New-York tribune., 1921-03-30
President to Confer With
Chairmen of |. C.. C.. and
Railway Labor Board to
Fix a Definite Policy
Action by Congress
Will Be Rushed
Cu,nn1ins Will Press an
Inquiry Into Railroads:
Big Expense Slash Seen
By Carter Field

Big Expense Slash Seen
By Carter Field
WASHINGTON, March 29.-Re.-
duction Of railroad wages, while not
fisally decided upon, seemed inevi-
table at the adjournment of to-day's
Cabinet meeting. Reduction of pres
ent freight rates is regarded as vital
by the President and his official FAM
lily, and with the present railroad
deficit--discussed at the Cabinet
meeting as being in the neighborhood
of s700,0O0,00O annually, even at
present freight rates-there' seemed
no alternative but to have railroad
wages reduced.
It was decided at the Cabinet
meeting to have a conference of the
President with the chairman of the
Interstate Commerce Commission
and the chairman of the Railway
Labor Board. This was announced
by the White House Immediately
after the Cabinet adjourned.
Action by Congress Planned
A definite program will be worked
out prior to the assembly of the
extra session of Congress on April
IL, and the legislative part of the
program will be submitted for action
with plea for speed. On Capitol
Hill late to-day this was conceded to
be necessary, and there is DISPOSE
tion, among the leaders at least, to
regard a reduction of wages as nee
essary, especially as more than 60
per cent Of the revenues of the rail
roads are now paid out in wages.
Almost every possible economy which
might be effected by the roads was dis
cussed at the Cabinet meeting. it was
learned, but due to the very large per-
centage of all money taken in which is
now paid out in wages the general sem
tlment seemed to be that no program
which did not include reduction Of
wages could come anywhere near soly-
ing the problem.
Roads Losing Huge Sum
The present situation, as presented
to the Cabinet. is that the roads are
losing tremendous amount Of s.oney
annually, while the freight ratea are
so nigh that shippers are complaining.
it Is contended that it is impossible for
producers In the interior to compete
with imported foodstuffs at the bic
consuming centers on the seacoast.
while the passenger rates are so hieb
that the railroad executives are figur-
ing that more money would be earned
II Che rates were lower, thus encourag-
ing increased travel.
1t was agreed that sharp economics
must be practiced by the railroads ali
the way down the line, but little doubt
was lett that these economies must in
Glade wages.
Freight charges on shipments from
interior points to the seaboard must
De taken INTO consideration in fran
ing the new tariff, it was pointed out
at the Cabinet meeting. The ocean
rates from countries sending in COM
modities are lower in MANY instance
even when added to the tariff duties
than the freight rates from interior
points, so that it is important that
the changes in freight rates shall b.
made IN advance of the finatt framing
OF the new tariff measure.
Must Cut Cost of Operating
Senator Cummins, chairman of the
Senate Interstate Commerce Commit
tee who plans thorough INQUIRY ON
the part of his committee into railroad
conditions and especially into operat-
ing expenses. expressed satisfaction
that the President was taking up the
subject
The key to the whole situation. Sem
ator Cummins declares. is reduction ~
the operating expenses Of the roads.
The reduction should be not merely ia
wages but in expenses all along the
line, from the presidents of the roads
down and from gasoline up"
with respect TO present authority OF
the government over operating ex-
penses, Senator Cummins holds the
power OF the Interstate Commerce
Commission to deal with such expenses
cannot be materially increased without
going into the domain of governments
operation. The Railway Labor Board
can reduce wages and the Interstata
Commerce Commission can reduce
rates. Under the circumstances, belief
at. the Capitol is pronounced that tbs
hopes for peaceful re-
duct;ons in wages, and also looks for
reductions in rates which will benefit
shippers and the general public by
making movement of some forms OF
traffic easier.
AS to just what legislation the Presi-
dent may conclude is needed there is
no light thus far. There have been
suggestions Of action to require ths
roads to make purchases OF supplies l..
common and 10 make the utmost use OF
facilities IN common, but the difficultv
as viewed ny some in Congress is thai
action of this kind would mark LONG
step toward government operation OK
the lines.
Expense Account Too Big
Discussing railway financial proh-
ieans and conditions. Senator Cummira
geid: -'A-
The whole question simply is ona os
operating costs. Rates cannot
higher. Expenses must come dow.
me railroads obtained revenuts TO m
amount of s6,25o,ooo, 600 during the
last year. That was the rreatest &,
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