New-York tribune., 1921-06-02
Personally Visits /. C. C.
to Inquire What Aid Is
To Be Given Shippers:
Tells of Plight in West
Broad .Revisions
Coming, He Is Told
Also Discusses Proposal
of Roads That Govern
ment Discharge Hts Debt

a SANy a otiC w mis- 4844~
road executives were pressing before
Congress to-day their plea for relief
from financial -enbarrassments Presi-
dent Harding took direct action to
satisfy himself that a revision OF
freight rates, particularly on necessi-
ties, will be a part OF the general rail-
way readjustment.
Walking unannounced into the OF
fees of the Interstate Commerce Com
mission, the President inquired Of the
commissioners what they were doing
toward the relief Of shippers who had
found some OF the present rates un-
reasonably burdersome. He was as
sured that the whole subject was un-
der investigation and that the commits
sion hoped soon to effect broad re-
visions through the voluntary action
Of the roads.
The hauling charges for fruit prod
ucts over Western roads were made a
specific example by Mr.. Harding in
pressing his inquiries. lie told mem
bers Of the commission that he had re-
eeived many reports of dire distress
among the Western fruit growers be-
cause Of the existing high rates, and
asked whether changes might be ex-
pected soon. The commission officials
replied that the fruit schedules al
resdy were receiving informal con-
sideration.
Reads Ask Government to Liouidate
Although it was indicated shat the
question of rates prompted the Presi-
dents call on the commission, it was
assumed that during the half-hour con-
ference there also was some mention OF
the roads proposal that the govern
MeEt discharge at once it's da0t to them
growing out of Federal control. This
proposal was renewed before The SEN
ste Interstate Commerce Committee
curing the day by Samuel G-a, presi-
dent Of the Pennsylvania lines, who
argued that such action woald be no
more than keeping the word OF the gov
eminent given at the time The roads
were taken over.
The suggestion is known to have re-
Se4feo careIul consideration by the
President and his advisers, and was the
subject OF conference yesterday be-
tween Mr.. Harding, Chairman Cum
MINIS OF the Interstate Commerce Com
mitfee, and Director General Davis, os
the Railroad Administration. There has
been 10 indication, however, Of a de-
cision.
IN visiting the Interstate Comm
Commission to-day, Mr.. Harding tech
nieaily was dealing with part Of The
government entirely outside the execu-
tve branch, and he assured the corr
missloners that he had come simply in
the interest Of cooperation and general
welfare. Since he had the official right
10 communicate with Congress regard.
ing rates, he explained, he felt that he
might enjoy the same privilege in re-
gard 60 the commission set uD as the
agent OF Congress in the making of
rates.
Would Rehabilitate Finances
Before the Senate Interstate Cor
nierce Committee, Mr.. Rea repeated
nls statement OF yesterday that the
government was in duty bound TO re-
Eurn the roads to their owners in as
good shape as when they were taken
over, and declared that The President
Sau tnc power to carry ont the yoads'
reorganization proposal and thus put
..aii"ay finances once more on sound
iounaatlon without further legislation
oy Congress. The rehabilitation plans
we're summed up by Mr.. Rea in this
statement:
My first suggestion is tie release
o. amounts due to the railroads for
Eeaeral control, bat now held b, the
Railroad Administration as Offsets to
capital expenditures made dprine
seoerai control. To fund all of these
capital expenditures would, estimate.
se;,,: se.sase and pay several hundreds Of
..saaiohs OF current cash, due by the
so;Y,srnment, into the hands Of the
t@iioaas 10 &s working capital and also
w puFcnase materials and supplies and
meet other obligations. The present
naa. ra,aIoad M revenues are not adequate to
"eeg these necessities.
ny second suggestion is that de-
;;a' q tnree and half years or moro
- setthng under-maintenance Ques-
sohs' for both the Federal control and
ssaaranty period, be eliminated by
paSSape paS decisions that would, in effect,
ssoegn ~ the promise of the President,
.ns federa! control act and the trans
ssottatlon act TO return the roads and
s@oar equipment in as good condition
~ ~ "heh tney were taken over as war
assure, ;aSs or else pay the cost of phys
;;osi lepafation necessary to put them
~ !. Ihaf condition. This means that
sssis would be made available several
-NAored more millions that the rail
(contiauod on page three)