The Washington herald., 1921-02-25
Cummins Predicts Fed
eral Ownership If Costs
Are Not Cut.
CONSULTS HARDING
ABOUT HIS POLICY
Senator Returns From
Florida Sponsoring
Drastic Measures.
BY ARTHUR SEARS HENNING.

american TdllTOdus are Hedulho
straight into government owner
ship and operation where they will
land at no distant date unless they
succeed in reducing radically their
cost of maintenance and operation
within the next year.
This was the prediction uttered
yesterday by Senator Cummins of
Iowa, chairman OF the Senate Com
mittee on Interstate Commerce and
one of the authors of the Cummin3-
Esch transportation act. Mr.. Cum
minis has just returned from Florida
where he spent two weeks with
President-elect Harding. with whom
he discussed the railway crisis and
the policy of the new administra-
tion in dealing Herewith.
Immediately after the new Con-
gress convenes, probably on April
4. Senator Cummins will introduce
a bill to amend the Cummins-E Esch
law so as to compel the consolida-
tion of the railroads into fourteen
or eighteen systems.
Thinks Outlook Favorable.
The Senator asserted that this
step is absolutely necessary to save
the roads from government owner
ship. He proposed this compulsory
consolidation plan when the Cum
Minis Esch bill was under considera-
tion in the Senate last year, but
opposition by the railroads defeated
il. Senator Cummins believes the
experiences Of the roads during the
last year have rendered them less
hostile to consolidation, and that
the amendment will stand a good
chance of passage.
The Iowa Senator promptly took
up the defense of the cummins-
Esch bill. which has been the target
of bitter criticism in the Senate
during the past few days. He de-
MED It had proved failure, as
charged by it's critics in the Senate.
He admitted that the present plight
OF the railroads was serious, but
attributed theffl condition 10 tine
business and industrial depression
which he said had caused a tre-
mendous reduction OF traffic.
when industry and business get
back to normal he feels confident
that the railroads. by rigid curtail-
ment OF expenses. will be able to
earn the 5iA per cent return on
thS'i iNh"Nt
rate increases. He recalled that in
1917. with rates considerably lower
than they are now, the railroads
earned about per cent.
Predicts Wage Decreases.
81 want TO make it clear. how
ever" said Senator Cummins. that
the reduction in the cost of rail-
road operation must not fall wholly
upon the employees, The railroads
have not been economical in their
operations during the past year.
They must bear 4 large share OF
the reduction. At the same time.
as prices fall. wages must follow
to some extent. l do not believe
that wages should go back to pre-
war levels, by any means, but in
the general decline of prices the
employees must expect to take some
reduction.
The standardization of wages put
into effect on the railroads by Mr..
McAdoo when he was director gem
eral has proved a big mistake. There
should be a general revision of the
wage scale along more equitable
lines.
OH lht Slut vi the IncTe
must be a willingness to bear a
large share of the necessary re-
duction of maintenance and opera
tion. I believe that a good many
railroad men are beginning to see
that the consolidation plan, which
they opposed when the bill was
before the Senate before. is now
their salvation. In my opinion, II
is the only thing that can save
the roads from government owner
ship. and as soon as the next scs-
sion begins I am going to propose
a bill to compel them to consoli-
date into from fourteen to eighteen
systems. This will be a long step
in the direction Of more economical
operation"
Urges Regional System.
Another money-saving device
which the railroads must ptf into
effect, Senator Cummins believes,
is the organization of the country
into regions, four or five in num-
Der, for the purchase of supplies
and material Roads in each re-
gion should appoint buying commit
tees which would be able to elm
mate much costly competitive pur-
chasing and save the railroads vast
sums annually. he contends.
Senator Cummins believes that
the peak of prices on all railroad
supplies and materials has been
passed and that big economies in
buying are i'm sight. For instance,
he believes it will be possible for
the railroads to save at least $780,
100000 on fuel alone during the
next year.
He has received reports also that
traffic Is showing signs of revival.
The tonnage for February Is show
ing a Considerable Increase ovar