Evening star., 1934-04-22
EASTMAN RESIGNS
RAIL MEDIATION
Lays Action to Labor Off.
Gals Rejection of Presi-
dents Plan.
Continued From First Page.)

commission without waiting on the
Board of Mediation. This would be
an unusual step, he pointed out, and
there might be some question of
legality, but he believed that in view
of the emergency authority allowed
the Executive it could be done.
The Railway Managers Committee,
in a statement last night, declared
the attempt to compose the situation
had failed because of the attitude of
the labor group. IF wage contro-
versy be now precipitated upon the
country" it said, I'VE direct attention
to the fact that it results from the
refusal of the employees to accept the
extension pressed upon them and us
by the President"
The tensenesS of the railroad labor
controversy commanded the more no.
tice because of the fact that Presi-
dent Roosevelt Friday named c.bi-
net committee to consider the railroad
financial situation. In doing so the
President has raised the question Of
Government control of the roads un-
less the railroads reduce their capital
structures in manner to avert the
constant threat of receiverships.
While not so stated here today, it
is well known that the railroad en-
ployes want Government control and
even outright Government ownership
of the roads, and it is pointed out that
knowledge of the fact the admins
tration regards Government control as
a serious possibility is not likely to
make railroad unions any less yield
ing in their wage demands.
Probable Settlement.
While railroad labor leaders will
continue to emphasize their demand
for restoration of their pay, some of
the railroad labor heads took the view
there would probably be settlement.
1t was explained they might be willing
to accept a per cent restoration July
/ and per cent more January l II
efforts at mediation failed and CON-
promise became necessary.
While there has been much talk Of
a crisis in the railroad situation, in
view of the clash over wages, there
are certain phases of this situation
which are looked on as trendlng
against a railroad strike. One is the
fact that vast numbers of railroad
workers are unemployed and if there
was a general strike the railroads
would seek to fill the places of the
strikers from the unemployed. An
other phase of Importance is that the
railroads in recent months have
shown a tendency to get increased
business and any halting of their
lines now would interfere with this
increase. Under the circumstances,
there has all along been a strong feel
ing here there would be an eventual
settlement.
President Roosevelt's letter on wage
matters which was given out Friday,
was read by Eastman to the 81 repre-
sentatives of the unions this morning.
! The President in this letter reiterated
his previous suggestion for a six
month continuance of the 10-per-cent
cut but suggested that the roads at
orce better conditions for the workers
"at the bottom of the heap"
Railway Statement.
The statement of the Railway Con-
ference Committee of managers fol-
lows:
/ THE efforts of Federal Co-ordina-
| tor Eastman to compose the railroad
| wage situation failed because the rep
resentativeS Of the employees refused
to continue the 10 per cent deduction
| in pay checks of employees after July
| l, 1884, although the President of the
United States repeatedly urged such
a continuance. That deduction ar
rangement was first agreed upon on
the basis of 1881 railroad operations
when the railroads had net income
of S135, ,000,00
"In 1882 and 1888 the railroads as
| a whole operated at deficit. While
! traffic has increased in the past few
months, on no basis of comparison
does it equal 1881. More railroad
mileage is in receivership or bank
| luptcy than ever before in railroad
! history. The Government itself has
found it NECESSARY to loan the rail-
roads more than half a billion
dollars /" .
THE Conference Committee of
managers expressed its willingness
to subordinate its effort to secure q
| reduction of Is per cent in basic
rates to the request of the President
that a wage controversy should not
be proripitofad noU IT also Altered