Show NA NATIONAL AFFAIRS Reviewed by CARTER FIELD Railroads are trying to prevent a car shortage as a bottle bottle- bottleneck bottleneck bottleneck result of o war ivar export neck Rushing the war ivar tax bill good politics but bad economics Well jBell Syndicate Service WASHINGTON One One of the worst bottlenecks In the World war of 1914 18 and one which contributed In no small measure to the eventual tak talc taking taking ing over of the railroads by the gov gov- government government government was due simply to the fact that shippers and receivers of freight alike used railroad cars for storage purposes The railroad executives are very much worried about the possibilities now and are arc determined to do ev ev- everything everything everything they can to prevent a a 3 critical critical critical cal situation The last thing they want is another spell of government operation In the last war the worst spot was wasat wasat wasat at the ports At Jersey City and Hoboken Baltimore Philadelphia and Newport News the entire rail rail- railroad railroad railroad road yards were packed with th cars loaded with freight for export freight which could not be loaded and freight which so clogged the yards that they virtually put the railroads out of business There was no use hauling trains to any port There would be no place to park the cars after they got there A natural sequence was that there developed a shortage of cars Naturally Nat Nat- Naturally If cars are held In yards ards loaded but with no place to put their contents they cannot also be out on the road hauling the freight So there were not enough cars SHORTAGE THREATENS I This situation is approaching again This time the first st bad effect is not so noticeable In the ports as asin asin asin in the sources of supply supply around around the coal mine heads and at the plants producing goods for export Yet Yet one would think because of the necessities of the convoy SS S'S system tern tem that the situation In the ports would be worse But the convoys do donot donot donot not start from American ports The ships sail up to a certain port in Canada and the convoys are or or- organized organized organized from there This slightly improves the situations at the Amer Amer- American American American ican ports though this also might easily become serious But more than cars loaded with coal and are now being held around United States coal coalmines mines according to the car service division of the Association of Ameri Ameri- American can Railroads Although coal loading is now more more than 20 per cent above that of the corresponding period of 1939 1930 the association said there Is no shortage of cars and none is antici antic BAD AD ECONOMICS Rushing the war profits tax bill through gh congress now is excellent politics better psychology but bad economics Actually it would have been much better to follow the original original original nal plan which was to make a careful study of the whole situation in the months that intervene before the new congress convenes in Jan Jan- uary Then a bill would have been all prepared and it would have been considered by a congress conC In which the individual legislators would not have to face an election for 18 months All AU the bugs and jokers which can possibly be seen In ad ad- advance advance advance vance in any piece of ol legislation would have been caught and fied fled In short the bill would be as asgood asgood asgood good as can be expected from rom any such unwieldy groups as compose the house and senate The tax on heavy profits could have been applied to 1940 earnings and hence have produced as much revenue as a bill enacted now True it is a little advantage to business businessmen men to know just what the tax will willbe willbe willbe be when they still have before them something som thing like five months of the year ear the earnings of which will be taxed It gives them a chance to trim their sails a little SOME OBJECTIONS The objections to framing the law now of course are that In the de de- desire desire sire to take every possible dollar of war profit congress may easily do things which impair tremendously the efficiency of our national de de- The law can easily be such that it will deter Individuals and corporations from switching from their normal line to things that the government needs It not a case of patriotism Very little evidence Is before the national defense commission now nor did it develop in the first World war that manufacturers declined to do things necessary to the national defense because of any tax situation That Thatis is not the type of thing that is feared from an unscientific war profits tax What can happen now and what did happen In the last war Is that there is a certain discouragement of sup sup- supply supply ply sources For instance A might have a very smart Idea which would be valuable to the production of war supplies A might be a man never thought of by the war or navy de de- departments departments or by the national de de- defense defense defense commission experts He might study the idea and decide that it it was too risky He would be almost certain to lose money even if f the idea worked It would be a total tola loss if it did not work v t s. s c Lf R n. n S- S sI |