to protect American transportatio
from bankruptcy."
Prohibition and Jewelry
"A Jeweler told me that prohibitio
means that more people will hav
money," writes Franklin P. Adame
whose struggle with the conflicting sta
tlstics published by the dry and anti
dry forces resulted in the amusing story
"Drinking. Not Drinking and Points Be
tween," in Everybody's. "The jewele
points to Kansas," continues Mr. Adams
where the average bank roll is $118. Bu
there is more Jewelry sold in highly a!
coholje New York than in arid Wichita
mom diamond hair ornaments per—not ti
mix the metaphor—capita. But thi
jeweler reasoned that the more mone;
people have, the more will they spen<
on luxuries. How. I rise to inquirt
about the Jewelry bought as a result o
drink. How many pearls and diamond
are bought by those, who, emboldened
inspired. befuddled, strengthened, o
weakened from one to a dozen drinks
promised those Jewels to the Sweetes
LIT Girl in th' Worl'T How many gem
of placation. the price of marriages rer
dered inharmonious by drink, ar
bought? How many men have admitte
that they never would have been bol
enough to 'propose' without fortifyin
themselves with strong drink? Ho?
about the resultant engagement and wet
ding rings? No; I hazard the predictlo
that the Jewelry business will suffer b
prohibition.”
Mi
Icssness and independence, assailed the
railroad brotherhoods when they de
manded the railroads at the hands of
Congress, and later, satirically sug
gested in a Senate speech that Con
gress form a union.
He spoke of the widespread nature
of strikes and the ease with which
strikers resort to strikes. He suggest
ed that Congress form a union and re
fuse to legislate until the re-election
of members in 1920 was assured.
Senator Thomas is not a candidate ]
for re-election. That fact is possibly :
responsible—not for his independence—
but for his defiant attitude. He is also
against the league of nations. He came
out against the league immediately aft
er Judge J. J. Banks, formerly of Bir
mingham, was promoted to a more lu
crative position in the Hawaiian isl
ands.
Senator Thomas was at one time a
law partner of Judge Banks. When
Thomas came to Congress, he got Banks
appointed to Hawaii. The Alabama sen
ators indorsed Banks, but Thomas was
liis main sponsor. Eater Banks wanted
a promotion. Again Thomas was his
main dependence. He got the promo
tion for Banks.
The day following the sending by the
President of Banks’ name to the Sen
ate, Thomas came out against the
league of nations. This fact is inter
esting. and nothing more.
BAKER FRIEND OF
SHOALS FROM BEGINNING
Washington, August 18.—i Special.)
Secretary Baker made it plain today why
the President selected Muscle Shoals for
the site of the nitrate plants despite the
recommendations of Gen. William Cro
zier, chief of ordnance, and Col. ,T. W.
Joyes, in charge of the nitrate division.
It was because the Secretary, having
visited the shoals, knew that they of
fered the most alluring opportunity. As
is recalled, testimony of Major GaJllard
before the house committee investigating
ordnance was to the effect that the rea
sons animating the President to act con
trary to the advied of General Crozier
were not known.
The Secretary stated that as soon as he
received the recommendation he told the
President that Sheffield offered the great
est possibilities. That was all the Presi
dent required, it would seem.
The Secretary declared that his most
recent visit to Muscle Shoals, from
where he returned last night, was in*
structivc and inspiring and that he felt
assured work would be pushed to a rapid
consummation.
ALABAMA CONGRESSMEN
RETURN TO WASHINGTON
Washington, August 18.—(.Special.)
Representatives McDuffie of the First,
Oliver of the Sixth, Almon of the Eighth
and Bankhead of the Tenth, who had
spent several days in their respective
districts in Alabama, returned to Wash
ington this morning to aid in the house
fight to reduce the cost of living.
Mr. McDuffie and Mr. Oliver, in addi
tion to business, paid attention to the
rooster sale at Demopolis, and both pro
nounced that sale without parallel in the
annals of time.
Mr. Bankhead stated that Alabama was
unusually Interesting at present on ac
count of the proceedings of the legisla
ture.
Mr. Almon aided in the entertainment
of Secretary Baker at Muscle Shoals
He declared the visit of the Secretary
successful in every respect.
SLIGHTLY RELIEVED
Alleviated 15 Per Cent in
Two Days—Situation is
Still Serious
Car shortage in Birmingham has been
alleviated about 15 per cent within the
past 4S hours, according to Capt. H. E.
Hutchens of the United States Railroad
administration, but is still serious with
out much hopes of immediate return to
normal conditions.
“We tilled about 40 per cent of the de
mand for cars today as against about
25 per cent of the demand filled SaCA
day,” said Captain Hutchens, “but let
us not build up any false hopes for an
immediate solution of the problem.”
Captain Hutchens stated that some
slight response had been obtained from
jthe railroad officials to whom he bed
wired several days ago, but that help
from that source was coming in very
irregularly.
He stated that the shopmen who had
returned to work last week were grad
ually* getting the over-plus of cars need
ing repairs into working conditions.
"We recehed about 70 cars today and
are expecting more, he said. “W$ can
not expect an accumulation of cars need
ing repairs, which have been side-track
ed for a period of two or three weeks
to be. placed in working order imme
diately. The usual repair work in Bir
mingham keeps the men busily engaged
without the increased number caused by
the strike.
"We are trying to treat everybody fair
on the cars that come in and they will
be distributed as they come in and are
needed by the different companies."
Trammell Attends St. Paul Meet
W. V. Trammell, secretary-treasurer
of the Merchants Retail Credit asso
ciation and secretary of the Retail
Credit Men’s association, is spending
the week in St. Paul, where he went !
I' as a delegate to the anndal conven- j
tion of the Association of retail credit
bureaus of the United States. Before
returning home Mr. Trammell will
visit Chicago. Cleveland and other
cities, where he will investigate the
credit and rating bureaus with a view
to improving: the service of his asso
ciation. Mrs Trammell accompanied
Mr. Trammell on his trip.
More Balkans Than Ever?
From the Review.
The future of Europe is going to
be largely determined, within a few
years, on the soil that was once Aus
trian. If the states indulge in tariff
wars and encourage racial hatreds, the
partition of Austria will merely have
extended the Balkans to the head
waters of the Rhine. For the league
remains a gigantic task of arbitration
and conciliation, a task in which the
new* republic of Austria, with her ex
traordinary tradition of diplomacy,
may be of great influence.
Saturday Will Be Your Last Chance to
I
Buy at These Reduced Prices
The majority of the broken lines were closing out at reduced prices
are eminently suitable for autumn wear and it’s a wise man, indeed,
who pockets the savings shown by these actual price cuts.
$30 Suits
Now
$40 Suits
Now
$
23
.75
%
32
.75
$35 Suits
Now
$45 and $50
Suits
$
28
.75
$
38
.75
Blues and Blacks Excepted
Everything Men and Boys Wear
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t»f:<,*V , ^izw
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from Birmingham?
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value
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^BIRMINGHAM
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more
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Birmingham, Ala.