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Show Chief Executive Makes Dramatic Appeal to the Thirty-three Magnates Present at Conference and Summons More Presidents to Washington. Wash-ington. SITUATION GRAVE, BUT NOT HOPELESS Hale Holden Issues Statement on Behalf of the Roads, Insisting Upon Arbitration ; Commercial Interests May Also Be Heard. WASHINGTON, Aug. 19. President Wilson appealed to the railroad officials today to abandon their insistence on arbitration of the dispute threatening a nation-wide strike and to accept his plan of settlement, already agreed to by the employees, because, in his opinion, opin-ion, the railroads are contending for a principle which it seemingly is impossible impossi-ble to apply to the present situation. In one of the most dramatic scenes known to the White House in recent years, the president declared to the heads of $5,000,200,000 worth of property, prop-erty, assembled at his summons: "If a strike comes, the public will know where the responsibility resta. It will not be upon me." A few minutes later he issued a statement, state-ment, saying: "The public has a right to expect" acceptance oi nis plans. Hale Holden's Reply. Refusing acceptance for the present, but not giving a final answer, Hale Holden, Hol-den, president of the Burlington road and spokesman for the thirty-three railroad rail-road officials, urged the president to uphold the principle of arbitration and declared his plan would "place in peril all that has been accomplished in the peaceful adjustment of labor controversies contro-versies by methods of arbitration." At the close of the conference President Presi-dent Wilson summoned to Washington additional presidents from the west, and the executives already here told him they would confer among themselves and return next week, probably Monday. In the meantime representatives of both the roads and the employees will re-' main here for informal conferences. Grave, But Not Hopeless. The situation tonight was described by a railroad president as "not hopeless, hope-less, but grave." It will be at a standstill stand-still until Monday at least. Discussion of counter proposals and compromises was current, and Berious consideration was given to the possibility of government govern-ment operation of the roads in case of a Btrike. As a result of the day's conferences, however, it was said on good authority upon the possibility of a strike as more remote than at any time since they came to Washington. Over the week-end it was anticipated that the railroad officials offi-cials will get into communication with the controlling financial interests and it still was cousidered possible that some of the powerful directors of the roaris would be called to Washington. Both among the employers and employees talk of arrangements for a strike continued con-tinued and for different reasons both sides thought if it came it would last less than a week. Believes in Eight Hours. While President Wilson was still addressing ad-dressing the railroad executives, telltng them they faced "a condition, not a principle," prin-ciple," his statement to the country, reviewing re-viewing his plan and characterizing it as "a thoroughly practicable and fiilr programme." pro-gramme." was given out tit the Whito house. In the state men t. he urped the adoption of tho eight -hour law because he "believed the concession right." suggested sug-gested the creation by congress of a small body of men to Investigate the results, re-sults, and urged the abandonment of the-demand the-demand for time and a half overtime pay by the men and the "contingent" proposals pro-posals by the railroads. Mr. Holden insisted upon arbitration In his replv to the president because "it is essentially the common rlyht of everv citizen of whatever condition In life to be heard," and because experience "has put the right to claim arbitration as a (Continued on page Eight.) RAILROAD MM IGl CONFER MJM1 President Makes Dramatic Appeal for Acceptance of His Plan to Avert the Threatened Strike. (Continued from Page One.) i method of settling such controversies be- ' yond question." 1 . He argued that the eight-hour day is , ' impracticable in railroading and said the , roads are willing for the Interstate commerce com-merce commission or any otiier disinterested disinter-ested body to arbitrate the whole ques-; ques-; tion. The demand for the eight-hour ' ; day is, in reality, he declared, only an indirect plea for "an enormous Increase ) ; in wages." and said that "in this instance . . for those demanding1 a change to refuse indefensible." '; Statement of the Men. W. G. Lee, head of the Brotherhood of Railroad Trainmen, gave out a brief statement tonight on behalf of the men, pointing out that in accepting- President "Wilson's plan the employees "surrendered a very large portion of their demands," while l he railroad companies "seem about as unwilling tu accept suggestions from the president of the United States as lliey have in the past refused to con- sider requests from their employees." He added the workmen would remain here, i but would take no further action until ;'' released by Mr. Wilson. The railroad officials found two points in President Wilson's public statement of his settlement plan that comforted them and led to a belief that eventually there will be an agreement averting a strike. The first was a hint that, if the facts warranted, the Interstate commerce commission com-mission might grant an increase in freight rates, and the second was a suggestion that the eight -hour base would be accepted ac-cepted only tentatively and might be ter-minted ter-minted after investigation by the commission com-mission provided under the president's plan. The railroads all along have contended . that the facts relating to pay of men ' will not justify the eight-hour day, and some of them are said to feel that in- : cannot fail to back up that position. The companies would be under additional expense ex-pense while the investigation was in progress, but in the opinion of Mr. Wilson its work would be done expeditiously and a report might be expected . in a few-months. few-months. Other Interests to Decide. The railroad officials, however, evidently evi-dently feel that before a decision ia reached every opportunity should be given other business Interests to decide what might bo the effect on them of an eight-hour railroad day. There was no concealment of the fact that some of them believe many manufacturers and shippers are bound to register at the White house their opposition to their proposal, and that pressure will be exercised exer-cised to have members of the senate and house express to the president their convictions con-victions along the same line. ' Each part of the president's proposal , Is expected to be taken up separately, and the answers given to the White house separately. This fact and the fact that the western executives cannot reach , Washington for several days will con- i . tribute to the executive's plan to consider ! the whole problem slowly and give ample opportunity for everv detail to impress itself upon the public mind. It was after a prolonged meeting at their hotel that the railroad presidents went to the White house shortly before noon today to listen to Mr. Wilson's appeal ap-peal and to outline their tentative position. posi-tion. At the same time the general committee com-mittee of employees held1 a meeting, but only marked time awaiting the decision of the officials. Welcomed in Blue Room. President Wilson welcomed the railroad officials In the Blue room and, after Mr. Hold en had stated their position, began a dramatic appeal whfch left his visitors sobered and thoughtful. At times striding up and down in front of the small group and emphasizing telling points by shaking his fist, the president told the railroad executives blunUy he believed they should aocept his plan. "We must face the naked truth in this crisis," he said. "We must not discuss impractical things. We must get down to a basis on which this situation can be solved." Solemnly Mr. Wilson pointed out that he represented the 100,000,000 people of the nation, every one of whom had a deep interest in-terest in the threatened strike. He said his only object was to avoid a break. In a voice rising at times so that it could be heard outside the closed doors, he declared de-clared he had tried to bring about arbitration, arbi-tration, that his efforts had failed and that he had no way of forcing its acceptance. ac-ceptance. Congress, he declared, would not pass a compulsory arbitration law. After the conference, the president told Mr. Holden lie would be ready to receive re-ceive the executives again whenever they were ready. He remained at the White house most of the afternoon, but finally it was determined to postpone a further conference until the arrival of the western west-ern railroad presidents. Brotherhood Meeting. While the brotherhood men were in session today at their hall the president sent word to officials of the unions that they might excuse their members until Monday. Some of them, he thought, might desire to leave Washington over Sunday and he did not wish to hold them here unnecessarily. Tonight they are leaving town for near-by resorts by scores. W. G. I,ee left for his home in Cleveland Cleve-land and will return Tuesday. The other heads of the brotherhoods said they would spend tomorrow quietly and see no one before evening. They intimated that they might make a formal reply to the railroad managers' statement at this time. They would not comment on it tonight. The brotherhood men have made no complaint over the length of time they have had to remain here and their leaders predicted tonight that they will be willing will-ing to stay another week if it seems necessary. None of the leaders, however, thought the negotiations would last that long. They expect a climax in the situation situa-tion Monday or Tuesday when the other railroad presidents arrive. Protested in Advance. Many of the brotherhood men called on their representatives in congress today and protested in advance against any compulsory arbitration bills which might be introduced. The men are fearful that the railroads may try to put through such a hill. . There Is only one bill that the brotherhood brother-hood men are anxious to see come out j of the present agiiatlon. That would be i a measure to empower the government. I In case of a strike, to operate the railways rail-ways with the present crews on an eight-hour eight-hour basis pending a settlement of "the differences between the railroads and their employees. One of the leaders "guessed" today that such a bill would be introduced in case of a strike. He said he thought a measure of that character already prepared for introduction might be found somewhere now. Might Break Strike. Among the railway executives the claim was made tonight that a strike could be broken within a week. It was declared the idea that the country's commerce would be stopped Immediately was entirely wrong. Attention was called to the fact that a large number of railway employees voted against a strike, and it was claimed that many cast an assenting vote upon the understanding that no strike actually would be called. The claim was made that, in case of a strike, many of the old engineers would refuse to go out and that with these men the railways would be able to continue operation of trains. Some time aso the managements were said to have called for volunteers to serve In the event of a walk- j out. Many responses were received, it i ' was asserted, from among the 400,000 men in shop service, engaged in building or repairing locomotives and familiar with their operation. A great number of men would not be needed, it was said, hiuhlv trained workers not being needed to fill positions as trainmen. Many Men Available. Some railroad officials believe that as many as 15 or 20 per cent of the normal number of employees would be available for service, enough to guarantee the movement move-ment of all necessary freight. All shipments ship-ments for export would, they concede, probably cease immediately, Including shipments of war munitions. These claims are all denied vehemently by the brotherhood men, who contend they have so firm a grasp on the situation situa-tion that they could bring the roads speedily to terms should a strike be called. The western road executives summoned by the president today are: Tenuis W. Hill, Great Northern ; J. M. Hannaford, Northern Pacific: J. M. Dickinson, Rock Island ; K F. Kearney, Wabash ; W. C. Nixon, St. Louis & San Francisco; H. TJ. Mudge, Denver & Rio Grande; C. M. Levey, Western Pacific; W. G. Besler, Central Railroad or New Jersey; E. Pennington. Pen-nington. Minnesota, St. Paul & Sault Ste Marie; M. M. Smith, Louisville & Nashville; Nash-ville; C. 13. Schall, Missouri, Kansas & Texas; Edwin Gould, St. Louis & Southwestern. South-western. Tonight the railroad presidents here sent to the White house a list of about seventy ; other officials whom they thought should be invited to the next conference if the president expects it to be a representative gathering. Supplemental Statement. A supplemental statement regarding the clsht-hour day, directed particularly at President Wilson's contention that some southern roads already have adopted the eight-hour day without disastrous effect, was issued tonight by the railroad officials. offi-cials. It pointed out that most of the men working on an eight-hour basis are employed in moving fast freight, for which freight rates are high. "Some of the roaas in the southeast now have the eight-hour basic dav, but affecting through freight service onlv and including less than 50 per cent of the men in the freight service," said the statement. "All the men in yard service and those running local frpiE-Ms nnri mine runs are on the ten-hour basis, while on many branch lines ten and twelve-hour basic days prevail " President's Statement. President "Wilson 's statement follows: fol-lows: I have recommended the concession conces-sion of the eight-hour day that is, the substitution of an "eight-hour day for the present ten-hour dav in all the existing practices and agreements. I made this recommendation recom-mendation because I believe the concession right. The eight-hour day now undoubtedly has the sanction sanc-tion of the judgment of society in its favpv and should be adopted as a basis for wages, even where the actual work to be done cannot be completed within eight hours. Concerning the adjustments which should be jnade, in justice to the railroads and their stockholders, stock-holders, in the payments and privileges privi-leges to which their men are now entitled (if such adjustments are necessary), there is a wide divergence diver-gence oi opinion. The railroads which have already adopted the eight-hour day do not seem to be at any serious disadvantage disad-vantage in respect of their cost of operation, as compared with the railroads that have retained the ten-hour day, and calculations as to the cost of the change must, if made now, be made without regard to any possible administrative economies econ-omies or readjustments. Experience Needed. Only experience can make it certain cer-tain what rearrangements would be i.in aim t-ijui Lduie turner un uenan of the men or on behalf of the railroads. rail-roads. That experience would be a definite guide to the interstate commerce com-merce commission, for examplo, in determining whether, as a consequence conse-quence of the change, it would be necessary and right to authorize an increase of rates for the handling and carriage of freight (for passenger pas-senger service is not affected'). 1, therefore, proposed that tho demand de-mand for extra pay for overtime made by the men and the contingent contin-gent proposals of the railroad authorities au-thorities be postponed until facta shall have taken the place of calculations, cal-culations, and forecast with regard to tho effects of a change to the eight-hour day; that, in the meantime, mean-time, while experience was developing develop-ing the facts, I should seek and, if need be, obtain authority from congress con-gress to appoint a small body of . impartial men to observe and thoroughly thor-oughly acquaint themselves with the results, with a view to reporting report-ing to congress at tho earliest possible pos-sible time the facts disclosed by their inquiries, but without recommendation recom-mendation of any kind, and that it should then be entirely open to either or both parties to the present pres-ent controversy to give notice of a termination of the present agreements agree-ments with a view to instituting inquiry in-quiry into suggested readjustments of pay or practice. This seems to be a thoroughly practical and entirely fair programme pro-gramme and I think that the public pub-lic has the right to expect its acceptance. ac-ceptance. Holden's Statement. ' Later the railroad managers made public pub-lic the statement which President Holden Hol-den of the Burlington railroad made to President Wilson at ttiA cnnfprpmn T says: The representatives of the railroads rail-roads here present have given careful care-ful consideration to the proposals submitted by you for an adjustment of the critical conditions confronting confront-ing us. May we again express tho grave sense of responsibility upon our shoulders to discharge, as faithful faith-ful trustees of the public interest, the duty to maintain and operate these properties as agencies, efficient effi-cient at all times to serve the continuous con-tinuous public demand for transportation transpor-tation service as faithful trustees also to protect, in so far as it is in our power, the interests of the owners own-ers of these properties committed to our charge. In the previous stages of these negotiations the conference committee commit-tee of managers has consistently adhered ad-hered to the policy of arbitration as a fundamental principle it is essentially the common right of everv citizen, of whatever station in life, to be heard to have his day in court it is indeed a substitute for wasteful litigation recognized long since in the codes of all civilized civil-ized countries. Right to Be Heard. A denial of the right to be heard does not exist under any form of government with which our race has ever been familiar, and the common acceptance in international affairs in the adjustment of public and private pri-vate rights under our fedoral and state governments of the principle of arbitration as an approved method for the friendly settlement of tho serious contentions of the parties has put the right to claim arbitration as a method of settling snch controveries beyond, question. For these reasons wo nave supported our committee in their continuous demand, and in those important particulars par-ticulars upon which no agreement could be reached arbitration should be accorded upon any reasonable basis that might be adopted. The eight-hour day I shall not at this time stop to fully analyze ' or comment on tho importance of tho difference between the eight-hour day as commonly understood in the building and manufacturing trades and the so-called eight-hour basic day demanded in this controversy the eight-hour day is, in our mature judgment, when considered in connection con-nection with railroad train orvice, a question upon which honest minds may differ and is therefore necessarily neces-sarily a subject for arbitration. In . that matter tho contentions of tho parties may be considered and a fair answer given. Social questions affecting the ordinary or-dinary work day in which for which six days a week a regular daily routine is pursued, are those which determine how long, during each of those periods, the laborer should work, and while in some states eight hours has been adopted as the desirable or compulsory maximum, this broad land is today teeming with the contented and efficient industry in-dustry of millions of workers that are working more than eight hours a day. Tho precedent, therefore, exists it exists in fact and the right or wrong of it, as we feel, has not yet in this country passed beyond the realm of debate. But these are not our problems. Tho railroad day is a different thing, as has been patiently, and, I infer, many times explained. Railroad Rail-road trains run throughout the twenty-four-hour period the public pub-lic demands that .they run on Sundays Sun-days and holidays they start at any hour that the necessities may demand they cannot stop until a terminal is reached, and many conditions, con-ditions, stated and accidental, render ren-der it impossible to restrict the hours of railroad labor to a fixed standard. Ten-Hour Basic Day. In a general movement of some years ago the present ten-hour basic day was negotiated and approved by the representatives of railroad labor throughout the country, and has continued with some exceptions to the present day. These exceptions excep-tions have been worked out under local conditions different often from the general conditions affecting tho question. In several important arbitrations arbitra-tions of railroad rates of pay and conditions of service within recent years the last within two years involving ninety-eight railroads serving the entire territory between Chicago and the Pacific coast, iho ten-hour basic day was incorporated in the demands of the organizations parties thereto and made the basis by them of the rates and rules awarded by tho federal board. At the present time in a controversy con-troversy now pending over the identical iden-tical questions involved here, and in which numerous important railroads rail-roads and a national organization of switchmen are parties, an arbitration arbi-tration through the friendly offices of the federal board of mediation has been agTced to, wherein tho question of an eight-hour basic day has been submitted as an arbitrable question. Stand for Arbitration. We stand for the principle of arbitration ar-bitration for the settlement of in dustrial disputes. Arbitration is tho ideal toward which public sentiment and legislation of this country have been steadily tending for the settlement set-tlement of disputes between employers em-ployers and employees, particularly particular-ly in the case ot public service corporations cor-porations rather than the strike and the lockout, with attendant disturbances dis-turbances and paralysis of public business. Arbitration has been provided pro-vided bv legislation, both state and national. So late as 1913 the federal fed-eral law was perfected or improved by amendments framed in conference confer-ence with some of the railroad labor la-bor leaders now refusing to arbitrate, arbi-trate, and includes in its scope all controversies in railroad service. Wo invoke that principle now and are willing for the interstate com-nierce com-nierce commission to arbitrate the whole question, Afore than that, we are willing for the president of tho United States to appoint a commission of disinterested persons to arbitrate all mattera in dispute if neither the interstate commerce commission nor the machinery of the Newlands act is satisfactory to the labor leaders. But we have been met with a refusal re-fusal to arbitrate in any manner, and are now asked to surrender the principle and to add an additional burden of many millions per annum an-num to tho cost of railroad transportation trans-portation in this country, for the benefit of a class who are among the most highly paid and favored workmen in the world. This is demanded de-manded under tho gnise. of a plea for an eight-hour day. It is in reality only an indirect plea for an erormous increase in wages. Public Bears the Burden. The intricate and technical na- mo case, unu too complexity complex-ity of the facts, make the controversy contro-versy pre-eminently one for arbitration arbi-tration by an impartial tribunal with authority to examine into every factor and reach a decision fair and just to the employees, the owners and the public, which ultimately ulti-mately must bear the burden. To refuse to arbitrate is an admission of the unreasonableness of the demand. de-mand. Moreover, the refusal is by those demanding a vital change in an existing status. For a party to demand a change of such a status and accompany the demand with a refusal to arbitrate, is in conflict with right standards of conduct. In this instance, for those demanding a change to refuse to submit their demands to arbitration is indefensible. indefen-sible. To say that such a demand as that now presented for a revolutionary revolu-tionary change in the arrangements that have grown up in the development develop-ment of the railroad business and involving so many complicated facts and relations and such vast additions to tho cost of the country's coun-try's transportation is not arbitrable arbi-trable is to destroy the principle of arbitration, and, if successful, would in our judgment tend immediately imme-diately to discard all of the legislation, legisla-tion, state and national, which has been enacted in recent years, and set the country back to the old days of strikes, lock-outs, public disorder and business anarchy for the settlement of qpestions inherent in the relation of employer and employee. em-ployee. Grave Question Raised. The view that so important an issue as this may not in conscience bo honestly debated and therefore arbitrated, raisos this question above and beyond the lessor contentions conten-tions of hours of service, or payment pay-ment of wages it raises it, in gravity, beyond the social or monetary mone-tary questions affecting the parties before you, because it tends to force, by the great weight of your spoken word, the railroads to surrender sur-render a right to be heard a right expressly recognized by the policy of the federal legislation enacted ' for the purpose of adjusting these disputes, and under tiio ban of your disapproval, expressed before "tho bar ot public opinion, to acdept ns indisputable, conditions rcquir- I ing, as wo believe, an enormous saeriliee in efficiency of service and cost of operation of these properties. proper-ties. An adjuslment in this manner man-ner will not Btop with this controversy. contro-versy. It will be repeated in every industry wherein today industrial peace exists without controversy. It will, by the force of this high, precedent, place in peril all that has been accomplished in the peaceful adjustment of labor controversies by methods of arbitration, and therefore we present to you our respectful re-spectful but earnest request that you do not lend the weight of your great influence against this right, which we claim, to be heard, but support the railroads in this crisis in the effort to maintain this great principle of arbitration. j |