Evening star., 1938-11-13
Telegraph Firms Lose
Plea 10 Pay Boys
Less Than 25c
Wage and Hour Division
Denies kppIicotion-l5
Days Limit on Appeal
BACKGROUND

BACKGROUND
Inauguration OF q 25-cent Udge
for q 4l-hour Deek in interstate
industry has been accompanied
BY requests for exemption BY Ger
tain employers, and In some in
stances by dismissal of workers.
Postal Telegraph announced as
the ldU ,Dent into effect that
1000 messengers would be laid
OF to protect Its financial posi-
tton," while Western Union de-
terred action pending decision on
applicability of the act.
BY the Associated Press.
The Wage and Hour Division of
the Labor Department, in its first
major decision, denied yesterday
the application Of certain telegraph
companies for permission to employ
messengers at wages lower than the
25-cents-an-hour minimum fixed by
the Fair Labor Standards Act.
The decision was made by Will
liam M. Leiserson, who had been
deputized by the administrator, Ell
mer F. Andrews, to represent him
in dealing with the applications,
which were filed by the Western
Union Telegraph Co., the Postal
Telegraph Landline System, and All
America Gables g. Radio, Inc. Mr..
Leiserson is chairman Of the Ma.
tional Mediation Board
A review of the decision may be
granted by the administrator If an
appeal Is made within IS days. II
the companies, without appealing,
were to violate the law as inter-
preted in this decision, they would
be liable under the act to a fine
up to $4,000. and to Imprisonment
for a second ofIense.
Sought Release Under Provision.
The companies sought to be re-
leased from the wage provisions
of the act under Section IA, which
provides:
The administrator, to the extent
necessary in order to prevent cur
tailment of opportunities for en-
ployment, shall by regulations or by
orders provide for the employment
OF learners, Of apprentices and Of
messengers employed exclusively h
delivering letters and messages, un-
der special certificates issued pur-
suant to regulations of the admin.
istrator. at such wages lower than
the minimum wage ."
Mr.. Leiserson decided that the ad-
ministrator was not authorized
under this section to issue such GER
tificates for the $1,000 messengers
involved in the present case, because
such action was not necessary in
order to prevent curtailment of op-
portunities for employment"
The companies had outlined plans
for changes and curtailment of
service If they had to pay the mini
mum wages to messengers, and in
regard to these Mr.. Leiserson COM
mented that the new service would
give employment to persons other
than messengers.
Package Business Held Aided.
Also, he said:
Some of the boys will find en-
ployment with the swireless COM
panies and the errand, package and
advertising deliveries, whose business
will be improved by the elimination
Of competition from underpaid
labor"
Mr.. Leiserson reported the COM
panies paid their messengers, in
general, from 10 cents to "a cents an
hour. He added:
Eighteen per cent OF one COM
pany's metropolitan messengers re-
ported themselves as having families
fully dependent on them for support,
and "A per cent were partially sup
porting families. Some boys are
wholly dependent on their earnings
from messenger service for their own
support"