The Waterbury Democrat., 1934-02-16
Railroads or Nation Preparing Wage Cut
Fifteen Per Cent Beginning July Next = President Z Roosevelt Appeals to Both Sides in Dispute

Irealized, they declare, improvement will not be great enough to meet the railroads needs.
 Another factor in the situation is the widespread protest against railway freight rates, and the re- sultant loss of business by the rail- roads to truck and waterway com- petition.
 A reduction in wages would pave the way, after business improve ment has taken care of deficits, to reduction in freight rates, the railways said. By this means alone, the operators declare, can the cycle be brought back to show profit for the carriers and hence bring hope of return to higher wages.
 Passenger rates, already reduced, are cited as an element in the pie ture. Recent institution of two classes of rates to meet bus com petition has put the railroads in- come below the 2.018 cents per mile average of the first II months of 1893.
 The proposal for deduction will be put into the hands of the fed eral board of mediation, meeting l WAIu ICpECSOntdLltS6 V4 OpCkdtOE6 Q and labor. The first meeting is scheduled for March l, in Chicago.
 If mediation fails to bring agree ment, the question will be turned over to an arbitration board which would sit as a court. The member ship of this board would /be one- third labor representatives and one-third operators representatives. Remainder of the board would be appointed by these members. l Decisions of an arbitration board are final.
 Presidents Appeal
 Washington, Feb 16-(UP)-An appeal for an extension of their 10 per cent wage cut agreement was made to railroad capital and labor today by President Roosevelt.
 The chief executive acted to forestall bitter disagreement in one of the nations largest indus I tries by drafting communication to both parties 8 few hours after the employers announced that be- ginning July 1, of this year wages of all classes of railroad union la- Dor would be cut 15 per cent for IF months.
 In urging 8 truce until Jan 1, 1885, the president wrote in let ter to the conference committee of managers representing Glass 1 rail- ecutives' associations:
 "I am confident that such an ex- tension would be of advantage to those directly concerned, and also to the entire country"
 It was indicated that he had in mind nearly a million men in his appeal.
 | MT Roosevelt pointed out that "the emergency still exists, and the country has not yet attained con- ditions of stability" He added however, that marked progress toward national recovery has been made since last June, and I am sure the goal will be reached.
 '"The traffic of the railroads is improving" he reminded both sides, ''but their financial con- dition is still impaired and their credit has not been restored so far as private capital is concerned. Un. der present conditions the prosecu- tion of bitter wage controversy between the railroads and theil employees over wages would have g most disturbing influence, and an convinced that conditions are moi yet sufficiently stable to permit oi Q wise determination of what the wages should be for the future.
 "In the circumstances I venture to express the hope that the rail- roads and their employees may be able to agree upon an extension o1 the present agreement for another six months"
 The present agreement referred to by MT Roosevelt expires June 30, 1894. Under the terms of a pact entered into June 21, 19Sa and continued from October 31, o1 the same year.