Evening star., 1942-03-23
j. ). 10 Run Rail Line
Until Labor Dispute
Is Adjusted
Peoria Is First Carrier
Controlled by Government
In n Years
By the Associated Press.

By the Associated Press.
PEORIA, ILL.,, March 23.-The Fed
eral Government held under its
jurisdiction today the Toledo, Peoria
and Western Railroad, one of the
Nations short but vital links OF
transportation and the first hne
taken over by the Government since
the postwar period % years ago.
Formal seizure of the road was
made yesterday when Government
representatives took over active
management of the line, which will
remain under Federal rule until
Anal settlement of labor dispute.
They acted on President Roose-
velt's executive order which was is
sued Saturday after George P. Nc
Near, jr., president of the 239-mile
line, rejected demands to arbitrate
an 85-day- -old strike. Mr. Roosevelts
action was the first seizure of
railroad since the Nation entered
the war
Nine months after the first World
War, President Wilson placed all
railroads and steamship lines under
Government control. 1t was not
until early in 1920 that Congress
acted to have the roads returned to
the private corporations which
owned them.
Barriger Named Manager.
After j. w. Barriger, associate di-
rector of the Office of Defense
Transportation and named Federal
manager of the road, presented Mr.
Roosevelt's seizure order to Mr.. Nc
Near, he announced the Govern
ment would operate the line in
such manner as may be
necessary for the successful prose-
cution of the war"
Mr.. Barriger said that although
Mr.. McNear would remain as preSi-
dent he would ''be on the sidelines
until such a time as the conditions
in President Roosevelt's orders haSe
been fulfilled" He added the roads
control would be turned over to Mr..
McNear when the labor dispute is
settled to the satisfaction of all
parties"
All operating officials except Mr..
McNear were invited by the new
manager to join his staff in the
same capacity in which they have
been employed Mr.. McNear will
have no operational duties, Mr..
Barriger said, and his salary was
"a matter between McNear and the
corporation" Mr.. Barriger and
eight other Federal Government
representatives, who accompanied
the manager here, will be in direct
charge of the roads management.
Mr.. Barriger said title to the
road, which operates between Effner,
Ind, and Keokuk, Iowa, would re-
main with the company; revenues
received from operations would
accrue to the Federal manager, and
a table of compensation for the
road would be decided later.
Employees to Return.
With certain exceptions" all OF
the 104 employees who went on strike
on December % over dispute of a
new contract, will be returned to
their jobs under the working agree
ment which existed prior to the
walkout. Mr.. Barriger explained.
The strike ended Saturday when
the Brotherhoods of Railroad Train
men and Locomotive Firemen and
Enginemen withdrew pickets after
Mr.. Roosevelt'S order.
The unions had contended the
new contract would abolish seniority
in job assignments and reduce
wages. whereas the management
argued the proposed pact would
raise wages an average of 26.7 per
cent. All efforts by Federal agencies
to arbitrate the dispute were un-
successful.