The New York herald., 1921-02-16
CUT PAY OR SCRAP
LINE, SAYSRAILROAD
Southern Carrier Brings I'm
portant Point Before La
Dor Board.

CHICAGO. Feb. 16.-The United States
Railroad Labor Board heard arguments
to-day on the Atlanta, Birmingham and
Atlantic Railroads plea for permission
to reduce wages. The case produced a
wider variety of evidence and is said
portance than any other single line dis
pute yet brought before the board.
The argument hinged on whether the
board had Jurisdiction over the roads
financial status. which furnished the
railroads principal reason for wanting
to reduce wages. 1t declared that the
road faced monthly deficit of 500, 900.
Summed up by Col. B. L. Bugg. presi-
dent of the road, the roads position
was: 'Is the board going to disregard
conditions of traffic? Is the board TO
AK rates regardless OF the railroads g
earning power? II the board can fix
wages without regard TO other condi-
tions than the claims of the employees.
then It Is just as we'll that We have no
representation here"
For the employees w. S. Carter. pres-
dent Of the Brotherhood OF Locomotive
Firernen and Enginemen, said:
1T has never before been suggested
that wages be made to depend on the
financial cond ton of O road. We are
willing TO make test case before the
courts on the constltutionality of the
transportation act If the contention of
the A. Z. and a. stands then, on the
Delaware. Lackawanna and Western.
which Is able to pay twice as much, we
will come In tomorrow with a request
for an increase In wages
Col. Bugg answered many points of
the employees argument IN previous
testimony. and added there was no use
to ask the Interstate Commerce Commits
sion for a large share OF rates on hauls
extending beyond the A. B and A. lines.
He said he thought the road was re-
ceiving its fair division.
Before any conferences were called
with employees. Col. Bugg said. officers
OF the road went over all the difficulties
and followed every thread which prom
ised relief before asking for wage
reduction"
Morris Brandon, counsel for the road.
declared IL the board disregarded in
ability TO pay for one road. II could 10
so for all roads and the result would
be chaos. He said the wages granted
by decision No. 2 of the labor board. last
July. were the highest ever paid to the
men and were granted under "extraordi-
nary conditions when the cost of living
was the highest we've known"
The railroad testimony precipitatcd
another protest from the employees.
They contended that the original dispute
arose on the roads proposition that II
was financially unable TO pay the wages
now In effect. Later testimony AS to
lower cost OF living. unemployment and
comparative rates OF labor In other In
dustries were beside the point, according
to e. p. Curtis OF the employees COM
mittee.
Mr.. Brandon replied that Il was a
case of paying lower wages or scrapping
the road. He cited the section Of the
Transportation act which allowed the
board TO assume jurisdiction when con-
troversies between the carrier and en-
ployees were likely to interrupt COM
merce.
Wouldn't scrapping the road inter-
rupt commerce." Mr.. Brandon de-
manded. "And IL the employees strike
wouldn't that interrupt commerce."
He then brought out that a strike
ballot had been sent out on January 2S.
but that the ballot had not yet been
counted and the result was not known.
The closing arguments completed the
case, which will be considered by the
board in executive session. No indication
was given of when a decision would be
rendered.