Show I A e National Topics Interpreted by William Bruckart o Washington With assurance that Joseph B. B Eastman federal co of or New Idea on railroads Is go go- Business Control J lug S to recommend m men mend e n d In reports reports re re- re ports soon to appear that there be bemore bemore bemore more stringent regulation of ot the railroads It is to be noted that Washington conversations cOD lately have Included a new Idea Iden respecting governmental relations with businesses bust busi nesses coming under direct federal federal fed fed- eral regulation The discussion seems to center about some idea concerning the obligation which government go owes whatever business It regulates and whose profits It limits The talk one hears henrs In many places Is to the effect that If the tho government government govern govern- ment or any government lays las down rules which prohibit a business from reaping the profits that accrue In good years ears b by the the- same token It ought to consider some form Corm of compensation compensation compensation com com- to that business In the periods of ot depression through such as we are now passing because It has refused to permit that business to create a huge layer of or fat upon which it can cnn feast In the bad years Advocates of such a theor theory of or course have Immediately found In other words two very definite schools of thought have developed de de- developed and although this the question Is nowhere near a solution nor Is It likely that the forthcoming session of ot congress will even en approach an answer one can hear arguments pro and con on the point most anywhere the subject Is broached The proponents of the theory that the government owes an obligation obligation obligation obliga obliga- tion to those businesses which It has hns regulated within an inch of or their lives contend that Investors investors- which means the public who own shares of stock stock are are being dIscrimInated discriminated discriminated against by their own government gov gov- Their claim Is that a business business business busi busi- ness cann cannot t survive unless It Is enabled enabled enabled en en- to store away profits of oC the I good years ears against which It may draw when the prolonged economic depressions strike The result Is according to this argument that unless unless unless un un- less the fat Is stored away after the manner of the bear In preparation for winter Investors can expect only to see their savings destro destroyed ed from time to time and this with the sanction of ot their own government govern govern- ment In opposition to this new theory of or relationship between government and business one hears tho the usual denoun denouncements of or the sins of ot the railroads and the public utilities but one also hears complaint that If it the federal government should embark upon a policy of com compensating compensating pen pen- sating those businesses which It regulates regulates regulates reg reg- it might be placing a premium premium pre pre- on mismanagement and even downright crookedness It Is argued argued argued ar ar- ar- ar gued likewise that the federal government government gov gov- must not use taxpayers' taxpayers money In this manner nor that It should employ the tho policy of or compensation compensation com com- as that amounts to a sub sub- sidy At any rate a n new field has hns been opened On each side are aro to be found vigilant and virulent defenders defend defend- ers and from this time it Is made to appear that congress Is eventually eventually eventually ally going to be compelled to decide decide de de- cide how far this regulation of ot business business busi busl ness neBS can properly go From all of the arguments here It would seem that each side has solid ground upon which to stand It may be possible that from this controversy something In the way of a n new economic economic eco eco- policy will m develop Tho The Roosevelt administration has gone farther than any other In history In Its regulation of ot business and there are those who ho believe that a t reaction Is due It If that be he the case then It appears logical at least that the two opposing forces may bring about a compromise that will be favorable favorable fa ta- fa- fa to general business which Is subject to regulation and enable those who place their savings in stocks or bonds of or such utilities to feel teel reasonably secure about some sort of or annual return Solution of this question of equity between the government go and the businesses which Solution it regulates Is not Not Simple as simple as ns It may superficially s appear For example tho the question Is put forward whether it Is possible possible possible pos pos- sible to evolve e an any method of measurIng measuring measuring meas meas- even roughly tho the extent of ot the public obligation It Is likewise necessary to determine In advance of a n final answer to the question whether the past Inequalities and past treatment of or public utilities Is 19 the factor to be considered There Is a question whether the government government government govern govern- ment Is openly to assume a direct t voice In the management of or pro properties properties proper proper- rHes r- r ties Hes which It regulates If It there Is a compensating arrangement to protect protect pro pro- Irn investors estors In those businesses Then It goes Into the question of or government ownership or government govern ment meat control of or private Industry Some of or the advocates of this program of or compensation call attention at nt to the thc public necessity for maintenance of or service sunke such suet as vas the railroads supply for Cor example In lle ia tape e of the railroads and ship shIp- ping with perhaps the addition of ot the growing aircraft industry It Is la admitted that there Is a willingness on the part of or those lines of or commerce commerce commerce com com- merce to aid the nation In time of or war Should the government go engage In distribution of taxpayers' taxpayers money to offset deficits In the lean lenn years cars opponents opponents op Ope op- op of or the policy say that we should be headed for an nn even greater reater bureaucracy than has been set up to accomplish recovery reco under un un- under der the present administration Obviously Obviously Obviously Ob Ob- Ob- Ob many business men will not I Ibe be In favor of or further extension of or bureaucracy They have ha had their till fill of bureaucracy under the codes The form Corm of assistance is another er problem If Ii It were not In the the- form of a money payment direct to the businesses concerned then tho the subsidy must be worked out on another another an nn- other basis It has been suggested that the tho regulations themselves might be used to enable some returns returns returns re re- re- re turns not now v available One the the- ory advanced ad was that the regulations regulations regulations regula regula- should be flexible and that In Inthe Inthe inthe the lean years there be some relaxation relaxation relaxation relax relax- of the restrictions so that the tile regulated business might proceed more freely in operation Another thought heard Is that there thero should be consideration given to competing businesses such for example as Is the condition between be be- between I tween the thc railroads and the highway highway highway high high- way users It Is of or record ol or of course that trucks and busses ant and privately owned vehicular traffic use national and state highways built out of or taxpayers taxpayers' ers money anc and they do so with the ver very minimum of ot taxation The railroads as competitors competitors competitors com com- of or these lines have ha no such beneficent attitudes displayed ed toward toward toward to to- ward them by the government which at the same time has been bearing down with its regulations As one looks backward upon the campaign of or l 1934 1933 34 the methods employed employed em em- plo ed by the Both Parties two major par- par Show Weakness Weaknesses ties a appear p pea r i worthy of or ex cx- Observers In Washington Washing Washing- ton I believe belle are of the opinion that the campaign developed develop d an outstanding outstanding out out- standing circumstance namely that the Democrats Democrats' lack defensIve lacko-defensIve ability abil ahll ity and tho the Republicans have shown an utter Inability as an offensive offensive of of- e party In all of the debates and the tho speeches and the statements forthcoming forthcoming forth forth- coming from candidates on either side there Is proof of the conclusion above reached Some Sonic political writers In Washington and some political leaders take the position that when the Democrats were put putto to o tho the necessity of ot laying down afresh n a fresh tresh program they failed on the job They gave the Impression of ot politicians running largely on momentum mo mo- The minority party If IC such the Republicans may be bo called was wholly unable to take advantage of or known vulnerable points In tho the Democratic armor The rhe net result was obviously that there was much haranguing and much slinging mud-slinging In what should have been real national national na na- na Issues but nothing came of or It The campaign therefore has demonstrated demonstrated dem demo In my opinion the need for a stron strong minority party whether that party bo be Republican or Demo Demo- cratic The party In power necessarily necessarily Is on the spot because It Is charged with the responsibilities of ot government It Is the function of ot the minority party to criticize and offer counter proposals The Tho most astute politicians see seo that condition and I believe are at a n loss as to what It means for tor the future The federal communications commission com com- commission mission one of or the new agencies set setup setup setup up by the Roose Roose- Favor v vel e 1 11 t Mergers tion as a n Permanent permanent Perma perma- nent part port of or the nations nation's regulatory structure is preparing to ask congress for tor an nn amendment of ot the tho communications act of or 1 1934 1034 M enabling it to approve mergers Ot Of course courso the particular problem Involved In the tho communications communications program Is the question of ot mergers of or such gigantic corporations corporations corporations corpora corpora- as the Western Union and the Postal Telegraph companies and some of or the radio companies The Tho Implications and tho the potentialities of ot this movement however go much further It Is too early carly to attempt a forecast forecast fore fore- cast of or congressional opinion on the tho communications proposal but It Is Isan Isan isan an opportune time to consider what may happen 1 If congress should approve approve approve ap ap- prove this step toward creation of or single businesses for tor single lines Unes of ot service in this country countr It Is regarded also as ns Interesting to examine the effect upon the country if it It were to be subjected to a well regulated monopoly of or aUthe all aU the business In that line such as as has bas occurred In the case ease of ot the Bell Telephone system Some members of the commission and Its staff starr feel teel that a merger of ot the large telegraph companies for Instance would result In establishment establishment establishment establish establish- ment of ot a n more closely knit network network net net- work worle of or telegraph lines and offices officer than now e exist C. C Waiters apor r Union D. D |