Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-04-23
RATES BLOCKING
TRADE ACTIVITY
Business Revival Deemed
Impossible Under Exist
ing System
DEFINITE MOVE SOON
Sees Desperate Straights of Industry,
But Admits Deep Prcblem-haro-
ing Frames Program.

\ Washington, April 23.-No revival
] of industrial and agricultural act!V-
|, ity on q large scale IN this country
IS possible, III the opinion of the
h President ana fis Cabinet, as long as
L the present system OF railway rates
] is in effect.
\ This was tie conclusion reached
| by the Cabinet yesterday after sec
ond survey by that body of the whole
Rbusiness proo,em in America as it
exists today. President Harding him
| Eelf let it become known yesterday
Afternoon that he and his advisers
regarded fire.; ::ht rates as the key to
! the whole sitl alton.
II At the same time he confessed
II that concrete solution was yet to
& be developed The man has not been
fourd. he added, who could point un-
erringly to a remedy for the conai-
tion which all interests now recog-
Inize as fundamental. Freight
lcharges must come down, It was sta
tied, but how 70 bring them down as
long as railroad operation costs re
main at their present level is the
unanswered question.
There is reason to believe that
the Administration is moving more
r;or less decisIvely toward railroad
\ policy No outline of this can be
indicated for tie time being, - +hn
|, President does not Zee. that IT, Cow
ernment is ,powerless in dealiT& Tti.h
(.the problem, by any means. and i
,nced not be Surprising if r. mas
some definite move within the rG..
few. weeks.
4 Meanwhile The eyes of the Admin
:stration will be fixed upon the Cum
Minis investigation in the Senate. At
| the instance of the chairman of the
Interstate CcnmeWe Committee of
THAT body ar inquiry into the whole
1question of .nsportation is about
Ito be undertaken, under authority of
1.-THE Senate.
The inquiry is to determine first
lof all whetne, or not the Cummins
Esch act has proven q failure in
meeting the transportation needs of
the country, az has been charged.
Specifically, ( is to demonstrate, if
possible, whether it is wise, after all,
to divide the Governments authority
over the railroads, dclegating rate
matters to tnr Interstate Commerce
Commission ard wage matters to
the Railroad Labor Board.
4 AS long as the Interstate Com
Sncrce Comm. .ssion has the last word
bn freight rates and as long as the
Railroad Labo; Board is the final
fudge of wages, the Administration
is handicapped in its efforts to DIAL
/ with the questions presented. Ali
this will be shown once tl Senate
inquiry begins, and if t.: Senate
makes no move of its own toward re-
lief the President may feel imprl'ea
= ito step into the situation
From it's Investigations the Ad-
ministration is now tho; ughly con-
)vinced that tie present higk freight
rates arc choking some lines Of aus-
iness to death and is depressing
practically all lines. Fer example,
the President has been told of one
shipment Of citrus fruit from Cali
fornia 10 Ne"- York tia1 cost more
to haul than !; brougn- on the mar
ket, the producer being compelled
to pay the difference.
He has bee.i shown. Moreover. that
coal is not moving to market except
to supply the most urgent reeds, .he
CONSUMERS reiu.;ns to 5lv rs long
as the transpo;; ;;ation costs are cx.
cessive. Tn he bcliev with the
eake traffic just opening. may prove
disastrous oy produci,... ,.,:r.r
shortage next s.:nter.
Then, too. fe Presi lart has found
that agricultu gener2il; is in des-
rerate straits as result q freight
charges, which are Writ " prohibi-
tive on many :'ipment He does
not believe tha. oitter agriculture
CIR industry can be restored 70 3
prosperous basis IS lon- rs this con
d;tion prevails.