Evening star., 1939-04-20
|. &C. Claims Riqht
To Project Workers
In Rail Mergers
Backs Authority to
Impose Conditions in
6-to-4 Vote
By the Associated Press.

By the Associated Press.
The Interstate Commerce Com
mission ruled today that it has au-
thority to impose conditions for pro-
lection of labor in authorizing rail-
road leases and consultations.
BY a 6-to-4 vote, the commission
upheld decision by its three men,
ber Division No. 4 last October in
this regard.
The commissions ruling was in a
decision authorizing the Chicago,
Rock Island g. Pacific Railway to
lease the properties of the Chicago,
Rock Island & Gulf Railway. The
Gulf Railway operates only in Texas.
Trustees Of the Rock Island esti-
mated leasing of the Gulf would re-
suit in an annual saving of 500 900.
The plan involves transfer Of 20 en-
ployes from Fort Worth to the Rock
Island accounting Offices at Chicago
and dismissal Of 40 other workers at
Fort Worth unless business increases
sufficiently to warrant retention of
some of them.
Authority Challenged.
Conditions imposed by the com.
mission In approving the lease are
designed to protect employees who
would be required to accept reduced
compensation, those who would be
dismissed, and those who would be
required to change their places Of
residence to other points on the
Rock Island system.
The Rock Island contended the
commission had no authority to i'm
pose labor conditions.
I'VE are not attempting to ex-
ercise jurisdiction to regulate en-
ployment, nor the compensation Of
employees, nor their expenses" the
commission said. I'VE are simply
attempting in the public interest
reasonably to protect those employees
OF the applicant who may be ad-
versly affected economically by the
grant Of authority herein against
unavoidable but unreasonable and
unjust burdens which are not in
the public interest"
Commissioner Joseph B. Eastman
said In concurring opinion that he
thought there is reasonable doubt
whether in approving this lease we
have power, as the law now stands,
to attach condition for the pro-
lection of the railroad employees who
may be adversely affected thereby
but added:
Such protection is desirable and
In the public interest and I believe
the commission is justified In re-
solving the doubt in favor of the
condition"
Similar to 1896 Agreement.
Calling it much ado about very
little" Commissioner Eastman said
the protection prescribed for the
Gulf employees was substantially the
same as that provided in the 1896
job-protection agreement. Most of
the railroads now subscribe to the
agreement.
Chairman Marion M. Caskie dis
sented, saying he did not agree with
the majority that the commission
had authority to impose conditions
for the protection of employees who
would be adversely affected by the
lease.
II am fully sympathetic with the
humanitarian efforts Of the major
ity," Chairman Caskie said, adding
that he did not believe the Interstate
Commerce Act gave the commission
jurisdiction to prescribe labor con-
ditions Notwithstanding that they
are inherently just and reasonable"
Commissioners Charles D. Ma
hattie, William E. Lee and Carroll
Miller joined in dissenting, while the
commissioners who joined In the
majority we're B. H. Meyer, John L.
Rogers, Claude R. Porter, Frank
McManamy, Walter M. w. Splawn
and Mr.. Eastman.
Commissioner Clyde B. Aitchison
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