New-York tribune., 1921-05-26
Says u. s. Must
Help Roads il
Rates Are Cut
Cun,mins Declares Congress
Must Make Further APP.
preparations if Carriers
Reduce Their Charge 9
Have No Net Income
Elliott Wants Public Given
Right to Protest Excess
sive Scales of Wa ges
From. The T'ribwne's Washington Bureaa


WASHINGTON, May 25.--Rates can
not be reduced under present condi-
tions unless Congress is willing to
make another appropriation to help
sustain the railroads. in the opinion of
Senator Cummins, chairman of the SEN
ate Interstate Commerce Committe,
In connection with the statement
made to-day by Howard Elliott, chair
man of the board of the Northern Pa
cifc, in closing his testimony, that
there can be no general reduction Of
freight rates until expenses have been
reduced in every direction, Chairman
Cummins said:
whenever the Congress is willing to
make another appropriation to help
sustain the railroads, think then we
can consider the general reduction Of
rates, but with situation in which
there is no net income shown for the
operations during the last year it is
quite obvious that rates cannot be re-
duced."
Making a general reduction in
freight rates will not help solve the
present complicated economical and
psychological conditions in this coun-
try" said Mr.. Elliott, "but will reduce
still further the ability of the railroads
TO survive and become buyers them
selves of those articles which, when
they are prosperous, they use'ln such
large quantities
"In saying this | do not mean that
no rates should be readjusted, because
in,
justment, but | believe it would be
unfortunate to give the impression at
this time that the railroads can be
sustained as contemplated by the
TRANSPORTATION act and at the same
time make any general reductions IN
freight rates until it is evident that
expenses have been reduced enough to
justify such reduction"
Some Adjustments Justified
Mr.. Elliott in answer to questions
said he knew of several cases where
there should be readjustments down
ward in order TO maintain proper re-
lationship of rates, but he added that
traffic men are studying this matter
constantly and working out readJust-
ments.
Judge Alfred P. Thorn. general
counsel for the Association of Railway
ference of railway men June to dis
cuss the situation, and that Vice-PresI~
dent Edward Chambers, of the Santa
Fe. would be called before the commit
tee with reference to rate readJust-
ments.
Mr.. Elliott said the carriers were
trying to- work out present differences
over rates in accordance with the trans
portation act.
at is a very grave question whether
regulation has not been overdone, en-
croached on the field of management, 3"
he said "Inasmuch as the Interstate
Commerce Commission, under the new
transport law, controls the aggregate
earnings of the railroads, and there is a
limitation upon the rates to produce
that aggregate and provision for sub
dividing the earnings, if there is any
excess, it would seem as if there was
no longer any need of the Hepburn act.
Better and more prompt results for
the public could be obtained if rail-
road managements should be allowed
to make rates effective, subject to in
vestigation and review by the commits
sion and to set aside after such re-
view, if found in any way contrary to
public policy, and due reparation then
made
"The Labor Board has been empow-
cred to take up and settle disputes
about wages. The hands of the Labor
Board should not be tied by manda-
tory statute such as the Adamson law,
and | believe, in the interest of the
public, that law should be repealed.
"The public are allowed TO appeal to
the commerce commission if they
think rates are too high. believe the
IL o1l {o fo
the Labor Board if they think wages
ultimately paid by the public) are toe
high.
"Let the railroad managements and
the men get together and try to settle
their differences, and authorize the
railroads to name the rates of pay, and
working conditions, subject to review
by the Labor Board, and subject to
reparation if the railroads should do
anything that was unfair.
Wants Unions Incorporated
"Let labor organizations be incor-
porated and state clearly in their
charters what is intended. They should
be bodies that could sue and be sued,
and there should be the same publicity
Of all their transactions as there Is
about the transactions of the railroads,
reporting the number of members,
amount of money received, and dis
tribution in detail; in a general way
just as much information filed with
governmental authorities as there is
by the carriers.
"lf disputes threaten strike, let
the Federal government, possibly the
Secretary of Labor, frame the form of
question about which the strike vote
is to be taken, aral not let that vote
be framed by either the labor organi-
cation or the railroads. Have that bal
lot handled by the Secretary of Labor
and the vote should be secret-neither
the railroads nor the labor organiza-
tions to know how any man votes
the Secretary of Labor to count the
ballots and announce the result.
UNLESS at least rs per cent of all
employees in the craft about which
there is dispute voted to strike (not
90 per cent of tho ballots cast) then
the strike vote is not carried. If rs per
cent of all employees vote TO strike,
then, strike not to begin until thirty
days notice has been given.
be protected"
Mr. TN3t;o4t