Evening star., 1934-02-16
PRESIDENT CHECKS
CUT IN RAIL PAY
Plea Will Be Considered by
Executives in Proposed
IS Pct. Reduction.
~ the Associated Press.


placed for discussion alongside one of
their own-a is per cent cut in the
basic pay rate effective July /.
Only by Federal intervention was a
quarrel between railroad executives
and their employees settled last Fall,
with agreement on 10 per cent re-
duction in the basic rate. The rail
chiefs now propose another per cent
slash.
Position of Employees.
Employe views, voiced through A.
F. Whitney, chairman Of railway labor
executives, were that the railroads
are not suffering from the wage scales
raid their employees"
In a formal statement opposing the
projected IS per cent cut, issued soon
after the Presidents plea, whitney
said:
The real difficulty with the rail-
road industry is caused by the bur-
densome load of fixed charges and
the refusal of railway bondh0lderS to
contribute their share to the relief
Of the industry. Railway labor Is not
disposed TO continue to assume that
burden"
II Whitney knew beforehand of the
Roosevelt move he did not mention
It in his statement. He was a White
House caller Tuesday, however,
In his request to beth rail labor
and executives. the President said an
extension Of the present wage agree
nent for at least six months would
be of advantage to those directly con-
cerned and also to the entire coLn-
try"
Under present conditions, the
prosecution Of bitter controversy be-
tween the railroads and their en-
ployes over wages the President
wrote, would have a most disturbing
influence, and l am further con-
vinced that conditions are not yet
sufficiently stable to permit Of a wise
determination Of what the wages
should be for the future"
Senator Dill Against Cut.
Chairman Dill of the Senate Inter-
state Commerce Committee later
Joined Mr. Roosevelt in protesting
against a further wage cut
Il think it was most tactleSS on
the part of the railroad executives
to propose a thing of that kind Just
now" Senator Dill commented.
I don't know what their reason
wss, especially when the Govern
ment is loaning them money to pull
them out of a hole, as the R. F. c.
is doing, and Congress is trying TO be
fair with them.
The step is bound to upset the
morale of the men at a time when
the tendency ought to be to raise
wages 1t is unthinkable. The only
motive I can see for it is to fore
stall a demand for raise on the part
Of the men"
Yesterday was the last day, under
last Falls agreement. when notice for
q change could be served.
There was no indication that Mr.
Roosevelt is calling in the railroad
managers for a conference but he is
watching closely the reaction to his
proposal.
In his protest. Whitney said work
ers have subsidized railway capital
since February, 1882, to the extent of
over s3s5, 100000 through a 10 per
cent pay roll deduction, while over
100000 railway employees have been
entirely without employment"
Text of Presidents Letter.
The full text of President Roose-
Velts letter, dated February IA, to the
Conference Committee of Managers
representing Glass 1 railroads) and
the Railway Labor Executives ASso-
citation follows:
Gentlemen:
"On June 81, 1888, the railroad
managers and the railroad labor
executives entered into an agreement
under which the arrangement by
which 10 per cent is being deducted
from the pay checks Of railroad en-
ployes was extended from October 81,
1888, until June 80, 1884, and under
which the date on which either party
could submit a notice in accordance
with the provisions of the railway
labor act. indicating a desire to
change the basic rates Of pay, was
extended from June IS, 1888, to Feb
ruary IS. 1884.
1T was stated that this arrange
ment had been reached because both
the railroads end the employees wished
TO do nothing which would in anv
way embarrass or threaten the policy
OF the administrations that they real
iZed that the Government had en-
baTked upon wholly new policy de-
signed TO promote business and in
dustrial activity and to further the
general welfare; that they appreciated
that until the results Of this policy
could be more clearly determined, it
would be difficult to deal wisely with
the wage controversy; and that the
active prosecution of such a contro-
versy at that time might have a most
disturbing and unsettling effect.
Neither side relinquiShed in any
way It's views as to what the wages
should be, but they agreed to a post
ponement of the controversy out of
Difference to what they believed to
be the desire and policy Of the admin
1strstion and in the general public
interest.
Assured On Recovery.
The advent of February IS makes
1t necessary again to give considera-
tion to this wage matter. Marked
progress toward national recovery has
been made since last June. and I am
sure that the goal will be reached.
Nevertheless. much remains to be ac-
complished, the emergency still exists.
and the country has not yet attained
conditions Of stability.
There has been comparatively
little change in the cost of living. but
prices are unsettled and I am hope
ful that they will in general rise to
higher levels. he traffic of the rail-
roads Is improving, but their finan-
cial condition is still impaired and
their credit has not yet been restored
30 far as private capital is concerned.
Under present conditions the pros
ecution of a bitter controversy be-
tween the railroads and their en-
ployes over wages would have a most
disturbing influence and I am further
convinced that conditions are not
yet sufficiently stable to permit