exhibit No. 2, a story in the New York Herald Tribune of December 22, 1950, written by Raymond J. Blair, in which the same conference is described. I would like to offer as committee exhibit No. 3, a copy of the news story appearing in the Cleveland Plain Dealer of December 22, 1950, and attributed to the Associated Press, describing the same conference; and as committee exhibit No. 4, the story which appeared in the Christian Science Monitor on December 22, 1950, written by Mr. Harlan Trott, in which the same conference was discussed. May they be printed in the record at this point?

The CHAIRMAN. All those exhibits will be received and made a part of the record in this proceeding.

(The items described above were marked "Committee Exhibits Nos. 1, 2, 3, and 4" and are as follows:)

COMMITTEE EXHIBIT No. 1

[From the New York Times, Friday, December 22, 1950]

3-YEAR PACT AND PAY RAISES END 22-MONTH RAIL DISPUTE-WHITE HOUSE SESSION OF 25 HOURS BRINGS STRIKE MORATORIUM ON WAGES AND RULES, INCREASES TO 25 CENTS HOURLY TO "BIG FOUR"

(By Louis Stark)

WASHINGTON, Dec. 21.-The 22-month railroad wage dispute was settled today by Dr. John R. Steelman, assistant to President Truman, on terms that will provide wage increases for 300,000 transportation employees. A memorandum of agreement approved by the carriers and the unions covered these points:

1. A 3-year no-strike moratorium on wages and rules demands by the four operating unions-the Brotherhood of Railroad Trainmen, the Order of Railway Conductors, the Brotherhood of Locomotive Engineers, and the Brotherhood of Locomotive Enginemen and Firemen,

2. An increase of 23 cents an hour for 120,000 yardmen, effective October 1, 1950, and an additional 2 cents an hour January 1.

3. An increase of 5 cents an hour, effective October 1, 1950, for 180,000 rail service workers, and another 5 cents effective January 1.

Dr. Steelman announced the terms of agreement after a 25-hour session with the spokesmen for the carriers and the engineers, firemen, conductors, and trainmen, in the White House. Leverett Edwards and Francis A. O'Neill, Jr., members of the National Federation Board, participated in the meeting.

If ratified by the brotherhoods, the agreement will put an escalator clause into effect for the "Big Four" transportation unions for the first time. This clause provides for a quarterly adjustment of wages on the basis of the Bureau of Labor Statistics' Consumers Index of Living Costs. Wages will go up or down 1 cent an hour for each rise or fall of one point in the index. The first adjustment date is April 1, 1951. The base for the cost-of-living index will be 176, the present level.

Of outstanding significance was the fact that while the Government's Wage Stabilization Board was considering whether or not to cancel escalator clauses in wage contracts on the ground that they were "inflationary," the Steelman formula inserted a provision for the clause in the railroad agreement memorandum.

In view of this action, some Government economists expressed the view that from now on Government stabilization policy would be based on escalator clauses. The cost-of-living arrangement during the present emergency apparently will be to the stabilization policy what the Little Steel formula was to the stabilization policy in World War II.

The Little Steel formula was announced by the War Labor Board on July 16, 1942. Under it, any group of workers whose straight-time hourly earnings had increased by less than 15 percent since January 1, 1941, was entitled to increases to bring them up to that percentage of increase.

STRESSES 3-YEAR MORATORIUM

The escalator clause was adopted at the White House session, it was learned, without consultation with the Wage Stabilization Board. President Truman was informed of it by Dr. Steelman after the conference.

In the presence of the weary, unshaven representatives of the unions and rail management, Dr. Steelman told reporters of the memorandum of agreement at noon today. He placed considerable emphasis on the 3-year moratorium on new wage and rule demands. He termed adoption of the moratorium, which expires October 1, an unprecedented step by the operating unions.

The four brotherhoods had asked for the 40-hour week without reduction of pay, for the present 48 hours.

The 5-day week was accepted in principle. But in view of the manpower situation during the emergency, the 40-hour week will not become effective until January 1, 1952, or later if the manpower situation requires.

When the shift to the 40-hour week is made, the yardmen will receive an additional 4 cents an hour.

The yardmen's original demands would have amounted to an increase of 31 cents an hour if they received 48 hours' pay for 40 hours' work. Under the memorandum of agreement they may receive 29 cents after January 1, 1952.

LEAVES DOOR OPEN

While the tentative agreement closes the door to any further demands for higher wages and changes in rules for 3 years it leaves the door open to possible increases based on the "annual improvement" factor, which is in automobile industry contracts.

Such a change, however, is based conditionally on governmental wage-stabilization policy. If workers generally have been permitted to receive these annual improvement increases, the parties to today's agreement will meet with Dr. Steelman on or after July 1, 1952, to discuss whether railroad wage adjustments beyond the cost-of-living formula are justified.

If the parties are unable to agree on whether such further increases are justified they will ask the President to name a referee, whose decision will be final. One of the main contentions in the long dispute was over rules. Each side had asked for certain rule changes. There were between 50 and 100 such demands. The arrangement today resulted in an agreement on seven rules. The others were set aside.

The firemen and trainmen had asked for an increase of 35 cents an hour for roadmen. The engineers had asked for a flat 20-percent wage increase for roadmen.

The carriers estimated the cost of the agreement at $130,000,000 a year.

Dr. Steelman was asked what would happen if the Wage Stabilization Board did not approve the escalator clause.

"We'll cross that bridge when we come to it," he said.

The memorandum of agreement today did not debar management or unions from agreeing upon changes in rates, rules, or working conditions on the individual railroads.

TO DELAY RAILS' RETURN

Dr. Steelman hailed this section as one that would enhance collective bargaining by the individual carriers and the unions. He pointed out that in recent years there has been a tendency for these disputes to be passed on to the White House rather than settled on lower levels.

He was noncommittal when asked if he would recommend that the Government, which seized the roads last August 27, when a strike was threatened, return them to their owners.

It was learned that the Government would not turn the roads back at this time. It will await the outcome of the dispute between the carirers and the 16 nonoperating unions that bargain for 1,000,000 employees. These employees have asked for a wage increase of 25 cents an hour. Conferences on this demand will begin soon after the holidays.

The average hourly rate of yardmen, now $1.58, will be increased by 25 cents, to $1.93, under the new arrangement.

The average hourly rate of road engineers, now $1.85, will be increased to $1.95 when the 10 cents is added.

But for the men in road service the carriers say the 10-cent increases will be the minimum. Because of the "dual" rate of pay (with 100 or 150 miles or 72

or 8 hours constituting a day's work) the carriers maintain that the pay increase will be much more than 10 cents. Their unofficial estimate is that it will be about 12.5 to 25 cents an hour.

The tentative agreement was ratified early this afternoon by the Eastern Carriers Conference Committee, the Western Carriers Conference Committee, and the Southeastern Carriers Conference Committee.

UNIONS TO MEET

W. P. Kennedy, president of the Brotherhood of Railroad Trainmen, announced that 110 general chairmen of his union would meet in Cleveland January 4, 1951, to act on ratification of the tentative agreement.

J. P. Shields, grand chief engineer of the Brotherhood of Locomotive Engineers, said that his union's representatives would meet for the same purpose in Cleveland on January 29.

Roy O. Hughes, president of the Order of Railway Conductors, announced that his advisory committee would meet here tomorrow morning to consider the agreement.

L. W. Horning represented the eastern carriers; Daniel P. Loomis, the western carriers, and C. D. Mackay, the southeastern railroads.

Mr. Shields emphasized that his group had made considerable concessions in accepting the memorandum. "I just hope the Government, the railroads, and the general public will appreciate the contributions we on the labor side feel we have made in this emergency and in view of the conditions that face us." Round-the-clock conferences to settle the dispute began last Sunday and continued every day until 3 a. m. except today, when they continued until noon.

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COURT HEARINGS POSTPONED

CHICAGO, December 21.--Federal court hearings on a contempt-of-court citation and a temporary injunction against the Brotherhood of Railroad Trainmen, some 10,000 of whose members went on 3-day wildcat strike last week, have been postponed by Judge Michael L. Igoe to January. The hearings were to have been held today.

The postponement was at the request of the union, which asked an opportunity to argue against producing some of its records in the contempt citation.

In Cleveland Federal Judge Emerich B. Freed postponed indefinitely a hearing on the Government's request for a preliminary injunction, continuing at the same time a temporary restraining order.

In both cities Federal judges had issued temporary restraining orders during the strike, ordering the men back to work.

Judge Igoe issued a contempt-of-court citation here last Friday after the strikers had continued their walk-out in defiance of the temporary restraining order.

Judge Igoe has set January 5 for argument on the union's objections to producing records, January 11 for argument on the contempt citation, and January 19 for argument on the temporary injunction sought by the Government. also extended the temporary restraining order from December 23 to January 19.

He

TEXT OF AGREEMENT ENDING RAIL DISPUTE

WASHINGTON, December 21.-Following is the text of the memorandum of agreement embodying the terms of settlement of the railway-wage dispute: 1. Establish 40-hour week for yardmen with increase of 23 cents effective October 1, 1950, and additional 2 cents effective January 1, 1951.

2. Set aside 40-hour week agreement until January 1, 1952, and establish 6-day workweek for yardmen. Effective with the first payroll period after 30 days from the date of execution of the formal agreement, yardmen required by the carrier to work on seventh day to be paid overtime rates, except engineers, who shall receive straight-time rates for the seventh day.

This does not create guaranties where they do not now exist. On and after October 1, 1951, 3 months' notice to be given of desire to go on 40-hour week. Provide for consideration of availability of manpower and 4 cents per hour if and when the 40-hour week actually becomes effective.

3. Settle rules for 40-hour week and 6-day week.

4. Grant yard conductors and brakemen other rules, such as daily-earnings minimum, car-retarder operations, and footboard yardmasters as recommended by Emergency Board No. 81.

5. Settle following rules:

Initial terminal delay (conductors and trainmen).

Interdivisional runs.

Pooling cabooses (conductors and trainmen).

Reporting for duty.

More than one class of service.

Switching limits.

Air hose (conductors and trainmen).

Western differential and doubleheader and tonnage limitation (conductors and trainmen, all territories).

6. Roadmen to receive 5 cents per hour increase effective October 1, 1950, and additional 5 cents per hour increase effective January 1, 1951.

7. Quarterly adjustment of wages on basis of cost-of-living index (one point to equal 1 cent per hour. First adjustment April 1, 1951. Base to be 176).

8. Agreement embodying principles applicable to yardmasters to be entered into for benefit of yardmasters.

9. Effective October 1, 1950, the basic hours of dining-car stewards shall be reduced from 225 to 205 hours per month; no penalty overtime to accrue until 240 hours have been worked, the hours between 205 and 240 to be paid for at the pro rata rate.

Effective February 1, 1951, overtime at time and one-half shall accrue after 220 hours have been worked. The basic monthly salary to be paid for the 205-hour month shall be the same as that now paid for the 225-hour month. Except that $4.10 shall be added to the present monthly rate effective January 1, 1951.

10. In consideration of above, this agreement to be effective until October 1, 1953, and thereafter until changed or modified under provisions of Railway Labor Act. Moratorium on proposals for changes in wages or rules until October 1, 1953, as follows:

No proposals for changes in rates of pay, rules, or working conditions will be initiated or progressed by the employees against any carrier or by any carrier against its employees, parties hereto, within a period of 3 years from October 1, 1950, except such proposals for changes in rules or working conditions which may have been initiated prior to June 1, 1950.

Provided, however, that if as the result of Government wage-stabilization policy, workers generally have been permitted to receive so-called annual improvement increases, the parties may meet with Dr. Steelman on or after July 1, 1952, to discuss whether or not further wage adjustments for employees covered by this agreement are justified, in addition to increases received under the cost-of-living formula. At the request of either party for such a meeting Dr. Steelman shall fix the time and place for such meeting.

Dr. Steelman and the parties may secure information from the wage-stabilization authorities or other Government agencies. If the parties are unable to agree at such conferences whether or not further wage adjustments are justified, they shall ask the President of the United States to appoint a referee who shall sit with them and consider all pertinent information, and decide promptly whether further wage increases are justified, and, if so, what such increases should be, and the effective date thereof. The carrier representatives shall have one vote, the employee representatives shall have one vote, and the referee shall have one vote.

11. If the parties cannot agree on details of agreement or rules, they shall be submitted to John R. Steelman for final decision.

The usual protections for arbitraries, miscellaneous rates, special allowances, and existing money differentials above existing standard daily rates will be included in the formal agreement.

The foregoing will not debar management and committees on individual railroads from mutually agreeing upon changes in rates, rules, and working conditions of employees covered by this agreement.

J. P. Shields, Grand Chief Engineer, Brotherhood of Locomotive Engineers; D. B. Robertson, President, Brotherhood of Locomotive Firemen and Enginemen; R. O. Hughes, President, Order of Railway Conductors; W. P. Kennedy, President, Brotherhood of Railroad Trainmen; L. W. Horning, Chairman, Eastern Carriers' Conference Committee; D. P. Loomis, Chairman, Western Carriers' Conference Committee; C. D. Mackay, Chairman, Southeastern Carriers' Conference Committee.

COMMITTEE EXHIBIT No. 2

[From the New York Herald Tribune, Friday, December 22, 1950]

THREE-YEAR NO-STRIKE RAILWAY PACT WITH PAY ESCALATOR WORKED OUTTENTATIVE SETTLEMENT REACHED AT WHITE HOUSE MUST BE RATIFIED BY RAILROADS AND FOUR UNIONS

(By Raymond J. Blair)

WASHINGTON, December 21.-A 3-year no-strike agreement designed to settle the 21-month-old railroad wage dispute was announced today by the White House. The tentative settlement, which must be ratified by individual railroads and union members, was bammered out at round-the-clock conferences by John R. Steelman, assistant to President Truman; presidents of four operating brotherhoods; and a railroad industry committee.

Rail-industry men said the agreement would cost them $130,000,000 a year. Eastern railroads have already applied for a 4-percent increase in freight and passenger rates in anticipation of the agreement.

The unprecedented pact, covering 300,000 workers, introduces a cost-of-living escalator arrangement into the industry as the Government attempts to work out a national wage stabilization policy. Only yesterday a committee of top union leaders told the President this policy should allow for compensatory wage increases to keep up with the cost of living.

The agreement gives immediate pay raises of 23 cents an hour to 120,000 yardmen, retroactive to October 1, and 5 cents an hour to 180,000 road service workers, also retroactive to October 1, and another 5 cents an hour on January 1.

The cost-of-living arrangement is modeled after one the CIO United Automobile Workers is fighting to retain in the face of Government plans to hold down wages in the auto industry. It would adjust rail wages up or down, beginning April 1, by 1 cent an hour for every rise or fall of 1 point in the Government's consumer price index.

In addition, the way was paved for introduction of another auto-industry feature-an annual improvement in wages to reward for increased productivity. This will be installed after January 1, 1952, if Government wage policy at that time allows it. Details will be worked out at that time.

The union demand that caused the dispute-a request for 48 hours' pay for 40 hours of work-was opposed in principle. Putting it into effect was postponed at least until January 1, 1952, when the manpower situation will be studied with Mr. Steelman.

The agreement, if ratified, will be the first long-term arrangement in the railroad industry and the first master rail contract with a terminal date. The practice has been to have open-end contracts which the unions terminated when they wanted more money.

NEW STRIKES WERE FEARED

The apparent settlement came as some rail-union officials were hinting that rank-and-file workers were becoming increasingly restive over delays in the White House conferences and might stage new "unauthorized" strikes across the country.

A wave of wildcat strikes, which tied up Korean War goods and Christmas mail and parcels, began in Chicago December 13 in protest against the failure to settle the dispute. The stoppages, however, petered out after President Truman appealed Friday to the men to return to work. Thereafter the White House conferences were intensified.

These meetings began August 27, after the President seized the railroads in the face of another strike threat and told the Army to operate them. This Army operation has been a technicality, however, since company officials have actually run the roads.

Mr. Steelman could not say immediately whether he would recommend ending Army control. He said he would talk to leaders of the 16 so-called nonoperating rail unions representing men who do not ride trains. They have raised a strike threat over their request for a 25-cent hourly pay increase.