The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-05-13
RAILROAD PROBLEMS
WORRYING CONGRESS
Senate Committee Devising Plans To
Reduce Rates, Which Stand In
Way OF Business

Washington, May 12.-With Presi-
dent Harding endeavoring thru ex-
isting agencies to improve the con-
dition of the railroads as the first
important step in restoring CONNER
cial and industrial normally, Sena-
tor Cummins inaugurated last
Tuesday an investigation by the SEN
ate committee on interstate commerce
of the cause and remedy of the pres
ent plight of the transportation sys-
! TENS.
The president believes that freight
rates must be lowered in order to re-
vive business. A start in this direc-
ton has been made by the 2S cents
per ton reduction in the rates on coal
for Great Lakes trans-shipment. The
conference to be held next week by
the Interstate Commerce Commission
railway executives and shippers OF
building materials on the reduction
of rates on such commodities is in
line with the presidents idea that
business revival would be promoted
by lowering the transportation cost
of articles used in industry.
Whether the Cummins-Esch trans
portation act is a success and wheth-
err the existing governmental agen-
cies are equal to the task of solving
the present railroad problem are
matters upon which the Senate COM
mittee's investigation is expected to
shed much light.
The first witness heard by the
committee will be the railway execu-
tives.
For More Efficiency.
Senator Cummins expressed him
self strongly today to the effect that
the railways would be able tc read
just their finances, thru higher eff
ficiency in management and reduc-
ton in cost of material and labor, to
point where earnings would again
cover expenditure charges and rea-
sonable profit He ascribed present
conditions to an Industrial readjust-
ment which has as yet proceeded I'M
evenly, not yet affecting costs of pro-
duction or operation as it had affect
ed earnings. Recognizing the awk-
ward period which some of the rail-
ways might intervene before they had
readjusted working costs to point
where net earnings would cover ma
turing charges on their debt, he ex-
pressed the belief that the creditors
of such railways would be lenient in
not enforcing their claim pending
the period of readjustment.
''The railroads." Senator Cum
INNS said, "are in no different situa-
ton from the-other industries of the
country. Like many other produc-
ing industries they are confronted
with sudden and violent shrinkage
OF business which helps to make the
selling price of what is produced
lower than the cost Of production.
They will have to solve the problem
in the same way as other producers
are trying to solve it, by the bring
ing of the cost of materials and the
cost of labor into line'with the pro-
ceeds of what they have to SELL"
Senator Cummins was asked if it
was possible for the railroads to d
this on sufficiently drastic scale to
cover both working expenses and
charges on the debt. He replied that
he had no doubt of Vt.
''To assume the contrary" he said
would be to assume that national
transportation system cannot be self
supporting in this country. If that
were so, there would be nothing to
do but for the government to take it
over and pay the annual deficit how
ever heavy, out OF the treasury. The
country must have its transportation
system.
But there is no reason to imagine
anything of the kind. There will be
very large saving in cost of mate
rails. Coal will be lower this year.
steel and iron material is lower ex-
cept rails and rails will also have to
come down. The question of the
wage scale is in the hands of the la
Dor board. do not anticipate its
decision or attempt to influence it,
but even If basic pay is not chang
ed economies aggregating hundreds
of millions will result from the elm
nation of arbitrary overtime and
duplicated service. believe that
$500. 900, 900 will be saved by these
economies alone. Last year the ac-
tual railway gross revenues were the
largest in the country's history. with
out allowing for any government