The Washington herald., 1921-03-30
Asks Heads of Govern
ment Transport Boards
To Conference.
CONSIDERS ANSWER
VITAL FOR COUNTRY
Cabinet Anxious to Assist
Roads in Return to
Normally.
By ARTHUR SEARS HENNING.


Presiden: Harding yesterday be-
gan an inquiry into the plight OF
the railroads following a discussion
of tn. situstion at the Cabinet meet
ing which reyolved around what was
termed the s7oo.ooo.ooo deficit" OF
the carriers.
Secretary of the Treasury Mellon
called the attention of the Cabinet
to the inability of the railroads to
show a profit on the basis of-pres-
ent freight and passenger rates and
increased wages.
Following the meeting it was an
nounced that President Harding has
asked T. Z. Clark. chairman Of the
Interstate Commerce Commission,
and r. NJ. Barton, chairman of the
Railroad Labor Board. to confer
with him on the situation. The
conference will be held as soon as
Judge Barton can arrive from Chi
cago.
Seek Normaley.
1t was made known that the Pres
ident and Cabinet members in their
discussion viewed the railroad sit
uation as of great concern to the
entire country. The position was
taken that the government should
do something to facilitate the re-
turn Of the railroads to former con-
ditions.
That the present freight and pas
serted High freight rates as sf-
serted High freight rates are af-
fecting the movement of agricul-
tural products were uppermost In
the discussion. Instances were cited
wherein IL costs more to ship ag-
riculturaI products from the Mid
die West to the East than 1t does
to bring them from foreign coun-
tries. This situation. II was felt,
q Of vital importance in connec-
-Aion with the foreign trade prob
lens as well as with referenc to
the protection OF agricultural pro-
ducers.
Co-ordfaation step.
Just what can be accomplished
by the administration IS a matter
of speculation A significant fea-
ture of the Presidents plan for a
conference with the chafrmen of the
Interstate Commerce Commission
and the Railroad Labor Board is
that il Is a step toward a co-or-
6ination of the activities Of the two
bodies which has not existed hith-
erto.
1t was the intention of Congress
In framing the transportation act
that the Railroad Labor Board. with
authority to pass on wage disputes,
should be kept entirely separate
from the Interstate Commerce Com
mission with its control over freight
and passenger rates. the Labor
Board basing wages on living costs
regardless of the earnings of the
carriers
Questiou of Wages.
Cabinet members and the Pres
tdsnt have refrained carefully from
any indication of a desire that the
Railroad Labor Board should re-
duce wages or abrogate national
agreements which the roads claim
impose unnecessary expense upon
them with reference to working
hours and various rules sand regu-
1ations. -s.
Organized labor. in opposing any
reduction IN wages, has accused the
railroad management of needless
expenditures in making contracts
for the repair of locomotives and
equipment in outside shops and in
other ways.
In planning an investigation by
the Senate Committee on Interstate
Commerce Commission Senator Cum
minis, OF Iowa, the chairman. has
intended that the public shall be
Informed as to the truth of the
charges made by organized labor.
The whole question simply is one
OF operating costs" said Senator
Cummins last night. Rates can
not 50 higher. Expenses must come
down The railroads obtained reye.
nues to the amount of $3.50, ,00O, 600
during the past year. That was the
greatest in their history. The re-
ports show also they hauled the
greatest volume of traffic and the
largest number OF passengers i'm
their history. They spent all of il
except s1o.00o.oo0 or about .07 per
cent. which Is a negligible percent
age Of return