Evening star., 1922-11-15
RAIL RATE CHANGE
URGED BY. HOOVER
Proposes Upward Readjust-
ment on Some Classes to
Aid Farmer.

Proposed reconstruction of the ma
tion's railroad rate structure-in
some cases with upward readjust-
ments-will be brought to the at
! tention of Congress by Secretary
Hoover. it is understood. in his forth
coming annual report. Relief, both
to the railroads and to the farmers.
in the Secretary's view. may be OBJ
tanned through such reorganization.
Mr.. Hoover's report. according to
drafts already completed. is planned
to present comprehensive discus
sion of the nationaul transportation
| problem covering car shortage. regu-
lation, weakness in the transporta-
tion act rates and labor regulation.
Losses through short transporta-
ton, MIR. Hoover finds, are a tax on
the community, sitting production,
| introducing speculation and disturb
ing price levels. Notwithstanding
lack of equipment. he maintains.
American railroad management is
/ the most efficient in the world in so
far as it is not limited by uncon-
trolable circumstances.
OppOaes Naturalization.
Regulation in some form is nee
essary, he contends. but contructive
development of this regulatlon-to
preserve the initiative of railway eX-
ccutives and at the same time to
adequate service--are vital and not
necessarily Incompatible.
Standardization would be a social
and economic disaster" drafts of the
report say. Free operation would
reconstruct the vicious practices of
L.;
portation act possesses many con-
| tructive features and some weakness.
| 1t was the result Of compromises in
| many particulars. and these very
| compromises are some of its weakest
| points.
Sees Hope in Consolidation.
Failure of the carriers to earn the
| amounts provided under the act as
fair return. Mr.. Hoover asserts.
| earnings are guaranteed" while the
| recapture provision. whereby earn
| ings above per cent would be
, turned over to the government to
| he lent to railroads. would not seem
, to extend to those "anemic car
riers who are unable to give the
government the color of assurance
of repayment through their own in
ability to produce earnings. Con-
solidation. however. he suggests
might solve the problem.
Rates. according to the report. are
a vivid question" in the transporta
ton situation, heavy burden on az
riCulture in an era of wide disparity
between the farmers income and that
! of industry, while at the same time
railway earnings are not large
| enough to assure railway expansion.
Points to Farm Relief.
Some classes and areas Of traffic
are carried the report declares. at
J actual loss. others are carried at low
er rates than the relative value of
! the comm oditieS warrant. and a series
| of scientific upward readjustmentS
should be made in some cases in order
! to give the railways and the shippers
! of primary commodities and agricul-
| tural produce some relief"
| Wage control and strike prevention
! phases of the act are considered un-
| satisfactory by Mr.. Hoover on the
] ground that failure of the local ad-
| justment boards for direct contact
| between employers and employees has
/ thrust all labor disputes upon the
! railroad labor board. resulting in
/ practically government fixing Of all
wages and conditions of labor.
! Refers to Prejudice.
There can be no question" the re-
! port says. that action in some di-
/, rection is imperative. II industry and
| commerce are not to be further
| strangled by 4 shortage in transpor-
taton. Whatever may have been the
| sins of railway finance in the last
generation we are not only suffering