The New York herald., 1921-01-31
NEW ENGLAND LINES
TO GET 10 MILLIONS
Trunk Road Heads Will Pro-
vide Pool in Meeting Here
Tomorrow.
RATE DIVISIONS TO STAND
Money Will Give Lines a Year
to Effect Economic
Readjustment.
RATE DIVISIONS TO STAND
By the Associated Press.


WARRINGTON, Jan. S0.-Formation OF
pool to give the railroads of New Eng
land s15.6o0, 900 to meet this years fixed
operating charges in lieu of the proposed
redivision of joint freight rates with car
riers west of the Hudson River probably
will be authorized at a meeting of trunk
line executives Tuesday in New York.
The offer was made to the New Eng
land lines In conference here last week
and accepted by majority Of the presi-
dents at the meeting. =. J. Pearson.
president of the New York, New Haven
and Hartford. alone was loath to accept
the offer, but said he would consult his
board of directors.
Presidents OF trunk lines will attend
the New York meeting on Tuesday and
hear the report of the committee which
conferred with the New England car
riers here last week. Railroad men here
believe they will vote to give the New
England roads S15.6Oo.000 to tide them
over a period OF thirteen months dating
from the first OF the year.
When the New England lines pre-
sented their application for a redivi-
sion OF rates last November to the In
terstate Commerce Commission Chair
meeting Of trunk line executives and
asked them to name a committee to
attempt settlement of the matter with
New England presidents without fore
ing the commission to decide the case.
The division of the joint freight rates
as maintained now cannot be changed
without months Of study and work on
the part of the Federal Commission,
and Chairman Clark has expressed un-
willingness to undertake the matter
without first making an effort to settle
the case ''out of court"
The committee requested was named
and it offered the New England lines
S12.000,000 as means of allowing
them to have a year in which to re-
adjust their management problems. The
trunk line men stipulated, however.
that the offer was made simply as a
means of saving the credit situation of
the New England roads and not as any
admission that the New England lines
were entitled to greater share of the
freight divisions. The offer of S12,-
100000 was refused on the ground that
the roads needed s27.500.000.
Hearings started before the Interstate
Commerce Commission and have been
continued since. Chairman Clark last
week again summoned the executives
agreement. An offer Of SI5,600, 900 was
agreed upon.
1t is understood that II the offer is ac-
cepted the case now before the commits
sion will be withdrawn and the joint
rate divisions will remain as they now
are. If New England lines are unable
to effect an economic readjustment in
the year they may bring n rate case be-
fore the commission and obtain the
needed S27,500.000 a year revenue in
that manner.
Railroad executives In Washington ex-
press the belief that the next year will
see numerous readjustments in the rail-
road world and declare that these will
enable the New England lines to fore
stall bankruptcy by accepting the offer
of the trunk lines and waiting for time
to play the all important part in the
role of reducing operating charges. 1t
was said that a tendency to reduce labor
charges already was evident and that
other cuts in operating costs would fol-
low as matter of course.