The Birmingham age-herald., 1922-05-24
RAILROAD RATES ANDPAY SCALES
 CLOSELY RELATED
Administration Negotiations Considered Separate From Hearings of Commerce
 Board-EarningS Rise
By Associated rresA

Washington, May 23.-Aaninis- tration intervention into railroad rate problems as instanced recently in President Harding's conference with carrier executives, has disclosed the close relationship between these and problems of railroad pay scales and railroad financing, it was indi- cated today at the White House.
 Rail.oad homogeneous, it was said, while volcing approval of the propo- sal that rates be brought down in the interests of gene al business bet terment nc expansion of enterprise. have taken the opportunity to tell of their own troubles with wage scales which they consider too high with the finan ing of new eduipme and repair of old and the maintenance and the bettermont of their lines, The suit is said to le ve President Harding, iowe~er, tsat tangible im- mediate reductions can be obtained. Railroad executiv were told by the President and Secretary Hoover at the Saturday night conference that if they leave class rates pra itieally unchanged at existing levels they could go into session with the in terstate commerce commission at once cut sharply existing charges on coal, iron ores, brick. paving ma terials and other heavy tonnage com modities. This on the administra ton view. would remove burdens .ts.f. N. ag,1 fIaas wheels of commerce and at the same time leave high rates on traffic which can bear the burden. because of it's high unit price. Many railroads re- gard the proposals with favor but others look with concern on the plan as comprising a reduction In their chief source of revenue. Among the latter are listed the coal roads"
 Rail earnings in the east have de- veioped a recent tendency to rise. 1t was argued. by railroad managers while western roads are still at low earning points, indicating neces- sity for treating the rate problem regionally.
 Separate From Commerce Board
 President Harding was understood to consider that the administration negotiations with the railroads, d. rect as they are both In fashion and in application to the rate problems. were entirely separate from Inter- state commerce commission proce- dure, although that body now has the general rate case under consideration fin chamber" If Is merely his view, 1t is said that if the railroads come voluntarily to the commission, radi- cal rate reductions can be made in- mediately and be Greeted at sore spots
 If the railroads do not cooperate. the commission. also in the adminis- tration view, must act by detailed order after numerous and prolonged hearings, moving point by point to cope with the situation under statu- tory restraint. That the President can cut through these hampering Limitations Is his hope rather than his assurance, according to admins tration spokesmen.
 No information has. of course. been made available by the commission but there were semi i-official intima- tions today that It's decision in the rate case hinges upon similar diff culty It was creditably asserted that the commission had found mar gin in railroad earnings which might allow some experiments in railroad rate reductions, but that it's 11-man membership was somewhat divided as to where to apportion the gains.
 President Harding was said to favor the transfer of the railroad labor board from Chicago to Wash ington so as to bring the board in closer contact with the men who fix the transportation rates.
 The site of the labor boards head quarters at present is fixed by law