The New York herald., 1922-05-12
RAILROADS TO FIGHT
LABOR BOARD Ruling
DenOunce Decision Against
Farming Out Work as
Usurpation of Power.
ITO APPEAL TO COURTS
Charge Board Fixed Wages
Against Unanimous Pro-
test of Men Affected.
4 BLOW TO EFFICIENCY
New York Central Head Tells
of 40 Per Cent. Increase I'm
der Contract System.

The consequences of the Railroad
Labor Boards ruling that railroads
are violating the transportation act in
contracting with outside firms for
equipment repairs under pay scales
varying from those prescribed by the
board for railway shopmen are far
reaching and strike at the very vitals
OF economical and efficient railroad
operation, A. III. Smith, president Of
the New York Central Railroad, de-
clared yesterday.
The present decision covers only con-
tractual relations between the Burn
ham Car Company and the Indiana
Harbor Belt Railroad. which is part of
the New York Central system. but the
board is expected to follow the same
principles in deciding thirty-six other
cases affecting seventeen railroads. 1t
is virtual certainty that the issues
will be carried into the courts for de-
cision and possibly lead to new Fed
eral legislation defining the Labor
Boards powers.
''The facts in the case are that the
men employed in these shops notified
the Labor Board that they were salts
fled with their wages and working
conditions and protested against any
interference on the part OF the Labor
Board" said Mr.. Smith. Furthermore.
the average wages which they are now
receiving are in excess of the wages
prescribed by the Labor Board as just
and reasonable.
increase of Efficiency.
'The striking point. however, is that
the results show an increase of 40 per
cent. in efficiency IS compared with
the operation of these shops by the
railroad company under the rules and
regulations prescribed by the Labor
Board. The management of the rail-
road is charged by the Transportation
act with the duty Of efficiently and
economically operating the property.
THE Transportation act gives the
Railroad Labor Board in cases of dis
pute the power to fix wages and work
ing conditions of railroad employees.
In this particular case the Labor Board
the act and has undertaken to fix the
wages and working conditions of men
employed by the Burnham Car Com
pany and against the unanimous pro-
test of such employees. The decision
of the Labor Board. which attempts
to nulify this contract, is in our opinion
contrary to the provisions of the Trans
portation act.'
AS in the Pennsylvania Railroad s
shop case. railroad executives look
upon the boards order as a further
effort to arrogate to itself powers not
conferred upon it in the Transportation
act.
Nearly every transportation system
In the country has tried to reduce its
operating expenses by farming out TO
some extent equipment repairs. main
tenance of way. or the handling OF
freight at stations and transfer plat
forms TO independent concerns or ir-
dividuals who could hire labor at going
rates of pay much below those pre-
scribed for railroad employees by the
Labor Board.
Railroad executives and lawyers said
yesterday that one or more test cases
would be threshed out in the Federal
Court to determine the power of the
board in the varied issues involved.