The Washington herald., 1921-04-23
Cabinet Discusses Mean.
To Get Roads Back
To Normalcy.
REVISION IN LAWS.
NOW CONSIDERED
All Classes Clamor fol
Lowered Transports
tion Costs.

transportation act is working "a
the best interest Of the country oi
needs radical revision is a question:
brought to the fore by the discus
sion in the meeting Of Presiden
Harding with his Cabinet yesterday,
The Cabinet discussed ways Of
getting the country back TO nor-
malcy." which Mr.. Harding is be-
ginning to realize is about the big-
gest job any President ever tackled
With farmers complaining ID
marketing products At a loss. man-
ufacturers slackening productIonI
and all blaming high transported
tion rates for business depression.|
the President and his advisers areI
still inclined to regard the refiefI
OF the railroads as the key of theI
whole problem.
No Tangible Result.
The railroad question was chiefly
discussed in the Cabinet meeting.
but without any tangible result.
The President reiterated his convic-
tlon that q reduction Of rail ratesI
would revive business. How TO get
the rates reduced is the question
II Is apparent that the solution
Of the railroad problem by the an
pointed agencies of Law means al
long drawn out process which ts
beginning to breed doubts Of the
wisdom OF the Cummins- Esch
transportation act
Under the law the l. Z. Z. must
maintain rates that guarantee re-
turn Of per cent. Until operating
costs are reduced the commission
cannot reduce rates unless sure
that increased trsffic from such re-
ductiOn would increase revenue.
The big item in operating costs ls
wages over which the Labor Board
has independent Jurisdiction. Tn.
Labor Board bass wages on living
costs, not on railroad earnings
Whether. this diversity OF super
vision is to blame for the dificuIty
Of effecting speedy relief of the
railroads is a question beginning TO
claim attention.
New Revision Possible.
IL is possible that another over
hauling Of the transportation law
may be found necessary. The Presi-
dent has been impressed by state
menIs that consumers are not buy
ing coal because freight rates are
too high, that wheat is selling in
some localities at % cents a busheI
because transit rates are prohibi-
tive, that the California citrus
growers have found prices in the
East do not pay the rail charges.
He is convinced that the fiat per
centage increase in rates was In
equitable in many cases. Coal. for
example, frequently costs less at the
mine than the transportation charge.
The President thinks the situation
calls for a marked reduction Of
rates on such basic commodities. at
least.
Chairman Clark. Of the l. c. q,
does not regard the freight rate so
important an element Of the eco
nomic problem as does the Presiz
dent.
European Competition. ~
The California lemon grower"
said Mr.. Clark, lis unable to sell his
lemons in the aEst at prices that
will pay him TO produce, pack and
ship his fruit At FIRST he blamed
the freight rates, but as he looked
further into the situation he found
that the reason for this is the fact
that the Sicilisn lemon growers were
selling their lemons in this country
at Sl.25 per box. That Sicilian
grower has this advsntage-he can
take that sl.25 in our money back
to Italy and il Immediately is
changed into a IS bill. The only
grower can successfully compete. is
through the levying by Congress OF
an import tax that will give him a
reasonable degree Of protection.
The retail dealer in New York 10
paying just one-half what he paid
last year. His price TO the consumer
is identical with that of last year.
Obviously the freight rate in that
case is not what is preventing the
grower from getting the price he
got last year. Under those condi-
tions we do not see where a reduce
tion in freight rates would benedt
the grower. Those who control the
market will not pay any more than
they are compelled to pay.
Farm Prices Drop.
The farmer is back to almost
pre-war conditions so far ss the
price he gets for his wheat is con-
cerned, but we are paying the same
price for the same loaf of bread.
I venture theg things TO show
that all Of the trouble does not lie
with the freight rates"
President Harding's declared poll
icy of less government in business"
will be put to the acid test within
the next few weeks when progress
sive Republicans with strong DEM
ocrstic backing bring forward bills
to regulate the meat packing indus
Try and to control the operations OF
grain exchanges In Chicago and
other Wesaern cities.
Announcement was made yestsr-
day that the Senate subcommittee
on agriculture will take up the Ken
drick-kenyon packer bill today.
The committee believes that no fur
ther hearings on the measure are
necessary. Its plan is to make q
favorable report on the measure 20
the Senate within the next few
days. The bill probably will be laid
before the Senate In exactly the
same form In which it was passed