Bisbee daily review., 1921-10-09
REDUCTION Of
FREIGHT RATES
DEPENDENT ON
LOWER WAGE
President Confers With Rail
way Heads in Endeavor to
Obtain Lower Rates
SENATOR'S HOLD MEET
Freight Rates Must Come
Down Before Passenger
Fares Can Be Lowered

WASHINGTON, Oct. s. Develop
ments which were declared to pres
age early reduction in railroad freight
rates and clearing of the railroad
situation generally came here today
from several quarters.
A group of prominent railroad exec
utives conferred today with President
Harding and Senator Cummins, Re.
publican, Iowa. chairman ri the SEN
ate Interstate commerce committee,
and discussed steps toward freight
rate reductions preliminary to the ex-
ecutives' meeting at Chicago, October
IA.
Rate reduction also was tie princi.
pal topic on the program a. meeting
tonight of Democratic and Republican
senators f.mprising the unofficial ag-
ricultural bloc" Senators attending
tie meeting said there Sas a wide
and vigorous demand for rate cuts, as
imperative to the agricultural inter-
.csis.
Senator Cummips. after his confer
ence with the railway executives, said
he believed they would adopt at their
Chicago meeting, his suggestions for
an immediate reduction of freight
rates. No definite assurances to this
effect were given him at today's con-
ference. he explained, but he express
ed the opinion that the reductions
would be made by the carriers volun-
tarily
The carriers then. Senator Cum
minis said, probably would ask the
railroad labor board to reduce wages
or appeal to congress for legislation
to met the situation. caused by the
voluntary rate reductions.
The railway executives in the cCn-
ference included T. Dewitt Cuyier,
representing railway securities
holders organizations; Samuel Rea,
president of the Pennsylvania; Presi-
dent Smith of the New York Central;
President Holdn of the Burlington sys.
TEN; and Julius Kruttschnitt, chair
man of the Southern Pacific.
Must Reduce Wages
The railway executives" said SEN
ator Cummins after the conference,
feel that the only substantial way to
reduce rates is to reduce wages. They
also feel that the wage fixing func-
should be transferred to the interstate
commerce commission, which has the
rate making, or return powers"
Senator Cummins said that he did
not gather that the railway executives
favored completed abolishment of the
labor boamrd, but believed that the
same federal authority which estab-
lished railroad rates, or returns,
should also have power to establish
wages. This would require amend
ment by congress of the transporta-
tion act and may be brought up later,
after the Chicago conference.
The railway executives at Chicago,
the senator said he understood, would
call in representatives of agricultur
al, shippers, commercial and other
organizations" to discuss the rate and
wage questions. The carriers, he said
would probably seek the support of
these interests in the event they
should agree to reduce freight rates
voluntarily, and appeal to the labor
board for wage reductions and to the
Interstate comerce mcommission for
rate adjustment.
Reduction of passenger rates is not
contemplated at this time in the opin-
ion of Senator Cummins, who explain
ed that the pressing immediate con-
Germ for agricultural and all other in
dustries was for freight reductions.
This sentiment was expressed at to-
nights meeting of the senate agricul-
tural bloc" Proposals for calling up
the matter in the senate soon were
said to have general endorsement
among the bloc.