Evening star., 1936-04-13
NEW. RAIL RULING
SEEN ABANDONED
Coordination Plan InvoIv-
ing II Terminals to Be
"DeIayed."
BACKGROUND

On theory that transportation
system of Nation Dds filed NTH
duplication OF effort and need
less erpensipe competitive circuD,-
stances, Roosevelt administration
put through legislation creating
post OF co-ordindtor.
Exhaustive studies of problem
haze been made by neU agency,
tDith principal efforts centering on
fntegrdtion of bus and railroad
transportation. During past Win
ter, co-ordindtor directed railroads
to consolidate terminal facilities in
II cities as economy nope; action
has been In allegiance pending ap-
peal from order.
Striking a barrier of opposition
raised by organized labor, the New
Deal was said in informed sources
today to be ready to abandon its
first move toward compelling railroads
to carry out coordination projects.
Initiated several months ago by
Transportation Co-ordinator Joseph
B. Eastman, a plan to force terminal
uniflcations in II cities was delayed
at the suggestion of President Roose-
welt after it had drawn the fire Of
rail union spokesmen.
They contended it would throw
men out on the street" through the
elimination Of jobs.
Mr.. Roosevelt said a postponement
of the move would give rail manage
ment and labor an opportunity to get
together on methods of protecting
workers displaced in coordination
projects. He particularly urged that
an agreement on this point be reached
through negotiation.
Two Groups Deadlocked.
After conferring intermittently for
more than two months the two groups
still are deadlocked. Eastman said
Mr.. Roosevelt had requested the
negotiators to confer with him before
terminating their efforts. Until this
Is done, he said, he certainly" would
not issue orders compelling railroads
to carry out the II projects.
Other sources said the projects
probably will be dropped entirely.
They said there was little chance that
q conference with Mr.. Roosevelt could
reconcile differences over such ques-
tions as the elimination of jobs and
dismissal compensation.
ONCE Expires in June.
In addition, they pointed out that
Eastman's office is scheduled to ex-
pire June 16. Thus far, no move to
continue the Office has been made and
some congressional leaders have ex-
pressed the view 1t will be allowed to
die.
II Congress should extend Eastman's
Office, however, it was said that further
consideration might be given to COM
pelling the coordination projects.
Eastman still Is a member of the
Interstate Commerce Commission and
If the co-ordinator's Office were ter
minated he could remain a commits
aoner.
Wheeler Bill Urged. 4
Meanwhile, today, enactment Of the
Wheeler bill for compensation and
protection of railway employees af-
fected by railroad economy moves was
urged before the Senate Interstate
Commerce Committee by George M.
Harrison, chairman of the Railway
Labor Executive Association.
Nothing in this bill," the spokes-
man for the railway brotherhoods
organization said, will force any car
rier to do anything which does not
promise an increase in net revenue.
In fact, seen from the standpoint of
the owners of railway securities, this
bill would only postpone savings to be
certainly realized"
Under the bill. displaced employees
would be entitled to two-thirds of
their pay until new work was found,
or would get one years pay and
permanent release, If preferred. An
elderly employe could retire on a pen
sion. Employees forced to move to
new railway points to keep their en-
ployments would be compensated for
property losses. House hearings have
been held on the bill which would do
by law what labor and management
has failed to accomplish by negotia-
ton.