New-York tribune., 1922-05-22
Rail Men Agree
To Rate Slash
Harding Asks
Committee Named to Dis
cuss Means to Cooper
ale on Lines Suggested
at White House Talk
Hoover Plan Indorscd
Purpose Is to Cut Schcd-
ulcs on Basic Materials
by Voluntary Action

WASHINGTON, May 2l.-Adoption
Of an Administration policy calling for
reduction in railroad freight rates was
the Interpretation given in many quar-
ters to-day to President Harding's re-
quest to the leading railroad cxccu-
tives to lower transportation charges
by voluntary action, and without wait
ing for action by the Interstate Com
merce Commission.
Cooperation Of railroad organiza
tions to secure the desired result was
promised President Harding and Sec
rotary Hoover by the railroad cxecu
tivcs who met with them last night at
a White House dinner conference.
"The President voiced their unanimous
desire to make the fullest contribu-
tions possible to restore and maintain
prosperity" according to statement
issued at tho White House when the
conference ended at an early hour
to-day.
The executives voted to name
committee to recommend what action
could be taken" in line with Mr.. Hard
ing's suggestion
Plan Submitted by Hoover
Railroads were directly asked, the
statement said, to bring about lower
freight charges, on plan first publicly
outlined in a study which Secretary
Hoover presented to the Interstate
Commerce Comm ssion during it's hear
ings in the general rate investigation
last winter. This involves cutting
freight on coal, steel, farm products,
minerals. and other heavy low-priced
! basic raw materials. 1t also involves
| a policy of letting freights on high
grade. high priced finished materials
remain at approximately their present
levels, and probably leaving passenger
fares untouched, too.
Rates reached their present postwar
attitudes by climbing in percentage
stages, fiat increases all down the line
being the rule, but Mr.. Hoover argued
and ms appearance was made FOR the
Chamber of Commerce of the United
States as we'll as for the government
ferent fashion. Industrial betterment,
he declared, could be best attained by
cutting those rates which constituted
large fraction Of the price of articles
! moved to consuming parts, while leav-
ing stationary such rates as do not con-
sttute great proportion of the cost
price to consumers.
President Harding adopted this view
OF the matter Saturday in his discus
sion with the railroad chiefs Previous
ly 1t had many advocates in railroad
circles, although it would demand a COM
plete alteration of rate policea as built
up by the roads in the past and sus-
tanned by the Commerce Commission.
The railroad men now favoring it con-
slider that its adoption would allow them
to meet widespread public demand for
reductions, and at the same time to pro-
tect the earning power of the properties
by the income on the high grade ma
terals and passenger fares
One subject frequently mentioned in
advance of the White House dinner. that
of railroad wage levels, now under re-
examination before the Railroad Labor
Board, apparently did not come up for
discussion. No mention of it was made
IN the statement, although questions of
new equipment purchases and other
"proplems Of railroad management,'
were referred to specifically.