Jltxe it,. 1918 



BABCOCK, PITTSBDEGH, : 

 EXECUTIVE COMMITTEE 



M. BROWN, LOUISVILLE, MEMBER 

 EXECUTIVE COMMITTEE 



while that of the United States was $0.7109 per ton mile and wage scale 

 $16.90 per week ; more than double the wages paid by the railroads of any 

 other country in the world except Canada, and our freight rate was the 

 lowest except British India. 



The Canadian railroads, owned by the government, the last year before 

 the war (and by the way the Canadian railroads pay no taxes, neither do 

 the government railroads in any country pay taxes) met with a deficit. 

 For every $100 they spent $102.13. Our railroads paid $143,000,000 

 local taxes. I am ready to examine the records of the countries of the 

 intelligent people of the world before I put my head into a halter and 

 saddle upon the people of this country the great railroads of this country. 

 No government can or will or does manage any line of industry as 

 economically as individuals. We are paying the penalty right now, under 

 government control. The fare has just been increased one-half to meet 

 the annual payroll of increased wages for railroad employes ; and wait 

 until payday comes. 



From the organization of the Federal Government down to 1913 the total 

 expenditures of this government were 36 billion dollars. What has it 

 been since? The expenditures of this country since 1913, including the 

 appropriations and authorizations for the coming fiscal year, are 51 bil- 

 lion dollars or 15 billion dollars greater than in a century and a quarter. 

 We are spending some money, and we have got to pay the bill. The 

 Congress of the United States at the present time is framing an internal 

 revenue law, one of great importance. 



I do not agree with the president of the United States and the secretary 



of the treasury as to the amount of money that we should raise by direct 

 taxes in proportion to our expenditures in this war. It may be that I 

 am wrong, and that they are right, but I will tell you why I formed my 

 opinion as I did. The president and the secretary of the treasury want 

 congress to raise one-half of the money spent during this war by direct 

 taxes and borrow the balance. That is too much muijij-. in my opinion, 

 to call upon the people to pay while we are carrying on this war. No 

 country in the world ever raised that percentage of money ; no country 

 is doing it and I don't know why we should. If this war is for the benefit 

 of democracy it must cover the future and our children will reap the 

 benefit of this war. Why not let them pay a portion of the cost instead 

 of asking us to do the fighting and the paying now? 



Let me call your attention to what we are paying. The taxes by the 

 government this year, in my opinion, will go above four and one-half 

 billion dollars, although the estimates are below that. Our expenditures 

 this year will be about 15 billion dollars. In other words, we are raising 

 now about 30 per cent of the money that it is costing to carry on this 

 great war, 30 per cent by taxes, and borrowing the balance. Great 

 Britain has raised by taxation 25.7 per cent of the money she spent in 

 this war, a total expenditure of 33 billion. She has increased her taxes 

 this year and will raise 28% per cent of her expenditures this year by 

 direct taxes and borrow the balance. Canada has raised 181^ per cent 

 of her expenditures by ' taxes and borrowed the balance. France has 

 raised 11 per cent by taxes and borrowed the balance. Italy has raised 

 9 per cent by taxes and borrowed the balance. It is now proposed that 



