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I realize the limitations of time under which you will necessarily act at this session, and shall make my suggestions as few as possible; but there were some things left undone at the last session which there will now be time to complete. and which it seems necessary in the interest of the public to do at once.

In the first place, it seems to me imperatively necessary that the earliest possible consideration and action should be accorded the remaining measures of the program of settlement and regulation which I had occasion to recommend to you at the close of your last session in view of the public dangers disclosed by the unaccommodated difficulties which then existed, and which still unhappily continue to exist, between the railroads of the country and their locomotive engineers, conductors, and trainmen.

I then recommended:

First, immediate provision for the enlargement and administrative reorganization of the Interstate Commerce Commission along the lines embodied in the bill recently passed by the House of Representatives, and now awaiting action by the Senate, in order that the commission may be enabled to deal with the many great and various duties now devolving upon it with a promptness and thoroughness which are, with its present constitution and means of action, practically impossible.

Second, the establishment of an eight-hour day as the legal basis alike of work and of wages in the employment of all railway employees who are actu ally engaged in the work of operating trains in interstate transportation.

Third, the authorization of the appointment by the President of a small body of men to observe the actual results in experience of the adoption of the eighthour day in railway transportation alike for the men and for the railroads.

Fourth, explicit approval by the Congress of the consideration by the Interstate Commerce Commission of an increase of freight rates to meet such additional expenditures by the railroads as may have been rendered necessary by the adoption of the eight-hour day, and which have not been offset by administrative readjustments and economies, should the facts disclosed justify the increase.

Fifth, an amendment of the existing Federal statute which provides for the mediation, conciliation, and arbitration of such controversies as the present by adding to it a provision that, in case the methods of accommodation now provided for should fail, and full public investigation of the merits of every such dispute shall be instituted and completed before a strike or lockout may lawfully be attempted.

And, sixth, the lodgment in the hands of the Executive of the power, in case of military necessity, to take control of such portions and such rolling stock of the railways of the country as may be required for military use, and to operate them for military purposes, with authority to draft into the military service of the United States such train crews and administrative officials as the circumstances require for their safe and efficient use.

The second and third of these recommendations the Congress immediately acted on: It established the eight-hour day as the legal basis of work and wages in train service, and it authorized the appointment of a commission to observe and report upon the practical results, deeming these the measures most immediately needed; but it postponed action upon the other suggestions until an opportunity should be offered for a more deliberate consideration of them. The fourth recommendation I do not deem it necessary to renew. The power of the Interstate Commerce Commission to grant an increase of rates on the ground referred to is indisputably clear, and a recommendation by the Congress with regard to such a matter might seem to draw in question the scope of the commission's authority or its inclination to do justice when there is no reason to doubt either.

The other suggestions-the increase in the Interstate Commerce Commission's membership and in its facilities for performing its manifold duties, the provision for full public investigation and assessment of industrial disputes, and the grant to the Executive of the power to control and operate the railways when necessary in time of war or other like public necessity-I now very earnestly renew.

The necessity for such legislation is manifest and pressing. Those who have intrusted us with the responsibility and duty of serving and safeguarding them in such matters would find it hard, I believe, to excuse a failure to act upon these grave matters or any unnecessary postponement of action upon them.

Not only does the Interstate Commerce Commission now find it practically impossible, with its present membership and organization, to perform its great

functions promptly and thoroughly, but it is not unlikely that it may presently be found advisable to add to its duties still others equally heavy and exacting. It must first be perfected as an administrative instrument.

The country can not and should not consent to remain any longer exposed to profound industrial disturbances for lack of additional means of arbitration and conciliation which the Congress can easily and promptly supply. And all will agree that there must be no doubt as to the power of the Executive to make immediate and uninterrupted use of the railroads for the concentration of the military forces of the Nation wherever they are needed and whenever they are needed.

This is a program of regulation, prevention, and administrative efficiency which argues its own case in the mere statement of it. With regard to one of its items, the increase in the efficiency of the Interstate Commerce Commission, the House of Representatives has already acted; its action needs only the concurrence of the Senate.

I would hesitate to recommend-and, I dare say, the Congress would hesitate to act upon the suggestion should I make it-that any man in any occupation should be obliged by law to continue in an employment which he desired to leave. To pass a law which forbade or prevented the individual workman to leave his work before receiving the approval of society in doing so would be to adopt a new principle into our jurisprudence which, I take it for granted, we are not prepared to introduce. But the proposal that the operation of the railways of the country shall not be stopped or interrupted by the concerted action of organized bodies of men until a public investigation shall have been instituted which shall make the whole question at issue plain for the judgment of the opinion of the Nation is not to propose any such principle. It is based upon the very different principle that the concerted action of powerful bodies of men shall not be permitted to stop the industrial processes of the Nation, at any rate before the Nation shall have had an opportunity to acquaint itself with the merits of the case as between employee and employer, time to form its opinion upon an impartial statement of the merits, and opportunity to consider all practicable means of conciliation or arbitration. I can see nothing in that proposition but the justifiable safeguarding by society of the necessary processes of its very life. There is nothing arbitrary or unjust in it unless it be arbitrarily and unjustly done. It can and should be done with a full and scrupulous regard for the interests and liberties of all concerned as well as for the permanent interests of society itself.

[Appendix B.]

EXISTING UNITED STATES LAW.

Act of 1888.

Adjustment of controversies between railways and their employees first found a place in Federal statutes in 1888. This law had two parts. In the first place, when a controversy arose the President could create a commission of three— two appointees and the Commissioner of Labor-who had a duty of inquiring into the causes, the conditions surrounding the difficulty, and the best means for reaching an adjustment, making a report to the President and to Congress. The services of such a commission in the interest of adjustment could also be tendered to the parties by the President. In the second place, the law gave to boards of arbitration voluntarily chosen by parties power to administer oaths, issue subpoenas, compel production of papers, etc. This law was never used.

Newlands Act.

The basis of the present Newlands Act was laid by the Erdman Act of 1898, dealing only with employees directly engaged in moving trains. It provided voluntary mediation, utilized only upon application of either party, and accepted by the other. The Federal mediators were the chairman of the Interstate Commerce Commission and the Commissioner of Labor. Voluntary arbitration by boards chosen primarily by the parties was also provided. Arbitrators had the power to administer oaths, etc., and there was a limited appeal to the courts.

For eight years this law was not invoked although one attempt to use it occurred, but during the following five years it was utilized in 60 instances,

and methods of procedure were well established. Altogether, these appeals to the Erdman Act resulted in 13 formal cases of arbitration. Through mediation or arbitration a total of 61 cases were settled under this law.

Circumstances in the summer of 1913 led to rather hasty legislation modifying the Erdman Act into the present Newlands's Act. Two permanent Federal officials devoting their whole attention to controversies between employees engaged in train operation or train service and their employers, and the orderly adjustment of such controversies, were authorized. In order to meet criticisms which had been made of three-member boards of arbitration on the ground that the third, neutral member, had too much power six-member boards were authorized-two members to be selected by each party and two neutral members representing the public.

This legislation was requested by the President in view of the emergency caused by demands made by conductors and trainmen upon 42 eastern roads. Negotiations between the men and the roads had resulted in the roads taking the position that wages were already adequate and working conditions were favorable. When the men had voted to strike and the situation was acute both sides agreed to arbitrate in the event the law was changed in the ways outlined above.

Under the Newlands Act 56 cases were settled to June 30, 1915.

66

Adamson Act.

In the law passed in September, 1916, dealing primarily with the basis of pay for employees engaged in the operation of trains there is provision for a temporary 'eight-hour-day commission" of three members, appointed by the President, with duties of observing the operation of the wage part of the law for a period of six to nine months and of reporting to the President within three months of the end of the observation period. This commission has the powers usually conferred upon arbitration boards to administer oaths, issue subpoenas, etc.

[Appendix C1]

CANADIAN LAW.

Industrial Disputes Investigation Act.

Beginning in 1903, Canada has gradually developed a statute which is intended "to aid in the prevention and settlement of strikes and lockouts in mines and industries connected with public utilities." This law affects railways and their employees.

Administration is in the hands of the minister of labor. Whenever the parties are unable to settle a dispute either may apply for the appointment of a board of conciliation and investigation, one nominated by each side and the third chosen by these two. This board has two duties: (1) To endeavor to bring about a settlement and (2) to inquire expeditiously into all matters affecting the merits of the controversy and, in case it does not effect a settlement, to make a report to the minister of labor, including its recommendations for settlement according to the merits and substantial justice. This report is published.

Before a dispute has been referred to a board of conciliation and investigation and while it is pending before a board employers may not lock out the men, and the employees can not go on strike. For violations of the law in this regard there are penalties in the form of fines.

This act does not attempt compulsory arbitration. After a board has made its report the parties may proceed as they see fit.

Since 1907 some 212 disputes have come under the Canadian law, resulting in the creation of boards in 182 cases. Of the total number of disputes affected by the law, 85 affected railways. In seven instances proceedings under the law did not avert strikes.

Digest of operations under the industrial disputes investigation act, 1907. [Proceedings from Mar. 22, 1907, to Oct. 18, 1916.]

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The total number of boards of conciliation and investigation established under the act during the period is 182.

Of the 212 cases in which application was made for the establishment of a board of conciliation and investigation, 167 were reported upon by boards, 29 were settled without the establishment of boards, 8 were settled while board was in process of constitution, 1 board was restrained by the court of review from proceeding with its investigation, 6 are being dealt with by boards at the present time, and 1 is being held in abeyance to permit of a probable settlement. CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, Washington, D. C., January 2, 1917.

Hon. FRANCIS G. NEWANDS,
Chairman Committee on Interstate Commerce,

United States Senate, Washington, D. C.

DEAR SIR: Your committee is to-day, we understand, beginning hearings regarding the desirability of legislation which would prevent interruption of railway transportation by reason of disputes between railways and their employees, at least until the public has before it an impartial report concerning the questions that are involved.

In this connection we wish to place before you and your committee a report presented in December by a committee of the Chamber of Commerce of the United States. This report you will find at pages 3 and 4 of the inclosed pamphlet, and the personnel of the committee you will find at page 2.

As yet this report represents only the point of view of the committee that signed it, since the time-45 days-which must elapse before the referendum which is necessary in our organization can be completed will not expire until January 30, 1917. Before that time, the position of the Chamber of Commerce of the United States is not formally determined and can not be forecast, except in so far as the chamber has heretofore taken such formal positions as are indicated upon the first page of the pamphlet we inclose.

For your information we also inclose a list of the organizations which are members of the Chamber of Commerce of the United States.

Very truly, yours,

ELLIOT F. GOODWIN, Secretary.

STATEMENT OF HON. WILLIAM L. CHAMBERS, COMMISSIONER UNITED STATES BOARD OF MEDIATION AND CONCILIATION.

The CHAIRMAN. You may state, Mr. Chambers, what position you hold.

Mr. CHAMBERS. I am United States Commissioner of Mediation and Conciliation, under the act of Congress of July 15, 1913, commonly known as the Newlands law.

Mr. Chairman and gentlemen, the board has prepared a study of arbitration and conciliation laws of the principal countries of the world, providing machinery for the peaceable adjustment of disputes between railroads and employees, the laws of certain countries for the prevention of strikes. We have called this report "Railway Strikes and Lockouts." Briefly stated, Mr. Chairman, this is the first compilation that has ever been made, so far as our information goes, or any attempt to make a compilation of this character, of all the laws of all the countries of the world, relating to mediation, conciliation, and arbitration methods of settlement of controversies between public utilities and their employees.

The board has made no analyses of the laws that relate to public utilities generally, only the features of the laws that relate to railroad service have been anlayzed. In connection with each statute, we have presented an analysis and also a table of results of operations under those laws. You will find-there are copies enough to go around for the committee-that the board has not expressed its opinion on the questions involved in pending legislation, but has attempted to furnish, for the information of the committee, and for public use, the laws themselves, their analyses, the results under those laws, in comparison with the Federal laws of our own country. I think we have compiled the matter so that you can see from the results whether the efforts at compulsory mediation or arbitration or compulsory military service, as practiced in other countries, have produced better or less favorable results than the voluntary methods of procedure under our own laws.

Without expressing an opinion upon the subject, I want to call your attention to the fact that the laws of France, with the exception of the provision in regard to military service, are practically the same, or at least are very similar to the laws of this country, and the operation of these laws have perhaps been the most successful because of the fact that the Government of France, through the executive, has the power to call to the colors all the railroad employees in such a condition, for instance, as existed here in August and September of last year. The administration and operation of the laws of France is in that regard radically different from our own.

There are several of these amendments that I particularly wanted to call the attention of the committee to.

Senator POMERENE. Do you think that Congress would have the power, under the present Constitution of this country, to pass this law?

Mr. CHAMBERS. I followed rather closely the remarks of the distinguished gentleman who has just spoken and it seemed to me that the power-merely as a power-is rather unlimited.

Senator POMERENE. I agree with you that the power is very broad, but whether it could be construed to be broad enough to draft men

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