The New York herald., 1921-10-09
EARLY FREIGHT Rate
CUTS ARE FORECAST
General Clearing of Situa-
tiOn Seen in White House
Conference.
CARRIERS FAVORABLE
Expect to Act Voluntarily
in Chicago Meeting OH
October IA.
CARRIERS FAVORABLE

WASHINGTON. Oct. S.-Developments
which were declared to presage early
reduction in railroad freight rates and
clearing OF the railroad situation
generally came here to-day from sew
eral quarters.
A group of prominent railroad ex-
ecutives conferred to-day with Presi-
dent Harding and Senator Cummins.
Republican Qowa), chairman of the
Senate Interstate Commerce Commit
tee, and discussed steps toward freight
rates reductions preliminary to the
executive meeting at Chicago Octo-
ber H.
Rate reductions also was the prin-
meeting tonight Of Democratic and
Republican Senator'S comprising the
unofficial agricultural bloc. Senators
attending the meeting said there was
q wide and vigorous demand for rate
cuts as imperative to the agricultural
interests.
Senator Cummins, after his confer
ence with the railway executives. said
ho believed they would adopt at their
Chicago meeting his suggestions for
an immediate reduction of freight fates.
No definite or formal assurances to
this effect were given him at to-day's
conference, he explained, but he ex-
pressed the opinion the reductions
would be made by the carriers volun-
tarily.
The carriers then, Senator Cummins
80 II. L
Labor Board to reduce wages or appeal
to Congress for legislation to meet the
situation caused by the voluntary rate
reductions.
Executives who Attended.
The railway executives in the confer
ence included T. De Witt Cuyler, repre-
senting a railway securities holders or
ganization: Samuel Rea, president Of
the Pennsylvania system; President
Smith OF the New York Central, Presi-
dent Holden Of the Burlington system
and julius Kruttschnitt. chairman of
the Southern Pacific
The railway executives" said Senator
Cummins after the conference, feel that
the only substantial way to reduce rates
is to reduce wages They also feel that
the wage fixing functions of the Railroad
Labor Board should be transferred to
the Interstate Commerce Commission,
which has the rate making, or return,
powers"
Senator Cummins said he did not
gather that the railway executives IA
vored complete abolishment of the Labor
Board. but believed the same Federal
authority which establishes railroad
rates. or returns, should also have power
TO establish wages. This would require
amendment by Congress Of the transpor-
tation act and may be brought up later.
after the Chicago conference.
The railway executives at Chicago, the
Senstor said. he understood, wouldoscaii
IN representatives of agricultural. ship
pors. commercial and other organizations
70 discuss the rate and wage questions
The carriers, he said, would probably
eeek the support OF these interests in the
event they should agree to reduce fright
Eefes voluntarily and appeal to the Labor
Board for wage reductions and to the
Interstate Commerce Commission for
rate adjustments.
Passenger Rates 70 stand.
Reduction of passenger rates is not
contemplated at this time, In the opinion
OF Senator Cummins, who explained that
the pressing immediate concern for agri-
cultural and other industries were freight
rate reductions. This sentiment was ex-
~ SN@'Sd ob meeting OF the Sem
40 agricultural bloc. Proposals for
calling up the matter in the Senate soon
we're said to have general indorstment
among the bloc.
Several other agricultural question.
were before the bloc. but the rate reduc- |
uon matter was said to be predominant. |
Among the major features of the agri- |
cultural relief programme to be passed.
Senators said. were the cooperative |
marketing bill. representation for aari-
culture on the Federal Reserve Board
and Interstate Commerce Commission,
and farmers personal credits legislation.
Under discussion among members of
the agricultural bloc are proposals for
amendments to the railroad debt fund
Ing bill. soon to come before the Senate.
providing definitely for rate reductions.
The funding bin was not discussed with
tho railway executives to-day, Senator
Cummins said. but was considered by
the Interstate Commerce Committee for
two hours with action deferred until
next Wednesday. The question of allow
ance of railroad claims for ''inefficiency
OF labor during Federal railroad opera
tion was the principal subject before |
the committee to-day, members insisting |
on amendment of the pending bill SO |
as to preclude definitely presentation |
of such claims against the Government. |