Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-06-02

Washington, June while railroad
executives We're pressing before con-
gress today their plea for relief from
financial embarrassments, Pres.
Harding TODD direct action to satisfy
himself that revision of freight
rates, particularly on necessities, will
be a part of the general railway re-
adjustment.
Walking unannounced into the Off
ccs of the Interstate Commerce Com
mission, the president inquired of the
commissioners what they We're doing
toward the relief of shippers who had
found some of the present rates un-
reasonably burdensome. He was as
surcd that the whole subject is under
investigation and that the commission
hoped soon to effect broad revisions
through the voluntary action of the
roads
The hauling charges for fruit pro-
ducts over western roads were made
a specific example by Mr.. Harding in
pressing his inquiry. He told the
members of the commission that he
had received many reports Of dire
distress among the western fruit
growers, because of the existing high
rates and asked whether changes
might be expected soon. The COM
mission officials replied that the fruit
schedules are receiving informal con-
sdcration.
Although it was indicated that the
question Of rates prompted the pres
idents call on the commission, it was
assumed that during the half hour
conference. there also was some
mention of the roads proposals that
the government discharge at once its
debt to them growing out of federal
control This proposal was renewed
before the Senate interstate COM
merce committee during the day by
Samuel Rea, president of the Penn
sylvania Lines, who argued that such
action would be no more than in
keeping with the word of the govern
were taken over.
In visiting the Interstate Com
merce Commission today, Mr.. Hard
ing technically was dealing with q
part of the government entirely out
side the executive branch. and he as
surcd the commissioners that he had
come simply in the interest of coop
Grafton and general welfare. Since
he had the official right to communi-
cate with Congress regarding rates,
he explained, he felt that he might
enjoy the same privileges in regard to
the commission set up As the agent OF
the congress in the making of rates.
Before the Senate Interstate Com
merce committee Mr.. Rea repeated
his statement of yesterday that the
government was. in duty, bound te
return the roads to their owners ir
rs good condition as when they were
taken over. and declared that the
President had power to carry out the
roads rehabilitation proposal ano
thus put railway finances once more
on a sound foundation without fur
Their LEGISLATION by Congress. The
rehabilitation plans were summed
up by Mr.. Rea in this statement:
My first suggestion is the release
OF amounts due to the railroads fo1
federal control, but now held by the
railroad administration as off sets tt
capital expenditures made during
federal control. To fund all OF thes'
capital expenditures would. l estl'
mate, release and pay several nun
dreds of millions Of current cash
due by the government, into TIT
hands of the railroads as Worklnf
capital and also to purchase ma
terials and supplies and meet otne'
obligations. The present railroad
revenues arc not edaquate to NEE
these necessities.
My second suggestion is that
delay of three and a half years o.
more in settling nder-maintenanc'
questions, for both the federal con
troll and guaranty periods, be elimi'
mated by prompt decisions tina
would. in effect, redeem the promise
of the President, the federal contro
act and the transportation act to re-
turn the roads and their equipmen
in as good condition as when the!
were taken over as a war measure
or else pay the cost of physical rep
aration necessary to put them IL
that condition. This means tina
Continued on Page 4CoI. g.