Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-06-02
PRESIDENT HOLDS
conference: WITH
|. {. c. ON RATES
BY DAVID LAWRENCE
Ueascd Wire Service to The Journal.)
Copyright, 1921

copyright, 1921
WASHINGTON, June president
Harding has taken his first impor-
liant step toward solving the railway
problem. He has, in effect, asked the
interstate commerce commission to
reduce freight rates. He didn't do
so directly-he managed the thing
very tactfully and automatically. For
president isn't supposed to ask the
Interstate commerce commission,
which is quasi-judicial body, to rem
Ter any decisions. Woodrow Wilson
had some informal conferences once
with members of the commission and
was severely criticized for trying to
Influence the commission to revise
rates.
President Harding adopted a much
more and even holder course, which
unquestionably will establish prece-
SENT and brush aside for all times
The technical criticism that a presi-
lent can't communicate with the in
lerstate commerce commission.
Mr.. Harding walked to the inter-
STtate commerce commission building
Ind told the members of the commits
yion that he recognized that the COM
mission is a rate-making agent of
congress and that inasmuch as he
had the official right to communicate
10 congress any message he pleased
ne therefore felt free to communicate
directly with the agent of congress.
Confers With I. G. G.
With that delicate question Of
right off his mind, Mr.. Harding enter
ed into a general discussion with the
commission on the subject of rates,
making delicate inquiry as to the
progress the commission was max
ing on the subject and expressing
ais own solicitude over certain
,lasses of rates. He mentioned par
lacularly the rate on fruit carrying,
which is so much subject Of COM
plaint in the west. He was much
pleased to learn that the commission
was endeavoring to bring about
revision of rates and that the com
mission was proceeding on a plan
whereby the railroads would volun-
tarily reduce their scale on certain
commodities where obviously the
rate was more than the traffic could
bear Mr. Harding left the commits
sion with parting word that car
ried a great deal. of significance. He
spoke of his desire to be helpful and
to remain in closer touch with the
work the commission is doing.
Now the visit of Mr.. Harding was
no casual affair, accidentally brought
about. It was deliberately thought
out as a means of convincing the
country that President Harding rec
ognized the necessity of lower
freight rates and that he hoped the
carriers would see the desirability
of meeting public opinion and achiev
ing economies in other directions.
The whole subject was discussed at
the cabinet meeting Tuesday, after
which it was announced that the
president would do something about
rates the very next day.
Psychological Time
The visit to the commission was
planned by Mr.. Harding, not only
after consultation with the cabinet,
but after it became known here also
that the railroad labor board would
hand down a decision cutting the
price of certain classes of labor and
eliminating an estimated cost of
e400,00Q.000 year in wages.
1t was, in the judgment of Mr..
Harding, the psychological time to
act. With wages going down, the
public has been expecting freight
rates to go down. Mr.. Harding
sought a chance to emphasize the
necessity of the two steps being
taken as close together as possible,
not merely to hasten return to
normally but to console the labor
ing classes who will be accepting
wage reductions with the knowl-
edge that the railroads will be oblig-
ed to reduce freight rates. too.
Some labor leaders have insisted
that the men would not object to
wage decreases If accompanied by
a reduction in freight rates, which
In turn would be reflected in re-
vision downward of the cost of liv-
ing.
Mr.. Harding consulted Senator
Cumnins, chairman of the senate
committee on interstate commerce,
and James Davis, who as director
general of railroads, handles all the
affairs hanging over from the period
when the government had control of
the railroads. Steps soon will be
taken to pay the roads large sums
of money owed them by the govern
ment and to make it easier for them
to pay some of their debts
Cabinet of Same View
duce freight rates. They claim it
would still further decrease their al
ready small earnings. But the presi-
dent takes the view that the present
rates are more than the traffic can
bear and that if the rates are re-
vised there will be more business
for the railroads in the aggregate
than is possible now. Chairman
Clark, of the interstate commerce
commission, wrote several letters a
few months ago insisting that rates
could not be reduced.
Senator Cummins has seemed to
think rates couldn't go down. New
ertheless, Mr.. Harding believes the
railroads will be better off if rates
are lowered. The cabinet shares
that opinion, and Mr.. Harding has
gone ahead blazing the trail almost
alone, as is usually the case with an
executive who is trying to steer the
ship of state in an economic prob
lem which requires establishments in
revenue whether 1t be of wages or
gross income.
Bandits Take $4,000