After some back and forth conversation I suggested to Chairman. Scott that Wednesday, January 18, would be a suitable date for such a meeting, to which he seemed agreeable. We left it that January 17 was a firm date unless, after consulting the other chief executives, I advised Chairman Scott to the contrary.

Mr. MURDOCK. Will you clear up which is the correct date?

Mr. SHIELDS. The 17th is the correct date but the changes to be made or the date the meeting actually took place with Dr. Steelman, that was actually January 18 instead of 17, as we had originally contemplated.

The presidents of the B. of L. F. and E., the O. of R. F., and the B. of R. T. were agreeable to this date, and I returned to Washington with our committee on January 15. On that date I talked with Dr. Steelman by telephone, and he stipulated that the meeting on the 18th should be with the chief executives of the organizations only, unattended by any members of their committees.

At the White House meeting of the 17th each chief executive reported orally on the action of his association of general chairmen and expressed the position of his organization against ratification of the December 21 memorandum. Dr. Steelman finally advised that he did not know just what he could or would do further with the dispute, and suggested that the entire case be returned to the National Mediation Board.

Senator MORSE. Now you are talking about the Mediation Board conferences and the White House conferences that followed the rejection of memorandum of agreement and these Mediation Board conferences started, as I now understand, on January 18?

Mr. SHIELDS. That is right.

Senator MORSE. Earlier you testified, have you not, that the first White House conferences in regard to this dispute were started at the request of the White House?

Mr. SHIELDS. That is right.

Senator MORSE. The initiative was taken by the White House. Will you give me a thumbnail summary of that again? How were the brotherhoods, as far as your knowledge is concerned, first drawn into this case at the White House level?

Mr. SHIELDS. In that respect I can only speak, Senator, for the B. L. E. As I have previously stated in the record, I was invited to attend a conference in Dr. Steelman's office on November 21, attended also by Presidents Robertson, Kennedy, and Hughes, of the B. L. F. and E., O. R. C., and O. R. T., respectively. Now, I can't say whether there was any arrangement on their part for the conference or not, but I had not requested a conference with Dr. Steelman, as I have previously stated. I had understood, because of our invitation for the services of the Board, that my case was still under the jurisdiction of the National Mediation Board and had not thought to, nor had I sought any assistance from Dr. Steelman up to that time.

Senator MORSE. Early in the history of this case some of the brotherhoods involved, if not all, joined in the request, did they not, that the railroads be put into Government operation, under Government seizure?

Mr. SHIELDS. I understand that is true.

Senator MORSE. Did your brotherhood join in that?

Mr. SHIELDS. They did not.

Senator MORSE. Do you think that there is a possibility that that request which applied for Government seizure might be the source of the dispute which seems to have developed between the brotherhoods and the White House as to who did what first, assuming that it is important-and I am not so sure that it is, but it happens to be, I think, one of the little disputes that has created some personal frictions which when they exist in a labor dispute ought to be removed if you have any hope of getting a case finally settled on a fair basis. Do you think that might be the basis of the White House attitude that White House participation in this matter was requested by the carriers and not the White House?

Mr. SHIELDS. That might have been, Senator, although I am not sufficiently familiar with the chiefs of the other organizations and their contact with Dr. Steelman to say whether or not that was the fact.

Senator MORSE. They are the best witnesses on that and I shall ask them in due course. The reason I ask that now is the chairman has just handed me a report of the President's press conference this morning which says that President Truman told his news conference a few minutes ago that the only reason the operating unions ever came to the White House was at their own request; he said that the matter is one for collective bargaining and the President did not interfere in such a matter.

As far as your union is concerned, you never appeared at the White House on your initiative but you appeared at the White House acting through Dr. Steelman?

Mr. SHIELDS. Yes.

The CHAIRMAN. Will you mark the point where you are ending your testimony this morning and we will take a recess at this time until Monday morning at 10 o'clock.

(Whereupon, at 12:12 p. m., the committee recessed, to reconvene at 10 a. m. Monday, March 5, 1951.)

LABOR DISPUTE BETWEEN RAILROAD CARRIERS AND FOUR OPERATING RAILROAD BROTHERHOODS

MONDAY, MARCH 5, 1951

UNITED STATES SENATE,

COMMITTEE ON LABOR AND PUBLIC WELFARE,

Washington, D. C.

The committee met at 10 a. m., pursuant to recess, in the Old Supreme Court Room, the Capitol, Senator Wayne Morse presiding. Present: Senators Morse, Humphrey, and Ives.

Also present: William H. Coburn, chief clerk of the committee; Herman Lazarus and Tom Shroyer of the professional staff of the committee; and Ray R. Murdock, counsel to the Subcommittee on Labor-Management Relations.

Senator MORSE (presiding). The hearing will come to order. We will proceed this morning until 5 minutes to 12, at which time we will adjourn subject to the call of the chairman. We will proceed with the testimony of Mr. Shields, and I believe he was on page 37 of his prepared statement, item 3, when we recessed the other day. You may proceed, Mr. Shields.

TESTIMONY OF J. P. SHIELDS, GRAND CHIEF ENGINEER, BROTHERHOOD OF LOCOMOTIVE ENGINEERS, ACCOMPANIED BY GUY L. BROWN, FIRST ASSISTANT GRAND CHIEF ENGINEER; CLIFFORD D. O'BRIEN, COUNSEL; AND FRANK P. DOUGLAS, SECRETARY TO MR. SHIELDS-Resumed

Mr. SHIELDS. There then ensued a long series of meetings with the members of the Mediation Board. They reported to us from time to time that they were in contact with the carriers and with Dr. Steelman. The carriers were taking the position that they had a firm agreement with our organizations and were willing to meet only to put that agreement into complete contract language.

During meetings with the Board members they repeatedly urged the organization representatives to give specific content to their objections to the terms of the memorandum of December 21, 1950. They pointed out that they wished to have something specific to present to the carriers, other than a mere rejection of the memorandum and substantially short of the original requests of the organizations.

Under date of February 3, 1951, I informally presented to Board Member O'Neill the following memorandum. This memorandum has already been read into the record, as I recall it, and with your permission I will not take up the committee's time to read it here, nor the proposition.

Senator MORSE. Both the memorandum on page 38 and the proposition on pages 39 and 40 and part of 41 will be included in the record at this point.

(The matter referred to follows:)

WASHINGTON, February 3, 1951.

BROTHERHOOD OF LOCOMOTIVE ENGINEERS YARD CASE

Twenty-three cents October 1, 1950.

Two cents January 1, 1951.

Nine cents as of date of conversion.

Optional conversion within 1 year from date of agreement, subject to approval of the War Manpower Commission.

Implementing rules a contingency of conversion.

ROAD CASE

Five cents per hour October 1, 1950.

Fifteen cents per hour January 1, 1951, or as of date closest to next payroll period after date of settlement.

Escalator clause.

Improvement factor as provided in the Steelman proposal.

Three-year moratorium on all carrier and employee rules now in dispute. No prohibition against carrier or employees serving other notices for rule or rate changes.

Rate changes subject to wage stabilization policy.

Usual protection for protection of arbitraries, mountain and desert differentials, special rates, and money differentials.

FEBRUARY 6, 1951.

B. OF L. E. PROPOSITION

1. Establish 40-hour, 5-day, straight-time workweek for yard engineers by agreement, but set aside that agreement until January 1, 1952. On and after October 1, 1951, any general committee of adjustment desiring to convert to the 40-hour, 5-day, stright-time workweek may give 3 months' notice to that effect: Provided, however, That the right to put such work into effect shall be contingent upon agreement between the committee and the carrier on changes in rules to implement the conversion to such workweek, and upon availability of manpower. If provision for a 6-day straight-time workweek with overtime for a seventh day is part of any settlement of current wage and rules disputes, then any B. of L. E. general committee of adjustment shall have the option to elect to accept such 6-day straight-time work with overtime for a seventh day upon agreement between the committee and the carrier on changes in rules to implement the conversion to such workweek. Until conversion to the 6-day workweek, or to the 5-day workweek, existing rules and practices relating to assignments shall remain unchanged.

2. Yard rates: Effective October 1, 1950, yard engineers' rates shall be increased in the sum of 23 cents per hour; effective January 1, 1951, said rates shall be further increased 21⁄2 cents per hour; effective March 1, 1951, said rates shall be further increased 2 cents per hour, making a total increase of 271⁄2 cents per hour. When the 40-hour, 5-day, stright-time workweek is made effective, said rates shall be further increased 61⁄2 cents per hour, making a total increase of 34 cents per hour. Applies to firemen and hostlers where we hold the contract for that classification of employees.

3. Road rates: Effective October 1, 1950, road engineers' rates shall be increased 5 cents per hour; effective January 1, 1951, said rates shall be further increased 72 cents per hour; effective March 1, 1951, said rates shall be further increased 31⁄2 cents per hour, making a total increase of 16 cents per hour. Basic daily rates for road engineers in all classes of road service shall in each case be increased by eight times the hourly rate increase. Applicable to firemen on roads where we represent those classifications.

4. In addition to the foregoing, quarterly adjustment of wage rates on basis of cost-of-living index (1 point to equal 1 cent per hour. First adjustment April 1, 1951. Base to be BLS index as revised to govern.)