Show MONEY MARI MAR MARKETS ETS By James McMullin Th The Telegrams Telegram's Exclusive Observer Observe Alon Along Wall Street freet NEW YORK Many New York leaders are privately convinced that the government will sooner or later have to take over the railroads railroads railroads rail rail- roads to keep them running A number of Washington officials also admit that public ownership Is probably inevitable The The- administration administration administration admin admin- would like Jilee to postpone the rail showdown until after 1940 but but this may prove as impossible as postponing a hurricane Senator Burton Wheeler and others keep harping on overcapitalization overcapitalization as a primary cause of current railroad woes Undoubtedly Undoubtedly Undoubtedly edly there are roads which would benefit from a trip to the wringer But as a solution for the rail blem In general financial reorganizations reorganizations neon neon- would be bo as futile as trying to stanch a shrapnel wound with court plaster The Tho real trouble trouble trouble trou trou- ble is that the railroads as a whole are not earning any net revenue under their present expense bur bun den No business can long survIve survive survive sur sur- vive on that basis A rise in freight rates might prove a temporary palliative but It wont won't cure anything The railroads railroads railroads rail rail- roads may inay run headlong into a dramatic crisis much sooner than is generally expected There was no apparent relation between the filibuster filibuster filibuster ter and congressional nervousness about the possibility that the United States may be dragged into war But keen New York ob observers observers observers ob- ob servers spot a significant connection connection connection tion in the heavy senate vote against cloture to force a vote on the bill These sources are convinced that a number of senators opposed cloture because they feared to set seta a precedent that might be used to try to shut off debate in the event that congress were suddenly asked to vote on ona a declaration of war Hostility to foreign entanglements entanglements entanglements of any kind is very strong If things come to a showdown showdown showdown show show- down the price peace-at-any-price bloc In the tho senate will be much larger and more effective than it was in 1917 This sentiment will not block the presidents president's armament program program program pro pro- gram which will probably be enacted enacted enacted en en- acted by a safe margin after a protracted debate But many legislators legislators legislators legis legis- who vote for it will wiH do so soon soon soon on the basis that it will stimulate heavy industry not because they favor it as a national defense measure The pacifist element is highly suspicious of the administrations administration's administrations administration's administrations administration's adminis adminis- foreign policy and no quantity of assurances that we have no commitments to other nations will allay aay their ness Militant C CIO I 0 organizers with extreme left wing political affiliations affiliations affiliations have been a pain in the neck lately to department and chain stores in various parts of M the country Threats of strikes on busy days did not look like empty gestures to worried executives But a group of them in Oakland Ca Cal got together and found an answer When organizers in one store got too tough 41 stores declared de de- de- de dared that if their competitor were forced to close they would shut down too They showed that they meant business and there haven't been any strong-arm strong bargaining bargaining bargaining bar bar- gaining attempts in that city since The example was so en encouraging encouraging encouraging en- en that a group of 11 stores in Tacoma Wash used the same method in a similar situation and seven firms in Pittsburgh did like like- wise Evidently John L. L Lewis' Lewis system of collective bargaining works both ways without ways without violating violating violating violat violat- ing the Wagner act The New York Chicago and St. St Louis Nickel Plate railroad looks to be headed for the financial financial finan finan- cial rocks This road is s part of the former Van setup setup setup set set- up and there are some ironic twists in its history It was originally built very bunt very cheaply cheaply cheaply-by by a couple of promoters to sell sen to Commodore Vanderbilt who was then busy extending and consolidating his New York Central Central Central Cen Cen- system The commodore rose to the bait and bought it and it was a subsidiary of the until about 1912 At that time the interstate comerce co o merce commission got all aU stew up about the Centrals Central's monopoly and ordered it summarily to to-dit to pose of the Nickel Plated promptly as possible No dt- dt seemed interested except a a. of brothers from Cleveland bought it on very g 1 terms without terms without putting up their own cash cash because because of t f I C Cs C's attitude That was t beginning of the Van rail empire So it is not say that a U. U S. S agency gave the brothers the start That chicken has co home to roost with a vengeance Copyright 1938 for The |