TEN
THE ALLIANCE HERALD, FRIDAY, MARCH 3, 1922
The Nation's Business
(A Scries of Articles by National Leaders Published Ex
clusively in This Territory in The Herald.)
"BUSINESS IN GOVERNMENT" by Gov
crnor Davis of Ohio,
Po politics and business mix?
. The business of politics is the busi
ness of government in its final analy
ris. Is vour irovernment and that
productive efficiency per dollar of op
erating cost to a point far beyond the
record of the last few years.
Business thus made itself ready to
maun vour business, for vou are a cone with the new order of things
partner in the American government . following in the wake of the world
in fact as wen as in meory, 10 ne con- com new
lollars a year additional in taxes over
nd above the financing of the ordi
nary governmental operations.
And all this besides the payment of
the state and municipal taxes.
It is not to be doubled that the
prospect of all this have been having
and still has a decidedly discoursing
jffect upon the process of readjust
ment and the restoration or normal
prosperity the outstanding problem
of today. '
Government to uetrencn
For its proper solution, it is essen
tial that there be emulation by all
governmental agencies, whether na
tional, state or municipal, of the ex
ample set by private business in cut
ling down to a minimum, the recent
high expenses, and in displacing the
,?ost so-cut off with a Doost in ei-
ficiency. Better results in the adminis
tration of public woik win go rar in
meetinir the situation. It wilt ease
somewhat the staggering burden on
the miblic. but It will still be faced by
the twenty-four billion dollar public
debt to be wiped out practically with
in the next twenty years.
It being virtually certain that the
lucted on lines other than good busi
ness lines? If it be so why? Good
tusiness means the successful con
ducting of a commercial pursuit in a
creative sort, a productive sort or con
structive sort Surely government,
municipal, state, or federal' must be
creative, constructive, productive and
commercially sound if that government
is to succeed.
In the face of this obvious reason
ing there are thousands ef citizens in
the United States today who declare
the fallacy, "business and politics
lo not mix" the foundation of their
own lack of interest, lack of active
citizenship exercising the right of
suffrage and lack of belief in the very
institutions that make of them citizens.
The attempt to put business and
politics, in their relationship toward
one another, in somewhat the same
relationship as oil and water, is both
unfortunate and unwarranted.
If the theory behind it was that the
iusines3 man cannot and should not
actively interest himself in political
affairs, it was WTong in premise and
principle, for as the citijens partici
pation increases in political life, there
results better politics and better
government.
For, in the last analysis, politic3 of
course is but the science of govern
ment. Then again, if the supposed unmix
able status of business and politics
related to practical application to the
Affairs of government, of the methods
that are fundamental to modern busi
ness practice, the declaration was even
more inapt and untrue.
roli tics and business do mix and
of all times, the need for a generous
admixture of business into our affairs
of government has probably never
been more striking and urgent than
now struggling as we are under the
drastic reaction of the war and the
unparalleled financial burden with
which it left us.
Business Makes Ready.
Business many months ago sensed
the beginning of the reaction from the
artificial war time boom, and quietly,
unostentatiously prepared itself to
meet the depression it saw coming,
and to begin adjustment to the chang
ing conditions. Retrenchment became
the watchword. Economy measures
were put in operation. A higher de
jrree of efficiency was injected into
business operation. The immediate
result has been that business has cur
tailed its expenses practically to the
pre-war basis, and is gearing up its
25
REDUCTION
EXCURSION FARE
TO
OMAHA
AND RETURN
i! XT
MARCH 5, 6, 7
Final Return Limit March 13
Account
MERCHANTS MARKET
ASSOCIATION
But the problem of today is far
more complex than can be met by prl
vate itiative alone. It is too close
lv connected with governmental op
eiation not to require governmental
action to help in its solution In
great measure it is a financial prob
lem.
Cost of government during recent
years increased apace with the cost
of all else. And today, wun cnanged
conditions, it is primarily essential
for the general wefare that the 6-st
of government be brought back down
to a basis in keeping with retrencn
ments found necessary in private un
dertakings. Governmental service
must continue undiminiphed, but it
must be performed at a cost far be
low that of late years.
The problem was a two-fold aspect,
first from the standpoint of future op
erating cost of government, and sec
ond, with respect to discharge of the
financial war obligations.
On the manner with which this dual
problem is handled largely depends
our entire economic future.
Government Cost Up.
The ordinary operation of the gov
ernment of the United Mates cost
about nine times as much last year
as it did in 1916. And beyond that
was the cost which could not be met
by' taxation and had to be taken care
of by borrowing the special war cost
by which the national debt was boost
ed to about twenty times the size it
was five years aeo.
The country today is required to
nav nraetically as much in annual in
terest charges on the public debt as
the amount of the debt itself back in
and that without even begin
ning to provide for reduction of the
debt- . . . ,
Add to all this the vastly increased
cost of operating state and municipal
governments and a conception is
gained of the tremendous burden the
tHvnnver has to bear today. It is the
greatest burden he has ever been com
u&11xu1 t n pflrrv.
in lvlo, tne per capita .-!. i
United States government was about
$7.18 In 1920, it cost virtually $64
for every man, woman and child in
iho iTn;tl stfltps to operate the fed
eral government, and during the fiscal
year of 1921, about ai.
Debts Fall Due.
And that has not included adequate
provision for the retirement of so
much of the public debt as is of short
maturity. Secretary of the Treasury
A. W. Melon has pointed out that
within the next two years, about seven
and one-half billions of short-dated
debt or about $75 for every person in
the country, will fail due. Also that
only about one billion dollars will be
available for such retirement at that
time and that other arrangements to
carry the balance will have to be
made:
What reduction has already been
made in the short-dated debt which
originally was. over nine billions, has
been made possible in large part by
reduction of the general fund and by
receipts from war salvage, but only
in a very limited measure by tax re
ceipts. Altogether, the county's gross debt
amounts today to approximately twen
ty-four billions. The greater part of
it matures within seventeen years, and
the balance falls due in the, nine sue
ceeding years.
When it is considered that the tax
payer today, as pointed out, i3 already
required to pay in annual interest
charges alone practically as much as
was the entire public debt of five years
ago, and that governmental operation
has been costing about nine times as
much as before the war, it is not di
ficult to realize the onerous burden
upon the taxpayer to retire the war
debt. In other words, he would hav
to provide an average of a bllion
division officers. In 1020 these num-lsuch officers of the company as the which individual railway officials drew
bered approximately 22,000 and their president -shall elect and determine," i annual salaries from more than one
total annual salaries exceeded $02,000,-1 which contributions were in addition company.
000, not including the railway officials ' to the annual salaries of the officials, The exclusion from railway wage
temporarily identified with and paid these latter ranging from as high as statistics of these salaries of general
by the United States railroad adminis
tration during the period of federal
control. He claimed that these salaries
had increased since 1916 in an amount
exceeding $39,000,000, while the total
$75,000 to $32,000.
Other Salary Abuses
The commission, according to Mr.
ie voiai i .! n . -i ; .li.
number of general and division officers ' mTZ T A
had increased ia these five years less T ' 1 h g1 icag o, , Rock Wand A
than 5,000. The average increase in fac,f,c to Sn.it1..pafiL!
the annual salary of each of these of- tru? ant?yp?ltuifnf ?l
t: ..:- u merely 'another misleading and ob-
ficers in this time was as much as
$8,000.
Mr. Warne claimed that this very
increase in salaries of officials had
jectionable practice of the railway
company's officials." c v
Mr. Warne also called the attention
been included as a part of the total ViT.,.iXk
wage increase to employes in statis- fact b referring to instances in
tics presented before the committee
by witnesses for the railroads. The
effect, he said, was to show an in
crease in annual wages paid to the
extent of $39,000,000 greater than had
actually taken place.
"It is auite clear that in the pres
ent form which the railway problem
has assumed the salaries of these of-
and division officers, Mr. Warne con
tended, is of the greatest importance
in any measurement of wage increases
proper. This is all the more necessary
for correctness of the statement, he
said, when it came to 'determining the
average wage received by the em
ployes. This average wage, the witness de
clared, had been greatly exaggerated
in the testimony of witnesses for the
railrouU, the actual money wage re
ceived by the great majority of rail
( Continued on page 12)
iiuiiiiiiiiiHimiiiim:iniititmm
national eovernment will not be able ficials are properly not a part of the
to retire the teven and one-half bil- problem and in fairness the amount
lions of short time debt when it falls of their compensation and its increases
due in the next two years except should be eliminated from statistics
only in small part it follows that it purporting to show distinct wage in
will have to be refunded. The same creases. Such has not been the case
condition is certain to repeat itself in the railroads' propaganda to secure
as the Liberty bonds of the later ma- wage reductions, but on the contrary
turities fall due. ' "K vouu umounis pain uieae uiucwis
i hoiiAva tVio rlnn to have the neoule and their increases have been included
pay so gigantic a sum as twenty-four in the publicity statistics presented
billion dollars in so comparatively a before this committee by the execu
short oeriod besides paying for the tive of the roads. None of the awards
ordinary governmental expenditures of the United States railroad labor
Is too severe a burden for one genera- board' affect the salaries of these of
tion to carry alone. ' ficers, tbey are not subject to the
It is an economic prospect inai jurisdiction oi me ooari; wiey can
would hardly tend to exercise a strong- and have been increased at any time
lv stimulating influence upon initia- by a mere dictum of the board of di-
r . .i a. - a! L.. fc.
tive, enterprise and progress in me itciors; mey can even ue k"uj m
nation's business activities. I creased by having large sums voted
Rnih fmm t.h standpoint of bu.si- to them as special gifts. In no eco-
ness like, constructive financial, pol- nomic sense are these high salaries a
lev. and in the interest of impressing
the lesson of patriotic responsibility
upon our children, a share of this war
debt should, l peneve, oe carnea uy
part of the railway labor problem.
Secret Bonuses to Officials
He quoted from a report of the inter-
the succeeding generation. The war state commerce commission snowing
was fought that they might not re i in me case oi me nicago, kock is-
deprived of the benefit of our free in-: land & facific that vice-rresiaent j.
stitutions. Should tney not Dear a uorman nau ueen nwreuj iuu an
nnrt nf th. burden, not only that our additional $18,750, making his total
economic life may the sooner return ' annual salary $43,750, whereas the
to normal and to divide what would roads pay-rou snowed oniy $-;o,uuv;
otherwise be a task virtually impos- that Chief Engineer C. A. Morse
sible of performance but lo so that received a secret bonus of $3,000 the
there may be perpetuated in mem a iirsi oi eacn year in auuiuuii aj ms
closer relation to and understanding of annual salary of $15,000; that General
the principles and ideals for which Solicitor R. A. Jackson was given
. .i t i. . l l a-, in nrt 2 . 1- L!
we unsheathed the sword.
Extend Liberty Bonds
From every standpoint, the refund-
$100,000 in cash upon his retirement;
that Vice-President C. H. Warren was
paid , $50,000 in cash and in addition '
was given $255,000 par value of the ,
stock of the New Jersey Company;
nir of our Liberty loans into a new -V"?V. ?!
consolidated issue in which the range y25obo In caah-that SSr G
of maturity is extended from twenty- paid $2o 000 in cash thatrecor G
five sav to fifty years, would oe a ---r -p -
sound, businesslike, f orwardlooking the board of directors, was given JlSj
procedure, It would immediately re- , 000 in cash when he retired from
duel by half tL obligations which we secretaryship. According to the com
S meet in the net score of years J' ,1
or so and allow us to get economically ...?, v...K ...
ZU I fround once morfunder our feet. f "f,r Balanes Vtd about
There would be another immediate i,ow,uwi.
benefit from such a course one that . When the capital stock of the rail-
experience with long term securities way company was Increased Mr.
would Indicate and mat is increase urne nutteu uiai wuiw t"
of the market price of Liberty bonds, value of $880,500 were placed by reso-
Investors pay more lor a oona oi long luuon i me unvwc " ,
maturity, than for one that will be re- the name of the president to be dis-1
deemed in a shorter period. This is posed of at par "for the benefit of
an accepted iact witn unanciers. ny-
AGAIN
Breaking records is getting to be a habit
with the MODEL MARKET. Each week
beating the previous week's record of sales.
WHY?
There is a reason, and the people who
trade at the Model Market know what the
reason is
PRICE, SERVICE, QUALITY
No juggling of prices for one day so they
will look cheap in print.
Next week we will have plenty of Fish,
both fresh and cured.
Dill Pickles, 30c dozen; Sweet Pickles,
Sour Pickles, Bread, Milk, Cream, Butter,
Eggs. . ;
Don't forget to call Phone 30.
Our Motto, "SERVICE WITH A SMILE
16 Ounces to the Pound.
Phone 30
MODEL MARKET
tHimnimiumm:imimmiHit:
Elication of this principle to Liberty
onds would be certain to result in a
greater demand for them and in their
increased value in the market.
With requirements for ordinary cur
rent expenses reduced by government
al agencies of every kind, by radical
retrenchment, and the distribution of
the payment of our public debt over a
longer period, we would be safely on
our way once more to a period of en
during, natural prosperity.
The Railroad Column
' (By W. S, CARTER, President
Brotherhood of Locomotive Fire
men and Enginemen.)
Our Grocery Sale
IS ON UNTIL WEDNESDAY
OF NEXT WEEK.
r ENTIRE LINE OF DEL MONTE CANNED
FRUIT, CHOICE AT 40c.
Large can Carnation Milk 10c
Gallon Peaches, 70c
Gallon Loganberries i . 90c
Gallon Back berries 93c
Remember This is National Canned
t; t Food Week.
Lee Moore
119 West Third Street.
IIow Wage Statistics are Juggled
The American people, within the re
cent past, have been overwhelmed with
railroad propaganda, (1) for the pur
pose of reducing the wagfrs of railroad
employes, and transferring to the
treasuries of the railroad corporations
the benefits of same, and (2) to con
vince the people that freight and pas
senger rates cannot be reduced, with
out throwing the railroads into the
bands of receivers.
A marked feature of this propagan
da has been false statements as to the
"average earnings or railroad em
ployes," which have gained great pub
licity, at enormous expense to the rail
roads, and have placed railroad em
ployes at a serious disadvantage in
the public's mind. At hearings of the
senate committee of interstate com
merce, conducted under the provisions
of senate resolution 23, such exag
gerate! "evidence" was presented re
garding the compensation of railroad
employes that Dr. trunk J. Warne,
a leading economist of Washington,
D. C, was employed by the transpor
tation employes to analyze these state
ments of the railroads and make re
port of such analysis to the senate
committee. On November 26 Mr.
Warne appeared before the senate
committee and testified at length con
cerning the same.
He reviewed the experience of the
four brotherhoods with alleged wage
statistics presented by the railroads
before federal boards of arbitration in
wage controversies since 1910, and
stated as a conclusion that these rail
way employes had proven these statis
tics to be incorrect and misleading and
not representative of actual facts. He
claimed that this was also true of wage
statistics presented before the inter
btate commerce committee, in its pres
ent hearings by railway witnesses, and
then proceeded to point out in detail
what he charged to be their inac
curacies. One of these "statistical fallacies"
he claimed to be the inclusion in wage
statistics presented by railway wit
nesses of aalaries paid general and
f n n WANT AD SECTION -
I. 1 a5Pt H Si-H Was
m r F f - AuatTu SsMS A I
Tk FT t 7 JT
sbi viflK-ft vonpv
in Dull Times
IT CAN BE DONE HERE'S
HOW TO DO IT.
0i M klt.-l
HOII
While work is slack and you have
plenty , of spare time, why not look
over the things you have discarded or
could easily do without. Select those
that your neighbor could use and then
use HERALD WANT ADS to get you
a buyer.
Today some farmer might want a second-hand
harness, saddle or farm implement, etc., but not
know just where he can buy one.
Today some householder might want second-hand
furniture, stove, phonograph, etc., but will not
buy because he docs not know where to go.
.TO
Herald Want Ads Will Bring Buyers.
vr i Tney uost lou just lc rer v ord.
PHONE 340 Or Bring Them to
Xiie Alliance Herald
MASONIC TEMPLE BUILDING.
sat