Evening star., 1938-05-20
RAIL LABOR ADDS
THREAT OF STRIKE
Backs Senators in Move to
Prevent Wage Cuts by
Companies. .
~ tie Associated Press.

~ TIE Associated Press.
Railroad labor unions added threat
Of Nation wide strike today to efforts
Of administration Senators to prevent
ran lines from putting is per cent
wage cut into effect July l.
The Railway Labor Executives AsSo-
citation. charging in a statement that
. the roads had "double-crossed" their
employees, asserted a strike would be
the ''only ultimate result" If the rail-
roads pressed their $3.50, 100000 wage
reduction program.
Senate opposition to the cut crys-
tallized In withdrawal yesterday Of a
committee-approved bill to make more
liberal r. F. c. loans available to the
carriers.
The bill was on the House calendar
for debate this afternoon, but House
leaders changed their plans.
Democratic Leader Rayburn said
the bill would not be considered at
this time because OF the Senate dis
pute about pay cuts. Other leaders
said they saw no point in House ac-
ton on the legislation until after the
Senate situation is clarified.
The Senate returned the measure
to its Banking Committee at the re-
quest of Chairman Wagner. who said
there had been mo discussion" Of the
wage cut proposal at the time the
bill had been considered.
Will Hear Both Sides.
Senator Wagner told reporters sew
eral committee members wanted to
include a no-wage-cut stipulation in
the legislation. Both labor and man.
agement will be called to discuss the
issue. he said.
Administration leaders, weighing the
potential effects of rail strike, well
coined the probability that procedure
under the Railway Labor Act would
delay a showdown at least until fall.
The Labor Executives Association
said the brotherhoods would observe,
as they always have. the Railway
Labor Act in their effort to prevent
this unjustifled raid on railroad en-
ployes' pay envelopes"
It added, however, that IF the rail-
roads cannot be convinced that a
ware reduction is not only unjustlfled,
. but is absolutely dangerous to the
economic structure of this Nation. 1t
will be necessary for the railroad en-
ploves to use their economic strength
to save the railroad industry from
committing social suicide and dragging
other industries along with 1t.
Labor Wishes to Cooperate.
The railroad workers had Joined
with their employers in asking ap-
proyal of the r. F. c. loan relief pro-
gram, the association pointed out IN
asserting labor wants to cooperate
with management in solving the in
dustry's problem" It added:
But the workers will not stand for
being the goat Railroad labor was
engaged In such cooperative move
ment at the time the railroads served
their official notices of the proposed
wage cut.
In doing this, the railroads acted
in bad faith. -" Railway manage
ment and workers had reached an
understanding that no such notice
would be served while the workers
were cooperating with management
In seeking financial relief through
other sources.
The railroad workers Of America.
already grossly underpaid. simply will
not accept a wage reduction of any
kind. They have already been heavy
sufferers from the railroads policy Of
putting the payment of interest to
wealthy bondholders above decent liv-
ing standards for their employees"
|. The association spokesman said the
annual average wage for all employees
MOS ohndif S1 500