Evening star., 1933-04-01
Representatives of Carriers
and Labor Confer Today
at White House.
PRESIDENT READY TO ACT
TO AID TRANSPORTATION
Federal Co-ordinator Expected to
Be Named to Put Systems
on Paying Basis.

A. F. Whitney, chairman Of the
Railway Labor Executives Associa-
ton. issued statement today in
which he said he was informed the
Rock Island Railroad 'in violation
Of its contract and In violation of
the Feleral law" was preparing for
a further wage reduction.
BY the Associated Press.
Heads of the Nations railroad system
and labor leaders were summoned to
the White House today by President
Roosevelt to talk over emergency legis-
lation providing for a Federal CO.
ordinator to bring the carriers out Of
their troubles.
Mr.. Roosevelt had before him care
fully worked out program framed by
transportation authorities after days Of
examination and study.
He is ready to act. But he wants first
to talk it all over with the representa-
tives of those most vitally interested
the investors. the operators and the men
who depend on the roads for living.
There were signs of conflict of opin-
ion among the group of what should be
done and the methods of doing it, but
there was agreement that something
should be done.
Advisers Are Present.
The President called to his side the
men responsible for drafting the pro-
gram of action-Secretary of Commerce
Roper, Joseph B. Eastman of the Inter-
state Commerce Commission and W.
w. Splawn and A. A. Berle, rail ex-
perts.
Others invited to the White House for
the late afternoon parley included Carl
Gray, president of the Union Pacific:
Donald Richberg, counsel for the Rail-
way Labor Executives Association;
Henry Bruere, New York financial au-
thofity; Frederick H. Prince and Philip
Stockton of Boston, RAYMOND Moley
Assistant Secretary of State and eco
nomic adviser to the President; Robert
Jackson, associate of Prince; j. j. Pei
ley, president Of the New York. New
Haven & Hartford, and F. H. William
son, president of the New York Central.
There are more than $11 900, ,000, 900
In railroad bonds outstanding, Of which
almost half are held by savings banks
and insurance companies.
The President believes the Govern
ment should announce its intention to
stand back Of the railroads for speci-
fed period. But he also wants the
roads to readjust top-heavy financial
structures. He thinks a Federal CO.
economies to put the national system on
sounder and paying basis.
Gray Mentioned for Post.
Gray, president of the Union Pacific,
has been mentioned prominently as the
proposed co-ordinator.
The emergency plan also contem-
plates regional co-ordinators under the
Federal co-ordinator
Reduction of mileage and elirnina-
tion of waste as well as a reorganiza-
ton of some of the roads are planned
to put the lines on a sounder basis.
The co-ordinator also would have au-
thority to suggest and recommend con-
solidations.
There Is little likelihood that the
drastic proposal of Prince for pool
ing of the railroads for the reduction Of
operating costs win be included.
1t is the hope of Mr.. Roosevelt to
get a united front from the harassed
railroad industry in favor of the legis-
lation and to send it to Congress early
next week.
To be included in the co-ordinator
are the two bills reported by
the House Interstate Commerce Com
mittee providing for repeal of the re-
capture clause and Federal regulation
of holding comma MES