New-York tribune., 1921-03-31
Manufacturers, Farmers
and Shippers Join in
Protests FloodingW ash
ington Against Charges
Harding to Confer
On Action TODAY
Will Meet Heads of I.C.C.
and Labor Board; Big
Deficit Among Roads
Fros The Tr4bune's washin oton Bureau

l<d
Board, the Administration and Con-
gress were being flooded to-day with
protests against present railway rates
and appeals for their reduction.
Meanwhile the Association of Rail-
way Executives announced that figures
obtained by the Interstate Commerce
Commission revealed that the railroads
in January had suffered deficit of
N,16I,S00 and more than a hundred
lines had failed to earn their expenses
and taxes.
President Harding conferred to-day
with Senator Cummins, chairman of the
Senate Interstate Commerce Commit
tee and one OF the authors of the trans
portation act, and Senator kellogg. a
leading Republican member of the COM
mittee. 1t was increasingly evident
that tie President and the Cabinet pur-
pose 20 bring about reductions in both
rates and wages, and that the TANGLED
transportation problem will be one of
the foremost before the extra session
OF Congress.
General Demand for Rate Cut
The President has been advised from
numerous sources that correction Of
present abnormal conditions in the
transportation field is absolutely es-
sentlal II America is to be brought back
To normal.
The demands for lower freight rates
come from farmers. livestock men man
uiacturlng concerns and shippers of all
sorts. 1t is widely recognized in Con-
gress that railroad wages must be re-
ouced and railway rates lowered. and
there IS demand from some members
tnat operating costs be reduced in other
directions than wages alone
senator Watson, OF Indiana, Re-
publican member OF the Senate Inter
state Commerce Committee, was one of
nose who declared wages would have
TO he reduced.
1T Is Impossible for the present con-
ditlon OF things to go on indefinitely" ="
SAID Senator Watson Under the ad-
ministration Of Mr.. McAdoo. for pur-
poses plainly political, wages were in
creased enormously, and Increased TO
point where they cannot be main
tanned. The number of employees. too
was vastly increa sed Rates should
come down, but they cannot do so nm
less wages come down.
he Investigation which the Senate
Interstate Commerce Committee will
make will sclosc whether there is anv
basis for the charge that the roads
are eXtrav agantly managed. If it is
found they are, then | believe the In
terstate Commerce Commission already
has power to correct that situation.
The fact is. we have gone as far as we
can 20 IN clothing the Interstate Com
merce Commission with power unless
we 60 to government ownership, 20
which am strongly opposed"
Passenger Traffic Falls Off
Senator Capper, of Kansas, promi-
nent on the Committee on Agriculture.
said he looked for the railroad oues-
ton to be of great Importance in the
extra session.
Il have just come from Kansas" said
Senator Capper. Il am convinced that
railroad rates must be lowered. The
railroad question and high rates were
the subjects | heard most discussed d
while in my state. The farmers can't
stand the present high rates. More
over, there is no doubt the roads would
move moro traffic if the rates were low
cred. Passenger traffic has fallen off,
and l was interested in coming here
from the West to see how few passen-
gers were carried"
Senator Capper believes there will be
''HdItiOIo III wages, DUI ne also LnlnkS
the whole question of whether the
roads are economically managed will
have to be explored.
Senator Sterling, of South Dakota,
said:
Rates must he reduced. and before
iates can be reduced wages must be re-
dLced. | want the men to get good
wages, but as the cost of living has
come down. | believe wages can stand
ID
would increase the traffic and increase
the revenue"
Senator Sterling ascribed at least
part of the heavy falling off in passen-
ger traffic to the increased rates.
Rail Heads to Follow Law
One phase of the wage question
winch has given concern in Senate In
terstate Commerce Committee circles
IS the allegation made by the railway
employees that the railroads intend to
reduce wages without consulting the
Railway Labor Board. Senator Cum
mlns has taken this up with some of
tne railway executives, pointing out
mat the proper course was to follow
the law, since otherwise the plan
formed in the law for adjustment of
wa wage disputes would practically be
abolished. Railway executives have as
sured Senator Cummins they will ad-
here to the law
1t is not assumed, of course, that
the President in his conference with
Chairman Barton will seek to dictate
the findings of the Railway Labor
board on wages. This is beyond the
suthority of the President, according
10 those familiar with the law Nor
is 1t expected the President will at
tempt to dictate the rates to the Inter
state Commerce Commission. This also
IS beyond his authority. The President
can with propriety obtain the views
OF both chairmen about conditions,
about legislative recommendations
which they believe should be made,
and can communicate to them any in
formation he may have which bears
upon the railroad subject. He can ask
tnem for information which may be
Oh Importance to the Executive. How
eyer, while this is true, it does not
after the fact that the Administration
ropes to see wages and rate reductions
both brought about.
1o9 Fail to Earn Expenses
The Association of Railway Execu-
ives IN its announcement to-day said
mat tabulations of reports received by
sne Interstate Commerce Commission
rom the railroads of.the United States
snow that the carriers in January suf
iered a deficit of $1.167,S00, while 100
ouI OF 202 railroads reporting to the
y<c ct<x~x T.-.f