The New York herald., 1921-03-30

and in many cases they nave moved Tor
direct wage reductions.
Mr.. Warfield has advanced plan for
q central railroad organization 10 erIect
economies In equipment and operation.
Senator Cummins stands for consoli-
dalton Of existing lines and systems TO
bring economy and reduce overhead.
There is general agreement as to what
should be done, but these are the only
plans so far advanced for accomplishing
the end sought. In this situation IL will
be necessary for the new Congress to
pass further railroad legislation.
In connection with President Har-
ding's plans II is stated that in the last
three weeks some fifteen rail executives
have received invitations to conferences
with the President The President in
his conversations with the managers ex-
pressed a willingness to have them dis
cuss the situation frankly and TO sug-
gest what seemed to them to be the best
thing to be done next Some have been
asked to reduce their views to writing.
1t will be months before the Railroad
Labor Board can act upon the national
agreements and the motions for wage
reduction. Senator Cummins has an
nounced that his committee of the Sem
ate will make a detailed investigation
into costs OF railroad operation and into
reasons for the financial failure of the
railroads before seeking remedy. As
a result II probably will be necessary
for the roads to worry along for several
months yet, unless another transporta-
ton crisis is precipitated by the factors
which apparently have sapped the finan :
cial vitality OF the roads.
The concern OF the President and his
Cabinet advisers over the situation is
shared fully by officials in Congress.
especially by those serving on COM
nittees having railroad legislation un-
der their jurisdiction. Senator Cum
MINIS Chairman OF the Interstate Com
merce Commission, expressed satisfac-
tion with the programme for having the
transportation problem made the sub
ject of special attention by the execu-
tive branch OF the Government. He
would not comment directly upon the
White House announcement for con-
ferences between the Interstate Com
merce Commission and the Railroad La
Dor Board beyond saying he was pleased
to hear that immediate consideration Is
to be given to the reduced earnings of
the roads. and to possible reductions in
railroad rates.
Cummins said. Expenses must come
down along the lines. from the highest
official down, and from gasolene up.
The railroads obtained revenues to the
amount OF over $4,000, 900 900 during the
last year. They spent all OF that ex-
cept about s1o,000.o0o in operating ex-
penses, which represents the amount they
had left to pay dividends and bond
interest. Our inquiry will be with re-
spect to these operating expenses"
/, "Do you think the coming confer
Aence should concern itself with this
phase?" Senator Cummins was asked
"They might well do so.' he replied
'Tt is a matter which vitally affects the
entire country and might well occupy
the attention Of the Cabinet. Our COM
mittee intends to find ou where the trou-
BILE lies If possible. I do not see that
we can pass additional legislation to
give greater authority to the Interstate
Commerce Commission over operating
costs. To have the Commission en-
powered to tell a railroad how much IL
shall spend for various classes of equip
ment, such as locomotives, ties and roll
ing stock. is to take from them their
control. In that event the Government
would have to become responsible for
the result
'In short. it would mean the loss
would be shifted from railroad stock
holders to all the taxpayers. In my
opinion it is impossible to materially
increase these powers of the Commits
sion without bringing about Govern
ment instead Of private operation"