Evening star., 1938-10-30

pOft Wv 4 uyC A-up
By the Associated Press.
President Roosevelts fact-findine
board recommended yesterday that the
railroads abandon their proposal to
reduce wages of approximately l,O00,-
600 employees on December l.
The railroad managements gave no
Immediate indication as to whether
they would comply. Still up to the
President, in the words OF one board
member. was the problem of averting
the Nation wide strike which the rail
workers have voted if the proposed IS
per cent reduction is put into effect.
The White House disclosed that Mr..
Roosevelt would pursue this problem
tomorrow at q conference with George
M. Harrison. head of the Railway
Labor Executives Association, and
John j. Pelley, president of the Asso-
citation of American Railroads.
Presumably. the possibilities OF other
proposed solutions of the railroads
financial plight will be discussed at
this conference. The administrator
ideas on Government aid and legis-
lation at the next session of Congress
are expected generally to be canvassed
Mr.. Pelley declared at recent hearings
before the fact-finding board, however,
that the wage cut offered the only ade-
quate solution.
Report Is Unanimous.
The board, appointed by the Presi-
dent under provisions of the Railway
Labor Act, summarized its unanimous
report to Mr.. Roosevelt yesterday as
follows:
Il. The wages Of railway labor are
not high, even as compared with
wages in other comparable industries.
=. A horizontal reduction of wages
on . national scale would not meet
the financial emergency Of the
industry, since the savings would not
be distributed merely to the needy
roads.
"3. A wage reduction in the rail-
road industry would run counter to
the trend Of wage rates in industry
generally.
=. The financial distress of the
carriers which has obtained since
october. 1887, when the last wage
increases were granted, is as yet
short-term situation. As such, it
cannot be regarded as grounds for
4 wage reduction especially in view
Of present indications of an improve
nent in the business of the carriers.
IS. In the light of these findings,
the board concludes that the proposal
Of the carriers for a reduction of the
wages of railway labor should not be
pressed. and recommends that the
carriers withdraw and cancel the
notices which would put such
reduction into operation as of Decem-
Der !, l938.'
Personnel Of Board.
The board is composed of Chief
Justice Walter P. Stacy of the North
Carolina Supreme Court. who served
on similar boards in the Coolidge
and Harding administrations; Dean
James M. Lands of the Harvard Law
School, and Prof. Harry A. Mills of
the University of Chicago.
After detailing reasons for its find
ings. the board said it had been
impressed with the necessity that
now rests on the Government for
complete and thoroughgoing recon-
sideration of the relationship of the
railroad industry to our national
wellbeing.'
Both rail management and labor,
the report said, now have a vital
and common concern in the working
out Of an adequate, national trans
portation policy
The board said it also was hopeful
that "a more farseeing financial policy
can be pursued by management with
the cooperation of Government"
Such a policy. it added, should be
designed to avoid the financial losses
Of the past and eliminate the crea-
ton OF corporate structures with too
little fiexibility" to permit them to
survive periods Of depressed business.
The boards work was finished with
the filing of its report, Justice Stacy
told reporters. 1t has no legal power
(See RAILROADS, Page A-l8.)