Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-07

NO CHANGE IN Law
Charges Cannot Come Down Until
Expenses Drop, Cummings Holds
Only Educational in Value

Washington Jnly There will
he no general reduction Of railroad
rates and no material changes in tie
f.sch- -Cummirs arsportation act
his wear. That is the opinion -
aay Of the men u Congress who
have been in closest touch with The
investigation into Tic condition II
the railroads, and it is the opinion;
Of the best Informed outside Of Con
~Icss.
The Investigation Ey the Senate
Committee on Interstate Commerce.
headed by Senator Cummins, whir1
las been under way for weeks, has
hccn suspended until The latter patt1
re August or early in ScptCm9 -
Thus far ONLY the railroad people
and s. Davies Warlicld and otn"-
representatives Of the owners (
railroad Securitic; have been heard.
When the hearings are resumed rep
rrscntativcs Of lahor ana the ship
r"rs are cXpcc.ah to 20 on the st2Nc
The best postci men in Congress
nr tho railroad situation have no
iiea that the hearings viii rCsalt
y any concrete action this ye..".
Their view Is that the hearings al
ready held and those 10 he held ara
important fcr he educational val"e
to ;ha public, n revealing the cause
Of The railroads distress, bnt aGt
otherwise important a. this fine
either a To rates or to changes in
ti,c laws. SUCH as advocated by Mr..
Warticld. II is the purpose Of thosc
mrn. and il Is likely that their vicms
will coitrol. to allow more time for
The tho.ouef tastiug Of the Trans
portaticn act.
As to rates. the thought Of Sena-
ror Cummins. tho foremost railroad
authority in the Senate, and of those
who fo!iow him, is this:
Rates cannot come down unless
the operating expenses Of the rail
roads conc down. Any court would
hold the presen: rates TO be conf;s-
natory if the railroads went into
court ard asked for q review. sire
ne rates are failing to yield fair
,cturn on The railroads property.
Put the roads will not 90 into court.
because h;ghcr rates under present
business conditions would not yield
my more revenue. As the rates can
rot come down until there is a d
"rcasc in operating expenses, any
arbitrary reduction would have Go oe
met out Of the Federal Treasury,
which is not contemplated There
fore, The only course * to wait until
ne falling costs Of WAGES and sup
oies reach the nont where the ri
reads vii! be able with safety 70
rut rates.
That, Of course. deals with Z gen
ayal reduction. 1t does not affect
he reductions that are Involved in
some Of the thousands of rate read
iuS;menta that are being made in all
paris of the country. These rea /
iustmcnts, however, are not design.
Cd primarily 70 lcd&ce rates, bat 10
remove injusticcs in The rates on
various commo@ics attendant UPON
III horizontal ~atc Increases ordered
turing ;h" n"riod Of Federal cortro.
and ttc horizontal increase ordered
a. Of August 2f last by the In.er.
state Commerce Commission.
President Harding has indicated
hat he thought rates should come
down, but there is 70 sign now that
he will i.':ce them down by bringing
pressure 10 bear upon The Interstate
Commerce Commission. And. /
the view ncld BY authorities in Cor
gra-s t.tot courts would hold TIE
nrcscnt rates ccnfiscatory Is sound,
qny oTorts Of the Interstate Com
mission. under pressure from the
President. to beat down the rates
generally probably would be defeat
ID BIZ appeals Of the railroads to the
! Federal courts.
Tn "educational vai,'e" to the pub
lie Of the hearings, held by some Of
Tho students in Congress Of railroad
aatirs 20 be the chief value Of the
hearing conducted BY -hc Senate In
terstate Commerce Committee, Is
Continued on Page Four)