Every evening, Wilmington daily commercial., 1921-03-31
RAILROAD PROBLEM
RECEIVING ATTENTION
OF THE PRESIDENT
Serious Business Situation De-
mands a Speedy Reduction
of Rates.
SOON TO BE ACTED UPON

Special Dispatch From Every Evening s
Washington Correspondent
Washington. March 31.-The biggest
problem before the Federal government
today is the transportation situation
and all that it involves. Prosperity is
affected greatly. II is conceded by Pres
ident Harding. by the high railroad
rates which are preventing the dis
trihution Of foods and other commodi-
Ties 10 different sections of the country.
because these rates make shipment i'm
possible.
There is nothing so intimately con-
nected with the increasing financial
stagnation and the industrial inactivity
as the railroads of the country which
despite the high freight rates are op-
Grating in a great majority of cases at
Il loss with many of them including
the once prosperous ones in the mid
die states. considering the issuance of
script instead OF the usual quarterly
dividends
Railroad presidents and captains OF
industry have presented the situation
10 President Harding with the result, as
the consequence of a conference sam
mel Rea. President Of the Pennsylvania
Railroad. had with Secretary Mellon on
Monday the matter Of some government
action looking TO a reduction OF rates
and wages. will be taken shortly by the
administration. There Will be a con-
ference very soon of the chairman or
the Interstate Commerce Commission
and the chairman Of the Railroad Wage
board. with President Harding. follow
ing upon which the administration VIII
take action 70 force general reduction
IN wages and a scaling down Of the
traffic rates.
Edgar +. Clark. chairman Of the IN
tarstate Commerce Commission. is pre-
rared ~ show how high freight rates.
necessary under the excessive operating
costs. are initiating against the full
TRANSFORMATION Of many necessary com
lnoditics and thereby increasing the
costs Of living. while Al the same time
the rates on food products from the
middle west tn the sCaho3rd are higher
-aau Tho ocean rates from Argentina
Il \,w York. These high freight rates
lrrst H.. considered III the making up
III .h, custom duties and unless the
,#t3r.a1 .teGle rates ,.re reduced the
. s-,m 4,aule~ must he increased to
uIeh.'..E point
r. " Barton. chairman of 'the Rail
road Labor Board VIII present all the
aspects of the railroad wage scales and
snow where these can be reduced with
out injury or Injustice 10 labor.
broadly speaking the situation CON
fronting ;h, railroads and labor are
those
High operating expenses of the car
r.,rs now 90 per cent Of its incomes. is
reprcsented by the wage item which
is 60 per cent Of the operating expenses.
These high operating expenses made
r,eccssrry the increased freight rate
vh..h is working 70 keep up high living
costs.
tn wages. salaries and all other ex-
vens,s connected WITH The direction of
j. ir. ads u.st he reduced.
Af. these costs are scaled down the
freight rates can be reduced but not
before.
:, Tho alternative and first step is a
reduction in wages and salaries.
President VIII Work for Relief.
I-pou The authority Of high official
81 the Harding administration it is per-
united to sav that President Harding
VIII not hesitate 10 use his influence and
l.uwcr "a force a reduction in the wages
end the freight rates. The public is
ro,y demanding a dcdation in the wages
increased greatly beyond reason during
III, war and maintained at the same
figurc ever since Organized labor
must abandon the program outlined for
them by Samuel Gompers, president Of
the American Federation Of Labor.
which was refusal 10 take a lower wage
and help bring down the expense Of
living.
Jus. as the administration compelled
by the power Of argument and the ap-