New-York tribune., 1921-02-11
Executives Advised Finan.
cial State of Carriers Is
Matter for Reference
to the Interstate Body
Decision Surprises
Leaders of Unions
Workers Spokesman Sees
Plot to Obtain Addi-
tional Federal Relief
spec.al p!spatch 20 nc Tr.b1.ne

A0E11A5 L GU l. lLS 1SJAScS
of the American Association of Rail
way Executives for an immediate
abrogation of the national wage
agreements with the brotherhoods
and the establishment of new basic
rate for unskilled labor predicated
on local conditions were denied to
day by the Railroad Labor Board.
The board fatty refused the execu-
tives' request that permission be
given to reduce the rate of wages
for unskilled labor. The reason
given was that under the law Great
ing the board the carriers must first
attempt a settlement Of wage dis
putes with the employees, which had
not been done.
With regard to the agreements,
the board ruled that plea for their
abrogation on the ground of finane
cial inability of the carriers to pay
wages was a matter outside of its
jurisdiction, and should be taken be-
fore the Interstate Commerce Com
mission. The board will hear the
railroad employees side of the con-
troversy, but as their representatives
were not ready with their rebuttal
statements, the hearing went over TO
Monday. A final ruling or the car
riers' request regarding abrogation
of the agreements will be made after
the hearing.
The railroad executives in their plea
for relief declared the roads were con-
fronted by financial crisis, faced bank.
ruptcy and sought this means of cut
ting their expenses by an amount it
was estimated would reach s3O0,0OO,oo0
year.
After the board announced its de-
cision General W w. Atterbury, Vice
president of the Pennsylvania Rail
road, who represented the carriers IN
their request for relief, sent the fol.
lowing letter to Chairman Barton OF
the Labor Board:
| Question of Jurisdiction
"Your board in It's decision has very
| properly said that all questions in"
volving the expense of operation or the
necessities Of railroads are under the
! juris sdiction of the Interstate Com.
merce Commission. If there is any
! doubt in the mind of the board of the
correctness of my statement of the
| serious financial condition of the rail
ways l beg you to request imme lately
a statement of the facts from the In
[ terstate Commerce Commission.
"In your decision you say that this
board is not insensible of the fact that
national agreements, rules and work
ing conditions affect the expenditures
of the railroads, and that If any Of
them are unjust and unreasonable they
constitute an unwarranted Jurden upon
the railroads and the public. This
matter of rules and working conditions
has been IN controversy ever since the
railroads were returned to privats
operation-almost year ago.
Case of UnskilIed Labor
"The unwarranted burden imposed by
unreasonable rules and working condi-
tions is especially great and dangerous
at time of financial stress, such as
the present. 1t is, therefore, crafty
| ing that you announce you intend 10
! proceed to q determination of the
| AedSUndUlSGSSS VI Tic SAtSClHR ndllUnHs
agreements, rules and working condi-
tions with the utmost practicable ex-
petition.
with regard to the wages of un-
skilled labor, the Association of Rail-
way Executives will take immediate
steps to have that matter presented in
definite controversies between indiyi-
dual carriers and their employees"
The board gave its decision before
/ r M Iaua1t oF D..
Employees Depart en. Of the American
/ Federation of Labor, had started his
reply to the statement made for the
Railway Executives last week by Gen
eral Atterbury.
The decision came as a great surprise
TO both sides, Mr.. Jewell declaring that
1T came like bolt from a clear sky"
de asked for fifteen minutes to confer
with his counsel, Frank P. Walsh. On
ms return to the hearing he advised
the board that his statement in reply
to the Atterbury request would be filed
( IN the record without reading.
Anti-Union Plot Charged
The board held that it had no juris
olcSlon over questions involving ex-
pense of operation, and aaggested that
neither the roads nor the unions in
ferrupt the pending hearing on stand
ard rules and working conditions with
further unwarranted demands"
Mr.. JEWELS statement charged that
the request for immediate abrogation
/ OF the working agreements was part
| of conspiracy to disrupt unionism.
In announcing the decision of the
board, Chairman Barton reviewed the
powers of the board under the trans
portation act of February %, 1920 He
said the act imposed upon the board
the duty of deciding disputes between
carriers and employees
The present hearing separated agree
ment rules and working conditions
from wages. The decision on wages
was rendered last July, Judge Barton
said, and the rules hearing convened
on January TO-
"The board assumed as the basis Of
this decision the continuance in full
force and effect of the rules, working
conditions and agreements enforced
under the authority os tks United