Evening star., 1940-05-31
Atlantic Coast Line.
Must Refund S26o,o0o
To $500 Employees
Amounts Improperly
Deducted Under Wuqe-
Hour Law, Decree Asserts
~ the Associated Press.

0C0uStSu OuuSI VuSS
Hour Law, Decree Asserts
~ the Associated Press.
RICHMOND, Va, May 3l.-Fed-
'eral Judge Robert N. Pollard di-
Tected the Atlantic Coast Line Rail-
road today to make restitution of
AN estimated $260,O0O to approx
mately $500 maintenance of way
employees for wages which the Wage
and Hour Administration charged
the company had deducted i'm
properly.
The consent decree, entered in the
District Court for Eastern Virginia
dlrected the company within two
months to compute the amount due
each employe and submit it for the
approval of the Wage and Hour Di-
vision Of the Labor Department.
The division, which made the esti-
mate of the amount due, may reject
the computations or make its own
dts determination will be final.
Z In its complaint, filed against the
railroad May 4, 1899. the Wage and
Hour Division charged the company
with arbitrarily deducting from the
pay OF its maintenance-of-Wa en-
ployeS unreasonable sums for the
rental of houses, many of which
were non-eXistent and others unfit
for human habitation."
The railroad operates more than
5000 miles of line in Virginia, North
rnd South Carolina, Georgia, Flor
Ida and Alabama.
Two Charges Abandoned.
z Collins Denny, jr., local counsel
Tor the A. G. L., said the order was
entered by the court with the con-
sent of the railroad The wage
and hour administrator originally
Charged that the road was not keep
ing its records as required by law. He
said: That it was overcharging cer-
tain of its employees for rations sold
them and that in connection with
dwellings owned and other facilities
furnished employees by the road its
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:
upon careful reinvestigation
throughout the six States in which
1t. operated the Coast Line did find
Instances in which it felt that the
rental and the cost of other facilities
charged against employees were more
than permitted by the regulations
issued by the administrator. 1t,
therefore, consented to have the in
junction order entered"
Mr.. Denny said the wage restora-
tions would be made as soon as the
individual amounts could be calcu-
lated and approved by the wage and
hour administrator.
Housing Standards Prescribed.
A separate stipulation, which was
made part of the judgment, pre-
scribed minimum standards of
housing for which deductions may
De made and prohibited the railroad
ffom compelling employees to live in
'pmpany-oWned houses. 1t also di-
fected the company to distribute to
Its employees within 10 days notice
setting forth the standards, the
rental to be charged and the fact
that they are not required to live
in company houses.
Under terms of the order, the
fsilroad may make deductions from
the pay of its employees for the fol-
lowing services:
l. Railroad unemployment insur-
ance, 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-
quired to pay by virtue of the resti-
tutions.
2. The amount expended by the
railroad pursuant to garnishment or
attachment of the wages of any such
employe earned after October "a,
1888, when the wage and hour law
went into effect.
! Relief Membership Dues.
20. Membership dues in the rail-
roads relief department when the
ennploye has become member of it.
20. The amounts charged for ra-
tons purchased by such employees
and paid for by pay roll deductions.
,,(5). The reasonable cost TO the
company of housing facilities volun-
tarily accepted and actually lived in
by any such employe on October %,
1898, and who continued to live
therein.
"A schedule of reasonable" rentals
per month was set forth and pro-
visions made that no deductions could
be effected for housing unless rooms
met prescribed minimum size and
unless sanitary facilities and water
supply were reasonably accessible
AID kept in reasonable repair
The judgment said no other de-
ductions could be made without the
consent of the administrator of the
Wage and Hour Division.
- Employees Won Suit.
tAs result of the suit filed here
against the railroad five mainten-
apCe-O1-Wdy employees Sued tne COM
pany last June for amounts they
claimed were deducted improperly
from their wages, for an equal
amount in liquidated damages and
for ,atttorneys' fees. Judge Isaac
M Meekins of the United States
district Court at Fayetteville. N. c.,
sustained these claims in February
and. rendered judgments totaling
$l,Q79 A similar suit at Waycross,
Ca also resulted in a judgment
against the company.
Following these judgements, the
railroad agreed not to contest fur
thef the case pending against it in
the, District Court here.
French Spokesman Laws