The New York herald., 1921-01-23
Arbitration Board Sees No
Reason for Increase OF
so Weekly Asked by
Route Drivers.
COST OF LIVING ISSUE
Judge Garyin Considers De-
cline in Price of COmmOd-
tiles and Growing Unem-
ployment in Award.
AFFECTS 10000 WORKERS
Borden Leads Off in Passing
Farmers Reduction of l Ia
Cents a Quart Along to
Retail Consumer.
COST OF LIVING ISSUE
.FFECTS 10000 WORKERS

hcldll NOUSulIltI.
Employees of the milk distributors
were denied further increase in wages
yesterday by a decision of the board
of arbitration appointed last autumn
to settle differences between en-
ployers and workers. The boards rul-
ing. which affects 10000 men in the
metropolitan district, followed quickly
on the announcement by the Dairy
mems League, Inc. that February
milk will be sold by farmers at one
and a quarter cents lower than the
present price. or at less than the cost
of production. The wage decision was
followed just as quickly by state
ment from the Borden's Farm Prod
ucts Company, that the concern will
pass the benefit directly to the con-
sumner and reduce the retail price for
February one and a quarter cents
quart
The farmers decision to send the
price down. and the order from the
board of arbitration that the pay OF
the distributors drivers. helpers, &C.,
must stand. combine to benefit the
consumer to considerable extent It
was believed that the other distribu-
ters would follow the lead of the Bor-
den company and reduce prices.
Yesterdays ruling affects milk dis
tributers and employees in New York
city. Long Island. Westchester and the
New Jersey cities of Newark. HobolSen.
Paterson and Jersey City. 1t is retro
active as of November l, 1920.
| II was stated following the final meet
ing of the board that the decision was
based largely on a probable decrease n
the cost of living in the immediate tu-
ture.
No Excuse for Wage Increase.
With relief in sight. it was stated, the
members of the board felt that any step
looking to wage increases would be un-
justified. particularly in connection with
so necessary commodity as milk. rel
eral Judge Edwin l.. Garvin Of Brooklyn
presided at the meetings as chairman.
Fitzpatrick. A. Cuddeback and l. Elkin
Nathans. representing the employers.
and Fred J. Sterbnsky. Benjamin Mo-
retzky and Edwin Hunt. representing the
employees.
The demands Of the employees were
for $40 Increase for all employees nov
receiving from S24 10 SAC a week The
differences arose at the expiration OF
contract made in November. 1919. by
Locals 125. 147. 5s4. 691 and sos. of the
International brotherhood of Teamste.s.
Chauffeurs. Stablemen and Helpers OF
America IL was not until December Is
that the hearings we're started. They
were finished on January s.
II became known with the publication
of the decision that the board was con-
fronted during its deliberations with
two important questions: First. whether
II had the power, "a the employers
claimed. TO make an award fixing the
scale at a lower rate than under the
existing contract: and. second, whether
n would be warranted, in accordance
with the request Of the employers. in
fixing a rate which should be binding
for one year. leaving the option to
either party TO reopen the award after
six months and request reconsideration
In the light Of new economic conditions.
Judge Garvin rendered decisions on
both questions. deciding them in favor
OF the employees
Decision surveys Conditions.
In part tho decision is an analysis of
the progress Of readjustment in prices.
II contains survey OF costs through
the year beginning November 1. 1919. and :
continues on through a brief survey Of
the unemployment problem.
The decision in part follows:
"Tnasmuch as under the ruling ot tho (
chairman the only question 70 be arbl-
trated was that OF an increase Of wages.
and inasmuch as the contract entered
into November l. 1912 indicated that
the wage scale there fixed was agreed
npon as fair 20 both parties. no other
consideration assumed any Importance
except that of the cost OF living This
involved an Investigation of whether the
cost had Increased during the year
following the making of the contract.
what the conditions were on November
1M1920 and what tho reasonable ex-
ncctation would be FOR the year follow
inr tho last named date. There was
general increase iu the cost ~ living
during tho year 1920. until June or
July Thereafter. according 20 Cow
ernmcrt statistics. which arc accepted a.
reliable a decline appeared which re-
suited in Tho cost iu December. 1890.
being somewhat lower than IN Dccom-
bcr. 1919.
'It Is true that Tho decrease appcar-
10 have been slower IN reaching the con.
suiner. but that for some months tho
tendency has been clearly downward
there can be no question and there is
every reason 20 expect not only no fu-
ture increase. but an actual further de-
cline This assumption Is warranted
from testimony submitted showing re-
duced wholesale prices OF clothing which
RI