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Show RAILROADS OIVE OUT STATEMENT Committee of Eight Issues Review Re-view of Controversy With Brotherhoods. VARIABLE CONDITIONS Demand Is Really for Increase in Pay and Not for Better Working Day. Washington, Aug. 29. This statement state-ment to the public was Issued by the committee of railroad president: "We are unable after the most earnest earn-est consideration to agree with the proposal of the president of the United Uni-ted States which is that we accept without arbitration, 'the substitution of an eight-hour day for the present ten-hour day in all of the existing practices and agreements.' This Is the main point In controversy and we cannot surrender it without an opportunity oppor-tunity to be heard in some form of fair arbitration. "We do not assent to the statement state-ment that 'the eight-hour day now undoubtedly un-doubtedly has the sanction of the judgment of society in Its favor.' We believe that society has not yet recorded re-corded its judgment upon this subject. sub-ject. Face Variable Conditions. "We are not in this controversy, however, dealing with the conditions relating to the eight-hour day in the industrial world. The difference between be-tween the eight-hour day in business and manufacturing interests and in the railway train service day has been fully explained. The railroad day is a basis for computing-pay and overtime, the length of daily service being controlled con-trolled by variable conditions. "Tho demands involved in this controversy con-troversy have not been presented in our judgment for the purpose of fixing fix-ing a definite daily period of labor, nor a reduction in the existing hours of labor or change in methods of operation, op-eration, but for the real purpose of accepting an increase of wages approximating ap-proximating 100,000,000 dollars per annum an-num or 35 percent for the men in railroad freight train and yard service ser-vice represented by the labor organizations organiz-ations in this matter.. "After careful examination of the facts and patient and continuous consultation con-sultation with the conference committee commit-tee and managers and among ourselves, our-selves, we have reached a clear understanding under-standing of the magnitude of the questions ques-tions and of the serious consequences to the railroads and to the public involved in-volved in a decision to them. Trustees of Public. "As trustees for the public served by our lines and for the great mass of the less powerful employes (not less than 80 percont of the whole number) interested in the railroad wage fund as trustees also for the millions of people that have invested their savings and capital in the bonds and stocks of these properties and who through the savings banks, trust companies, and insurance companies are vitally interested to the extent of millions of dollars, in the integrity and solvency of the railroads of the country, we cannot in conscience surrender sur-render without a hearing the principle involved nor undertake to transfer the enormous cost that will result to the transportation of commerce of the country. Cost of Elqht-Hour Day. "The eight-hour day without punitive overtime involves an annual increase apnoximatlng in tho aggegate sixty millions of dollars and as increase of more than twenty percent in the pay of men, already tho most highly paid in the transportation service. The ultimate cost to the railroads of an admission in this manner of the principle prin-ciple under contention cannot now be estimated; the effect upon the efficiency effi-ciency of the transportation of the country now already under severe test under tho tide of business now moving mov-ing and at a time when more in- cfo'ifl nt Inot- affn4 In ..nnnJrprl fit TUlb- lic welfare, would bo harmful beyond calculation. "The wide-spread effect upon the industries in-dustries of the country as a whole is beyond measure or appraisement at this time and we agree with the insistent insis-tent and widespread public concert over tho gravity of the situation and the consequences of a surrender by the railroads in this emergency. Executives Deeply Impressed. "In like manner we are deeply impressed im-pressed with the sense of our responsibility respon-sibility to maintain and keep open the arteries of transportation, which carry tho life blood of the commerco of the country, and of the consequences that will flow even a temporary Interruption Interrup-tion of service of the railroads, but the Issues presented have been raised above and beyond the social and monetary mon-etary questions involved and the responsibility re-sponsibility for the consequences that may ariso will rest upon those that provoke it. "The questions involved are In our respectful judgment eminently suitable suita-ble for tho calm mvestigation and determination de-termination by the public through the agency of fair arbitration and cannot be disposed of to the public satisfac-1 satisfac-1 tion in any other manner, Tho decis ion of a commission or board of arbitration arbi-tration having the public confidence will be accepted by the public and the social and financial re-arrangements made necessary thereby will be undertaken under-taken by tho public but in no less deliberate de-liberate nor orderly manner. Would Financially Embarass Many. "The railroads of the country cannot can-not under present conditions assume this enormous increase in their expenditures. ex-penditures. If imposed upon them it would Involve many in early financia embarassment and bankruptcy and im peril the power of all to maintain their credit and integrity of their securities. The Immediate Increase in cost, followed fol-lowed by other increases that would be inevitable, would substantially appropriate ap-propriate the present purchasing power pow-er of the railroads and disable them from extending and improving their facilities and equipment, to keep abreast of the demands of the country coun-try for efficient transportation service. ser-vice. "For these reasons we are with deep regret unable to accept the suggestion made by tho president of the United States. "Wo propose, however, as a basis of settlement, the following: "A The railways will, effective September 1st, 191G, keep the time of all men represented In this movement upon an eight-hour basis and by separate sep-arate account, monthly with each man, maintain a record of the difference of money actually earned by him on the present basis and the amount that would have been earned upon an eight-hour eight-hour basis overtime on each basis to be computed pro rata. The amounts so shown will be subject to the decision deci-sion of the commission provided for in paragraph C of this memorandum apd payable in money as may bo directed di-rected by said commission in its findings find-ings and decision. "B. The Interstate Commerce Commission to supervise tho keeping of these accounts and report the increased in-creased cost of the eight-hour basis, after such period of actual experience as their judgment approves or the president may fix, not, however, less than three months. "C. In view of the far-reaching consequences of the decision made by the president accepting the eight-hour day not only upon the railroads and the classes of labor involved directly in this controversy but to the public and upon all industry it seems plain that before the existing conditions are changed the whole subject insofar as it affects the railroads and the employes em-ployes should be investigated and determined de-termined by a committee to be appointed ap-pointed by the president of such standing stand-ing to compel attention and respect to its findings. The judgment of such a commission would be a peaceful basis for adjustments with labor and such legislation as intelligent public opinion, opin-ion, so informed might demand. "The railroads will accept the findings find-ings of such a commission on the issue is-sue of the eight-hour day basis of pay as compared with the present basis as well as upon any other matters now in controversy that may be submitted sub-mitted to it by either party. "The commission should consist of not less than five members and should also be authorized to hear and determine deter-mine all questions that may arise in the findings of said commission or the working out of such plan as It may propose. "The presidents of the railroads are prepared to continue negotiations on the subject with genuine anxiety, within the limits of their views, above expressed, to find a solution of the situation." nn |