The Washington herald., 1922-02-09

COHuHHed ITO" fdge OHC.
ready acting independent agencies
in the Federal government.
The development Of our rela-
tionship to railway problems will
receive a great deal of advance
ment during these next two years.
1t is quite possible that a general
consolidation of the many organs
Of the government together under
a secretaryship Of transportation
: may be advisable"
Defends Esch-Cummins Act.
Referring to the railway situa-
tion. Mr. Hoover said:
| The Esch-CumminS act has not
ras vet had a real trial: 1t has not
had a fair chance. 1t came into
lcing at a moment when we were
projected into the most violent Sc
ries of readustments that an eco
nomic group of this world has ever
passed through. l do not know
that many people realize that the
average drop in the price Of com
modities through the United States
in less than eighteen months has
been nearly 5S per cent.
We have never in the history OF
the world seen a drop of values of
seen a shrinkage of probably S5O.-
OOO, 100000 in the value of circula-
tive commodities in that period
And that this country has been
able to maintain its productivity. to
maintain as large a portion of Ia
~ employed as it has. that It's
TdlIMa-<s have not gone into the
I hdhus - he, receivers. that oul
hdhks nave hOt " cen the scenes OF
panics. is to me a ",,attcr of daiIy
marvel. The fact is we have cons
past the danger point.
Must Restore Confidence.
The most fundamental necessity,
Of this country today is to re-
=, initiate maintenance and betterment
and expansion of these RAILWAYS.
Unless we can restore confidence in
the railways as an investment. W.
cannot expect that period of con-
struction to come about.
There is nothing short of bank
ruptcy facing an industry that
mist borrow money at Y per cent
interest per annum above the rate
!, is nermitted on the average to
earn
II do not assume for the mo-
mont" said Mr.. Hoover, that we
can impose upon them reduction
of rates for il amounts to con-
tisratIOu. But il would appeal to
me. and / think to most business
men. that if our railway managers
,,-cre willing to. cOnCedc to the pub
liz. month by month in the reduc-
lion of rates every penny that they
earn in excess oil thelr hecesS"iS
bond interest.
senator Cummins declared him
.o1f as being "unalterably opposed
- government ownership of rail-
1yavs" Egt suggested that one of
80 things was the only solution
of the transportation question
consolidation OF the railways UT
Government control.
..CoDpress passed in 1920 what is
r.nown as the railroad act" said
,bc senator. and 1 believe that act
,,-as founded upon sound principles.
7, was passed, asserted the Sena-
tor in the hope that rates estab-
lished would give a fair return 10
,Lo roads, so that maintenance
oonId be effected without strain.
Sa,ator Cummins was of the
opinion. he said, that were the ran
Ids to voluntary cut their rates
with respect u d5i
nets even for psychological rea-
80 that it would be wise though
~ bring the roads to a point OF
hankruptcy, for it would hurry the
oomnIetion of readjustment.
call. for "PracticaI Men,"
q Bedford, chairman OF the
hard of the Standard Oil COMPANY
- New Jersey. speaking at the
et,srnoon session. said that the So
Intion of business today called for
arractical men of affairs"
Alba b. Johnson, Of Philadelphia
3nresident of the Railway Business
| Ihssociation, said that his associa-
| tfon had unanimously adopted a
rcsoIution opposing the creation Of
a commissioner general of transpor-
ltation-
iSCeorre 4. Post, chairman of the
b broad committee, said his COM
Ir,ittce assumes beyond a perad-
venture of doubt that the Chamber
~ Commerce of the United States
is frrevocably opposed to govern
ment ownership and operation OF
four railroads.
/ T, c. Powell. during the morn
ling session. spoke of the agricul-