Evening star., 1938-10-31
Rail Aid Law
Declared Aim
Of President
Conference Held at
White House-New
Porley Planned
BY the Associated Press.

Inc PRESIDENT expressed the hope,
Mr.. Pelley said, that such a program
would be drafted by the informal
committee representing railroads
and rail labor which the President
named several months ago.
Mr.. Pelley said the President had
asked him to ascertain the attitude
OF the railroads toward the fact
finding boards report recommend
ing cancellation of the proposed Is
per cent wage cut.
The rail association head said he
agreed to do so, adding that his
"best guess" was the managements
would hold a meeting in Chicago
next week to outline their stand on
the report.
The informal committee he re-
ferred to, now in Washington con-
sidering the entire rail problem, was
named by the President several
months ago.
Mr.. Pelley said the President
feels quite hopeful that through
this committee he will get recon-
mendations that will result in a
constructive program for the rail-
roads"
He promised to do everything
possible to get such a program
enacted into law" Mr.. Pelley added
He said the President indicated
the committee, now composed of six
members, would have to be ex-
panded before it's work is done.
Questioned by newsmen, Mr.. Pei
ley said it went without saying that
Mr.. Roosevelt would be very much
pleased" to have the wage contro-
versy settled 'on a peaceful basis -
Asked If the President requested
him to have the railroads accept the
fact-f1nding boards report, Mr.. Pei
ley said he did not believe the Presi-
dent went that far.
Wants to Know Attitude.
THE President asked me-" he said.
TO find out the attitude of the
railroads regarding the decision of
the board and to let him know. and
l told him l would"
He added he would let the presi.
dent know after the Chicago meet
ing.
He called attention to the fact
that the boards report spoke of the
possibility of individual settlements
by separate roads. rather than on a
national basis.
He said he propably would issue
the call for the Chicago meeting late
today, after comforting with the car
rlers' conference committee headed
by H. A. Enochs.
IhlS committee met this morning
During recess OF this meeting,
Mr.. Enochs told newsmen he prob
ably would be able to announce
later in the day the date of the meet
ing in Chicago.
All Disappointed.
Mr.. Enochs said I'VE are all dis
appointed" with the report. but we
must give 1t calm and deliberate
Judgment
We're all law-abiding citizens
and have had this case heard by a
very high type of men, he added.
Mr.. Enochs declined to predict
what action the railroads would
take. He said he had received no
communications from any road in
dicating whether it would accept or
reject the proposals.
The rail executives spokesman
also commented that the boards re-
port still left the problem of finding
money with which to meet the rail-
roads expenses.
Despite the boards report, some
railroads still owe bills for supplies, !"
he said.
Besides Mr.. Pelley, George M. Har-
rison, head of the Railway Labor
Executives Association, also has been
invited to the conference with the
President.
Boards Efforts Futile.
The Emergency Board report to
the President Saturday said the
board had exerted every effort to
bring about a settlement of the
wage dispute, without success.
1t held that no wage reduction
was justified because railroad salaries
were not higher than those in other
industries and because the financial
distress of the carriers thus far was
a "short-term" problem.
The board suggested that repre-
sentatives of the Government, the
carriers and the public sit down
together to work out IAN adequate
national transportation policy" II
offered no specific legislation.
Rehabilitation Loans.
In New York, some executives said
the administration might grant the
carriers $1,000, 900, 900 of rehabilita-
ton loans, which could be repaid or
easy terms. Authorities here said
however, the railroads most in neeG
of such loans might have consider
able difficulty obtaining the Inter-
state Commerce Commission ap-
proval required by existing law.
A vast lending program was dis
cussed in the last congressional ses-
sion, but no action was taken. Mr.
Roosevelt told Congress last spring
that something should be done for
the railroads, and he may offer more
specific recommendations at the next
session.
The present wage controversy is
one of series which has occurred
intermittently over more than half
a century. The latest began in May,
when the major carriers served
notice of IS per cent wage reduc-
ton July /.
Negotiations between the roads
and their employees failed to bring
an adjustment. Acting under the
Railway Labor Act, the National
Mediation Board requested the
parties to submit the controversy to
arbitration. .
The employees refused and the
carriers then notified the workers
the cut would 60 into effect
October l.