Evening star., 1933-04-02
ROOSEVELT WEIGHS
RAILWAY SOLUTION
U. S. Co-ordinator to Create
Paying Basis Expected
by Carriers.
By the Associated Press.

freSldent Roosevelt ended his drst
month in the White House yesterday
IN whirl Of activity that produced
proposals for aiding the Nations trou-
bled rail carriers.
The best minds of the struggling
railroad industry reached the conclu-
sion after their meeting Of one hour
that Mr.. Roosevelt is inclined to q
Federal co-ordinator to bring about
drastic economies and guide the roads
to a paying basis. Soon afterward con-
gressional leaders interested in the Ten
nessee Valley project, which includes
restoration Of the wartime Muscle
Shoals. Ala, power and nitrate plants,
reached an understanding with the
President on legislation to put this plan
into action. A message this week is
expected.
In between his rapid-fire round Of
conferences, the President also received
and took under consideration from
Secretary Of the Interior Ickes the re-
port OF the Governors oil conference
proposing aid to the troubled industry
through extended Federal regulation.
Confer on Farm Mortgages.
Not until $50 o'clock did the Presi-
dent wind up his busy day with con-
ference with Secretary wallace and
Henry Morgenthau, jr., on the impend-
ing legislation for refnancing Of farm
mortgages. An early message to Con-
gress on this plan is in prospect.
As Mr.. Roosevelt received the reports
Of the railroad leaders on their varied
plans for Government action, the In
terstate Commerce Commission was or
dering general investigation into rail-
road freight rates.
AS the spokesmen Of railroad execu-
tives, labor and investors gathered with
the president in his executive office late
IN the day to consider the impending
legislation, Joseph B. Eastman, q menu
Der OF the Interstate Commerce COM
mission, presented the various proposals
Tor relief which have been received by
the unohlcial administration COMMITTEES
OF which he Is a member.
Secretary OF Commerce Roper, head
OF this committee, said the rail discus
sions would be resumed In his once to-
morrow. Secretary Of Labor Perkins
also sat with the President during the
rail- meeting.
Recognizing an $11 ,ooo, ,ooo, 900 invest
ment In the railroads, half Of which
ne believes Is held by savings banks and
insurance companies, Mr.. Roosevelt Is
intent ON directing the roads into better
days.
It is believed he will have a proposal
Tor Congress by the end of this week.
contemplating assurance Of Federal SUD-
Port, but providing that the roads reor-
The representatives of labor and the
executives declined to discuss yesterdays
meeting, each saying they wished to
listen first to further talks to be held
next week.
Four Plans Presented.
Those who attended the session IN
cluded also w. w. Splawn, A. A. Berle
and Raymond Moley, economic author
tiles; Carl Gray, president Of the Union
Pacific; F. e. Williamson, president Of
the New York Central; j. ]. Pelley,
president of the New York, New Haven
and Hartford; Henry Bruere and Fred
N. Oliver. chairman and counsel re-
spectively, of the Association of Owners
of Railroad and Public Utility Securi-
ties; A. F. Whitney and Donald Rich
berg, chairman and counsel. Fespec-
lively, Of the Railroad Labor Executives
Association; Frederick n. Prince and
Philip Stockton Of Boston, and Robert
8. Jackson, associated with Prince.
Roper said four definite plans have
been presented, including proposal by
the executives for Federal co-ordina-
tor and two notifications of such q
plan, in addition to proposal by Mr..
Prince, providing q pooling Of railroad
interests
It IS understood the President has in
regional co-ordinators under him.
The general investigation into freight
rates was ordered by the Interstate
Commerce Commission IN response to
demands of shippers for reductions.
, Acting on petition Of the American
Farm Bureau Federation, the National
Grange. the Farmers Union, the Ma
tional Coal Association and the Ma
tional Lumber Manufacturers Asso-
citation, the commission formally in
stituted the inquiry. After the five
organizations had filed their petition
several weeks ago In the form OF
memorial to the commission, other or
ganizations and shippers Joined IN the
movement.
Other Reductions CITED.
The shippers charged L. their pe:i-
tions that the railroads have failed
to keep pace with economic conditions
by holding up rates. Every other item
In the cost of living has been reduced.
they claimed. while the railroads, in
stead, have increased their rates.
Although the original petition speci-
fed only farm products, coal and mm-
Der, the commission said in its order
that the inquiry would not be con-
fined to any particular commodities
or description Of freight trafiic.
Dates for hearings In the case win
be set later. \.
The last general Investigation into
freight rates was the 1881 case, IN
which the railroads asked Q general
is per cent rate increase, but instead
were granted the right to increase their
charges through surcharges on freight
bills These surcharges, effective jan
uary 4, 1892. would have expired by
limitation Friday. Two weeks ago. how
ever, the commission authorized their
continuance for six months.
The railroads, in oral arguments held
by the commission to decide whether to
conduct the inquiry. opposed ary In
vestigation or reduction Of rates, claim
ing they could not stand 1t.