The Wilmington morning star., 1940-06-01
A. {. L. PREPARES
TO PAY 100000
TO $500 WORKERS
Continued from Page One)

were non-existent and others unfit
for human h%abitation.'
The railroad operates more than
5000 miles of line in Virginia, North
and South Carolina, Georgia, Flori-
da and in Alabama.
Collins Denny, Jr., Richmond,
Va, counsel for the A c L
said the order was enter
ed by the court with the con-
sent of the railroad. The wage and
hour administrator originally
charged that the road was not
keeping its records as required by
law, he said: That it was over
charging certain of it's employees
for rations sold them, and that in
connection with dwellings owned
and other facilities furnished en-
ployes by the road it's rentals and
charges were too high.
Subsequently, he added, the gov
eminent abandoned its charge that
the records were improperly kept
and also abandoned its charge that
the company was overcharging en-
ployes for rations. He said, how
ever, that:
On Reinvestigation
upon careful reinvesigation
throughout the six states in which
it operated the Coast Line did find
instances in which it felt that the
rental and the cost of other facili-
ties charged against employees were
more than permitted by the regula-
tions issued by the administrator.
It, therefore, consented to have the
Injunction order entered"
A separate stipulation, which was
made a part of the judgment, pres
cribed minimum standards Of hous'
ing for which deductions may be
made and prohibited the railroad
from compelling employees to live in
company-owned houses. 1t also di-
rected the company to distribute to
its employees within ten days a notice
setting forth the standards, the rem
tai to be charged and the fact that
they are not required to live in COM
pany houses.
Under terms of the order, the rail
road may make deductions from the
pay Of its employees for the following
services:
"a Railroad unemployment insu'
rance, social security and any unem-
ployment compensation taxes in any
of the states in which the defendant
operates; and any additional such
taxes which the railroad will be re
CURED to pay by virtue of the re
stitutions.
(2) The amount expended by the
employe earned after October "a,
railroad pursuant to garnishment or
1888, when the wage and hour law
attachment of the wages of any such
went into effect.
(3) Membership dues in the rail
roads relief department when the
employe has become a member OF It.
az The amounts charged for ra-
lions purchased by such employees
and paid for by payroll deductions.
90 The reasonable cost to the com
pany of housing facilities voluntarily
accepted and actually lived in by any
such employe on October %. 1888.
and who continued to live therein
As result of the suit filed In
Richmond against the railroad, five
maintenance-of-way employees sueo
the company last June for amounts
they claimed were deducted improp,
erlv from their wages, for an equal
amount in l%iquidated damages and
for attorneys fees. Judge Isaac NJ
Meekins of the U. S. district court at
FAYETTEVILLE, N. c., sustained these
claims February II and rendered
judgments totaling s1,o7s. A similar
s,;t at Waycross, Ca, also resulted
in 3. Judgment against the company.