The New York herald., 1921-01-29

Special Despatch TO THE NEW YORK HERALD.
New York Herald Bureau,
Washington, d. G.. Jan. %.
No chance exists for a reduction
soon in railroad freight or passenger
rates, it developed to-day, despite a
slump in both classes OF traffic since
the increases went into effect last Au-
gust. Reports lately that the rail-
roads. because OF decreased business
and to satisfy public demand for
lower tariffs, were contemplating a
move in this direction are being dis
credited by those in close touch with
railroad affairs in Washington.
The railroads, their representatives
declare want to decrease rates when it
is possible to do so, but they insist
nothing can be done until the cost OF
operation is materially reduced-prin-
cipally by cut in the high wages
paid to railroad employees.
Considerable attention is being di-
rected 10 the conference OF railroad
executives in Chicago, whose purpose is
TO obtain abrogation Of the so-called
national agreements signed by the Chi
cago Railroad Administration with the
organizations of railroad employees.
These national agreements standardize
rules and working conditions. which the
railroads assert do not work for honest,
efficient and economical management
under private railroad control. They
contend that they were compelled in
-. - e.
S. 100000 for work not performed and
that the rates have brought about as
much as a 40 per cent. loss Of efficiency.
Wage Cuts to Be Asked.
1t generally is understood that the
result of this agitation will lead to an
application TO the railroad wage board
for a reduction in wages for railroad
employees. The railroads want wages
reduced. naturally, as one way of re-
turning to normal conditions. and when
such an application Is made unques-
tionably IL will be accompanied by an
agreement to reduce railroad rates.
Figures covering the period OF hign
rates show there has been slump in
traffic, although 1t has not corresponded
with the slump in general business con-
ditions. Car loadings have dropped off
about 15 per cent, while passenger
travel has dropped from 1 to 2 per cent.
The result has been that the income to
the railroads has been greater under
the higher rates.
For the week ending January Is car
loadnes. regarded as the key to freight
movements. totalled 709.SSS. compared
, With S40.524 for the corresponding period
q year ago For the week ended Deem
Der total car loadir.ys were S72.162.
compared With 1S9.2S6 the year before.
but the slump then was due to the coal
strike. Generally the car loadlngs have
shown a downward curve since the
higher rates went into effect.
Reduction in passenger miles amounted
In October TO IL per cent. and in De-
cenlber to 90 per cent Totals for Mo-
vember. received from only so of the 203
class railroads. show a slump in pas
senger travel of 2.5 per cent. Passenger
earnings for September were s129.43S,-
552, compared with $110.215,099 in Sep
tember, 1919: for October. sf14,044 152,
compared with s99.o33.42s
Pullman Earnings Higher.
For each month Pullman earnings for
both bcrths and seats increased about
81 900, 600.
Passenger rates were increased in
August from 10 3.5 cents mile. plus
HurCnarRe OF oV per cent. or pullfnan
fares. Freight rates IN Eastern terri
tory were increased 40 per cent. in
Western territory 80 per cent. and in
Southern territory 20 per cent. For
freight traffic between the groups the
increase was 80 Ia per cent.
Consistent effort is being made by the
railroads and by the Interstate Com
nlerce Commission 10 make uniform the
passenger fare and freight rate increase.
In all cases where appeal was taken by
States under State laws or utility COM
mission action the commission has or
dered the higher fares into effect.
In the first State rate case decided,
that of the State OF Illinois. the COM
mission has ordered the roads 20 put
into effect the percentage increases gen.
orally ordered There were. however.
three dissents from the majority opin-
ion. In The passenger fare cases only
Commissioners Eastman has dissented.
In some cases II was contended that
state rates were already higher than
rates generally and that application OF
the nat increases ordered would be dis
crimipation.
Earnings of the railroads have been
consistently under the per cent. con-
templated by the Interstate Commerce
Commission in it's rate increase. There
can be no decrease in rates under the
law rntll earnings exceed the per cent.
fixed by the transportation act.