The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-06-23
HARDING FOR
UNION OF BIG
\ RAIL SYSTEMS
President in Address at Kan
sas City Approves Inter-
State Commerce Plan
i, AVOID u. S. OWNERSHIP
President Says That Some
Action Must be Taken to
Avoid "Costly Blunder"

Kansas City, Mo-, June 23.-Con-
solidation of the railroads of the
country into small number of sys-
TENS is rational, justifable step,
full of promise towards solution of
the transportation problem, Presi-
dent Harding declared mere last night
in the second prepared address OF
his western trip.
"If the system consultations will
not afford the solution" he said,
"then our failure will enforce a
costlier experiment and the one greav
commitment which hope the United
States will forever escape"
The executive expressed the belief
that this one great commitment
government operation-would be ga
colossal blunder, whicA would de-
stroy initiative, infect us with politi-
Neal corruption, create regional jeal-
4usics and impose incalculable cost
on the public treasury"
Railroad Labor Board.
Discussing relations between car
riers and their employees as a vital
factor in the transportation situa-
tion, the President announced that
he favored continuance of the Rail
road Labor Board "undcr such modi-
tications as seem most likely to make
the plan successful He said he
was not Convinced that the test of
;his plan had been ga complete and
entirely fair one," but added that
"thcre is little to hope for until all
concerned are ready to comply
promptly with the boards decisions" :"
81 am frank to say" he continued,
81 do not hope for compliance on
the part of employees SO long as de-
cisions are ignored by the managers" +"
The sort Of consolidation of the
carriers which Mr.. Harding advocat-
ed contemplates constitution of the
larger systems so that the weaker
and Improbable lines would be able
to lean upon the financial strength
of the stronger and profitable ones
until the growth of the country
makes them all earn just return
upon the capital invested. The whole
would be under rigorous government
supervision"
Such consolidation, the Presi-
deht asserted, would "effect dimu-
nHion in rates without making a net
return impossible" and at the same
time 'make sound finance possible
for expansion"
"There now appears to be no diff
ficulty about any constitutional inhi-
hition to the voluntary consolidation.
az authorized by Congress-" the ex-
ec6tive continued, "But the problem
of reconciling the interests of the
hundreds of different ownerships and
arrangements of lines to be merged
into systems has nroven a task for
whic hno solution has been found.
Expects Legislation.
ut is, therefore, being seriously
proposed that the next step be to
further amplify the provisions for
consolidation so as to stimulate the
consummation. 1t is my expectation
that legislation to this end will be
brought before Congress at the next
session.
"There, are some roads-many of
the smaller ones in fact-whose con-
tinued operation is absolutely vital
to many thousands of people, to con-
siderable towns, to large areas of
country, whose revenues simply can
not provide financial facilities
through earning, pending consider
able growth in community population,
say nothing of earning any return
whatever on capital invested. NO
legerdemain of court processes, re-
ceivers' certificates or financial Jug
Cling, can save them. They must get
more revenue or stronger support or
quit operating until the country is
more largely developed.