Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-02
RAIL UNION HEADS
MAY AIR PAY STAND
Session OF Il Leaders Here
/, Is Urged to Go on Record
; on Wage Reductions.

r. M. Jewel. representing the Railway
Employees Department OF the American
Federation Of Labor, went into session
here at q meeting which Is viewed as
one Of the most important in years af-
fecting ~ II does the welfare Of ,2so,-
COO employees.
While some OF the union leaders pre-
Siously had expressed the opinion IL
would not be wise to make any pro-
nouncement on wage reductions before
. movement Ct this sort actually has
been initiated by the cirriers generally.
there are others. II developed. who want
the labor bodies to grapple with the
matter boldly and let their stand be
known.
Holds Pay Due for Discussion.
d. h. Robertson. president OF the
Brotherhood OF Locomotive Firemen
and Enginemen. who Is chairman Ct
the labor executives, said in Cleveland
Saturday that pay cuts would net be
discussed here. However, another leader
an union circles this morning voiced
the opinion that ~ could not be ig-
rored"
THE subject is too big, too impor-
tant, TO pass over" he said, adding it
was evident the public expected some
expression.
Rumors the carriers intended 10
institute action looking toward wage
cut have been prevalent ever since
the Interstate Commerce Commission
turned down their application for a
IS per cent freight rate increase.
Two Roads Slash Wages.
:. xxytnn,. aka ~asl oxan,,ttxas wat t,ara
last week, however, IL was understood
nothing along this line was In pros
pect in the immediate future. the rail-
roads at present being engaged in
working out a plan for the sureharge
pool which the commission proposed
IS an alternative for the rate boost.
Since then. however. the New York
Central announced negotiations with
some OF its workers for 10 per cent
cut TO remain in effect for year
and on Saturday the Baltimore 81
Ohio announced slash Of Ike Fro
portions applying to officials and So
called white collar" workers whose
pay is above $500 monthly.
Unless organized labor voluntarily
gAgrees to a wage reduction, 1t would not
sbe possible to put one into effect for
sseveral months because OF the steps
Unnecessary to be taken through the Beard
sof Mediation. Railroad labor previous
Fly has gone on record against wage re-
sductions in connection with the freight
rate case.
4 Constructive Plan Forecast.
q The whole question of employment is
the most important due for delibera-
.tion by the rail men. Robertson, who
is presiding at the meeting, has fore
east that, as q result of It, "a con-
sstructive" plan will be advanced for
coping with the present situation which
.finds some $4,000 workers idle.
A shorter work day and week Is one
OF the proposals which has been adj
Yanced In this connection. Among the
other matters due for discussion at the
conference are a national pension plan
TO be built up by contributions Of en-
.ployers and employees. regulation of
highway and water carriers. which have
cut severely into rail revenues, and rail-
road consultations.
= Recommendations along this line are
10 be embodied In legislation which the
labor groups win seek at the forthcom-
ing session of Congress. The confer
ence. which is being held at the ONCE
sof Labor. is expected to last three or
four days.
In addition to the union executives.
Al Is being attended also by Donald
Richberg, counsel for the union.
willard Urges New Aid Plan.
Meanwhile. Daniel Willard, president
of the Baltimore g. Ohio Railroad, to-
day recommended modification Of the
transportation act to permit railroads
10 turn all excess earnings during good
times into a reserve to be used In slack
periods.
Appearing before a Senate Manufac-
lures Subcommittee, Willard said the
railroads should be able to play big
part in Stabilizing industry. but could
do IL more effectively II the law were
changed to allow creation OF the pool.
Under the present law half of all
earnings above 5a4 per cent must be
turned over to the Government for aid
ing sNeaker roads and the other half
used TO build up reserves.
Willard pointed out. however, that
since the transportation act became
law the railroads as a whole have never
earned 53a per cent and therefore were
not able TO build up reserves.
SAYS None Use Aid Fund.
He said during prosperous times, the
railroads should be encouraged to earn
even more than the fair return allowed
in order to build up reserves for use in
such times as the present.
III NONAQ iii DC aoAiN tAAC low
rs il is" he said. though 1t would be
better 10 say that all excess earnings
should be used to develop reserve funds
instead Of half going into a fund that
nobody wants and nobody is using
willard explained that railroads in
normal tines use IS or 80 per cent of
all the steel produced in this country,
Is per cent Of the coal and % per cent
of the lumber, in addition 10 large
amounts Of rubber and copper,
Says b. g. O. Drops 2e,00o.
He said while in the future they may
not use as much &c some OF these COM
moditie1 rs In the past. that. neverthe-
less, they could be made TO contribute
greatly toward sterilization Of employ
ment.
On the ether hand he said it has
been necessary for the roads to make
every possible saving to maintain their
financial status.
The Baltimore & Ohio, he said. has
postponed all the maintenance work
possible. reduced its purchases and cut
employment 20 600 during the last two
years
Instead Of earning is per cent profit
rs il did few years ago. he said, this
year the road would probably earn not
more than 2 per cent
Earnings this year, he added. were
running about IS per cent behind 1929.
The road is employing Al 900 workers.
rs compared with $4,000 IN 1929 and
$4,000 in 1923.