New-York tribune., 1921-10-07
Carriers Expected to Tell
Senate Interstate Chair
man Tariffs Must STAY
Up Until Wages Drop
TO Clear Way for
Conference Oct. ii
Full Consideration Later
for Labor Board Posi-
ton and Plans Offered


WASHINGTON, Oct. 6.-The first
step toward a general reduction In
railroad freight rates is expected to
be considered here tomorrow at q
conference between Senator Cumnlins
chairman Of The Senate Interstate
Commerce Committee, and committee
OF railroad executives. This meeting
will be preliminary to the general con-
ference Of executives in Chicago Octo-
Der IL
Senator Cummins and the committee
will discuss. the question Of general
reduction in rates, the necessity of
cutting wages if rates arc to be re-
duced and, there Is reason 60 believe
the problem OF effectinK wage cuts
without consulting the Railroad Labo (
Board.
1t IS not understood that the rail-
roads are preparing to defy the Railway
Labor Board, although the recent action
OF the Pennsylvania in denying the
boards jurisdiction in matters Touch
ing management might suggest this
The railroad executives. however, find
themselves under tremendous pressure
to reduce rates and feel unable to do
1t unless greater cuta are made in
wages than any thus FAR allowed by
the Labor Board. If the board could
De brought TO assent to early and large
reductions OF wages that would satisfy
the executives.
One plan under consideration is to
attempt to obtain legislation to trans
fer the powers OF the Railroad Labor
Board to the Interstate Commerce Com
mission. This would mean that single
government agency would exercise
power over rates and wages, something
adyocated by many students Of the
railway situation.
May Cut Rates First
: Another plan is for the railroads to
make large cuts in rates, especially
rates on agricultural products, and per-
maps coal, and then go before the Labor
Board and, setting forth the reductions 3
in revenue due to lowered rates, ask.
to be allowed to cut wages to coyre-
spond.
Senator Cumn,ins for some time has
advised railway executives to make
large cuts IN rates on agricultural
products. He takes Che position that
agriculture cannot stand the. preser.
rates, that they are hurtful. TO all busi.
ness, end that while reductions might
cost the roads money which they can
i'll afford to lose, in the long rln they
would gain by the effect on business
conditions and in the psychological
effect on the country.
In the background Of the movement
Of the roads to lower rates and wages
an effort is being made, according to
information in Senate Interstate Com
merce Committee circles, to get the
support Of the shippera ond The
farmers back of the railroads in the
plan Of lowering rates and wages. Just
how far this has gone is not definitely
stated. But is is pointed out that it
may take the form OF combination OF
the roads, the farmers, who are bitter
over high rates, and shippers generally
in an effort to force down pay sched-
ules.
The movement has in it the possi
bility also Of great railroad strike
This is the opinion Of Senator Cum
Minis, who foresees trouble ii railway
wages are forced down heavily and re-
tail prices on necessaries remain up
It is believed Senator Cummirs will
counsel the railroad executives to lower
rates voluntarily. at least on agricul.
tural products, and trust to sair re-
adjustment of things to follow gradu-
ally on such action, rather than do any
thing which might mean a tie-up OF
transportation and such a calamity az
i nation-nid strike
Filled With Difficulties
The whole railroad situation, 4. the
best informed men in Congress say, IL
filled with difficulties. While the Au.
gust and September revenues Of the
roads show considerable improvement
it is fact that by the end Of this year
their net operating income will lust
about meet interest charges. In
provements and bettermente much
needed are being held back.
On the other hand, members OK Con
gTess from the agricultural states, who
have just returned from their homes
are stirred up over high freight rates
and Middle Western members are talk
ing OF vigorous action to bring about
reductions.
Not without interest in this connec-
ton 10 the showing made by Henr,
Ford's road, the Detroit, Toledo G. Iron.
ton. The Senate Interstate Commerce
Committee has obtained figures show.
ing what is being done by this road
They do not show as heavy cuts il
operation IS some suppose. The frs.
class roads of the United States, on al
average, cut their operating ex.
penses $645 II mile in July Of this year
as compared with July Of last year
Mr.. Ford's road cut expenses SIS9 g
mile.