Evening star., 1921-10-09
CUMM|NS PREDICTS
PROMPT REDUCTION
IN FREIGHT RATES
Immediate Cuts Expected to
Be Followed by Plea for
Lower Salaries.
;SUBJECT OF CONFERENCE
WITH PRESIDENT HARDING
ISenator Believes Road Officials Will
Adopt Suggestions for
Lowering Costs.

Prompt reduction in freight rates
by the railroads. to be followed by an
appeal for reduction in labor costs
was predicted last night, following
two important conferences
This was the principal question dis
cussed a a conference between prom
inent railroad executives and Presi-
dent Harding and Senator Cummins
Of Iowa, chairman of the Senate in
terstate commerce committee, after
which Senator cummins said he be-
ileved the executives would vote to
reduce freight rates at their confer
ence in Chicago October H. Rate re-
duction also was among the subjects
under discussion at meeting of the
agricultural bloc of the Senate in
the home Hf Senator Capper last
night, but it was decided to defer ac-
tion until this week, when another
meeting will b. held
No Definite Assurances,
Senator Cummi rs, after his confer
ence with the railway executives.
said he believed that they would
adopt at their Chicago meeting his
suggestions for an immediate reduc-
tion of freight rates. No definite or
formal assurances tn this effect were
given him at the conference. he ex-
planned. but he expressed the opinion
that the reductions would be mad,
by the carriers voluntarily.
The carriers then, Senator Cum
minis said, probably would ask the
Railroad Labor Board to reduce the
wages or appeal to Congress for
legislation to meet the situation
caused by the voluntary rate reduc-
tions.
Executives in Conference.
The railway executives in the con-
ference included T. De Witt Cuyler.
representing the railway securities
holders organization; Samuel Rea.
president Of the Pennsylvania sys-
tenn: President Smith of the New
York Central. President Holden of
the Burlington system and julius
Kruttschmitt, chairman Of the South
ern Pacific.
The railway executives" said
Senator Cummins after the confer
ence, feel that the only substantial
| way to reduce rates is to reduce
wages. They also feel that the wage
fixing functions of the Railroad Lsi.or
Board should be transferred to the
Interstate Commerce Commission,
which has the rate-making, or return
| powers
Executives to Seek Advice.
Senator Cummins said he did not
gather that the railway executives
! favored complete abolishment of the
| labor board. but believed that the
same federal authority which estab-
| fishes railroad rates, or returns.
should also have power to establish
wages. This would require amend
| ment by Congress of the transporta-
| tion act and may be brought up later.
| after the Chicago conference.
The railway executives at Chicago,
the senator said he understood.
| would call in representatives of ag-
ricultural, shippers, commercial and
other organizations" to discuss the
rate and wage questions. The car
| riers, he said, would probably seek
! the support of these interests in the
event that they should agree to re-
duce freight rates voluntarily and
| appeal to the labor board for wage
reductions and to the Interstate Com
merce Commission Tor rate adjust
ments.
| PassenEer Rates to Stand.
Reduction of passenger rates is not
contemplated at this time, in the
opinion of Senator Cummins, who eX-
planned that the pressing immediate
concern for agricultural and all other
| Industries was freight rate reduc-
tions.
| This sentiment was expressed at
| the meeting of the Senate agricul-
tural bloc.
| Under discussion also among men,
bers of the agricultural bloc are
proposals for amendments to the
| EdliI oau SoOH "
come before the Senate, providing
definitely for rate reductions. The
funding bill was not discussed with
the railway executives yesterday.
Senator Cummins said, but was con-
sidered by the interstate commerce
committee for two hours, with ac-
ton deferred until Wednesday. The
L
claims for "inefficiency of labor
during federal railroad operation was
the principal subject before the COM
mittee yesterday. member1 insjstine
upon amendment OF the pending bill
SO as to preclude definitely presenta-