The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-02
Hines, Leffingwen and Col
YER Named to Find
Price Remedy.
BACK RAIL PAY RAISE
Road Workers Rather See
End to Profiteering Than
More Cash.
GRAIN SUBSIDY Is URGED
Congress Will Be Asked to
Solve Problem Presented
by Trainmen.
GRAIN SUBSIDY Is URGED
spsdal ps.parcA 70 Tn. sur.

forces Of the Government in Wash
ington are to unite to meet the acute
conditions facing the country as a
result OF the railroad situation and
the high cost of living.
Administration leaders are con-
vinced there is grave peril In the eco
nomic situation that has developed.
and all the Government agencies have
been directed to meet this most pres
sing domestic problem Of recent years.
Initial action has been delegated to
special subcommittee of three Of
the Cabinet conference of yesterday.
These are Director-General of Rail
road Hines, Chairman Colver of the
Federal Trade Commission and AS
sistant Secretary bf the Treasury
Leffingwell. This committee is to for
mulate a definite programme and re-
port to the President Monday and a
general conference of executive Of
ficers Tuesday before the Cabinet
meeting will be held.
AS result of conferences to-day
and recommendations sent to Con-
gress by the President on the railroad
wage situation, which brought the
cost of living problem to sudden and
threatening head. speedy Legislative
action is promised on the railroad
problem to meet at least the labor
and wage phases involved.
Board to Fix Railroad Pay.
The Direcror-General of Railroads
submitted to the President long
letter in substance recommending new
legislation for the creation of a rail
road wage board to determine wages,
with such supplemental legislation
as would provide that rates be raised
to meet any increases granted.
The Director-General stated frank
ly that he did not believe the Presi-
dent was justified in using his war
rate making powers to increase reve-
nue., as would be necessary to meet
any increase If he, the Director,
granted IT. The President agreed with
him and the buck promptly was passed
to Congress with the first definite
Presidential recommendation for ac-,
tion on any phase of the railroad
problem.
Director-GeneraI Hines outlined
and Administration officials appar-'
emily are agreed on the evolving of
new economic policy in America in
regard to wages. 1t contemplates the
bringing down of prices to meet wages
rather than the hiking Of wages in a
never ending chase after the cost of
living.
While the Executive recommended
tions have not yet been formulated IL
is known that serious consideration
has been given to far reaching eco
nomic step that would lower all food
prices.
Subsidy on wheat and Flour.
This step is nothing less than the
putting into effect OF n Government
subsidy on wheat and -four that
would cut the cost of bread almost
80 per cent. Such action, officials and
economists believe, would bring food
prices down all along the line. 1t
would undoubtedly, they say, cause a
drop In corn, rye, barley and all grain
prices and consequently in feeds as
we'll as foods. Cheaper foods would
mean cheaper live stock and cheaper
meats. It's dangers lie in u possible
| serious effect on the markets and
| the general business situation through
sudden revulsion Of high levels.
There are some officials who see an
indirect benefit In this in that II
| would squeeze the men between"
who have speculated and boarded on
a steady and rising grain market.
Another procedure receiving care
full consideration Is invoking the
powers Of the food control act to stop
boarding and bring pressure on prices
While food control has lapsed and
all restrictions have been lifted the
law, according to law officers of the
Government, Is still In full force and
effect and can be invoked il it will .
MD in the general campaign against
high prices OF food.
Many executive and legislative con-
ferences were held on the two subjects, /
| which are so closely involved, to-day.
Quick action followed on each Of them
and Government forces moved with
| alacrity. Reports coming to officials
! from many sources have been disquiet-
ing as to the general situation labor i
| leaders and others frankly stating
] that conditions were such that the
/