Evening star., 1936-03-09
TAKES
/. HAND IN RAIL PLAN
Pleads for Harmony in Care
of Employees in Unifica-
tion Proposal.
BACKGROUND

BACKGROUND
Americas ruilroad system, once
king OF all it Surveyed, has run into
heavy going in recent years as eff
tectS OF general business depression
were augmented in case OF rails By
groUth OF real competition from
buses and GtrltneS.
In attempt to aid industry Ne'D
Deal administration sponsored pas
sage OF transportation act. expiring
merit June IS, and carrying pro-
piston intended to stabilize employ
mert at May, 1888, lepel.
On another front I. c. c. directed
lolCering OF passenger rates per
mile as more to encourage increase
in trduel.
BY the Associa ted Press.
A plea for harmony from President
Roosevelt led officials to hope today
that railroad management and labor
would intensity efforts to untangle a
knotty problem-whst to do for en-
ployes displaced in rail unification
projects.
This question-one Of the most vex-
ing in the Governments entire rail
coordination program-arose almost
with the inception of Transportation
Co-ordinator Joseph B. Eastman's
efforts to effect unifcations.
Mr.. Roosevelt stepped into the pic
ture yesterday with letter to J. j
Pelley, president Of the Association OF
American Railroads, and j. A. Phillips
vice chairman of the Committee OF
Railway Labor Executives.
Expressing concern over conditions
in the railroad INDUSTRY" the Presi.
dent urged that arrangements anc
tie men ought to be able to agree in
their common interests by co-ordina-
ton projects"
Issues Warming
Otherwise, he warned, both sides
will take extreme positions and will
resort to Congress for legislation or
the subject,
This, he said, woulc bring "unfortu-
nate results in many different ways.
He asked that if negotiations toward
an agreement on employe protection
were not successful, management and
labor representatives confer Jointly
with him.
Some rail officials here viewed the
Presidents unexpected move as an
effort to head off drastic legislation
which might injure the Government
entire coordination program.
Pointing out that numerous con-
ferences between management and
labor already have been held, they
added that every possibility for reach
ing an accord would be explored
Should efforts to compose differences
still fail. it was said. the President S
offer for a joint conference probably
would be accepted.
Office Expires June 16.
The Office of rail co-ordinator Is
scheduled to expire June Is, and Mr.
Roosevelt's letter prompted specula-
ton as to whether he would urge its
extension. Eastman has suggested that
it be continued for at least five years
The labor protective provisions OF
the 1888 emergency transportation act
also will expire on that date unless
extended. Mr.. Roosevelt said these
are now satisfactory neither to the
companies nor to the employees"
The question of how labor would BIZ
affected under the Governments pro-
gram for rail unification and co-ordi.
nation has been argued since Eastman
made his first recommendations fos
these activities in 1888.
The emergency transportation act
under which the Office of transporta.
ton co-ordinator was created, con.
tanned certain restrictive clauses de.
signed to protect labor in co-ordina-
ton projects. These provided that the
number Of employees at any given point
could not be reduced as a result ol
coordination. Neither could they suf-
fer salary cuts or demotions.
Declared insufficient.
Labor leaders, however, have con.
tended these provisions we're INSULT.
cient to guard their interests, and
have opposed many of Eastman's pro-
posals on this ground.
Pelley declined comment on the
Presidents letter. but other rail Off.
cials said the conferences would be
continued until an accord is reached
or until "all possibility of an agree
ment has been exhausted"
1t was indicated that as far as
management was concerned, a con-
ference would be held with Mr.
Roosevelt before the efforts to smooth
out the differences would be allowed
to collapse.