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Show SEEN SEENand SEENnd SEEN-1'HEARD SEEN 1'HEARD 1HEARD SEEN1'HEARDaround - and nd " ' HEARD HEARDaround around the theNational theNational National Capital CapitalBy FIELDS FIELD- FIELD FIELDWashIngton FIELD : By CARTER - It ca can be e told- told toldWIO told toldwho - WashIngtonNow Washington-Now Washington Now WashingtonNowiit Washington -Now Now - Now band bande told-t told t toldtwho ' and why - depressionbe depression iit WIO who } stirled st'lrted stlrted started ' tlie the fire be be- beIt before . - ' monthsfore months montb Australia , nnny m1ny m'tnY mtnY It was crash , and the tbe thewhy stock stOCh . market fore pur our * fashions fashionsplayed / * * liJ A 0 Q Qplayed why \ hy Is that a change chance In fashionsarts , of ofplayed played hob " with "Ith Ith Australia's Australias AustraI1a's AustraI1as ' ' exports exporis exp expwool arts uiwool thatstopped that wom wom- women women - wool ooJ for tor the simple sJmple reason \ \ , stopped wearing so many woollen woollengarments woollengarments woollengarments en began w \ wearinglighter earlng earing earlnglighter earinglighter garments and men lighter clothesWhereupon clothesin clothes clothesWhereupon everyone oneAustralia one In InAustralIa InAustralia inWhereupon Whereupon , nearly every " " " and the bal bal- balance bal- bal balreach balance - - AustralIa being "poor poor , reach reach- reachIng reaching reachance - Australia aAustrnlirl aAustrnlirlJag trade against of ance frightening frJghtening oftirade tirade proportions , , Australia Australiaclamped Australiaclamped ing Jag clamped on drastic restrictions against againstImports againstimports againstimports leveled against au- au automoblIes automobiles au automobiles - - Imports , especially tomobiles tomoblIes and trucks trucl.s trucls . , . fact that up to tothf'n tothen tothen Which , added to tlie the thf'n thfn then ' Australia had been the largest largestslnge largestsingle largestsingle of ot American ma made'iutomoblles made madenutomobUes e slnge single ] purchaser purchnser trucks knocked over overtlle overthe overlie " ' ' nutomobUes 1utomoblles 'iutomoblles iutomoblles and , , long longpl1e longpile longpile tlle the ( first card lard of a n distressingly card cardknocked cardknocked pl1e pile , and anl1 each successive falling faIling hnod.ed hnoded knocked . over o\er o er otter \ the next oneAll one ! All An of " which "hich hich , of course , Is not reany really reallyintended reallyintended Intendel1 intended to convince an anvone anyone one that Aus Austr.lha Australia Australia tr.lha trlha tralia . really stirted st1rted st'irted ' the depresslou depression depressionor , or tliat that the present Impasse on world worldtr'lde worldtr'tde worldtnde tr'lde trlde tr'tde trtde ' ' \ would \ oud ] not ha\ ha have hae base \ e resulted if ifthere ifthere itthere there had been lieen no Australia , but Is a a11lgh ahigbl3 ahighly of ofthe ofthe ofthe 11lgh higbl3 ] illuminating muminatIng telescopic view the \ world \ orll1 situation reduced to an anC'lSIY aneasily ancisily C'lSIY ClSIY easily ' ] understandable formula formulaIt It is particularly partlcuarly ] appropriate approprmte at the themoment themoment themoment moment in'Iew in \ ' view \'Iew 'Iew Iew of the hubbub up over overthe overthe overthe the alleged statement of PresIdent PresIdentRoosevelt PresidentRoosevelt PresidentRoosevelt Roosevelt that foreign trade Is a thIng thIngof thingof thingof of the past , . to which Senitor Sen'ltor Senltor Senator ' A . . H HVandenberg HVandenberg HVandenberg Vandenberg paid so much attention attentionIn In tlie the senateIt senateIt senate senateIt It Is also appropriate " with "lth lth It Italy Italyand Itilyand lly llyand < and Poland just having restricted im- im imports imports im imports - ports of American automobiles automoblles , ma- ma macl1nery machinery ma machinery - chinery cl1nery ! and manv man many other products to toone toone toone one fourth of the 1934 1034 figures figure . . Lookat Look at the RecordWithout Record RecordWithout Without attempting to place Aus Aus- Atts- Atts AustralIa Attstralia Australia - tralia In the prisoner's prisoners prJsoner's prJsoners ' dock doch , there there- therefore therefore therefore - fore , let's lets ' ' look at the record The big bigcommonwealth bigcommonwealth bigcommonwealth commonwealth "down down " under " made madethese madethese madethese these restrictions well wen In advance ad\'ance ad 'ance ance \ ' of ofthe ofthe ofthe the beginning of or the depression here here.The hereThe . The date of ot this beginning In Amer Amer- America America America - ica is lS hotly disputed dlsputel1 , but most econ econ- economIsts econ- econ economists economists - - omists agree that the stock stoch marhetcrash marketcrash marhet market marketcrash crash of Octo Octobe be . + , 1929 1020 , was merely merelythe merelythe merelythe the result of a collipse colhpse collapse in busmess business businesswhich , whIch was already \ well eIl under way be- be before before be before - fore most business men-e\'en men e 'en en men-even even men - - even \ ' those thoseengaged thoseengaged thoseengaged engaged In the Industries hardest hlt- hlt hit- hit hltappreciated hitappreciated hit hitappreciated - appreciated It . Nearly Neary ] everyone everyonethough every one onethought onethought though thought tit It ItR was -R R , . - as just a temporary dip dipIn dipin dipIn In the production cUr\ cUr curve cUre curse \ e They had hadheard hadheard hadheard heard cries of "Wolf Wolf " I 1 Wolf I " " a dozen dozentimes dozentimes dozentimes times before during the Coolldge Coolidge C < > oHdge ad- ad admInIstration administration ad administration - ministration , but liut had seen busmess business busmessmarch businessmarch businessmarch march on to higher levels le\'cls le 'cls cls \ ' later , wIth wIthstock withstock withstock stock market prices pi ices continually contlDually chmbing climb chmb- chmb climb- climbing climbing - - ing as a resultBut resultBut result resultBut But " when "hen hen Australii Australh Australia stopped buying buyingAmerican buyingAmerican ; Amerlcan American motors and trucks the ava aYa- aYa aYalanche ava- ava avalanche avalanche - - ; lanche started , thol tho thooli thot.gh thotgh . . oli h uo no one thoughtfor thought thoughtI thoughtfor thoughtfor I for the time tlme that It \ was \ as more than a apebble apebble ' pebble rolling downhill downhlH For the dry dry- dryIng drying drying - ing up of motor nnnufacturing D11nufacturlng manufacturing , ,1th 1th with ,1thIts withits , . withIts Its cutting down of buying bunng from steel steelplants steelplants steelplants plants , tire factories , bittery b1ttery battery JD'lkers JDlkers makers mikersupholstery ' , upholstery weavers "eavers eavers weawers " , etc , , \ was \ as well un- un under under un under - - der way ay by July Juy ] , . 1929 1020 , , three months monthsbefore monthsbefore monthsbefore before the stock stoel . market marhet dl'eWhat diveWhat dive dl\'e dl 'e e diveWhat \ ' What brings all aU this up for consid consid- consideratIOn consideration consideration - - eration In Washington Washmgton at the moment momentis Is that several'ery several \ ' very \'ery 'ery ery importint Import'lnt Importlnt important ' persons per per- persons persons - sons , some from Europe Curope Durope and some somefrom somefrom somefrom from other parts of the \ world \ ord ] , , includ Includ- IncludIng including including - ing Australia , hive h'l\e h'l hl e hale ' \ been in our midst midstfor midstfor midstfor for the last fe few " days , and have ha\'e ha 'e e \ ' been beentr beentrying beentrying tr trying Ing to figure out how to end the thepI thepresent thepiesent pI present esent Internatiomi InternatJoD11 international tra trade e stalemateNe3rly stalemateNearly stalemate stalemateNearly Nearly Ne3rly every e\ery e ery \ one agrees tint th'lt thlt th'tt thtt ' ' If Ifsome ifsome Ifsome some nation would just start the up- up upward upward up upward - ward push , as some think thinh Australh Australia Australhshrted Australiastarted Australiistirted shrted started the downward drive drI\'e drI 'e e \ ' , the world worldcould worldcould worldcould doldrums could work out of the present dol doldrums doldrums drums But how to get started1 started ? ' Nat Nat- Naturally Naturally Naturally - urally the visitors isltors tisitors \ with ith one accord accordS13 accordsay accordsiy S13 say ' that thnt the United States is the nn na nntion nation tIon to st1I stut start t it it . . The British Brlbsh say thatwe that that"e thatwe "e e we " should reduce our tariff taritI textiles texWes on tex tex- : - tiles Wes . , whereupon "hereupon hereupon " they \ would \ ould buy more moreof moreof moreof of our cotton , etc . That gets a loud loudlaugh laugh , though with no mirth , in New Ingland England : NewEngland NewIngland Carolina Caro1ma , not to mention North Noth ; Caro Caro- - . lina 1ma Tina diflicultyof dilbcuItyof difficultyof But It illustrates mustrates the dilbcuIty difficulty of applying a self starter ' _ Old Problem Up Again AgainThe AgainThe The old long and short hiul h1Ul haul rml rail railloid rml101d railroad 101d road rate controversy controvers3 Is due for an- an an . - other another airing This tlw tinn tint , . the sUbject uhlopr uhloprme "lU lU will sUbject"lU subjectwill " lie be brought up In an effort to help the me struggling strugHng : railroads ChaIrman ChairmanRavburn ChaIrmanna ChairmanRayburn na Rayburn andforeign burn , , of the house Intel interstate state and foreign commerce committee , proposes to proposesto try to remove one of ot the restric restrIc- restrIction restrictions tion tions - ! > In the present Iiw law 11 " which h1S has Irl.ed Irled irked hisirked . the railroads consldcnbly conslder1by considerably ] . , Ibis 'ibis 'I I ' his Is the provision pro1.lon profLfon pro\ pro \ 1.lon 1lon . , tint Ul'lt Ullt that ' If It a through athrough rate Is made , which happens happensto to be less than tlie the rate for the ofthe same distance distantC the part ot o . cheaper throughnte throughr1te throughrate through r1te rate must be compensitory compens'1tory compens1tory compensatory ' Or In inshort short that the nllroid nllr01d railroad must mike m'lhe mlhe make ' profit aprofit at the 10\\ 10 lower 10er \ \ er rate n a At rateAt first blush Itoud It \ would \\oud oud ffould ] seem th1t that tinttlie the rulroads r11roads railroads r11roadsould ] \ would \\ould ould \ have IU1\e IU1 e hale \ no pbjectmn objectIOn to such n a provlslon provision havepentv haveplenty ] But they have- have have-- - - - pentv plenty TheIr . . . chief * ; iiiti : objection oojcction Is tint th1t that tho the Interctate Interstate ; tato Commerce worrying \ Orr31ng nbont about commission.about commissionabout this commission . , Injunction , has been hasUcen very slow about any-3 any 3 - cheap * * aboutclpprovlng approving clpprovlng any through throughrutef throughrates ough rates rutef . . It and . . . was as said , , . time .u u again iB"i iBi * " " , , to some railroad ralIroad put tonut onn one An fn 1n , that hnA - ' . - - - seeking to be obviously there _ could . . uu no uu profit pront in - - .vtHU vtHU such suchn sucha a n rate , , . so "as as was " therewas no use there itWherens itWhereas considering conslderIng it Whereas Wherens , the railroad raiJrond Involved volved might be compan company In- In In - thereVoult there \ would \Voult Voult } be perfectly sure that j mOl moie mole e doUars dollars dollar ' In treasury at n L the ti " ' ' Its end endof of od pertod It if It Itere \\ere ere were \ \ alJowed allowed an any gh g11C4 en perl pert- pert . - rate , to mahe make that whether It _ Cou11 could ] . . pm particular thepaiticular tlCUar ] rate would prove .uvy uvy that mat the the particular Yielda yield a profit on shipments It Itor underIt or not . , , made under The point Is 1.8 18 . that It Is 115 le next net % to Impps Impos - a railroad to figure whether whetherit sible stbie for railroadon on onfigure It makes the p profit on any y p'lrUcular plrUcular p'lrUcularshipment pirtlcularshipment- pirtlcularshipment pirtlcularshipmentIt p pshipment ' shipment - . It kno\\ kno knows knos \ s where It st.lDdc stlDdc stands standswithin . ; , , "tthin tthin within " reason , , on its entire bu&lness bulness business bu&lnessBut businessBut businessBut & But it is very tery \ ery difficult difictrlt to breik IJre'lh IJrelh break ' the thething thething thething thing cIo flow dottD , " n the way mathematlcl-1ns mathematlcl 1ns matheinatici'ins matheinaticiins mathematlcl1nswould matheinatici'inswould mathcmatlclinswould - ' would like Hke For ror It Is not a question ot of ofsubtracting otsubtracting ofsubtracting subtracting tlie the cost of ot an item from fromthe fromthe fromthe the selling se11lng pllce price pi ice . , deducting handling handlingchar handlingcharges handlingcharges char charges e , and figuring the profit , as It It"ould itwould itwould "ould ould would " be in a retail store . How it W Works Warks WorksIn arks arksIn In fact , railroading ralIronding is almost at the theother theother theother retail retnlI store whenit when whenIt whenIt other e extreme e'Ctreme eCtreme ' " ' Creme from a n It comes to figuring what should be becharged becharged becharged charged the tbe customers To consIder considera a specific case of how this lon long and andshort andshort andshort short haul thing works , take the three threecItIes threecities threecities cItIes of Pittsburgh Plttsburjth : . , Youngstown and andChIcago andChicago andCliicago ChIcago . . The Baltimore Ba1Umore and Ohio Ohiomight Ohiomight Ohiomight might consider It good business to tomake tomake tomake make a rate from Chicago through to toPIttsburgh toPittsburgh toPittsburgh PIttsburgh cheaper than from Crom Chicago Chicagoto to Younghtown Youngstown Young towD , though Its trainsfrom traIns traInsfrom trainsfrom from Chicago to Pittsburgh pass passthrough passthrough passthrough through Youngstowu YoungstoWD Youngstown YoungstowuIf YoungstoWDIt YoungstownIf If It by this lower low'r lowr ( ' rate to Pittsburgh a alarge alarge alarge large number of cars loaded with withfreight withfreight withfreight freight should be added to each train trainthere , , there would be no doubt about it . For ForIt ForIt Forit It costs very little more to haul atrain a atrain atrain train of ot 100 freight cirs C1rs cars than a 11 train trainof trainof trainof of 80 SO cais cars Or to haul a train of ot 50 50cars 50cars 50cars cars than a train of 40 cirs C'1rB C1rB cars ' D\ D Es Even Den \ en the thefuel thefuel thefuel fuel cost of the trip Is not nised r'llsed rllsed raised ' any any- anything anything anything - - thing like llke proportionately by the tbe additional ad- ad additional ad additional - ditional cars Whereis Where'1s Where1s Whereas ' , the labor lalior cost costIs costis costis Is rarelv rarely rarev ] advanced ad\'smced ad 'smced smced \ ' an amount worth worthconsldermg worthconsidering worthconsidering worthconsideringBut consldermg considering consldermgBut consideringBut But the law does not take cogni cogni- cognl- cognl cognlyance cogniance cognisance - ? sance yance ance of this factor . . It sa says savs s that thelower the thelower I Ilower lower rate must be compensatory . And Andthe Andthe Andthe : the I Y . . C C has hns been holding tint th'lt thlt that ' this thismeans thismeans means there must be a profit , which whichcan whichcan ! can be demonstrated , at the low rateAnd rate rateAnd rateAnd And this Is a hurdle which the rail rail- railroads railroads railroads - roads have not been able to take . . : Especially IspecIally as the Intermediate towns townsalways townsalways townsalways always raise cain , send dE > delegations |