The New York herald., 1922-11-15
Will Urge Rate Adjustments
and Regulation Permitting
More Initiative.
PERIL
Tavors Consolidation, Revision
to Deal With Wages and
Car Shortage.

WASHINGTON, Nov. 14.--Need for
reconstruction of the railroad rate
structure OF the country-in some
cases with upward readjustments-
will be brought to the attention of
Congress by Secretary Hoover in his
forthcoming annual report. Some re-
lief, both to the railways and to the
farmer, in the Secretarys view, may
be obtained through such a reorgani-
Kstion.
Mr.. Hoover's report is to present a
comprehensive discussion of the na1
tional transportation problem covering
car shortage, regulation. weaknesses in
the transportation act, rates and labor
regulation.
Losses through short transportation,
Mr.. Hoover finds. are a tax upon the
community sitting production. introduc-
ing speculation and disturbing price
levels. Despite the lack OF equipment. he
maintains. American railroad manage
ment is the most efficient in the world
Z in so far as it is not limited by uncon-
trollable circumstances.
Preservation of Initiative.
Regulation in some form is necessary,
he contends, but constructive develop
ment Of this regulation-to preserve the
initiative of railway executives and at
the same time to secure public protec-
tion and assure adequate service-are
vital and not necessarily incompatible.
Naturalization would be a social and
economic disaster" drafts of the report
4 say. Free operation would reconstruct
the vicious practices of thirty years ago.
The present transportation act possesses
many constructive features and some
weaknesses. 1t was the result of COM
promises in many particulars and these
very compromises are some of it's weak
est points
Failure OF the carriers to earn tie
amounts provided under the act as
fair return, Mr.. Hoover asserts. dis
proves the current fiction" that earn
ings are guaranteed" while the recap
tLre provision whereby earnings above
per cent. would be turned over to the
Government to be loaned to railroads.
would not seem to extend to those
''anemic carriers who are unable to
give the Government the color OF assur-
ance of repayment through their own
Inability to produce earnings" Conso.-
cation however, he suggests, mig
solve the problem.
Rates Are n "Vivid Question:
Rates, according to the report. are a
vivid question" in the transportation
situation, a heavy burden on agriculture
IN an era of wide disparity between the
farmers income and that in other in
dustres, while at the same time railway
earnings are not large enough to assure
railway expansion.
Some classes ana areas of traffic are
carried the report declares. "at actual
loss. others are carried at lower rates
than the relative values of the COM
modities warrant; and a series of sciea-
tific upward establishments should be
made in some eases in order to give
the railways and the shippers of prim-
cry commodities and agricultural pro-
ouce some relief"
Wage control and strike prevention
phases of the act are considered unsatis-
factory by Mr.. Hoover on the ground
that failure of the local adjustment
Board resulting practically in Govern
, poyers and employees has thrust all
labor disputes upon the Railroad Labor
Board. resulting in practically Govern
ment fixing of all wages and conditions
of labor.