The Birmingham age-herald., 1923-04-02
HESITANCY OVER RAILROAD STOCKS IS NOT WARRANT TED
Expert Sees Little Danger of Hostile Legislation in
 Next Session
By WALTER +. BROWN Editor New York Commercial

Especial Dispatch to The -Herald)
 NEW YORK, April While rail
 road stocks have retained their
 strength. there has been some hesi-
 tancy on the part of market operaotrs
 as to giving them the attention they
 would seem to merit. Some careful
 observers are of the opinion that
 even if there should be a slowing
 down in the forward movement of
 the industrials the situation is ripe
 for a separate bull movement in the
 rails. Probably one of the greatest , deterrents from active trading in the 1 rails is the fear of hostile legisla tton to come through the new Con ! Eress which is to meet next Decem- ! Der and in which there is a large in l crease in the number of so-called ! ssradicals" While it is unfortunate, | H is natural that this fear should ex- 1 aet. The radicals" have announced l Eheir intention of making war on the railroads. The farm bloc de- plares that the farmers must have re- { lief and the President himself is ! Advocating some revision of the Transportation law. As matter of s3act, these fears are largely over t4rawn. There is likely to be great h2eal of noise when Congress recon | Venes. but it may be case of much { bmoke and little fire.
 Deadlock Probable.
 ! The probability Is that the comin $ s 6ession will partake largely of the nature of a deadlock. In fact, one Exceedingly well informed congress- man, whose judgment is highly val ned, estimates that the next session s0f Congress will consist of about 90 Eper cent politics and 10 per cent leg s4slation. and of this most of it will be innocuous. The proposition for example to restore rate making to The state commissions, taking it klRway from the interstate commerce EDommission, will have not the slight { est chance of passage, and such changes as are actually made in the Transportation law will be merely piecemeal amendments of no particu- 5 lar significance.
 It is also a mistaken idea to think s shat the farmers are all radicals or that they are hostile to the railroads. } pr that they are bent upon obtain | ing low rates below what the rail roads can afford to give. What the { farlners want most of all is service. Politicians have been shouting for {; low rates for the farmers because they have assumed that they would appeal to them most. They have over looked the fact that the interstate commerce commission has already granted reductions in farm products . equivalent to almost 26 per cent on the major items.
 o O O
 Arbitrary Decrease.
 Some members of Congress are ad- voeating an arbitrary cut of 20 per cent in freight rates. This would bankrupt the railroads and reduce the farmers expense account by only
 per cent, as his expenditures for freight average only s per cent of his total expense. Farmers generally are studying these problems and their views average just about the
 same as those of other citizens, and they are just as willing to be con vinced as anyone else. The foregoing views have been held by the writer for some time. but they have recently been confirmed by a prominent Iowa farmer who is high up in the councils of the faNn federation and also by letters received from farmers from various sections of the country.
 Viewing the business outlook from the standpoint of trade leaders and iron that of bankers and economists. 1t is a very satisfactory situation. and unless there is some disturbance from some unlocked for source 1t will continue satisfactory for at least the remainder of the present year.