The Birmingham age-herald., 1921-03-30
ADMINISTRATION IS MAKING DEEP STUDY OF ROAD CONDITIONS
Cabinet Spends Over Hour In Discussing Problem With View to Formulating Defi-
 nite Programme
By Associated Press

Washington. March 29.-A compreher- sive study of American railway cc-Idi- tions was begun by the administration today with view to formulation of definite programme for railway reha- bilitation
 For more than an hour President liar ding discussed the problem with his cabi- net, and later it was announced that he would call into consultation within the next few days the chairmen of the two government agencies having closest con tact with transportation problems-the interstate commerce commission and the railway labor board. Conferences with railway managers and employees are ex- pected to follow in time to permit action at the coming special session of Con- gress.
 Discussion at the cabinet meeting was only of a preliminary and indeelsive character, but there were indications that the chief executive and his offiical ad- visors were much concerned over in formation which so far has come into their possession. Since it took up the rains of authority the administration has heard rumbings of dissatisfaction from many sources the roads complaining or inadequate income the employees pro testing against impending wage reduc- tions shippers asking for a reduction or freight rates, and in some cases the gen. eral public appealing for better service
 PROBE TO BE THOROUGH
 All of these points of dissatisfaction are to be examined in the administra- ton's inquiry, together with the general relation of healthy transportation in- dustry to the nations commercial life. Even the tariff question, which is to fur- nish the principal topic of consideration for the next session of Congress, is com sidered by administration offiicals to be closely interwoven with transportation policies, since in some instances present import duties are said I. to operate to the serious disadvantage of American pro- ducers by permitting foreign products to reach American centers at lower cost than railway-borne domestic goods of the same character. Ety
 The most serious feature of the situa- ton. however as 1t has been pictured to administration officials, is the apparent inability of the carriers themselves to make both ends meet and at the same time keep service up to standard. A num- Der of high railway officials have called on MT Harding since his election and have told him that unless some way to increased earnings were found, the whole l Transportation system of the nation faced paralysis. Sucls a. possi bility, the rail | way men have insisted, could only be | viewed as a public calamity.
 | It is understood that, although few definite remedial programmes have been suggested In these conferences, most of those who have presented the carriers side of the problem have advised against any general increase in freight rates. A further material rate increase in the pres ent condition of the nations industry l Mir Harding has been told, might re- suit in such curtalment of traffic as to | actually reduce earnings rather than hi- crease them.
 VIGOROUSLY PROTEST CUTS | On their side the railway employees | have vigorously protested against wage | reductions as an economy expedient, de- l clarng that living costs require that | wage schedules remain unchanged All
 along the possibility of general rail- l way strike has made both railway ex- l ecutives and government agencies thlnk i twice whenever a wage cut has been l suggested.
 | Added to this, and contributing ma l terially to the present unsettled conui- l tion of the industry. has been the con | fusion and inconvenience Of restoring
 the roads from a wartime to peace- l time baSfs ana oI uASci iaiipi'h6 eno | rious properties after a long period or | operations as one system under govern | ment control.
 | If remains a question whether the l roads will ask Congress for direct finan-
 c,al relief in addition to that provided under the transportation act to compcn-
 sate them for deterioration of their
 property while it was in government l hands. Such proposal, it is believed would be certain to develop bitter oppo- | stion in some quarters, addlns ahother | comnlication to a situation that is ex-
 nected to develop some very knotty prop- Iems before the administration and Con
 gress have found solution.