Evening star., 1927-04-24
BY STANLEY H. SMITH.

~ gress, the Interstate Commerce
II Commission is trying to find
4 \ out what is wrong with the
freight-rate structure of the
railroads of the country.
When Congress, in January, 1925,
passed a law known among railroads
and shippers as the Hoch-Smtth reso-
luton, it ordered, as one member of
the commission puts it., the most far
reaching and important investigation
ever entered upon by any human
tribunal among civilized peoples.
The gigantic task required of the
commission by Congress is Indicated
by the fact that, although more than
two years have elapsed since the reso-
luton was passed, the investigation is
just getting fairly under way. Ten
years may pass by before the inquiry
has been concluded.
Followed Farm Plea.
Enactment of the Hoch.Smith reso.
luton, the application of which may
have a profound effect on the move.
ment of commerce and the develop
ment of communities, followed agita-
ton that something be done to ar
ford relief to the farmer in the way
of lower charges on products of the
farm. 1t was and is contended that
agricultural products are required TO
bear more than their just share or
the cost of maintaining an adequate
transportation machine and that some
of the burden imposed on agriculture
in this respect should be shifted to
other commodities.
President Coolidge, in his annual
message to Congress in December,
1923. said:
Competent authorities agree that
an entire reorganization of the rate
structure for freight is necessary.
This should be ordered at once by the
Congress"
Herbert Hoover, Secretary of Com
merce, and William ". Jardine, Secre-
tary Of Agriculture, supported the
President in his recommendation.
Representative Homer Hoch OF Kan.
sas, a member of the House commit
tee on interstate and foreign com.
merce, started the ball rolling by In
Producing a resolution requiring the
commission to make a survey Of the
rate structure with view to correct
ing defects found to exist in it. In
the Senate, Senator Ellison d. Smith
of South Carolina, a member of the
Senate interstate commerce commit
tee, introduced a resolution directing
the commission, in effect, to give pref
erential treatment to products of az.
riculture. Out of these two resolu.
tions came a compromise law called,
for easy reference, the Hoch- Smith
resolution.
Rate Probe Demanded.
The resolution declares it to be the
true policy in rate making to be pur-
sued by the commission in adjusting
freight rates that conditions which at
any given time prevail In our several
industries shall be considered, in SO
far as it Is legally possible to do so
to the end that commodities may
freely move.
Tho commission is directed 'to
make a thorough investigation of the
rate structure of common carriers sub
ject to the interstate commerce act, in
order to determine to what extent and
in what manner existing rates anC
| charges may be unjust. unreasonable
uujustly discriminatory or unduly
preferential, thereby imposing undue
| burdens or giving undue advantage
as between the various localities and
parts Of the country, the various
classes of traffic and the various
classes and kinds of commodities, and
to make, in accordance with law, such
changes, adjustments and redistribu.
ton of rates and charges as may he
found necessary to correct any defects
so found to exist
In making such changes. adjust.
ments or redistribution of rates, the
resolution provides that the commits
sion shall give due regard, among
other factors. to the general and com.
parative levels in market value of the
various classes and kinds of commed-
tiles, as indicated over a reasona BILE
period of years to a natural and
proper development of the country as
whole, and to the maintenance of
an adequate system of transporta-
tion."
Agricultural Changes.
The resolution provides that, ain
view of the existing depression in ag-
riculture, the commission is hereby d.
rected to effect with the least possible
delay such lawful changes in the rate
structure of the country as will pro-
mote the freedom of movement by
common carriers of the products of
agriculture affected by that depres-
sion, including live stock, at the low
est possible lawful rates compatible
with the maintenance of adequate
transportation service.
Apprehension, after enactment OF
the resolution. that the commission
might. at once, begin a general in
vestigation bringing into issue in one
proceeding all the freight rates in Ihe
land was allayed by an announce
ment from the commission that it in
tended to conduct the investigation
in a manner conducive to full and
orderly development of material facts
and with "as little delay and expense
to shippers, carriers and the Govern
ment, and as little disturbing effect
upon production, distribution and the
free flow Of commerce. as may be
found practicable,
AS the resolution covers all car
riers subject to the interstate COM
merce act, the commission has con-
strued it as applying not only to rail-
road companies, but also to all pipe
line companies, telegraph. telephone
and cable companies operating by wire
or wireless; express companies, sleep
ing car companies and carriers by
water subject to the jurisdiction of
the commission. Thus far, however,
the commission has not brought into
issue the rate structure of carriers
other than those engaged in the trans
portation of persons or property, IN
Guiding mail and express matter, by
rail or by water.
Compile Questionnaires.
Statistical forces of the railroads
are preparing, at the request Of the
commission, replies to questionnaires
asking for information relative to
origin, destination and trend of move
ment of traffic. This information
and other data that will be obtained
will put the commission, for the first
time since its organization in 1887, in
position to deal in a broad way with
the rate structure.
The commission is proceeding with
it's investigation by dealing separate
ly with main classes of commodities.
1t has broken the investigation into
a number OF parts, one dealing with
Grain and Grain rnrodricfS one ruitt