The New York herald., 1921-10-11
PINS REVIVAL HOPES
In ILFUNDINGBILL
Samuel Rea Says Payment of
Claims Would Help to Re-
lieve the Situation.
LOWER RATES NEEDED
Head of P. r. r. Shows How
Lines Can Do Their Bit to
Reduce Unemployment.

HARRISBURG, Oct. 10.--Samuel Rea.
president of the Pennsylvania Railroad,
speaking at the annual meeting of the
Pennsylvania State Chamber Of Com
merce here tonight declared that i'm
provcment OF present business conditions
comes down ''to the practical question
Of what steps the railroads can take that
may assist business revival and new
construction work and reduce unem-
pioyment-"
Declaring "the railroads generally
have much to lose by a policy Of pessi-
misn. delay or silence under the present
conditions" Mr.. Rea asserted the roads
want conditions changed for the better
as soon as possible.
II would point out" he added. that
there are many ways in which they can
be mitigated and the conditions mate
rally changed in such q way as to en-
able the railroads to be help to the
situation. No real remedy can be pro-
vided for the railroad situation until the
steel coal and building industries revive
at Prices that will encourage the public
to buy. 1t comes. therefore. down to the
practical question Of what steps the rail-
roads can take that may assist business
revival and new construction work and
reduce unemployment"
As the first step he urged the passage
Of the funding bill by Congress. This,
he said, would enable the Railroad Ad-
ninistration to use its holdings Of rail-
road securities to obtain cash and pay
over to the roads amounts due for the
use OF their property and equipment dur
ing Federal control He estimated that
from these sources four to five million
dollars Of current funds could be made
available. from which the roads could
pay off their current obligations and
resume work connected with the upkeep
OF the roads and thereby give additional
employment
"A further help to business would un-
questionabiy be lower rates." he said
"but would we ask any manufactures
to-day to buy raw material and manu-
facture and sell new goods with the
knowledge that they will not realize
their actual production cost. and that is
what the railroads are requested to do.
and they have not the funds to do it..
The railroads have made and are still
making various adjustments In rates
where they will be OF real help to busi-
ness. or where they are out of line COM
pared with other rates. They have had
considerable pressure brought on them
and glowing promises of increased busi-
ness II lower rates were made effective,
but. most of these glowing promises have
not materialized because the public at
large is not displaying any purchasing
power and waits for lower prices"
While. no added, the law Of supply
and demand should ultimately settle
railroad wages and working conditions.
"a realization Of these conditions by the
Federal Railroad Board and the labor
leaders would do much to promptly ad-
Just that situation"
After outlining the system of en,-
ployee representation inaugurated by
the Pennsylvania Railroad and the
agreements reached between the conf
pany and the representatives Of the en-
pioyees, Mr.. Rea asserted that by order
Of the Labor Board the company has ''in
effect, been directed to annul and disre-
gard these elections and agreements and
to conduct negotiations with respect to
new elections with specially designated
organizations. the membership Of which
is made up of some of Its employees and
of very large numbers Of employees OF
other railroad companies"
Tho speaker urged relief from ''the
heavy burden Of transportation" and re-
vision Of the Federal transportation act
and State legislation to give as great
freedom as possible from Government
regulation.