The Washington herald., 1921-06-02
President Visits Board
) For Conference, Urg-
ing Claim.
TRAFFIC CHARGES
8 HALTING BUSINESS
Commission Inclined to
Agree with Rail
Executives.

wages Of railroad employees Presi-
dent Harding took q Significant
step yesterday In the direction OF
srecting reduction Of freight
rates. upon which he deems q re-
vfvaI Of business Is largely de-
pendent.
Tho President descended unex-
pectedly upon the interstate COM
mercs commission, asked for a con
terence with its members and when
they had assembled broached a dis
cussion of the rate reduction propo-
sltion.
Mr.. Harding was informed that
the commission is directing It's ef-
forts TO rate reductions which rep
resent Inequalities, but he did not
conceal his conviction that the
lowering OF transportation charges
should be more general and radical
than apparently are contemplated
by the commission at this time.
VIII Meet Opposition.
Although the move OF the Presi-
dent Is regarded as significant of
his determination to take the ag-
gressive In forcing rates down. IT
Is evident that he has formidable
opposition to overcome. The cabi-
net agrees with the President that
prohibitiye transportation rates
largely account for the stagnation
Of business and the continued high
price OF the necessities OF life.
Chairman Clark. Of the interstate
Cummins, chairman of the senate
committee on Interstate commerce.
agree, however, with the railroad
executives who contend that rates
cannot be reduced generally until
n has been proved that railroad
expenses can be cut to a point as
curing an adequate return on the
investment.
Belief that rate reductions matt
urally would follow wage reduc- 4
tions Is not supported by facts. ac-
cording TO the carriers. Until there
is a substantial increase in trafnc
even a 100000. 900 wage reduction
will not produce anywhere near the
authorized 5h per cent return, as
sert the executives
Thinks Cut VIII Aid Trannc.
The President believes a rate re-
duction would increase trafic, but
the railroads dispute the contsn.
ton, asserting that the stagnation
of business is due to causes more
fundamental than transportation
charges. Vice President Chambers,
of the Santa Fe. dwelt on this point
before the senate committee, pre-
senting figures to show that the
Transportation cost Is only ga per
cent Of the price of coal to the con-
sumner.
President Harding walked from
the White house to the quarters or
the interstate commerce commits
zion, two blocks away. He was
accompanied by his secretary
George Christian. The President
was ushered at once to- the oface
Of Chairman Clark The President
told. the chairman that he wished
TO meet the members of the COM
mission. The opportunity was az
forded at once and the President
talked informally with members OF
the commission for more than halt
an hour.
Questions Rate Reyisions-
The President explained that he
had called because he recognized
that the commission was the rate
making agent of the congress and
that inasmuch as he had the ofn-
cfaI right to communicate with con-
xress he wanted to communicate
directly. although informally, with
the agent of congress in railrosd
affairs.
During the conference the Pres
ident made special inquiry concern
ing the progress of the commIs-
sion in revising numerous rates
where the last horizontal increase
had put a burden on commodities
which the traffic would not bear.
One of the specific things which the
President had in mind was modihca-
ton Of the fruit-carrying rate. con-
cerninz which there had been so
much complaint in the west He
was assured. by Chairman Clark that
modification of this rate was in
formally under consideration by the
commission at the present time.
Labor Asks Rate Cut.
The attitude OF railroad labor on
the wage reduction yesterday ap-
parently depended in a large meas
ure on whether the wage ITS are
followed by rate decreases.
If rates are decreased, railroad la
Dor leaders here indicate, the cuts
will be accepted quietly. Otherwise
they predict dissatisfaction. IL not
revolt, among the men.
we will let the men decide" said
W. C. Lee. head Of the railroad
trainmen. In commenting on the cut
Union chief VIZ assemble in Chi
ceeo July l -onsidcr the cut.
Lee said.
The mar VI ieclares he won't
accept any Wa reduction what
ever Is ~" min. full speed ahead
with his III 'ttle jammed. saia lee
But IL wa are cut. rates should
oesscut corr spcndingly," lie added.
This represented the attitude of
other labor chiefs. who believed rate
cuts might reduce living costs for
the workers uho arc to receive less
money. -
PRESIDED nf s11sel Rea. OF the
Pennsylvs snf.- ~ .fpsd. tes:ifying be-
fore the ser4<t irf-fstate commerce
committee! @5|<< q investigating
the railroad '<;s kisn. yesterday as
sailed the government for not pay
ing undermaintenance claims at