Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-16
Valley OPENS ARGUMENT
FOR RAILWAY STRIKERS
Contends Congress Could Amend
Charter to Force Road to Recog-
nize Collective Bargaining.

Under tho inherent right of Con-
gress to arbitrarily dictate conditions
under which corporations in the Dis
trict may operate. the charter of the
Washington Railway and Electric Com
pany may be amended so as to force
tho company to recognize the principle
OF collective bargaining" James H.
Valley, counsel for the striking en-
ployes OF the railway company. told
the Senate strike investigating com
mittee today.
Mr.. Valley opened the argument OF
the case for the strikers when the com
mittee met today. 1t was the expecta-
ton Of the committee that all the argu-
ments in the case. by the strikers
counsel. the company's counsel and by
W. NICK. Clayton. representing the Fed
Grafton Of Citizens Associations. would
be concluded by tonight. and the in
vestigation. which began more than
month ago. would be ended. except for
the deliberations Of the committee. to
be followed by its report to the Senate.
Mr.. Vahey argued that in granting a
charter to the Washington Railway and
Electric Company Congress had re-
served to itself the right TO amend or
repeal that charter. He commended that
II the company refused to accept any
amendment to the charter or fran
chise. then Congress would have the
power to determine what should be
done. that 1t would have the power to
wind I'D the affairs Of the company or
to place the company in the hands of a
receiver.
Could Prohibit Enforced Contracts.
He contended that the charter Of the
hn 1Ad Nv
Eress 80 as to prohibit the company
from forcing upon its employees a con-
tract which would prevent them from
joining labor union while employees Of
the company. In other words, that 1t
could legislate out of existe nee the
present individual contracts the COM
pany has made with it's employees.
He contended that Congress has the
power to amend the charter of the
company so as to compel the company
to recognize the principle of collective
bargaining and to treat with the union.
1t can go even farther" said Mr..
Valley, land amend the charter so as
to compel the restoration of the men
and the payment of their wages for all
the time they were out of employment"
Decisions Of Courts Cited.
Mr.. Valley cited decisions of courts in
cases where states have amended the
charters Of railways to prove his con-
tention. He argued that contracts, such
as the individual contract of the company
made by corporations chartered by state
legislature or Congress. cannot operate
to prevent an amendment to the charters
of these corporations. No company, he
said, would be legally liable under con-
tracts made prior to the amendment Of
the charter, which conflicted with that
amendment.
There is no question since the de-
cision of the Supreme Court in the
Adamson eight-hour law case" said Mr..
Valley, but what Congress has the
right to enact, II It desires, a compul-
sorry arbitration law for all railroads in
interstate commerce and for the Dis
trict of Columbia"
Contract Not Valid In Law.
Questioned by Senator King as to
whether the Amalgamated would favor
compulsory arbitration law, Mr..
Valley replied that it would not: that he
had merely cited the fact that Congress
had powers to enact such a law to show
the scope of those powers.
Mr.. Valley denounced the individual
contract, claiming that 1t was not valid
in law. since neither party could en-
force its provisions against the other.
President King Of the company knows
that this contract is not worth the paper
1t is written upon" said Mr.. Valley.
Mr.. Valley said that President King
and men like him had gone 10 Congress
and petitioned for the right to operate
street railways in the District. Con-
gress, he said, had not asked these men
to operate the roads. He admitted that
II Congress should determine upon gov
eminent ownership and take the roads
over 1t would have to pay for them. but
he claimed 1t would not have to pay any
such amount as the railway company
claimed its property was worth
President King Criticised.
Mr.. Valley turned upon President
King and criticised him vigorously
San attempt has been made by some
to make him not only King in name,
but king in fact" he said. He did not
come here as a benefactor to these
men, but as a promoter. TO make money
for himself"
He told the committee that the finan-
cfal condition Of the Washington Rail-
way and Electric Company was better
than that of any other railway in the
country that I know Of" Men. he in
sisted. were entitled TO a living wage.
no matter what the financial condition
Of an employing company. II the COM
pany had been willing to expend $780,
600 of its earnings during the last
seven wears 1t could have increased
the wages Of the men 4 cents an hour.
he said He charged that the stock of
the company was watered and that the
nuhlic was paying high to enable the
COMPANY to pay dividends on the capi-
tai stock.
Arrrronfs Heard Today