The New York herald., 1921-04-01
HARDING ACTING
TO AVERT ACRASH
OF us. RAILROADS
Believes Speed Is Needed as
Danger Of Government
Operation or Control
Increases.
GETS OFFICIAL DATA
President Confers With l..
II. Clark of |. G. G. and Il.
Nj. Barton of Rail La
Dor Board.
BIG DECLINE IN REVENUE
High Rates Have Cut into
Shipments-Wheat Shipped
Cheaper From Argentina
Than From West.
BIG DECLINE IN REVENUE
Special Despatch 10 THE NEW YORK HERALD.
New York Herald Bureau,
Washington. ID. C., March 81.

New York Herald Bureau,
Washington. ID. G., March 81.
The Harding Administration fears
a railroad crisis which would precipi-
tate a resumption of Government op-
Grafton or control of the nations trans
portation systems. and is impressed
with the vital necessity of speedy ac-
ton to avert it.
The transportation system. it seems
is in much more serious condition
than has appeared upon the surface
and it became known to-day that the
President and his Cabinet advisers feel
that a collapse Of private ownership
and operation is imminent unless
something is done.
It was this situation that brought
the active and immediate attention of
the President and his official advisers
to the railways and led TO Cabinet con-
sideration Tuesday and the cGphsefo OF
conferences by the President with of
ficials engaged in railroad control or
administration of the public interest
in the railroads.
Edgar r. Clark. chairman of the In
terstate Commerce Sommission, and r.
NJ. Barton, chairman OF the Railroad
Labor Board, conferred for two hours
with the President to-day. They brought
with them a lot OF data on rates. the
financial conditions OF the roads. rate
returns and the percentage of labor
charge. as compared with that in orieS
industries. No announcement. Official
or otherwise followed the conference.
Lack of Revenue IL Felt.
The threatened collapse is a financial
rather than operating one and therefore
has not been felt by the public. 1t 10
accompanied by a severe complication
in a stalling of railroad business by
rates, which in the opinion OF many
authorities and OF administration lead
ers. must come down. Even on the
present basis OF rates the President and
those who have conferred with Sssn
feel that many receivershlps win be
forced within the next few months 'va-
less something is done
In this dilemma the Administration II
without a programme. There is nope
that someone will come forward with
solution. but in the meantime tae
President and his advisers are studying
tho problem without reaching any ads-
quate conclusion.
Administration leaders are convinced
that majority or the American pcoj..e
do not want Government ownSsshiP OF
tho railroads and they feel nst &C
recent election was a mandate to tnst
effect.
Attention is centring upon the possi-
bility OF reducing wages and reducing
rates particularly commodity rates,
which are on basis alleged to have ss-
riously upset industry and the marlset-
ing of farm crops 1t Is stated that the
rate on wheat from inland markets TO
the seaboard is thirty-elght cents on the
railroads, compared with twelve cent
water rate from Argentina. Freigh:
rates are a large factor III the marketing
Of Western wheat and one Of the heavt-
est factors III cost TO the consumer. A.
Il the case also on some other commoal-
ties.
Protests stilI Pile In.
Some rates that were disproportSnav
have been reduced, but the White Eouss
and other departments are being floodes
with protests against the scale in gen
erai Apparently there Is relief in slight
NAEVuEl NlAt iActH~AuUIflAllS law GUAR
aIteeing a 81 or 6 per cent. rate re-
turn.
President Harding likely will treat tho
railroad situation In his coming message
TO Congress or IN a special message tol
lowing that delivered 10 the opening
session.
Commissioner Clark and Judge Barton
at their conference with the President.
u IS believed, made no definite recon-
n.eadations. but outlined the situation
a. they saw Il from the standpoint OF
rotes regulation and wa ges.
Senator Kellogg (Minu.). member OF
tho Interstate Commerce Committee. ono
o. the trainers of the present law and
student OF railroad problems. conferred
with the President after Mcssrs. Clark
ard Barton had left.
Everybody must realize ~ this time,
he said, that readJustment Of freighl
rates must come and that something
must be done to insure the carriers \
reasonable return on their Investment.
what plan viii be worked out I am not
rrauared 70 state