Evening star., 1941-12-05
Bowed 10 Expediency
Under Strike Threat,
Rail Board Reports
Sow Peril in Wage Boost,
But Couldn't Stond Labor
Pressure, President Told
By JOHN {. HENRY.

Despite conviction that original
wage increase recommendation
were as high as could be justified.
President Roosevelt's Emergency
Board handling the railroad wage
dispute bowed to expediency and
the threat of a Ma wide strike
in devising compromise more bene-
fetal to labor. the board reported
to the Chief Executive today.
As in the case Of its original re-
port. the board discussed at con-
siderable length the economic i'm
plications of boosting wages in the
spiral of increased cost OF living,
but warned in this case that antici-
psted wage increases are dangerous
factors in themselves.
The board. composed of college
professors and lawyers and without
representation from either manage
ment or labor has functioned under
the Railway Labor Act. Their COM
promise. already accepted by man.
agement and assured of acceptance
by labor. forestalled a strike sched-
uled to begin on Sunday.
Heard No New Argument.
In its supplementary report the
board disclosed that counsel for the
employees had failed to present any
new arguments during the second
/, t,,1t 1,od
emnhasiz dissatisfaction of labor
with the original recommendations
and had Threatened to enforce
their demands by striking
The board also noted that coun-
sci for labor had repeated pre-
vious charge that the original rec
concentrations had failed TO win
the approval of the President"
The board drew a careful distinc-
ton between It's opera tions as a
quasi judicial body. as it was orig
inallv set up. and its subsequent
operation as mediation agency.
In the first capacity, members in
sisted that they would not have
been justified in modifying their
recommendation under pressure
by either party"
Significant of the power of the
railroad unions and their threat
to tie up the transportation facili-
ties however. was the following as
Sertion by the board
Public officers when called
upon by parties 10 help them settle
a controversy. by the process of
mediation. cannot ignore the ac-
ceptability of any proposed settle
ment to the particular party which
has the greatest economic power
to enforce its demand in labor
dispute"
Increase Held Unsound Policy.
Rejecting contention of labor that
the recommended ~ per cent in
crease was insufficient. the board
reported as follows to the President:
During normal times there is
every justification for labor to seek
not only to maintain but to improve
It's standard of living, but If the
defense program undertaken in this
period of national emergency is to
meet with success. workers and en-
ployers alike must be prepared TO
make sacrifices. Unless this hard
fact is clearly recognized our coun-
try faces disaster.
The board shares the appre-
hension of the employees that the
cost of living may rise swiftly dur
ing the coming year. Yet the board
believes that 1t is not sound policy
to grant wage increases in antici-
patton of continued rise in prices.
Such a policy can only aggravate
the very difficulty that it aims to
overcome. The difficulty can best
be dealt with by the adoption of a
comprehensive plan in regard to
wages, profits and the prices of
both agricultural and industrial
commodities.