Evening star., 1921-06-01
Goes to Office of Commission
+ for Informal Talk on
Rail Situation.
THINK TOPIC OF FUNDING
BIG DEBT WAS DISCUSSED
S75O,000,000 for Improvements
Asked by Roads Probably Touch
ed Upon as Vital Question.

downward revision Oh TdlIIOdu TdlcS'
particularly of those on necessities,
was discussed by President Harding
today with members of the Interstate
Commerce Commission, at an informal
conference at the commission's head
quarters. The President was under
stood to have been assured that the
whole subject now was under review
by the commission.
Mr.. Harding inquired particularly
about the prospect for modification
of rates on fruits. The commission
officials are understood to have told
him that they were making consid-
cradle progress on a plan for obtain
ing voluntary reductions in some rates
through concerted action by the car
riers.
1t was said that this movement and
the general work of ironing out in
equalities had gone much further than
information hitherto given to the
public had indicated. Details as to
this, however, were not made PUBIC.
Funding Discussion Likely.
Although there was no outward
Indication that the chief executive
and the commissioners discussed the
proposal to provide for the funding
of the SYST, 100000 owed to the gov
ernment for permanent improvements
made while the roads were under FED
. eral control, that subject is known TO
administration officials and the assump-
Ilion was that it had been touched
Rpon during the conference.
A recommendation that the govern
ment take that step was made before
the Senate interstate commerce com
mittee yesterday by President Rea Of
the Pennsylvania lines. and is under
stood to have gained considerable
favor among some members OF the
committee. 1t is believed to have been
ference between President Harding.
Chairman Cummins OF the committee
and Director General Davis OF the
railroad administration.
There was nothing to indicate 70.
day, however, that a decision had
been reached by the administration
or that one would bs-attempted until
further evidence had been submitted
MIR. Harding and all of his close ad-
visers are watching closely the festi,
mony given before Senator Cummlns
committee. but have indicated thaf
they did not consider the data COM
plete enough at present to warrant
determination of policy.
Question Up with Cummins.
This proposal was made before the
Senate commerce committee yester-
day by President Rea Of the Pennsyl-
later conference between the Prest-
dent and Chairman Cummins OF the
Sonate committee, and Director Gen.
al Davis of the railroad administra-
ton.
The purpose of the Presidents dis
c,1ss;on with members of the Inter-
state Commerce Commission was said
70 be to obtain information as to the
r-actica bility of the plan. President Rea
told the Senate committee that the
rIa1 would give the roads the capital
which they now need so badly for
making replacements and better
ments.
Mr.. Rea was again before the COM
promises TO maintain the lines in as
good condition as when taken over
@hould be fui6lled in letter and spirit.
1rn estimated undermaintenance
claims Of the carriers against the
government to aggregate $700,000,000.
Test Period Not Typical.
The: railroads believe" Mr.. Rea
same amount of physical reparation
was not produced by the dollars ex-
pended in the federal control period
as in the test period. and therefore.
the pledge of the President and Con-
gress has not been kept"
Cross-tie renewals Of the federal
control period were 25.000,0o0 below
the average Of the test period. Mr..
Rea said: rail replacements short
44e.2so tons and ballast materials
shortages will no doubt be conceded"
he said. but unless full labor cost Of
installation also was allowed. a "con-
seauent loss. would ''be passed on to
the carriers"
It might take moro than three
years to review all claims. Mr.. Rea
said. and II appeal to the Supreme
Court for final Interpretation OF the
control act and contracts under 1t
were necessary. many Of the roads
than they are entitled to and accept
the burden"
Close Co-Opernt7oa Wanted.
At the conference today both ths
President and members Of the conn
miesion expressed hops for closer
cooperation among all public Of
ficials toward roadjustnant OF the
entire railroad situation. It wns indi.
Gated that hereafter tho White House
would be kept informed about do
tailed stops contemplated by the rate
fixing body.
fce to tho commission. q distance Of
three blocks. virtually unracosnfxed
by street crowds. Whom he entared
the Interstate Commerce Commission
building he was recognised by an eie-
vator man who took him imm ediatsiy
TO the ofYico Of Chairman Clark, Mr.,
Harding requested that hs be given
opportunity to talk to all tho mem.
hers together.
When they had assembled he ID
understood to have told them that ha
desired to consult win, them very
informally. suggesting that, since he
had An omciAf right to communicate
with Congress regarding rates, no as-
suned that he could communicate In
the san1a way with it's fate.mnkfnR
agent, the eommissfon,
The President thsn mnda iaauirIee
concerning the general progress Of
the commission IN fevisins the par.
tieu1af horizontal rates, which the Rd.
ministratisn believes has put Hnrs
they can bear. He expressed mHei,
gratiAcation to learn that the som.
mission already was at work on a
revision Of sueh fntas and was said
to havs been paFtieuIariy pleased at
the Suggestion OF a voluntary agrees
ment amoas carriers to make the
desired reduction,
RAferrins to the faaRy, essap,aint,
which have come 10 the White Heuse
ebout fruit rates % ne Wpet, NF
HaRdIaE expressed haee that These
eohe4u4ea were RmaR9 these WAeee
PevisfBA ia under eaBsfaeSetia8, Hi
was iafeFme4 that Afthauei NJ def:
mite steps had bean taken, the {yuii
nd