Evening star., 1934-04-21
Will Propose Restoration on
July | of Half of 10 Per
Cent Slash.
UNION LEADERS RENEW
TALKS WITH EASTMAN
Roosevelt Sharply Suggests Lot
of Labor at Bottom of Heap"
Be Improved.
By the Associated Press.

By the Associated Press.
Flat rejection by railroad labor of
President Roosevelt's new plea for a
continuation of the existing 10 per
cent wage cut was indicated authorl-
tatively today.
The workers will put forward, in
stead, a compromise demand for q
restoration on July l of half the pay
slash given them two years ago.
This became known as representa-
tiveS of 81 standard railroad labor
unions gathered for a renewal of con-
ferences today with Joseph B. East
man, Federal co-ordinator of trans
portation.
Impasse May Continue.
Unless Eastman, directed by the
President to resume his negotiations
can shake labor from this stand, a
continuation of the weeks-long i'm
passe appeared probable.
In this case, Mr.. Roosevelt would
carry out his intention of ordering "a
thorough investigation by fact-find-
ing commission prior to July l."
The immediate reaction of railroad
management to the Chief Executives
latest effort, taken last night in a
letter to Eastman, was not available
here. The employers, however, have
expressed willingness for continua-
ton of the 10 per cent cut.
Mr.. Roosevelt reiterated his pre-
vious suggestion for a six-month con-
tinuance, but added a sharp sugges-
ton that the carriers Immediately
better conditions for those workers lat
the bottom of the heap"
Seeks N. r. A. Standards.
The minimum wages of rail en-
ployes, he said, should be brought at
once into conformity with N. R. A.
standards. He prodded also for
changes in present systems of fur
loughs, part-time work and demotions
He added he was convinced his sug-
geStions were:
What the welfare of the railroads,
of their employees, and of the entire
country demands as the immediate
and temporary solution of this matter
Apart from the immediate problem,
the President had another Cabinet
Committee at work today on a study
of the whole railroad problem. He
appointed it late yesterday. naming
Secretaries Roper and Perkins and
Attorney General Cummings.
Opposes Government Ownership.
The industry as whole, he indi-
Gated to newsmen, has reached the
point where the only alternatives are
reorganization of the capital structure
of the roads or Government owner
ship, to which he is opposed.
1t was indicated today, prior to the
rail labor meeting with Eastman, that
the rail union men would ask not only
the per cent wage restoration, but
also the aid for their colleagues "at
the bottom of the heap" suggested by
the President.
Mr.. Roosevelt had this to say about
such choice:
The question is whether the elm
ination, in whole or in part, on July
of the 10 per cent deduction from
basic wage rates is the thing which
their best interests demand.
IF it is necessary to choose between
some measures of relief from fur
loughS, part-time work. demotions
and low minimum pay and the elm
ination, in whole or in part, of the
wage deduction, the choice should GER
tainly favor the first of these al
ternatives.
Finds Earnings Gaining.
1.-THE traffic and earnings of the
railroads are improving, but they are
still below the 1881 level, a very large
amount of deferred maintenance ex-
lists, and maintenance expenditures
are still on subnormal basis.
"I cannot avoid the conclusion that
during the remainder of this year, il
Is very important that increased earn
ings should be used in the rehabilita-
ton of the properties and in providing
such added and improved service as
the increased traffic may demand.
This will not only decrease part
time employment, but 1t will add ma
terially to the total number of mer
employed"
Regarding the entire railroad situa'
tion, particularly the high fixeo
charges for the carriers, as serious
the President took up the question al
his cabinet meeting yesterday. wher
he appointed the Special Committee
of Three to investigate.
He feels the industry has reached
the roint where there are just tht
two oalternatives-reorganization of tht
capital structures of the lines to takt
them out of receiverships or Govern
ment ownership.
He feels the whole capital structure
of the roads should be reorganized ir
some way to cut down the high fixec
charges which threatened during th'
depression to put many lines into re-
ceiverships. This is one Of the biz
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