The Washington herald., 1921-10-19
Freight Rate Reductions
May Be Announced
In Few Days.
Hi
CABINET URGES
SUPPORT OF LAW
Appeal to Public Opinion
May Follow Chicago
Conference.

pending national railroad strike.
President Harding has adopted a
policy providing for the following
two lines Of procedure:
l. To support the Railroad Labor
Board with a view to compelling
respect for its decisions by both the
employees and employers
2 To bring about a lowering OF
transportation rates to offset reduc-
tons In wages decreed by the board.
II was in conformity with this
policy that the Labor Board has
summoned the chiefs OF the railway
brotherhoods 10 Chicago for a con-
terence on the situation produced by
their vote 10 strike as a protest
against the July wage reduction.
Relies on Public Opinion.
This will be an informal confer
ence' according TO the sdfninistra-
tlon viewpoint which will endeavor
TO effect cancellation OF the strike
call through persuasion Of the union
leaders. II the representatives OF
the brotherhoods cannot be induced
to withdraw the strike order the
Labor Board, IL is understood here.
VIII cite the unions formally ts
show cause for flouting the wage
reduction decision made in accord
with the provisions Of the Esch-
Cummins transportation act
Under the law the board has no
power to enforce its decisions, nor
are its decisions binding upon. each
party. Public opinion is relied upou
TO deter either party from ignoring
u decision.
Would Put Unions on Record.
A formal citation to show cause
for defying the board would he for
the purpose OF putting the unionE
on record and OF reporting ,heir de-
t'nse to the President. tae Inter
state Commerce Commission. snd the
public, as the law provides.
II on formal citation the unions
were unable TO Justify their action
in ignoring the wage reduction. de-
cision, they would forfeit SEy sup
/ mort they might eXpev: 20 receive
from the public. Il is conceived. ami
any strike thereafter would he
doomed TO failure.
The President is determined 70 nut
the dispute-adjustinE provisions Of
me transportation act 20 the sest.
| He conceives that this test Will
demonstrate whether the .abur
Board is imRotent to effect compIi-
ance with its decisions. whether the
l'lan for preventing rail- lad strikes
embodied in the transportation act
ia altogether futile.
Approves Citing of Penn. R.R.
Mr.. Harding believes that the
Labor Board should cite any indi-
vidual or organization ignoring its
decisions. He approves the recent
action Of the board in citing the
| Pennsylvania Railroad to show
cause for its refusal to comply with
a decision on working rules involv-
ing the refusal Of the road to recoE-
nize certain representatives of its
| organized employees. He regards the
summons to the brotherhood chiefs
as in the same category.
The Presidents attitude is mani
mously supported by the members
! Of the Cabinet which met Yesterday
and discussed the strike situation
only informally and briefly The
question was deemed one that is
being dealt with by TIE authorities
constituted by the transportation
act.
The President takes the position
that there is no occasion for undue
excitement over a situation which
was foreseen as a possible, II not
probable. contingency by Congress
when IL passed the sch-Cummins
bill and which is being dealt with
in the manner described by that
\ law.
Asks Fair Trial Of Law.
II the law fails TO prevent strikes
in the manner contemplated il wifi
be time TO adopt other measures
and possibly TO propose additional
| legislation. That time has not come
in the opinion OF the President. and
in the meantime. the public should
remain calm and lend its support
TO full and fair trial Of the law.
In this connection Il Is recalled
that the leaders Of organized labor
served notice on Congress before
the bill was passed that Il would
not serve to avert strikes and that
labor would not hesitate to strike
in defiance OF any order Of the
| Labor Board deemed unacceptable
While exertinE his influence 10
| procure obedience Of the decisions Of
the Labor Board. the President is
also endeavorIng to bring about a
general reduction in freight rates
Such a reduction would demonstrate
to the public that the benefits OF
railroad wage reduction were being
passed on to the consumer.
The question of rate decreases "
being discussed by the Interstate
Commerce Commission which Is 10
touch with the resposible leaders
among the railroad owners. A re-
duction may mstcrialize either as q
more OF less voluntary proposal by
the railroads or as a measure i'm
posed on the reads by the govern
ment
Negotiations. inspired by the
President are, in progress and ad-
ministration officials are confident
that II will be possible TO announee
rate reduction within the next
few days.