The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-03-22
QUESTION RIGHT
OFLABOR BOARD
TO NAME WAGES
Ruling is Challenged by Receiv-
er of the A. b. & A. in a
Brief.
SAYS 1T is REPUGNANT
AND UNCONSTITUTIONAL
Not Carrier at Time of Award
So Not Subject to Wage
Scale.
(sy The Associated Prassl.

I
tutionality of the railroad labor boards
orders in the case of the A. B. & A.
railway was challenged today when
the board received a brief filed by the
president of the road The employees
We're represented at the hearing today
| by E. P. Curtis, vice-president of the
Order of Railway Conductors, who de-
Tended their action in striking.
The receiver took the position that
| the board had ordered wages which
the road was financially unable to pay
and that since such a situation would |
have meant confscation of the prop
| erty, such a ruling by the board was
"repugnant to the fifth amendment to |
the constitution and utterly unconsti- |
tutional." |
The receiver further argued that he |
was without the Jurisdiction of the |
board because he was not a carrier at |
the time of the award and therefore |
not bound by the wage award of July, |
1920. In fixing the wages of employees, |
he acted under authority of the United |
States district court, he declared.
a wage reduction was placed in eff [
feet March l, 1921, by court order !
a dispute between employees and the |
road had failed of settlement The |
main contention. of the road was that |
it was losing 100000 a month. 1t |
proposed to reduce wages by one-half |
of the increases granted since Dec |
81, 1917. The board, however, ruled |
that financial ability to pay was with
out it's jurisdiction and remanded the !
case for further conference between |
the carrier and it's employees.
Subsequently the road went into the
hands of the receiver and the proposed |
wage cut was made.
The employees then went OH strike
with the authority of their interna-
tional officers. The strike was called,
however, by local committees of en-
ployes, the labor representatives told
the labor board today. They contend
ed that since the road had violated
the boards ruling to maintain the
wages of the ward of July, 1920, the
employees were justified in Withdraw
ing from the service. Conferences
had been refused them, they main
tanned. They declared they had COM
piled fully with the transportation act
up to the point of the waIkout and
contended that the law did not deprive
them of the right to leave the service
under unsatisfactory conditions.
Employees representatives declared |
that the wage reduction was put into
effect despite the section of the New
land act of July Is, 1913, regarding
receiverships, which required a 20-day
notice and a hearing prior to any cut
In wages. This hearing is to be held
March 26. The receiver however, de
clared that there was no dispute be-
tween himself and employees as the
employees are glad and willing to work
for the wages he is authorized to pay
under authority of the court"
This, it was explained, referred to
present employees, a force the receiver
declared he was building up "out of
many applicants for employment"
The question before the board re-
solved itself into a decision as to
whether the action of the federal
courts had removed the case from the
jurisdiction of the board or whether a
conflict of authority had developed.
The board would take the matter
under advisement, members said, and
later publish its opinion. on this ques-
ton.
Justice Department to Take { Hand.
ATLANTA. March 21-The depart
ment of justice will take a hand in the
Atlanta, Birmingham and Atlantic rail-
way wage hearing in federal district
court here tomorrow to defend the con-
stitutionality of the Newlands act it
was announced tonight by U. S. District
Attorney Alexander.
That portion of the law providing 90 {
days notice before reduction of wages
was attacked as unconstitutional in a
brief filed on behalf of the Birmingham
Trust and Savings company, and Mr..
Alexander announced that Attorney
General Daugherty had instructed him
to enter the case for the purpose of up
holding the act.
The hearing by which union leaders
seek to have Judge S. II. Sibley rescind
his wage reduction order which precipi- I
tated a strike March 5. was started last
week but postponed until Tuesday af-
ternoon.
assumption of local freight and passen-
ger service throughout the A. B. & A. I
system with the exception of the Way
cross division, was announced today by ,
B. L. Bugg, receiver. New men are be-
ing put to work daily filling the places
of strikers, it was stated, and full
schedules were forecast soon.
Colonel Bugg issued statement to- {
night declaring that the United States .
railroad board at ChicSyo, did not ask ,
nor require the appearance of any
one representing the receiver" at the
wage hearing it called for today. Col.
Bugg announced last week that he would
not attend the hearing and he stated !
tonight that the board had simply in
structed its secretary Ito notify the
receive regarding the hearing. The
unions announced they had sent two T
repr asantativas-