Evening star., 1938-11-05
Wage Cut Out,
Farley 10 Draw
New Rail Bills
Session Here Monday
To Consider Ways
To Aid Lines

Railroad crisis ,D1s precipitdted
last summer 1Dher operators an
nounced intention OF slashing all
Uages. As railroad labor lap re-
Quires, conferences Dere held be-
t,Deen management and brother
hoods, and then Dith the Ma
tio,,dl Mediation Board. In face
of failure. President Roosevelt
named special committee 1Dtich
recommended against cuts.
Meanwhile. labor had poted
strike. but yesterdays decision
OF operators eliminates this
threat.
e! the Associated Press.
Railroad labor and management.
their wage quarrel composed and q
strike threat dispelled, will confer
here Monday on proposals for legis-
lation to rehabilitate the carriers.
President Roosevelt gave assur-
ance of his support for an effort to
put through constructive program
of legislation at the next session of
Congress"
Executives of the major roads de-
cided yesterday at Chicago to drop
their proposal for IS per cent wage
cut. Nearly 100000 workers had
voted to strike rather than accept 1t.
j. j. Pelley, president of the Asso-
ciation Of American Railroads, noti-
fed Mr.. Roosevelt that the action
was taken because rail management
ofncials recognize the gravity of
this situation and because they hope
that out OF it will come, through CO.
operation of all concerned. a sounder
and more equitable policy"
The roads did not abandon the
wage cut, Mr.. Pelley told the Presi-
dent, because they agreed with con-
clusions of the fact-flnding board
appointed by Mr.. Roosevelt. After
weeks Of hearings the board reported
that it believed no reduction should
be made.
Roosevelt Expresses Pleasure.
After receiving Mr.. Pelley's mes
sage Mr.. Roosevelt declared that
Everybody in the Nation is happy
that the railroads will withdraw the
notices of wage reductions"
Jubilantly, George M. Harrison,
chairman of the Railway Labor Ex-
uctives Association. told reporters
the action cleared the way for con-
ferences on legislative program.
Recently President Roosevelt ap-
pointed an informal committee Of
six. including three representatives
of management and three Of labor,
to work out legislation for submis-
sion to Congress.
Members of Aid Committee.
The committee. which the Presi-
dent said might have to be ex-
panded, is composed of Mr.. Harrison,
Carl R. Gray, vice chairman of the
Union Pacific; M. W. Clement, presi-
dent of the Pennsylvania; Ernest
E. Norris, president of the Southern;
D. B. Robertson, chairman of the
Brotherhood of Locomotive Firemen
and Enginemen. and Bert M. Jewell.
president of the railway employees
department of the American Fed
Grafton of Labor.
The Railroad Association in the
past has proposed a six-point pro-
gram, some of which has already
been the subject of controversy in
Congress. The program includes
revision of Interstate Commerce
Commission rate-making procedure,
low-rate Government loans, aboli-
ton Of reduced Government freight
rates, repeal of the long-and- short
haul rate law and new regulation
of water transportation.
Chairman Wheeler, Democrat, of
Montana of the Senate Interstate
Commerce Committee, who conduct
ed an extensive investigation of
railroad finances, has urged that
legislation be enacted to speed up
reorganization of insolvent roads.