Evening star., 1925-09-02
FORC|BLE MERGER
Of RAILWAY LINES
IS COOLIDGE PLAN
Law to Compel ConsoIida-
tions to Be Asked of Next
Congress.
SEVEN-YEAR LIMIT
ON VOLUNTARY ACTION
President Will Act on Coal
Strike if Crisis Arises, Sena-
tor Watson Says.
,By the Associated Press.

BY the Associated Press.
SWAMPSCOTT, Mass. September 2
Legislation to force railroad con-
solidation after period of seven years
will be sought by the administration
in the next session of Congress.
Amendment of the Esch-Cummins
act to this effect was agreed upon
today at A conference between P;-s@-s-
dent Coolidge and Senator Watson,
Republican, of Indiana, assistant lead
er of the Senate and chairman of the
Senate interstate commerce commit
tee.
Expects Voluntary Action.
Senator Watson agreed with the
President that approval of the Van
Sweringen consolidation scheme, now
pending before the Interstate Com
merce Commission, would clear the
way for numerous voluntary consoli-
dations. They are anxious that volun-
tary groupings of railroads be brought
about, but think it time to force a con-
solidation by legislation after seven
years of trial of the voluntary pro-
gram.
In discussing the legislative pro-
gram for the next session the Presi-
ueHI ana senator " aISOn also went
into the coal situation, the latter pre-
dieting that if an acute crisis arose
under the present suspension of opera
tions in the anthracite fields the Ex-
ecutive would take decisive action.
Action Now Not Needed.
There is no occasion in the pres
ent situa ton, Senator Watson said,
which demanded action by Mr.. Cool
idge. He believed the railroads We're
in position 10 move all available
supplies of coal.
Senator Watson. who also is
member of the finance committee.
predicted that a tax reduction bill
would be passed before March 15
when first payments of 1926 are due.
The combined maximum normal and
surtax income rate will be cut from
46 per cent to % per cent, he be-
lieved. Little squabbling over the tax
bill is in sight, he said. There is no
chance for a revision of the tariff act
next session, he added
With the tax and appropriation bills
out of the way, Senator Watson
thought Congress would go thorough
ly into the pending railroad problems
including the question of readjust-
ment of the Railroad Labor Board
and the fight over the long and short
haul, which has held the attention of
Congress for several years.
Would Solve Rate Problem.
Final consolidation of railroads
will obviate the necessity of the
| much-controverted guarantee clause
of the ESch-Cummins act, which Is
supposed to guarantee railroad rates
permitting a return of SO per cent.
lieved, the problems of the weaker
railroad lines would be overcome.
Although he does not expect the
Howell-Barkley bill, providing for
virtual abolishment of the Railroad
Labor Board, to be passed, Senator
! Watson said there is a marked di-
vision of sentiment over the merits
of the board. The consensus seemed
to be, he added, that there must be
some final authority in the case of
railroad disputes.
He would not predict along what
lines the administration would support
| a readjustment of the board.
To Confer With Cummins.
Senator Watson spent most of the
| day in conference with the President
on the legislative program and expect
ed to leave here tonight for Chicago,
where he will confer. probably within
! a few days. with Senator Cummins
of Iowa, co-author of the present
| railroad act on railroad legislation
AS the ranking member of the
Senate elections committee, Senator
Watson had with him the final re-
count of votes cast in the last Iowa
election for the seat contested by
| Senator Brookhart, Republican, and
| Dan Steck. Democrat. The final re-
suit showed a difference of only a
| few votes between the totals of the
| two candidates. Senator Watson said,
and he said that in all probability
the Senate would be called upon finally
! to decide the contest