Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-05-10
IS RAIL CHIEFS
ARE INVITED To
ATTEND DIME R
President Harding viii Dis
Cuss the Rate Situation
With Them at the White
House May 20.

Washington, May 9.-President
Harding has summoned fifteen of
the leading railroad executives Of
the country, it was said today at
the executive offices, to attend a
dinner at the White House May 90,
for the purpose Of discussing the
rate situation. 1t is understood the
president will ask the transporta-
tion chiefs TO consider the possi-
bility of adjusting railroad freight
rates downward as a voluntary
matter, becau'o the Interstate
Commerce Commission member
ship is said to have concluded that
it cannot legally compel reductions
to an extent satisfying to sections
Of public and business sentiment.
The administration, according
ly, is sGid to have decided to re-
sumo again the method Of treating
directly with the railroad organi-
cations to consider what can be
secured in the way OF satisfactory
rate policy. Similar conferences
were held last summer and fall.
Two semi-iudicial government
bodies have jurisdiction in railroad
regulation--the railroad labor
board as well as the commerce
commissioner the fixing of wage
rates which enter into operating
expenses. President Harding, how
ever, is said to have concluded that
the executives might be of some
service in dealing with the prob
lem, though not interfering with
the judicial standing OF the two
tribunals.
The commerce commission Tor
weeks has had discussion over the
decision to be reached by it in the
general investigation of transpor-
tation rate levels. This investlsa-
ton was instituted last November
and continued throughout the WIN
ter, nearly every industry and j..
cality in the country being repre-
sented in the record. by a demand
for some degree of relief from
freight charges as they stand now,
with war and postwar increases
included.
President Harding has been told
that the commission, in adjusting
rates, is obliged to give reason
able return" by edict OF law to
capital invested in necessary rail-
roads under efficient and economic
management, and that this require
ment, notwithstandiEg recent in
creases in railroad earnings, ties
the hands of the commission in at
tempting TO lower rates. Although
no longer required to fix rates
which would assure railroads a 6
per cent return on capital. that law
having expired this spring, the
reasonable requirement sun
governs.
Moreover, II the commission did
establish lower rates, its decision
could be tested in the federal
courts, resulting. at least. In delay.
In addition. there was presented
to the commission, notably by Sec
retary Hoover, the suggestion that
it might meet economic require
ments in transportation matters by
radical revision of transportation
schedules, on the principle OF cut
ting sharply cl ges levied on
basic raw materials and bulky low
priced commodities, while leaving
alone or even increasing tariff on
expensive finished goods. How far
this principle might be serviceable
and amicably accepted by railroads
probably will enter into the presi-
dents discussions.
No list Of the guests invited to
the White House dinner has been
made public.