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(The memorandum was identified as "B. of L. E. Exhibit No. 1” and follows in the record at this point :)

B. OF L, E. Exhibit No. 1

Where a carrier desires to establish interdivisional, interseniority district, intradivisional, or intraseniority district freight and passenger runs in assigned or unassigned service (including extra service), on either a one-way or turnaround basis and through established crew terminals, the carrier shall give notice to the general chairman of its desire to establish such runs, whereupon the carrier and the general chairman shall endeavor to agree upon the condishall apply when such service is established or enlarged upon.

In the event the carrier and the general chairman are unable to agree, the carrier may take the matter up with the brotherhood chief who will himself, or through his designated representative, assist in securing agreement under the processes established by the Railway Labor Act. It is the intention of the parties that through these negotiations every effort will be made to dispose of the matters at issue through the machinery hereinabove provided.

After the period of 1 year from the date of this agreement the four brotherhood chiefs, parties to this agreement, and the three chairmen of the carriers' conference committees, or their successors or representatives, and Dr. John R. Steelman, will meet for the purpose of reviewing the experience of the parties during the 1-year trial period of voluntary negotiations as above provided, and if the parties, or either of them, are dissatisfied with the results obtained, then at that time a definite procedure and conditions for the final and conclusive settlement of such disputes shall be provided for and agreed upon.

At this meeting, the carriers shall have one vote, the employees shall have one vote, and Dr. John R. Steelman shall have one vote, and the procedure and conditions agreed upon by a majority of the three parties shall be final and binding upon all concerned. In event Dr. John R. Steelman is no longer in Government service, then the parties shall request the President of the United States to appoint a neutral person to sit with and serve as a member of the committee herein provided for.

If, at the end of the 1-year period above referred to, the experience has been satisfactory to the parties, then they may, instead of providing for the definite procedure and conditions for the settlement of such disputes, extend the test period from year to year under the conditions outlined above.

(NOTE.—The following paragraph, which was discussed in the White House (onferences, and was understood to become part of this memorandum, did not appear on the original which was furnished us by Dr. Steelman late in the afternoon of December 22 after I had made repeated telephone calls to his office reguesting the same, but was typed in by us, and discussed with our committee. Copies of this were also furnished the presidents of the B. L. F. and E., the O.R. C., and the B. R. T.)

When an individual carrier initiates negotiations in accordance with the preceding sentence, it shall notify in writing the appropriate general committees of the organzations, representing the employees involved, and such notice shall propose specifically the run or runs which the carrier desires to establish or enlarge upon, the employees' assignments, established crew terminals, and seniority rights to be affected thereby, and the conditions which the carrier proposes shall apply when such service is established or enlarged upon.

Mr. MURDOCK. With respect to B. of L. E. Exhibit No. 1, you say that was not embodied in the memorandum which has become known as the Steelman agreement ?

Mr. SHIELDS. It was not. We have the original copy of the memorandum which was furnished us by Dr. Steelman. Copies of this memorandum were furnished the chief executives of the other three organizations.

Mr. MURDOCK. Now, did you sign or otherwise identify this par: ticular memorandum?

Mr. Shields. This particular memorandum was initialed, as I recall it.

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Mr. MURDOCK. Initialed by you and the other chiefs?
Mr. SHIELDS. That is right.
Mr. MURDOCK. And by the carriers' representatives?
Mr. SHIELDS. That is right.

Mr. MURDOCK. Well, now, did you by initialing it, intend to indicate that you accepted it?

Mr. SHIELDS. No, sir.

Mr. MURDOCK. Did you make quite clear that you had not accepted it?

Mr. SHIELDS. Insofar as that represented a part of the whole settlement; yes, sir, quite clearly.

Mr. MURDOCK. There was never any doubt in the minds of those present that you did not accept this?

Mr. SHIELDS. There certainly should not have been any doubt, because the limitations upon my authority and, as I recall it, the expressed limitations upon the authority of the other chief executives could not have been overlooked by anyone present in the conferences.

Mr. MURDOCK. Now, aside from your authority, was this proposed settlement acceptable to you!

Mr. SHIELDS. No, sir.
Mr. MURDOCK. You made it clear that it was not acceptable to you?

Mr. SHIELDS. And in discussion of that, if I may, Mr. Chairman, I would like to call your attention to the last paragraph, which, as I have already indicated, was not a part of the memorandum received from Dr. Steelman. That particular sentence or paragraph there requires that the individual carrier desiring to establish the interdivisional run would be required to be rather specific about the manner in which they wanted to conduct operations after the interdivisional runs were put into operation; in other words, it would give the employees an understanding of just exactly how the carrier proposal would affect their local condition, prior to the time that they were required to give consideration to the proposal.

The carriers' proposed rule is in general terms and does not go into any detail as to how the matter of negotiating the interdivisional run rule would be approached on the different properties and how its operation might affect the men involved on the local properties and from terminal to terminal, because the conditions vary there quite widely.

Mr. MURDOCK. I notice in this proposed rule that a board of arbitration is set up. Is that your understanding of the provision with respect to Dr. Steelman's participation?

Mr. SHIELDS. Dr. Steelman would be the final arbiter.

Mr. MURDOCK. You would regard that as an arbitration board, would you?

Mr. SHIELDS. That is right.

Mr. MURDOCK. And the proposal is that the carriers shall be represented on the board and the employees shall be represented, and that a vote of 2 to 1 shall be final and binding on all parties?

Mr. SHIELDS. That is right, sir.

Mr. MURDOCK. Now, was there a similar provision for an arbitration board in the so-called Steelman agreement ?

Mr. SHIELDS. Yes.
Mr. MURDOCK. Or was he in that case the sole arbitrator?

Mr. SHIELDS. Well, yes; he was more or less the sole arbitrator under the provisions of the December 21 memorandum.

In other words, in the event the parties at interest could not reach an agreement on the rules, then, as I understand the memorandum, Dr. Steelman would be the sole arbiter.

Mr. MURDOCK. As I understand this B. of L. E. exhibit No. 1, it provides, however, that if Dr. Steelman is no longer in Government service then the parties shall request the President of the United States to appoint a neutral member.

Mr. SHIELDS. That is right.

Mr. MURDOCK. Is that your understanding of Dr. Steelman's authority and his tenure as an arbitrator under the Steelman settlement of December 21?

Mr. SHIELDS. That would be my understanding; yes.

Mr. MURDOCK. It would be your understanding that if he was not in Government service then you would ask the President to designate someone else?

Mr. SHIELDS. That is right, sir.

Mr. MURDOCK. Do you know whether or not there was language so restricting his tenure in the Steelman settlement itself?

Mr. SHIELDS. No; I don't think it went quite that far in the December 21 memorandum.

Following the signing of the proposition, in the form of the memorandum of December 21, 1950, and while waiting for a press conference which had been called by Dr. Steelman for 11:30, I drafted the following telegram for all our interested general chairmen:

DECEMBER 21, 1950. Please arrange to meet in Cleveland 9 a. m., Thursday, December 28, 1950, for the purpose of giving consideration to the tentative proposal for settlement of wage-rules notices of January 6 and November 3, 1950, respectively, also rules proposals of the carriers submitted in connection with those notices. I urge that all concerned arrange to be in attendance. Chairman will attend at the expense of their respective committees.

J. P. SHIELDS,

Grand Chief Engineer. Mr. MURDOCK. If I understand the sequence of events, you composed that telegram while you were in the White House?

Mr. SHIELDS. That is right; and it was my original intention that this telegram should be dictated to my secretary in the Hamilton Hotel over the White House telephone. However, at that time it seemed to be pretty generally understood that Dr. Steelman did not wish any outgoing calls to be made, fearful, as I understood it, that some advance notice of what had been accomplished in the White House conference might get out prior to the press conference.

Mr. MURDOCK. You say you had that impression. What gave the impression to you!

Mr. SHIELDS. I got that impression from one of the statements made by one of the mediators, when I had suggested that I wanted to get this telegram out to my chairmen at the earliest possible date.

Mr. MURDOCK. Now, did Dr. Steelman know that you had drafted this telegram!

Mr. SHIELDS. I don't think so.
Mr. MURDOCK. You didn't call it to his attention?
Mr. SHIELDS. I didn't mention it to Dr. Steelman.

Mr. MURDOCK. Did you call it to the attention of anyone else there present?

Mr. SHIELDS. It was called to the attention of my associates, Presidents Robertson, Kennedy, and Hughes, and I think I discussed it with one or more of the mediators. I am not just clear on that.

Mr. MURDOCK. Do you recall which one of the mediators it was? Mr. SHIELDS. I think it was Mr. O'Neill.

Mr. MURDOCK. You think you called the actual draft of the telegram to his attention?

Mr. SHIELDS. No; I didn't show him the actual draft of the telegram, but only, as I recall it, indicated to him in general terms what its contents were.

Mr. MURDOCK. Did you indicate to him that it included indication that you were asking them to ratify or approve or consider this settlement of December 21 ?

Mr. SHIELDS. As I recall it, I made some such statement to him.

Mr. MURDOCK. Did you indicate to him that it was necessary that this be approved ?

Mr. SHIELDS. No; at that time I didn't because, as I have already explained, I had told Dr. Steelman and others repeatedly that it would be necessary to take that action.

The CHAIRMAN. You may proceed.

Mr. Shields. When the press convened, Dr. Steelman announced the signing of the memorandum of that date. Speaking in my capacity as grand chief engineer of the Brotherhood of Locomotive Engineers, and by request as spokesman for Presidents Robertson, Hughes, and Kennedy as well, I made an oral statement to the press, in which I said in substance:

This memorandum cannot be regarded as or reduced to a final settlement unless and until it has been ratified and accepted by our respective associations of general chairmen.

Shortly thereafter I was approached by a representative of Station WRC

Senator MORSE. Just a moment, Mr. Shields. As to this paragraph that you have just read in your testimony:

This memorandum cannot be regarded as or reduced to a final settlement unless and until it has been ratified and accepted by our respective associations of general chairmen.

Am I to understand that you said that at the White House press conference?

Mr. SHIELDS. Yes, sir.
Senator MORSE. Was Dr. Steelman present?
Mr. SHIELDS. Yes, sir.
Senator MORSE. Were the representatives of the carriers present?
Mr. SHIELDS. Yes, sir.
Senator MORSE. Were the members of the Mediation Board present?
Mr. SHIELDS. Yes, sir.
Senator MORSE. That is all.

Mr. SHIELDS. As I recall it, and I am sure about this, Dr. Steelman made the first statement, and as I recall he was followed by Mr. L. W. Horning, speaking for the carriers, who read a prepared statement, and then I made this oral statement.

Shortly thereafter I was approached by a representative of Station WRC, who requested that I make a wire recording of the statement I had just given to the press. I agreed, and then and there recorded substantially the language which appears above in quotation marks. I have no direct knowledge whether the recording was ever used over the air, in whole or in part, nor whether it is still available.

Senator MORSE. Who was present at that recording?

Mr. SHIELDS. Mr. Horning read his prepared statement into the record, and I followed him. By that time, the press conference was breaking up and there was more or less confusion, and I couldn't say whether there were any other members of the carriers' group or members of our group or the Mediation Board in the immediate vicinity of the recording machine at the time that Mr. Horning and I made the statement.

Senator MORSE. Mr. Horning heard you say that? Mr. SHIELDS. As I recall it, Mr. Horning was standing in the immediate vicinity when I made my statement.

Mr. MURDOCK. Mr. Chairman, may I state for the record that upon learning that such a recording had been made, the staff requested that the recording be made available to the committee? Up to date, neither the radio station nor the network has been able to find the recording; so that we have not been able to obtain either the original recording or a copy of it. I am advised that it is frequently the practice with respect to such wire recordings that whatever is desired by the newscaster or commentator is preserved, while the rest is reused or otherwise disposed of. But it seems very unlikely at this late date that we will be able to obtain a copy of the recording

Senator MORSE. On that subject, Mr. Chairman, may I ask counsel of the staff

if he has made any attempt from the television companies or any of the radio representatives of the President at this press conference to obtain from them any of the recordings they may have as to what the set-up of the press conference itself was?

Mr. MURDOCK. We have requested all recordings which were made at that time, but we have not yet received any, and we are advised that they are not now in existence in all probability.

The CHAIRMAN. These recordings took place up there in the same room in which the negotiations had been carried on, and immediately after they were concluded!

Mr. SHIELDS. That is right, sir. There was a long table in that conference room in the East Wing of the White House. The conference table, as I recall it, for the press conference, was arranged in a T. In other words, you had a long table there, with the other one setting at right angles. The recording machine was placed on the south end of the table, right close to where Dr. Steelman had stood when he made his report. And it was there that Mr. Horning and I made this recording, in the south end of the room.

Mr. MURDOCK. May I also state for the record, Mr. Chairman, that committee exhibits 1, 2, 3, and 4, which were offered in evidence and received at the last hearing, as shown on pages 179 and 180 of the transcript, do indicate that it was made clear at this press conference that as far at least as the brotherhoods were concerned, this was merely a tentative agreement to be submitted to the general chairmen for consideration. Those exhibits were ordered printed in the record.

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