The New York herald., 1922-05-26
rail Rate HOLIDAY
OF 5 YEARS ASKED
II
Cabinet Officer Favors a
'Closed Season. for U. S.
Regulation.
!BRAKE ON BUSINESS
Another Believes Horizontal
Basis Must Be
Corrected.
BRAKE ON BUSINESS
Special Dispatch to THE NEw YORK HERALD.
New York Herald Rureau

Epecidl Dispatch to THE New YORK HERALD.
New York Herald Bureau,
Washington. ID. c., May rs. .
A railroad rate holiday for period
of five years was offered at the Treas
ury Department to-day as a solution
of the transportation problem.
What is really needed, a Cabinet
officer said, is a disarmng conference
for the railroads-or more specifically,
the declaring of a closed season against
Government regulation of the rail-
roads. The roads, he said. should be
relieved of restrictions and permitted
to make their own rates on a competi-
tive basis.
The Interstate Commerce Commission
decision ordering 10 per cent. freight
rate cut effective July / will not halt or
hinder efforts of President Harding and
his advisers In their efforts to bring
further reduction of coal and other COM
modify freight rates. They feel that the
present rate structure is disjointed from
percentage freight rate increases and
decreases and should be adjusted. There
will be no let UP in efforts to relieve the
railroad situation, as it influences the
prosperity of the country, nor in pres
sure for rate adjustment.
Fear Effect of Cut.
Administration officials frankly feel
BONE concern as to the effect on the
railroads of the lower rates ordered.>
They realize the railroads are the key
to industrial prosperity, and cut in
rates which, would stop the roads from
expanding. ordering equipment or han
ding the business offered would upset
the industrial apple Cart"
These officials are looking hopefully to
Chicago for some reduction of wages.
! This, they believe. would ease the rail-
road situation materially and offset the
! rate reduction. Reports that rates of
pay for common labor will be reduced
from 40 cents to 35 cents an hour
J apparently are well founded.
. A high Government official called at
tention to what he described as the
definite results of Government regula-
tion and control of the railroads. He
said:
Before Government regulation boa
came popular the United States had the
world; rates were lower than in any
other country; shippers were getting
fne service, and the railroads were
prosperous.
"Since Government control rates have
increased until they are as much as or
more than the traffic Will bear there is
no free competition: service issinsuffi-
cient and unsatisfactory, and the rail-
roads have declined financially and in
earnings. No one has benefited. There
should be a closed season against Gov
ernment regulation"
Brake Upon Business.
Two Cabinet members, primarily con-
cerned in the railroad situation, stated
that normal conditions cannot be re-
stored until the effect of percentage or
horizontal freight rate decisions is cor
rected. High rates on basic comnodi-
ties. the Administration feels, keep
brake upon business and industrial ac-
tivity. They will urge the adjustment
OF such rates by roads and territory to
relieve the situation. With this end in
view conferences between the railway
executives of the country and officers
of the Administration will be continued
Specidi Dispatch to THE New YORK HERALD.
CHICAGO, May 25.-Ben w. Hooper,
chairman OF the Railroad Labor Board,
tonight said that the board has no
power to act in the matter Of the wages
of railway employees except when the
question Is presented to 1t by the car
riers or the workers.
Wage disputes affecting most OF the
large carriers are pending before the
board" he said. Involving applications
for increases upon the part of some
classes of the employees and applica-
tions for reductions upon the part of the
carriers. The evidence and arguments
were concluded some time since and the
board Is now busily engaged two ses-
slons each day in the consideration Of
these disputes and the formulation OF
its decisions
These decisions will be based upon
the evidence presented to the board, as
the law requires. and not upon the ac-
ton of the Interstate Commerce Com
mission on the matter OF rates. AS
matter OF fact, the board had already
formulated one decision covering the
wages Of one class before the decision of
the Interstate Commerce Commission
was announced"
The labor board will hand down de-
cision next Monday or Tuesday on the
pending wage question. but the finding
will be based solely on evidence pre-
sented in the hearings which ended
April 20. The cut in freight rates will
have no caring In their decision. as
practically all Of the awards have been
agreed upon.
E. M. Jewell. president OF the rail
road department OF the American Fed
Grafton of Labor, when asked TO discuss
the report that railway executives would
demand that wages Of railway employees
must be reduced in proportion to yes
terday's rate cuts, said
II don't think II is possible, however.
for the labor board 70 order further re-
ductions at this time"
CHICAGO. May rs ASSOCIATED Press).
I-Oflcials OF several roads centering
here to-day expressed tho belief the
freight rate cuts made yesterday by the
Interstate Commerce Commission at
II