The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1921-04-08
TO AVERT A Crash
OF u. S. RAILROADS
Harding Believes Speed Is Need
ed as Danger of Government
Operation Increases.
BIG DECLINE IN REVENUE
President Confers With E. C. Clark of
]. C. C. and r. M. Barton of Rail
Labor Board - High Rates
Have Cut Into Shipments.

Washington.-The Harding admins
tration fears a railroad crisis which
would precipitate resumption of gov
eminent operation or control of the
nations transportation systems, and
is impressed with the vital necessity
of speedy action to avert it.
The transportation system, it seems
is in much more serious condition
than has appeared upon the surface
and it became known that the Presi-
dent and his cabinet advisers feel that
a collapse of private ownership and
operation is imminent unless some
thing is done.
Edgar e. Clark, chairman of the In
terstate Commerce Commission, and
II. M. Barton, chairman of the Rail-
road Labor Board, conferred for two
hours with the President. They
brought with them a lot of data on
rates, the financial conditions of the
roads, rate returns and the percent
age of labor charge, as compared with
that In other industries. No announce
ment, official or otherwise, followed
the conference.
The threatened collapse is a financial
rather than operating one and there
fore has not been felt by the public
1t is accompanied by a severe COM
plication in stalling Of railroad bust
ness by rates, which in the opinion of
many authorities and of admins
tration leaders, must come down.
Even on the present basis of rates the
President and those who have con-
ferred with him feel that many re-
receivership will be forced within a
few months unless something is none.
In this dilemma the administration
is without a program. There is hope
that someone will come forward with
a solution, but in the meantime the
President and his advisers are study
Ing the problem without reaching any
adequate conclusion.
Administration leaders are convinced
that a majority of the American people
do not want government ownership of
the railroads and they feel that the
recent election was a mandate to that
effect
Attention is centering upon the pos
sibility Of reducing wages and re-
ducing rates, particularly commodity
rates, which are on a basis alleged to
have seriously upset industry and the
of farm crops. 1t is stated
that the rate on wheat from inland
markets to the seaboard is SO cents |
on the railroads, compared with a II /
cent water rate from Argentina. |
Freight rates are a large factor In |
the marketing of western wheat and !
one of the heaviest factors in cost
TO the consumer, as Is the case also
on some other commodities.
Some rates that were disproportion-
ate have been reduced, but the White
House and other departments are be-
ing flooded with protests against the
scale in general. Apparently there Is
relief in sight through the Esch- Cum
Minis law guaranteeing a 51a or per
cent rate return.
President Harding likely will treat
the railroad situation in his coming
message to Congress or in a special
following that delivered to
the opening session.
Commissioner Clark and Judge Bar
ton at their conference with the Presl-
lent, il is believed, made no definite
but outlined the sit
nation as they saw 1t from the stand
point of rates, regulation and wages.
Senator Kellogg (Minn.). member Of
he Interstate Commerce Committee,
,ne Of the trainers of the present law
md a student of railroad problems,
conferred with the President after
Iessrs. Clark and Barton had left.
Everybody must realize by this
ime." he said, that readjustment Of
reight rates must come and that some
hing must be done TO insure the car
-iers reasonable reurn on their In
Testment. What plan will be worked
tut ! am not prepared to state"