Evening star., 1926-05-20

Continued from First Page)
another two, another three, another
four and the last for five years. The
members Of this board will receive $12,
900 annually.
All disputes between the railway
managements and the employees of the
roads must be handled under this new
law.
There are certain fundamental de-
mandS created by the law which re-
quire cooperation between managers
and employees. The law makes it the
duty of carriers and employees to "eX
ert every reasonable effort to make
and maintain agreements" and ito ad-
just disputes arising out Of applica-
ton of agreements or desire to
change agreements.
The President statement explain
ing his reasons for signing the act
follows:
After some months of earnest
negotiation between the representa-
tives of a majority of the railroad
executives and the railroad employees,
they adopted plan OF labor relation.
ships designed to provide q method Of
selfgovernment within the industry.
This plan has been enacted into law
by Congress in substitution of the
Presidents Railway Labor Board.
THE plan provides a series of Joint
adjustment boards for purposes Of
collective bargaining upon wages and
conditions of labor, with the right
of these boards to refer such matters
as they may determine to arbitration.
In case of failure to find q solution
by collective bargaining or such arbi-
tratiOn, the plan provides for the in
terventiOn OF permanent board Of
mediation, which is to be appointed
by the President Of the United States.
In failure of the mediation board to
effect a settlement of any dispute, the
plan further provides for the appoint
ment of an emergency commission
by the President to determine the
facts and to report upon the rights
and wrongs of the dispute. These
are to protect the public and insure
regular operation of railroad service.
The plan therefore comprises the
essential principles of the railroad
labor board created by the transporta-
ton act of 1920 except that it throws
q far larger measure of responsibility
Tor amicable relations upon the in.
dustry itself. The proposal has been
criticized on the ground that it does
not give adequate protection to the
public from collusion between the rail-
way managers and their emploves to
establish wages which would be re.
f1ected in unjust rates upon the
shippers.
II do not understand that this act
greatly. if at all, increases the DOW.
ers which the roads and their en-.
ployes have to do the same thing un.
der the present law, if they would so
dispose. The answer to this criticism
is that increases in railway rates must
be approved by the Interstate Com
merce Commission, and this commits
sion is required by law to exercise
its power to prescribe Just and rea-
sOnable rates under honest, efficient
and economical management. More.
over, this act expressly stipulates that
the powers Of the Interstate Com
merce Commission are unimpaired to
fix rates in accordance with the pres
ent law.
1T does appear to me that there is
involved in all these proposals a much
wider issue, and one of first public i'm
portance. This wider aspect is that
we should give every encouragement
to industry to create within itself
such q relationship and machinery Of
adjustment between its employers
and employees as will give the public
continued and efficient service and to
accomplish these relations within it.
self without intervention of the Gov
ernment. Nor does this imply that
the railroads have by undertaking
this self-government in the smallest
fashion relieved themselves of their
responsibility to the public at large,
but rather they have increased their
responsibility by virtue of the self
government which this act imposes
upon them.
ST have come to the conclusion
that the plan in this act should be
tried I should have preferred some
more definite declaration for the pos
sible protection of the public, but
should the operation of the plan DEM
onstrate that protection is needed,
it can easily be supplied by a future
Congress. It is not now possible to
foretell such need. and the fact that
the roads and their employers are
committed to the success of making
this law a success goes far to assure
that it. will be q. success"