Evening star., 1941-07-31
14Unions CHALLENGE
Railways Claims Of
Inability 10 Raise Pay
Chicago Meetings
Center on Demands
For 70-Cent Minimum
Earlier Story on Pare A-S.)
Nv the Assoctatpd Press

Earlier Story on Pare A-9.)
~ the Associated Press.
CHICAGO, July 31.-Sharply con-
fiicting views on the financial ability
of the Nations railroads to pay in
creased wages marked the initial
conference between rail manage
ment and labor negotiators on de-
r1ands for a pay hike.
The carriers were portrayed alter
nately as financially burdened and
rolling in wealth while each side
produced figures which 1t claimed
proved the point.
The days negotiations centered
on the demands of IA operating
brotherhoods for an increase OF 80
cents an hour in all classifications
and a minimum wage OF 70 cents
an hour. The incorporating groups
consist of telegraphers, track work
ers, machinists and similar workers
numbering 100000.
Basis for Demands.
George H. Harrison, president OF
the Railway Clerks Union, said the
wage demands were based on three
grounds:
/. Railroad wages were inadequate
compared with those in other major
industries
2. Wages have Jagged behind other
comparable wages since l920-rail-
road pay having increased 77 cents
an hour As against more than 10
cents in other industries.
5. Railroad workers were entitled
to participate in the general eco
nomic progress Of the country.
r. C. Gurlev. chairman OF the
carriers Executive Committee. as
serted that railroad statisticians had
figured that 1t would cost the rail-
roads 5000 .ooo,o 900 a year to meet
the wage demands Of the rail unions.
The five operating unions, repre-
senting 35o,ooo engineers, switch
men, conductors and similar en-
ployes. have demanded a 80 per cent
boost in pay.
Mr.. Gurlev contended that Ameri-
can railroads had never earned
net income OF 5000 100000 a year
and pointed out that the carriers
must use net income for equipment
and improvements, as we'll as for
increased wages.
Net Income Cited.
Mr.. Harrison challenged Mr.. Cur
ley's statement, asserting that the
mpyin t,1r I,ts
year would approximate Ia billion
dollars.
The carriers and unions dead
locked on the proposal to change
working rules and turned it over TO
the National Railway Mediation
Board
Instead of being poverty stricken
the railroads are rolling in wealth.
all you have to do is uncover it,"
Mr.. Harrison said.
Mr.. Harrison contended that the
railroads today were making the
biggest profits in 80 years, and that
they were paying 81 cents in wages
and material for every 81 taken in:
Labor. Mr.. Harrison. said, has be-
come progressively less OF an item
In the railroads budgets. He listed
the average wage of men in the
incorporating unions at STA, cents
an hour, compared with 81 05 in the
auto industry, TIA cents in the
lumber industry and 81 cents In the
rubber industry.
That's what we're squawking
about" he said
Bert M. Jewell, president of the
railway employees department of the
American Federation of Labor,
argued in similar vein, declaring
that the minimum railroad wage
rate was So cents an hour, compared
with 6s cents in comparable in
dustries. Railroads will be unable
to compete for labor under present
conditions unless they hike wages.
he contended.