The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-05-21
WANTS VOLUNTARY
REDUCTION RAILROAD RATES
Makes Request at Dinner Con-
ference for Cooperation Of
Larger Roads in
Country.
tBy The AasocIatea 7-rsss1

WASHINGTON. May 20-Request was
made BY President Harding at a confer
ence with 10 of the leading railroad
executives of the country. at a White
House dinner conference tonight for the
cooperation of the larger railroads Of the
country with the Interstates Commerce
Commission in voluntary reductions Of
railroad rates. An agreement was
reached for the creation Of q special COM
mittee to take up the matter further.
The entire matter was gone over dur
ing the conference, which was also par
ticipated in by Secretary Hoover. and 1t
was declared in White House statement
issued after the meeting had terminated
that the railroad executives were unani-
mously IN favor OF assisting the restora-
tion of business by such rate action as
they might find possible to take
Preliminary semi-official discussions
had given the intimation that rate ques-
lions, particularly the possibility Of
bringing about reductions, were listed as
the chief topics ef the conference IN
which Secretary Hoover also was invited
to take part.
The list Of railroad executives invited.
as announced at the White House. in
cluded the following presidents of roads:
a. II. Smith, New York Central; Carl
r. Gray, Union Pacific; w. II. Finley,
Chicago and Northwestern; w. b. Sto-
rey, Santa Fe. G. IT, Markham, Illinois
Central; II Il. Ream, Chicago, Milwaukee
and st. Paul; Samuel Rea Pennsylvania:
Hale Holden, Burlington; Charles Dom
nelly. Northern Pacific; Ralph Budd.
Great Northern: F. D, Underwood, Erie:
s. M. FELTON,. Chicago Great Western;
Daniel Willard. Baltimore and Ohio;
Fairfax Harrison, Southerni and Edward
II. LOOMS. Lehigh Valley Also invited
were r. S. Lovett, Howard Elliott and
Julius Kruttschnitt. respectively chair
man 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 railroad
administration.
Exact outlines OF the rate policy Presl-
dent Harding had TO put forward re-
NAMED obscure prior TO the dinner ex-
eept that reductions In freight charges.
II these can be reasonably secured, re-
main the chief administration policy. The
Interstate Commerce Commission has be-
fore 1t more or less urgent representa-
tions of shippers made in its general rate
inquiry In favor OF downward rate adj
justment, but has not reached a decision.
The President Is said to have been told
that legal requirements laid upon the
commission viii mot" in the opinion of
some OF Its members, allow material re
uuStloHs 70 % enioTce0 bS IoButallNe
orders, Legally, the commission must
give railroads a reasonable return" on
value OF their capital in fixing rates.
The railroads have persistently argued
that operating costs, which they con-
tended were partially controlled by an
other government body. the Railroad La
Dor Board. which fixes wages, must be
brought down further before railroad
rates can be materially lowered The
President has been represented as feeling
that executive inquiry and possible vol
untary concerted efforts by railroads
might be effective in the situation.