The New York herald., 1922-05-24
PRESIDENT EXPECTS
RAIL RATE CUT SOON
He Will Make No Move to
Urge Wage Reductions
at This Time.

Special Dispatch to THE New YoRK HERALD.
New York Herald Bureau.
Washington. ID. c., May 23.
Railway executives are at ODDS over
the practioability OF general commodity
freight rate reduction at the present
time and as to the specific rates to be
reduced II and when reductions are pos
sible.
BecauEe OF the different views ex-
pressed President Harding is not as en-
thusiastic over the results OF his rail-
road dinner at the White House as he
Is over the success Of his conference
with the steel manufacturers on aboli-
tion of the twelve hour day. This was
officially stated at the White House to-
day.
Apparently q majority OF the railroad
executives believe that nothing worth
while can be done with rates at present
without cutting wages. President Hard
ing made 1t known thn. he will not
summon the Railroad Labor Board or the
leaders Of railroad labor to conference.
In other, words he will make no move
to ask or urge further wage reductions
at this time.
Because of this situation the Presi-
mediate rate reduction that he hopes for
and believes necessary. Nevertheless
Administration officials made II plain
that rate reductions will conie--not as
soon as was hoped but in few months.
as soon as abnormal conditions result
ing from the coal strike are out of the
way.
The committee of seven railroad ex-
ecutives appointed following the White
House dinner will meet with the Inter
state Commerce Commission Thursday.
They will undertake another exchange
of ideas with the commission as to spe-
cific rates and the probabilities OF
reasonable return on existing rates.
Railroad earnings increased steadily
through the winter months and through
March, when they practically reached
the fair return fixed by the transpor-
ltation act of per cent. on the aggre-
gate value of property devoted TO trans
portation use and service slump for
April is expected because of the coal
strike. May figures will be off. After
May a recovery is expected. With
return OF Increased business earnings
may exceed the per cent. called for by
law. In that event it will be up to the
Interstate Commerce Commission to
lower rates.
1t was made known officially to-day
that the railroad men were not n har-
mony on reductions on heavy height
rates such as coal because OF the widely
varying effect on different roads. Some
OF the most important lines being al
most exclusively freight carriers. A cut
in coal rates would hit them hard.
President Harding. believes there
should be a closer relationship between
the rate making and Wage fixing power
which could be brought about by removal
of the Railroad Labor Board from Chi
cago to Washington. The President be-
leves the transportation act has many
flaws and should be amended He Is
doubtful, however. whether this can be
done before December next. and he will
make no recommendations until then.
The White House statement did not go
into the general changes in the trans
portation act which the Executive be-
lieves should be made, but Il was inti-
mated that these changes would render
it possible for the Interstate Commerce
Commission to exercise greater power.
The President has explained that he
does not want to arrogate to himself
the rate making power which is vested
In the commission. Nothing was said
to-day that would Indicate any imme-
diate message to Congress on the SUBJ
ject OF enlargng the commissions pow
ers. although the White House state
ments flatly voiced the advisability Of
making changes In the law.