Arizona republican., 1921-06-02
Tells Commerce Commits sion Western Growers Suffering From High Rates; Federal Debt To Roads Discussed
[RepubIIcan A. 2. Leased WireI


 WASHINGTON, z June 1.--While railroad executives were pressing be- fore congress today their plea for relief from financial endorsements, President Harding took action to sat isfy himself that a revision of freight rates, particularly on neces- sities, will be a part of the general railway readjustment-
 Walking into the offices of the in- terstate commerce commission, the president inquired of the commissi CTS what they were doing toward re- lief of shippers who had found some of the rates unreasonably burden some. He was assured that the sub yect was under investigation and that the commission hoped soon to effect broad revisions through voluntary action of the roads.
 Hauling charges for fruit products over western roads were made a specific example by MT. Harding. He told he commissioners that he had received many reports of dire distress among western fruit growers because of the high rates and asked whether the changes might be expected soon The commissioners replied that the fruit schedules were receiving infor- mai consideration. Although it was indicated that the q2estion of rates prompted the presidents call. 1t was assumed that during the half hour Conference there also was some men- fion of the roads proposal that the government discharge at once it's debt to them growing out of federal control. This proposal was renewed before the senate interstate com- merce committee today by Samuel Req. president of the Pennsylvania lines. who argued such action would be no more than keeping the word of the government given when the roads were taken over
 The suggestion is known to have received careful consideration by the president and his advisers and was the subject of a conference yesterday. In his visit today, MT. Harding tech nically was dealing with a part of the government outside the executive branch, and he assured the commits sioners he had come simply in the interest of cooperation and genera welfare. Since he had the officia right to communicate with congres: regarding rates, he explained, he fel he might enjoy the same privilege II regard to the commission set up al the agent of congress in the makin, of rates
 Mir. Req repeated his statement 0 yesterday that the government wa in duty bound to return the roads t their owners in as good condition a when they were taken over, and de clared that the president had powe to carry out the roads habilitatiol proposal and thus put railway fl nances once more on a sound founda tion. He summed up the rehabilita tion plans in this statement:
 My first suggestion is the releas of amO&nts due to the railroads fo federal control but now held by tn railroad administration as offsets t capital expenditures made durin federal control To fund all thes capital expenditures, would, I esti mate, release and pay several hund reds of millions of current cash. du by the government, into the hands { the railroads al working capital an also to purchase materials and SUI plies and meet other obligation The present railroad revenues are nt adequate to meet these necessities.
 My second suggestion is that delay of three and half years { more in settling under maintenan' questions, for both the federal contr and guaranty periods, be eliminate by prompt decisions that would,
 effect redeem the promise of u president, the federal control act al the transportation act. to return u roads in as good condition as wht thev were taken over as a war me. Sure. or else pay the cost of physic reparation necessary to put them
 thai condition. This means tn there would be made available seve
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