The Washington herald., 1921-10-29
CONGRESS WANTS
PERMANENT CURE
FOR RRAILWAY ills
Administration, Too, Is
Looking for Trans
port Medicine.

With the railroad strike averted,
both the legislative and executive
branches of the government are Civ
ing attention to the task of finding
a permanent solution for transpor-
tation troubles. This is regarded
as the chief domestic problem with
which the administration is con-
fronted.
The success of the Railroad Labor
Board in effecting peace between
the carriers and the men demon
strated its usefulness, in the view
of the administration, and proved
that a tribunal constituted by the
government cannot well be ignored.
But II is recognized that the two
fundamental issues-reductions in
wages and freight rates-remain for
future settlement. and trat a tense
situation is likely to develop again.
Consolidation Favored.
As Consequence, a reorganiza-
tion Of the labor board. with a
broadening of its powers, seems Ger
tain to result.
Sentiment among members of
Congress and in the administration
favors a consolidation Of the board
and the Interstate Commerce Com
mission. The I. c. c. controls
freight rates. and the board acts
when wage Questions are involved.
1t is argued that the relationship
between the two is so close that it
Is Illogical and Impractical to have
two agencies. Further, il is thought
the. board should be located here in
stead of Chicago, because of the
need for collaboration with other
branches of the government
Responsibility to Executive,
The President, in charging the
board in the strike crisis, estab-
llshed the principle of its respon-
sibflity to the Executive, and the
fact that all the powerc of the gov
ernment would be nsed to make ef-
feetive its decisions.
But the verdicts of the hoard ara
not mandatory. and there is strong
agitation for putting teeth" in the
transportation act. to force obedI-
ence. Difficulty arises because NJ
the unwillingness of Congress TO en-
act laws savoring , of compulsory
arbitration. and because of the hos
tility of labor.
Another fundamental step in the
solution of the problem which will
be slower Of realization, ,is the nro-
posed consolidation of the roads
into nineteen great systems, to
eliminate competitive waste, but
retain competition. The 1. c, c,
Is working on a scheme for consoli-
dation, and will hold hearings on It
In the near future.
Dfspleased Mt surtnx Rate.
The financial relief which the ad-
ministration desired to extend to
the roads has>been blocked to a
great extent by Congress. Presi-
dent Harding, however, remains in
sistent that the railroad refunding
bill, already passed by the House.
be put through the Senate as
quickly as possible. He is dis
pleased with the action of the SEN
ate in increasing surtax rates in
the revenue bill from 32 to SO per
cent, fearing that this hnay hamper
efforts to sell $500, 900 900 worth Of
securities for the roads. Steps may
be taken to effect a reduction in
this rate when the bill reaches con-
ference between the two chambers
Other legislation in prospect in
wolves a clear definition of the
powers of the /. C. c. over intra-
State freight rates. The question
has been the subject Of endless con-
fusion. dispute and litigation. The
railroads have had to deal with
regulatory bodies in almost every
State, in addition. to the 1. C. c.,
and have complained loudly. 1t is
generally agreed that the complete
authority OF the !. c. c. will be es-
tablished in the near future.