The Birmingham age-herald., 1921-05-01
RAIL TANG[E TAXES
 RANK ALONG WITH
 FOREIGN SITUATION
Something More Than General Freight Reduction Is Needed, and President Apparently
 Is Taking This View
By HARDEN COLFAX Special Correspondent to The Age Herald (Copyright. 1891, by The Ago c-Herald)


 Washington, April 3O.-(Special. )- The transportation tangle took rank this week along with the foreign situ- ation. The more President Harding and his advisers delve into the vexing question the more they are convinced that the problem is a complicated and difficult one that will not be solved now by a horizontal reduction in rates as it appeared to be solved last summer by a horizontal increase.
 While general reduction in freight rates is regarded by the administra- tion as extremely desirable as a stimulant to national prosperity, it is becoming increasingly apparent that there cannot be a general reduction without serious hurt to many of the roads, if not to all of them President Willard of the Baltimore and Ohio, who has recently conducted a pains taking inquiry into the probab out come of a general reduction. if or dered, is believed to have spoken for the majority of the railroad execu- tives when he said:
 q have personally asked many large manufacturers and shippers oe goods what effect it would have upon their shipments at the present moment if freight charges were cancelled all together and if the railroads would move the tonnage offered free of charge.
 Invariably the answer has been that it would practically make no diff ference at all in the volume of busi- ness because people are not buying at the present time"
 SOMETHING MORE NEEDED
 a,., ,J freight rate reduction apparently is needed. President Harding seems to be coming around to this view more and more as he studies the problem. It was partly with that thought In mind that he decided to send Governor Harding of the federal reserve board on tour through the agriculture re- gions to see what action ght prop erly be taken by the reserve board to relieve the plight of the farmers who seem to be the hardest hit by the car riers' increased charges.
 Vice President Coolidge has placed before the President for his considera- tion the situation of the New England roads, which appear to be the least prosperous of all the countrys car riers. It seemed clear that in New England rates were too high and were breaking business. It was after that conference with the Vice President that MT Harding told Congress that i freight rates were too high and must come down. That seemed to be the simple remedy at that time.
 | But there has been no assurance, and divided surmise that decreased rates would bring increased business Chairman Clark of the interstate com merce commission, head of the body which is directed by Congress to fix | rates that will bring the carriers "as near as may be" a per cent return | on their investment, does not see how 8 general rate reduction would re- 1 suit in per cent return to the roads when the higher rates do not | now afford them such return. He has indicated clearly, however, that there may be specific rates which require atl- 1 justment and, to ascertain, has in. stituted proceedings which have re- | suited in some readjustment of rates on grain and is now looking into the claim of California fruit shippers tha, the high rates to eastern markets will | ruin their business
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