The New York herald., 1922-08-03
LAW is SPECIFIC
Daugherty Has Power
to Ask Receivership
for Any Line Failing
to Meet Demands.
PROMPT ACTION DUE
Government Insists Roads
Shall Not Delay the Coal
Shipments.
WAY HEARING is SET
Board to Take Up Grievances
August 28-Clerk Groups
Sign an Agreement.
WAY HEARING is SET
Special Dispatch TO THE NEw YoRK HERALD.
New York Herald Bureau.
Washington, ID. c., Aug. 2.

New York Herald Bureau,
Washington, ID. c., Aug. 2.
President Harding and his advisers
are sitting tight" on the railroad
situation. The President will make no
further immediate move for settle
ment, but is inclined to leave the
problem to the railway executives,
who rejected his overture.
Many conferences were held in
coal strikes to-day. but were all OF a
confidential character.
Though no official announce sog
any kind have been made, il can 10
stated authoritatively that tn f1sss.
dent is inclined 10 give the iilwtr
executives a reasonable tir ag-
haps a week-to demonstrate ter
they can fully meet the situate kra
the transportation lines ope sra
move all OF the coal and the iske
that is offered.
In this connection the last seree,sF4
of the Presidents settlement q o4
as submitted TO the railway ex,
is significant. 1t read IF /
good reason why the managers arsS
accept they would be obligated 4 QF~
direct negotiations or assume fisl SIS
sponsibility for the situation"
No concerted move for direct nes
tions has been taken by the executives
IL was said their responsibility is TO the
general public to see that the railroads
operate officially and do not impede
coal or other movement which would
cause public loss or suffering.
United States Prepared to Act.
THE NEW YORK HERALD is able TO state
that should a crisis come in operation
duS to failure of settlement the Presi-
dent Is prepared to direct operation OF
the roads which fail under the process
OF law provided in the transportation
act. This means that should any road
suffer paralysis or a real breakdown the
Department Of Justice immediately would
move for the appointment. on behalf
OF the people. of n receivership for the
road The receiver would act for the
President and the railway executive
whose road or system had failed would
be relieved Of his job.
The Department of Justice has studied
the Law on the subject and is fully pre-
pared for speedy action.
President Harding and those of his
Cabinet who have been In most inti-
mate touch with the strike and indus
trial situation regard the railroad and
coal strikes as hopelessly intertwined
and each IN being viewed In relation TO
the other. Because of this fact should
any railroad impede coal movement or
fail in the fullest measure to carry out
directions as to operation or priority OF
movement given by the Interstate Com
merce Commission receivership would
be sought and receiver appointed In,
full sympathy with Government plans,
for meeting the crisis.
Such action will not be invoked. how-~
ever. until there is unnistakable failure
or a pronounced unwillIngness to meet
requirements. which are thsf
requirements OF the public.
Presidents Meaning Clear,
In the light OF this preparedness rrrr
action the meaning Of the Presi, Nlt.
when he said the roads would have x
settle the controversy directly or assu ~
full responsibility seems plain. III
Though II is unlikely that the Pres v
dent will make any further proposa.
at this time. hut will rather walt del
velopments as to the ability of the exS
ecutives 70 act. there Is strong prob
ability OF a new offer OF adjudication.
OF all OF the questions involved by tho
railroad labor board
The shop. workers to-day accepted in
full the Presidents three proposals for
settlement The railroad executives ac-
cepted .he first two propositions. pro-
viding for recognition OF the validity
of all labor board decisions and a re-
hearing OF all questions involved and
the dropping OF all law suits. The ex-
ecutives rejected only the seniority pro-
posal. II is regarded as possible that
the labor board may suggest an arbi-
tration OF the third proposal and n
general settlement and award ny tha
board covering the arbitration award.
Advices from Chicago state that tho
labor board will take up tho
grievances OF the maintenance OF way
men on August Is.
Secretary OF Commerce Hoover. who
was the Presidents spokesman before
the meeting OF executives, held long
conference with Mr.. Harding to-day. and
gave a personal account of the meeting
and OF the attitude OF the railway execu-
tIves. He refused TO comment after the
conference and nothing was forthcoming
from the White House. Later in the
day Secretary Hoover was closeted for
an hour with Daniel willard, president
OF the Baltimore and Ohio. one OF tho
leaders among the executives.
Mr.. Hoover and Mr.. Willard both
declined to make any statement with re-
gard 70 the conference. The Baltimore
and Ohio was one Of the roads that
sought separate settlement with thu
men and was ready to give In on tho
seniority question.