Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-03-30
HARDING TAKES
UP RAIL CRISIS
Problems of Transportation
System are Dis
cussed
LAID BEFORE CABINET
Reduced Rates. Consolidation and cut
in Wages Plans in Eiew-Change
Held Imperative.

Washington, March G.-The
! Harding Administration has found it
necessary to deal with the crisis
which the American railroads are
facire,a crisis which involves not
merely tn" interior transportation
service of the country. but the whole
field of domestic business.
Fully conscious of the gravity Of
the situation and discouraged by
the futile efforts OF the railways
executives to solve the problem, the
President laid the matter before his
Cabinet yesterday ard later sum-
moned the chairnien of the Inter
state Commerce Commission and
the Railroad Labor Board to meet
him for conference with the least
possible delay.
Chairman Clark, of the Interstate
Commerce Commission, is in
Washington. Chairman Barton, Of
the Railroad Labor Board, probably
vii! arrive here tonight or Thurs
day morning. The President will
await the arrival Of Judge Barton
before he discusses the question with
Mr.. Clark.
1t developed at the Cabinet meet
ing Yesterday that in spite of the
heavy increase in rates granted the
carriers a few months ago they
are now running about 100000 900
a wear behind their actual operating
rxocnses.
Il farther developed that the sue
scsSive increases in freight rates,
plus Government taxation. had be-
come virtually prohihitivc charge
upon certain lines OF business. The
cost of transportation in such cases
is more than the traffic can bear.
Later in the day Chairman Cum
Minis, of the Senate Committee on
Interstate Commerce, declared that
in 1920 the American pcople paid
S6 $50, 100000 for domestic transport
tation, all Of which, except $l0.00O.-
600. went to pay for the cost Of op-
Grafton cf the railroads. Approx
mately 60 per cent of the cost of OPP
Grafton, he added. was paid out for
labor.
Senator Cummins declared furth-
or that freight rates are roy as
hi~h as they dare b. -iisc' IN! are
higher than they ought to br Some
means must be found. he r :.,,!, to
reduce tie cost OF r~ilwav on"~attcn,
and his cgMrlitt I. viii md 'r."n. I
hni these as soon as Congress re-
convcncs. Hc is orrEscd tn giving
the Interstate Commerce Commits
SION additional power. To do so,
he says, is to restor" Government
management of the transportation
system.
It semed evident on all sides yes
terdav that the Government IS mov
ing drcisively toward three definite
ends in the eficrt to solve the trans
portation problem.
Reduced cost Of operation. which
inevitably involves a revision down
ward Of existing railway wage
| scales.
A en.ral consolidation of the
rail lines as provided for in the
Cummino Esch act, III order to in
crease efficiency in management ano
economy in operation.
| Reduced railroad rates to relieve
| business as a whole Of the burdeT
which has been laid upon it by thu
tariffs which are now in effect.
These propositions were discussed
for nearly two hours by the Cablne
yesterday. and will be taken up Will
! Nessrs. Clark and Barton.
The Cabinet agreed with the Pre-:
ident that the present d. state Of of
fairs could not continue irdefinitel!
The railroads at least must max
enough money TO pay for their opc
ration, if, they are to escape a fnar
cial smash Traffic must be re
lieved of the killing tax. now levie'
upon it, it was agreed. If busines
il 20 rer.ive.
How this can be brought -ahou
is the question to which the Pres!
dent is seking the answer, ne let
! be known Yesterday. He has bee
! told that it. cannot be done unlss
Continued on Page Four) r