Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-03-31
RAILROADS SLUMP
IN JANUARY
Total of One Hundred and
Nine Fail to Meet
Expenses
SHORT S6S,439.SO0
Wage Reduction Deemed Essential
President Will be Told Rate Cut al
Present Impossible

| Washington, March Silt devel :
! oped today. upon the eve CT the Pres
dents conference with the chairman
CT the Interstate Commerce Commis- :
! sion and the Railroad Labor Boari
upon the railroad problem that in
January the carriers suffered de-
f.c;. Of $1.167, 800 ard that l09 out 0i
202 railroads failed TO earn the ex-
pcnses and taxes, compared with IS
in December.
As q result Of this deficit the car
riers failed by SOS, ,439, 500 TO earn the
amount which it was estimated they
would earn under the Increased rates
fixe;i by the Interstate Commerce
Commission in accordance with the
Transportation act.
OF the l09 railroads which failed to
make expenses and taxes. 45 were
in the Eastern territory, IL in the
Southern and is in the Western dis
rrict.
A Letter written by Chairman Clark
Of the Interstate Commerce Commits
sion. to Senator Harris, of Georgia,
bears directly upon The transporta~
ton problem as outlined ~ President
Harding Yesterday after he had sum
mGned nae heads of the Government
agenc:eS to meet with him before lay
ing the whole question before Con-
grass far act;on. .Chairmar Clark
sees no probability Ct railroad rate
reductions N the near future.
y wish it were possible fori me tn
write you encougag:ngly in response
t. Your letter Cf the 3d instant" NJ.
Clark said, "aut | DO not sec that ]
can AID to what said in my letter TO
you Of December 22,on the same sub
ject. to vii, the probability Of rctluc-
lions IN freight rates.
THE situation is NOT 50 good no"
=, il was in December. There has
been a substantial falling off in gen
erai traffic. The aTe:agc operating
ratio If the railroads Of the Unitnlt
States is something over 90. That
means that far every dollar thar the
railroads earn they pay cut in operat-
.Mg expenses mere than 80 cents.
Due 10 the narrow margin between
revenue and operating expenses
good many railroads are not earning
her operating expenses ard fiXe"
changes ard good many are not
even earning their operating eXpens-
es. Under these circumstances it Is
i:lFcul: TO find an argument IN fav-
or cf reducing rates unless IN IN
stances in which i can be shown that
the rates are sitting the traffic and
that lower rates which still would be
compensatory would effect move
ncut from which there would be
some return.
These IN effect are The views which
Chairman Clark viii confidc 10 the
Pre.!dcn. when he and Chairman Bar
on. Of the Railroad Labor Board, con-
fer with Mr. Harding today or
FRIDAY. He viii insist that under cz-
sting conditions of railway operation,
j. will 1c impossible to reduce rates
generally without forcing a great ma
iority of the railroads into the hands
of receivers.
What Chairman Barton will say to
The President is not 50 clearly fore
cast. He vii! come straight from tha
hearings which the Railroad Labor
Board has been holding regarding the
abrogatior Of the wage agreement.
He will have fixed in his mind the
point Of view Of both. the railway cx
ecut;ves ard the men. the financial
distress of the one element and the
determination to resist wage redac-
yicrs of the other.
In advance Of this important con-
ference there is general agreement
here shat the private management or
! sha railroads is again in the balances
(Cortinued on Page SiX1