Evening star., 1934-04-21

BY the Associated Press.
The text Of President Roosevelt's
letter to Joseph B. Eastman. railroad
co-ordinator, on the wage roversy
follows:
Dear Mr. Eastman:
AS you know, I have recently con-
ferred with representatives Of both
the railroad management and the rail-
road employees in regard to the wage
controversy, and have given this mat
ter further consideration.
No one who knows the facts can
fail to be moved by the suffering
which the depression, in combination
with the great increase in competition
from other forms of transportation,
has inflicted on the employees.
The 10 per cent deduction from basic
wage rates, which the employees volun-
tarily conceded in 1882 for the good
of the industry, has not been the
major cause of this suffering.
Furloughs. part-time employment, de-
motions and pay below a reasonable
minimum have been more important
factors. Wage rates tell only part
of the story. The whole story is told
by what a man has in his pay enve-
lope at the end Of the week or month.
Realizes Suffering.
Realizing this suffering, as I do, l
have felt that the welfare of the en-
ployes and particularly the welfare
of those at the bottom of the heap is
the vital thing to have i'll mind in this
wage controversy.
The question is whether the elm
ination, in whole or in part, on July
l of the 10 per cent deduction from
basic wage rates is the thing which
their best interest demand.
If it is necessary to choose between
some measure of relief from fur
loughs, part-time work, demotions and
low minimum pay and the elimination,
in whole or in part, of the wage de-
duction, the choice should certainly
favor the first of these alternatives.
The traffic and earnings Of the
railroads are improving, but they are
still below the 1881 level, very large
amount of deferred maintenance ex-
lists and maintenance expenditures are
still on a subnormal basis.
cannot avoid the conclusion that
during the remainder of this year 1t
is very important that increased
earnings should be used in the re-
Mobilization of the properties and in
providing such added and improved
service as the increased traffic may
demand.
Will Increase Employment.
This will not only decrease part
time employment. but it will add ma
terially to the total number Of men
employed.
An increase in wages will help men
now at work, but it will be OF con-
siderably less advantage to the en-
ployes as a whole, and it will also
operate to defer the rehabilitation OF
the properties and the provision of
good service which are essential to
the good health of the railroad in
dustry.
The employees are part Of the rail-
road industry and are tied to its fu-
ture. 1t is essential that the railroads
should be able to meet effectively the
severe competition by which they are
now faced, and inability to do this
will inevitably react on the men. The
railroads need the next few months to
put their houses in order for this pur-
pose.
After careful consideration Of ex-
isting conditions, therefore, I am
fully persuaded that the position
which I took in my letters OF Febru-
ary IA and March 20, addressed joint
ly to the railroad managements and
the labor executives. was sound, and
that an extension of the present wage
status for at least six months is what
the welfare of the railroads, Of their
employees and of the entire country
demands as the immediate and tenn
porary disposition of this matter.
Urges Conformity In Wages.
This includes, of course. the rec
ommendation in my letter of March
20 that the minimum wages Of rail-
road employees should be brought into
conformity with the standards fol-
lowed by the National Recovery Ad-
ministration.
shall be glad, therefore. If you will
undertake to effect a settlement be-
tween the employees and the manage
ments along these lines. In that con-
nection, however, desire to empha-
size three things:
l. Everything practicable should
be done to see to it that increased
earnings of the carriers during the
period of the extension are used to
help the more unfortunate employees
who have suffered from unreason-
ably low minimum pay, furloughs,
part time and demotions.
I cannot too strongly urge upon
the arrangements the necessity Of de-
voting any increased earnings to the
rehabilitation Of their properties, bet
ter service and additional employ
ment.
That will be good business for them.
Whatever safeguards are feasible to
assure such use Of funds should be
applied.
It must be frankly recognized that
there Is little prospect that the rail-
roads will be able to employ In the
future the number Of men they have
employed in the past, and that they
must operate with the utmost ef1-
cheney and economy yet unemploy