Evening star., 1922-05-21
PRESIDENT ASKS
CUT |N.RA|L RATES
Heads of Big Lines Promise
Cooperation at White
House Dinner.
ACTS ON OWN ACCORD
Statement Explains Mr.. Harding
Does Not Assume Rate
Making Dictation.
ACTS ON OWN ACCORD

Request was made by President
Harding, at a conference with nine
teen of the leading railroad execu-
tives of the country at a White
House dinner conference tonight, for
the cooperation of the larger rail-
roads of the country with the Inter-
state Commerce Commission in vol
untary reductions of railroad rates.
creation of a special committee to
take up the matter further.
The entire matter was gone over
during the conference, which was also
participated in by Secretary Hoover,
and it was declared in a White House
statement issued after the meeting
had terminated that the railroad
executives were unanimously in favor
of assisting the restoration of busi-
ness by such rate action as they
might find possible to take.
Whole Problem Discussed.
THE President invited the railroad
presidents and the board chairmen
to dine with him." the statement
said. land to confer with him con-
cerning further relief for railroad
service along lines somewhat similar
to the voluntary reductions granted
in some commodities some months
ago, more particularly on such basic
commodities as may be found neces-
I'D, frio haffarNnanf
The whole railroad problem was dis
cussed and difficulties of railroad
management under existing condi-
tions were presented. The presidents
voiced their unanimous desire to
make the fullest contributions pos
sible to restore and maintain pros
perity.
Makes Position Clear.
Various aspects of the railroad
problem were discussed, particularly
the necessary preparations in pro-
viding new or repaired equipment
when normal business is restored.
The President made it clear he was
attempting none of the duties OF rate
making or rate recommendations. but
he felt that much could be accom-
plished by conference and that help
full results must accompany a full
cooperation between the railroad
heads and the government body
charged with the regulation of rates.
The executives voted to have COM
mittee named from their membership
to take up the problem and recon-
mend what action could be taken"
Railroad Men Invited.
The list of railroad executives in
vited, as announced at the White
House, included the following presi-
dents of roads: A. H. Smith, New
York; Central; Carl R. Gray, Union
Pacific: W. H. Finley, Chicago and
Northwestern: w. B. Storey. Santa
Fe: c. H. Markham. Illinois Central;
H. E. Bryan, Chicago. Milwaukee and
st. Paul: Samuel Rea, Pennsylvania;
Hale Holden. Burlington; Charles
Donnelly. Northern Pacific: Ralph
Budd, Great Northern: F. D. Under
wood. Erie; S. NJ. FELTON,, Chicago
Great Western; Daniel willard. Balti-
more and Ohio; Fairfax Harrison,
Southern. and Edward E. Loomis
Lehigh Valley.
Also invited were r. S. Lovett,
Howard Elliott and julius Kruttsch.
nitt., respectively, chairman of the
boards of the Union Pacific, Northern
Pacific and Southern Pacific, and
Edward Chambers, now vice presi.
dent of the Santa Fe and during the
war. director of traffic for the Rail.
road Administration.
Freight Rate. Chief Issue.
Exact outlines of the rate policy
President Harding put forward re-
mained obscure except that reduc.
tions in freight charges, if these car
be reasonably secured, remain the
chief administration policy. The In.
terstate Commerce Commission has
before 1t more or less urgent repre-.
sentations Of shippers made in its gen.
eral rate inquiry in favor of downward
rate adjustment, but has not reached
a decision. The President is said te
| udSC oCCh toiu lhdl ICkdi requirement.
laid upon the commission will not, il
the opinion of some of its members, al.
low material reductions to be enforced
by regulative orders. Legally. the com.
mission must give railroads treason.
able return on value Of their capita
in fixing rates.
Views Of President.
The railroads have persistently argued
that the operating costs, which the,
contended were partially controlled b,
another government body. the Railroa,
Labor Board. which fixes wages, mus
be brought down further before rail
road rates can. be materially lowered
The President has been represented a,
feeling that executive inquiry and pos
sible voluntary concerted effort by rail
roads might be effective In the stu
alton.