tp&w annual report 1942

8/6/2019 TP&W Annual Report 1942

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were,reest&blishinghe new and tastersctredules g,had staried.to advettise; hat,we urculdnog''proceedto advertise and to solicit business and that the only remainingproblem was the refusalof the Peoria&Pekin Union, Burlington and Rock Island railroads o require heir men to deliver cars o us at East Peoria.The deliveriesof these hree railroads o us had beenmade regularly until the CIO and AFofL began heirmob picketing and violence. With the withdrawal of theseoutside unions, we felt this particular problemwould shortly correct itself, especiallysince,our deliveries o theserailroads had not been nterrupted bysuch nterference,

That eveningMr. W. H. Davis,Chairmanof the War Labor Board, elephonedor a "yesor no answer"to the President'setter of March 14th. told Mr. Davis that, as directedby the President's ecretary, uranswerhad been sent by air mail to the President, hat the contentswould be disclosed o no one prior toits receipt by the President, hat the reply containedessential nformation which the lVar Labor Boardhad not permitted us to present o the Board before t issued ts order of February 27th and presumably,therefore, such information had not yet been submitted to the President.Later Friday evening the Chief of the CommunicationsSectionof the White House read me a wirefrom Mr. Davis asking that we repeat by telegraph our letter to the Presidentof March 19th, and statedthat the original had not yet arrived. In view of the length of the letter, we asked f it would be satisfactory

to sendsuch an expensivemessage ollect, and were advised t would be entirely agreeable o do so.A factor which shouldbe mentionedat this point is that, for someweekspast,Paul Brokaw, one ofthe brotherhoods'national representatives,Delmar G. Newdigate, General Chairman of the local lodgeof the Brotherhood of Railroad Trainmen and H. J. Dilley, a former employe,were awaiting trial on theseriouschargeof conspiring o dynamite oneof the railroad's argestand most mportant bridgeson January27, L942.At the requestof the defendants,he trial of thesepersons ad beenpostponed everal imes. Itwas obvious hat every possiblestep was being taken to avoid having them go to trial. However,the trialwas definitely and finally set to proceedon Monday, March 23rd.

The Sei,zureAt about 10:30A.M., Washington ime, Saturday morning, March 21st, we were nformed by thepress hat the Presidenthad signed he Executive Order seizingour railroad. A copy of this order is shownon page12.Early Sundayafternoon,March 22nd,John W,'Barriger, accompanied y other officialsof the Officeof DefenseTransportation and by various representativesof the Interstate CommerceCommissionandthree United States Army officers,arrived in Peoria to seize he propertiesof the Railroad.As of 6:00 P.M. that afternoon, Mr. Barriger, acting as Federal Manager in behalf of the Office ofDefenseTransportation,gavenotice that at th&t moment he took possessionf and assumed ontrol overall real and personalproperty, franchises, ights and other assets, angible and intangible,of the Railroad;and gavefurther notice that he would operateor arrange or the operationof the railroad in suchmannerand through or with the aid of suchpublic or private agencies sma,ybe necessaryor the successful rose-cution of the W'ar.At that time and at Mr. Barriger's request, asked all of our officials o take instructionshenceforth

from him. Mr. Barriger later publicly expressed is acknowledgmentof the full cooperationwhich he re-ceived n connectionwith his seizureof our railroad. Mr. Barriger stated that he would retain all officialsin their presentpositions,except hat my serviceswould terminateas of 6:00 P.M. March 22nd.Sub e uentD eu lopment

On March 23rd I offered o remain and help in any way possible, egardless f salary. Mr. Barrigerexplained hat he felt it inadvisable o have me connectedwith the operation n any capacity and that, toavoid any possiblequestionof authority, he did not want me to remain anJrwheren the railroad's offices.I requesteda letter on the subject and on the afternoon of March 24th he servedme with a written demand


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that my officebe madeavailable or his exclusive senot later than 9:00o'clock he followingmorning,alsothat I remoye rom the premisesall of my personaleffectsand suchcorporate ecordsof the Railroad as Imight require to carry on the corporatework of the Railroad. He kindly permitted me to remove most ofmy office furniture which I had been using. I complied with his demand and the corporateoffice of theRailroad is now located at Room 413 Commercial Merchants Bank Building, Peoria, Illinois.

Regardless f the seizure,Brokaw, Newdigateand Dilley were brought to trial before a jury in FederalCourt on March 23rdas scheduled.During the trial it was brought out that the moneypaid for the attemptto d5'namiteour bridge was telegraphed o Peoria by Albert Phillips. Albert Phillips is listed as Secretaryand Treasurerof the grand odgeof the Brotherhoodof LocomotiveFiremen and Enginemenat Cleveland,Ohio. On March 26th, on the first ballot and within less han half an hour after the casewas concluded,the jury found Brokaw and the two other defendants uilty as charged.Effective12:01A.M. Wednesday,March 25th, he FederalManager erminated he schedulesf ratesof pay, rulesand working conditionswhich the Railroad had awfully inauguratedDecember29, 1941.Almostas soonas he arrived n Peoria,we urged he FederalManager o give heseschedulest leasta trial. Theyprovidedfor substantial ncreasesn pay, and they had already demonstratedheir value n assuringefficient

operationand the effectiveutilization of manpower.We felt they shouldnot be discardedn time of Warwithout at least someconsideration.Mr. Barriger stated, however, hat he was under instructions romWashington o terminate them as promptly as possible, nd he replaced hem on March 25th with thelower ratesof pay and the ruleswhich were n effectprior to December 8, 1941.The FederalManageralso calledback to work, beginningwith 12:01A.M. Wednesday,March 25th,practicallyall of the menwho went out on strike on December 8, 194I. Many of thesemen were oundtohave been nvolved in violenceby the District Court after full and fair hearingon our petition for a tem-porary njunction,which wasgrantedon January 19th.The FederalManagerput thesemenback to workby placingat the bottom of the seniority ist, and thus castingout, the full complement f loyal, compe-tent Americancitizenswho, prior to the seizure,were operating his railroadbetter than it had ever beenoperated efore.

DISCUSSIONWas the Se,izure ecessarg?Throughout the entire controversywith the railroad brotherhoods,we relied upon and acted n strictconformitywith the lawsof our Country, The strike on our railroadwhich ook place ast December ouldhave been averted, after the failure of mediationand attempts to arbitrate, if the National MediationBoardhad recommendedo the Presidentof the United States he appointmentof an EmergencyBoard.This procedures clearlyprovided for in the Railway Labor Act for just such situations.We wanted public opinion, the very thing that an EmergencyBoard represents,o passupon thewastefulpractices f the featherbed uleswhichthe railroadbrotherhoods avesaddled pon the railroadsof this Country and which, with new contractscontainingal l the trimmings,they were rying to imposeupon us.The brotherhoods ereopposedo a publicairingof their wastefulpracticesor which he shippingpublic must pay. In this time of War Emergency, hey would becomea national scandal f fully disclosed.One reasonstated n the ExecutiveOrder or the seizureof the properties f our Railroadwas hat alabor dispute on the railroad had interrupted the transportation of goodsessential or the prosecutionofthe W-ar.However,the day before he ExecutiveOrder of seizurewas signed, he violence had ceased ndwe had telegraphed he Presidentof that fact. The circumstances nder which we wrote the National WarLabor Board on March 14th, no longer obtained.At that time we had asked he Board either to arrangefor the enforcementof law and order so that the railroad could be operatedwith reasonable afety for itsemployes,or arrange or the Government o take over the railroad for the balanceof the War. On March20th, however, the railroad was in full and efficient operationand we had so telegraphed he President.All that was neededwas a continuanceof law and order in East Peoria.


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Another reason or the seizurewas stated o be the Railroad'sdeclination o complywith the orderof the National War Labor Board of February 27th. That order is a clearviolation of the Railway LaborAct and is likewisecontrary to the provisionsof the ExecutiveOrdercreating he War Labor Board, asexplained n page10 n the copy of our letter to the President.Regardless f the foregoing, nce he ExecutiveOrderwas ssued,we deemedt"ourpatrioticdutytocomply immediately, to cooperaten the seizureand assist, n every possibleway, in assuring he uninter-rupted operationof the propertiesseized.

The Renewed emands f theBrotherhoodsWe are nformed hat the brotherhoods renow demandingncreasesn ratesof pay and the adoptionof the featherbed ules n line with their original demands pon the Railroad.Sinceparagraph3 of the Execu-tive Orderunder which the propertieswere seizedprovides hat "The Director of the Officeof DefenseTransportation shall manageor arange for the managementof said railroad under such terms and con-ditions of employment as he deemsadvisable and proper, pendingsuch termination of the existing labordisputeas may be approvedby the National War Labor Board," it would seem hat the Officeof DefenseTransportationwill makenew arrangements ith the brotherhoods, s approvedby the War Labor Board,while our properties re n the handsof the FederalManager.There will be widespreadnterest n the termsand conditionsof employmentwhich oneagencyof theGovernment,the Officeof DefenseTransportation, will be called upon to accept from another Govern-mental agency, he War Labor Board. The Government s now in the railroad business.t will considerthe reportsof previousPresidentialEmergencyBoards,which arebrieflyreferred o on page5 in our letterto the President.And it has many other employe classifications,ncluding our fighting forces on BataanPeninsulaand elsewhere, hich do not have featherbed ules and wastedmanpower.Surelyour Govern-ment will not want to set a precedent hat will start a wave of demands or featherbed ules, nefficientoperationand wasteof manpower ll over he Countryas well asabroad.On the contrary, he Governmentmostcettainlywill doall within its power o seta goodexampleo its citizens, o hat its urgentand necessarydemandsor fasterandevermoreefficient roduction n this War Emergency ill not be renderedneffective.

The Posi,tion f theRailroadThe FederalManagerhas seized ll of the Railroad's unds,hascut off all salaries f thoseof us whoseactivitiesare confined o the corporatework of the Railroad,has exclusivepossessionf the offices, ndhas all the files excepta portion of thosewhich pertain strictly to corporatework. The ExecutiveOrderdoes ot disclosehe aw or lawsunderwhich he properties f the Railroadwere eized. owever, heFederalManagerhas orally stated hat the laws under which the propertieswereseizeddo not providefor anycompensationo theRailroad,and that, to obtain compensationor the properties eized,i wiII benecessaryfor the Railroad to take its chances n congressionalegislationor await the outcomeof lengthy proceedingsbefore the United States Court of Claims.In any event,whateverhasbeendoneor will be donesubsequento 6:00P.M. March 22nd, n connec-tion with the Railroad'sproperties, efore he War Labor Board or otherwise,s and will be donesolelybyand for the acoountof the FederalManager.The changeswhich the FederalManagerhas nstituted areall at the Government'sresponsibility. The Railroad still retains its schedules f rates of pay, rules andworking conditionswhich it lawfully inaugurated December 29, 1941,as well as the seniority list of itsmen who, bravely and more successfullyhan ever before, wereoperating the railroad at the time it wasseized n March 22,1942.We still conceivet to be our duty to our Country and to the shipperswe have served o urge betterutilization of manpower and more efficient operation whereverpossibleduring this time of War.

GEO. P. N{cNEAR, JR.,President.


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GEO. P. MCNEAR, JR.PRESIDENT

TOLEDO, PBORTA & WESTBRN RAILROAD

UNT()N STATIONPEORIA, ILLINOISMarch 79, 1942

{IE MArHonorableFranklin D. Roosevelt,The White House,Washington,.C.Dear Mr. President:

On Monday morningwe received our letter of March 14th concerning ur situation. regret he delain submitting our answer. t has beenoccasionedolelyby our sincere esire o present his matter, whicis vitally important to us, in a manner befitting the great respect which we all have for you anyour high office.The Controversyover Rules and Working Conditions

Our controversywith the railroad brotherhoodswas confinedsolely o the matter of the rulesanworking conditionsof the employeswho operate he trains. The so-called standard" rules which thbrotherhoodswele endeavoringo imposeupon us are aptly and generally eferred o as the "featherbrules." We werewilling to discuss ny ratesof pay which the brotherhoodsmight suggest, ut the brothehoodofifrcialsefused o state any rates at which they would let their men work under the rulesand woring conditionswhich we proposed nd which provided or a fair day's work for a fair day'spay.

What PreviousEmergeneyBoards Have SaidThe matter of theseso-called tandard ulesand worhingconditions s not new.The EmergencyBoard appointedby you in 1938 ecommendedhat a frank, candid nquiry be maof the equitablenatureof these ules.When the thirty per cent wage demandsweremade early in 1941,someof the railroadscounterwith requests or some ule changes. owever,when the matter got to the EmergencyBoard, which waappointedby you in the fall of 1941, he subject of rule changesor train and engineserviceemploysimilar to thosewith which we wereconcerned, ad been eft by the wayside n mediationat the requeof the Mediation Board. Consequentlyhese uleswere not examined y your EmergencyBoardof 194even hough it is obvious hat ratesof pay cannotproperly be consideredwithout at the same ime examining the rules and eonditionswhich determine how the rates are to be applied.However,your EmergencyBoardof 1941did briefly considerhe rulesand workingconditionsof thso-called on-operating mployes ndreported hat it couldnot make indingswith respecto them becauof the shortness f time and the intricacies f these ules.Your EmergencyBoard recommendedhat surulesmight well be the subjectof inquiry by a specialboard which could take the time to go into themThis recommendationwould have been even more in point had the still more complicated and wastefrules of the train and engineservice employesbeen before the Board.It is obvious that these mpartial, public bodies,which were appointedby you, weresuggesting hasomethingbe done o get a fair day's work for a fair day'spay on the railroads,and that the variouspenalpaymentsand other deviceswhich impedeefficient transportation be eliminated.


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The Operating Situation on the TP&WFollowing the precipitate calling of the strike for December 9, 1941 and until the time it actually

became effective on the evening of December 28th, we repeatedly urged the Mediation Board to recom-mend to you the appointment of an Emergency Board to investigate and report on our controversy aboutthe rules and working conditions. But the Mediation Board consistently disregarded our recluests. Thestrike finally became effective December 28th without any action having been taken by the MediationBoard to request an Emergency Board. Our present schedulesof rates of pay, ru les and working conditionswere lawfully put into effect on December 29th, in accordancewith the provisions of the Railway LaborAct. The employeswho went out on strike were requested by the railroad to return to work on December30th. They failed and refused so to return and other employeswere thereupon engaged o take their places.

As it turned out, about 100men, out of a total payroll of around 600 employes, eft their jobs' A thou-sand others have sought to take their plaees.Among the new men are other brotherhood men, also men whohave come here at the suggestion of employes on our neighboring lines.

We now have all the men we need to run our railroad. There is no dispute between our railroad andthe men who are now operating the trains.

Our rates of pay, rules and working conditions give effcct to the suggestions of your President'sEmergency Boards of 1938and 1941. They give substantial increases o the individual employes. The rulesand working conditions provide for efficient work with maximum utilization of manpower'

On March 3rd we cancelled the then existing embargo on overhead perishables and livestock andannounced that henceforth rne would handle all classesof traffi.c without restriction of any kind. We alsoannounced on that day that we were inaugurating freight train servicethat would be the fastest and mostcomplete in the history of the railroad, also that we were wiring Mr. Donald Nelson that our people weredetermined not to permit anything to hinder their full contribution totvards the faster and greater pro-duction which the War Production Chief so appropriately urged in his great radio speechthe previousevening.

We commenced these new and faster operations, arrd started to advertise them. But on or aboutMarch LBth these operations became so seriously interfered with by the renewed attacks of violence,referred to in the latter part of the next section of this letter, that we were obliged to curtail themand eliminate night operation.

There has been serious violence. In the first week of the strike there was increasing violence, culmin-ating on Friday, January 2nd, in an attempt by a mob of strikers near Peoria to stone and burn to deathan engine crew of one of our trains. A temporary restraining order was granted by the United States Dis-trict Court on January 3rd. The violence immediately stopped. On January 19th, after full and fair hearingof all the issues nvolved, the District Court granted a temporary injunction against violence.

On the night of January 27lh an attempt was made to dynamite and destroy one of the railroad'smost important bridges. Contempt proeeedings have been instituted in the Federal Court against PaulBrokaw, a public relations official from the national brotherhoods' headquarters at Cleveland, Ohio, andDelmar G. Newdigate, General Chairman of the local lodge of the Brotherhood of Railroad Trainmen,charging these two brotherhood officials, along with another former employe, with conspiring to destroythat bridge. Witnesseswho will sustain the chargeshave been subpcenaed or the trial. On February 24th,after an initial delay, the District Court set the trial before a jury for Nfarch 9th. However, on March 10th,after a last minute endeavor o avoid trial by seehing o obtain a writ of supersedeasrom the United StatesCircuit Court of Appeals, which writ was denied on March 7th, and after the District Court heard anddenied a motion to dismiss the temporary injunction, the Court ordered the trial of these men to proceed.Thereupon one of their attorneys reported illness and the trial was put over until March 23rd. It


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was definitely stated by the Court that there would be no further continuance of this trial. Aside from thi,incident and some other outbursts, there was comparative peacefulness ntil Nlarch 10th.I{eanwhile, the railroad was rapidly building up its organization and the new men x'ere becomingaccustomed o their operations and, as already stated, on March 3rd the railroad announced the inaugura

tion of the new freight scheduleswhich were faster and more complete than ever before.Shortly after the order of the War Labor Board of February 27th was announced, rumors were healc

of some sort of alliance between the CIO and AFofL unions and the railroad brotherhoods. The locai net-spapers canied stories of telegrams which these unions had sent to Washington about our situation.Beginning on the evening of March 10th, almost immediately after the dec;sion of the District Cor"urefusing to dismiss the temporary injunction, the violence flared anew. Mobs of men, most of them sa id tcbe CIO and AFofL sympathizers, gathered at the entrance to our yards in East Peoria, barricaded thc

entrance, attacked and threatened our employes, prevented many frorn working, burned down buildingsand threatened to destroy more. While this was going on, the wives and families of our employes u-erthreatened, shotguns were fired into their homes and shots were fired at our employes rvhile on duty. Inone evening three employes were hit, one of whom is still at the point of death. To avoid further risli toour employes, we were obliged to stop night operations, thus slowing down our service.

Threats allegedly made to employes of the Peoria & Pekin Union, Burlington and Roch lsland rail-roads are claimed to have intimidated these employes to such an extent that they are said to be afraicl tocome on our railroad to deliver important cars to us for handling. As a result of this interference u'ithinterchange, the Interstate Commerce Commission was obliged to issue an emergency service order rc-routing cars for us from these particular railroads at East Peoria and Peoria. A large number of cars of cciafor the power plant serving this area are being held up because he TP&W is the only railroad serving thrrplant. We have offered to go into the yards of the Burlington and P&P{I to get these cars, but the man-agements of these roads advise us that they are not in a position to permit us to obtain the cars in thatmanner.

At first the CIO and AFofL unions contended that the Federal Court's injunction did not apply tcthem and that they could do as they pleasedwithin the very elastic limits allowed them by the city anccounty authorities. The injunction does apply to them and the CIO and AFofL leaders and others havegradually been served with copiesof the order for temporary injunction. Servieeand identification has beendifficult with the limited staff of the U. S. Marshal, and with the many different men who have appearedin rapidly changing shifts and in automobiles belonging to others.

We feel it is rmportant to point out that this renewed violence, and interference with the hancilingof interstate traffic, which developed after we had resumed full operation and speededup war tra{Ec, hasapparently been for the deliberate purpose of attempting to convi nce the authorities at Wasliington thatthere is civil war going on in Peoria, that we cannot handle traffic and that, therefore, the Governmentmust come in and take over this railroad, regardlessof the fact that were it not for the violence and intcr-ference the railroad's operations would be better, faster and more efficient than ever.

Conditions during the past few days have again become fairly peaceful. Fossibly this is because hoseinterested feel that the violence and interference have accomplished the desired purpose in lYashingtonRequests for Arbitra,tion

After Pearl Harbor, the National Mediation Board requested us to arbitrate under the provisions ofthe Railway Labor Act during the period December 17th to 28th, 1941. According to a telegram frolnMessrs. Robertson and Whitney, which was published in the newspapers, he brotherhoods gave a conditional acceptanceof such arbitration. We repeatedly urged that the Mediation Board request the appoint-ment of an Emergency Board, as we felt a thorough, scientific and public investigation of the matter ofrules and working conditions by such a board would provide the proper basis for a solution. It is our judg-


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ment that the Mediation Board, having failed to induce the parties to arbitrate, shouldhave carried outthe elearprovisionsof the Railway Labor Act and recommendedo you the appointmentof an EmergencyBoard beiore the strike started. Had it done so, all of this tragedy would have been averted.The timing of subsequent roposals or arbitration is significant.On Monday evening,January5th, we received he next request o arbitrate. It was rom Mr. Eastman.He askedus to return employes o work at onceunder conditionsexistingprior to Sunday,December28th,and that all disputesbe submitted to arbitration. During the period December29th to January 3rd, ourpeoplehad just gone hrough a most terrible time, with brutal assaults,attempts to wreck trains, stonings,t,rtrring* and beatings.On January3rd, the District Court had granteda restrainingorder againstviolenceand the violencehad immediately stopped.While our loyal peopleand our new men werebeing so cruellytreated, we never heard from Mr. Eastman or anyoneelsesuggestingarbitration. During that time thesebrotherhoodsapparently thought they could beat us into submissionwith their violence,and force us toyield to their demands.Nobody said a word about arbitration in those dark days.But after it was over, when the Court had granted the restrainingorder and it appeared hat respectfor law and order might prevail after all, we were asked o throw overboard he brave men who brought

this railroad through its crisis, return to work thosewho actually tried to break up the railroad, and sub-mit everythingto arbitration, just as f nothing had happened. s thereany wonder hat we wereunwillingto acceptarbitration under such conditions?On the eveningof January 20th came he next proposal or a discussion,which led to conferences nJanuary 23rd and 24th culminating in a suggestionor arbitration. This proposal o confercame rom Mr.J. R. Sieelman,Director of the U. S. ConciliationService, nd his associates.ut what had ust happened?On the preceding day, January 19th, the District Court had granted the temporary injunction againstviolence.The politically strongand flag waving attorneys or the brotherhoodshad been elling their clientsthat they would prevent us from getting an injunction, but the injunction was grantednevertheless.m-mediateiy, this agencyof the Government askedus to confer. Our representativeshad a joint meetingwith the conciliatorsand the brbtherhoodrepresentatives n Saturday, January 24th' Our peopledid notagree o arbitrate, but they expressedwillingness o discuss he points at issue n an honest endeavor o,each a settlement,provided it be understood hat the interestsof the new employes n train and engineservicewould be protected.The brotherhoodswere unwilling to recognize hat these employeshad anyrights whatsoeverand would not proceedwith the conference nlesswe withdrew the condition. This wecould not do, and the conciliators erminated the discussion.Paul Brokaw, was one of the brotherhoods' epresentatives t that meeting on January 24t'h, t wason January 27th that he s chargedwith havingpaid a large sumof money o have one of our largest bridgesdynamited and destroyed.On February 20th, when the next request or arbitration c&me, t was from the National War LaborBoard. Our operationswere hen practically back to normal, except hat night operationswere still limitedand the handling of overheadperishablesand livestock had not beenresumed'By that time we had re-moved the speed estrictionson our trains, we were handling an increasingvolume of war traffic and wereplanning the steps or the improved operationswhich were later taken on March 3rd.

War Labor Board Hearing and OrderThe verbatim transcript of the short hearing accordedus before the National War Labor Board onFebruary 27th shows hat at the morning session ur attorney repeatedly stated we would be willing toconsidera fair form of arbitration when we knew what the issueswereand what the form of the arbitrationprocedurewould be; also that the railroad would not consent o arbitration under the Mediation Boardas provided in the Railway Labor Act for the reasonshe outlined. l\rhen we next appearedbefore thatBoard, late in the afternoon,we were confrontedwith an order which had beenprepared n the interim.This order contained indingswith respect o which we had not beenallowed o give information. It gave


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no consideration to other possible orms of arbitration we had expressedwillingness to consider.It directedus to arbitrate under the auspicesof the Mediation Board under Section 8 of the Raihvay Labor Act, andthe Chairman of the National War Labor Board asked for immediate acceptance of its order.On March 2nd we advised the National lYar Labor Board that for the reasonsgiven we respectfullydeclined to arbitrate under the Railway l,abor Act, but we stated we would be willing to consider someother form of arbitration procedure if the brotherhood officials desired to come to Peoria to discuss thesubject.This letter and offer was ignored by the Eoard. On the evening of March 12th the Board gave to thenewspapersand radio broadcastersa press release n which this railroad and its managementwere criticizedand their patriotism questioned. We replied on March 14th showing that this railroad had complied witiral l the laws touching upon the controversy; that we were not given a fair hearing before the National WarLabor Board; that its order was based upon findings with respect to which we were given no opportunityto present information; that there was no need for the National War Labor Board to take jurisdiction ofthis matter; that compliance with the order would be unfair to this railroad and the full complemerrt ofemployes now operating its trains; that the order of the Board has actually promoted renewed violeucc

and caused he injection of the CIO and AFofL unions into the situation;and that all that was needed ri.asthe enforcement of law and order. We also pointed out that the Railway Labor Act does'not require arbi-tration and that the Executive Order creating the National War Labor Board specifically provides tliatnothing in that order shall be construed as superseding or in conflict with the Railway Labor Act.Arbitration under the Railway Labor Act

For years arbitration has been generally considered o be a fair, prompt, and incxpensivemeLhoclofsettling disputes. That reputation was built up as a result of thc generaily adopted policy of selecting fnirand impartial arbitrators, particularly the tliird and deciding arbitrator.Arbitration undcr the Railway Labor Act, however, is arr cntirely different thing. This is becau-sehethird and deciding arbitrator is appointed by the Mediation Board when the lwo arbitr.ators appointcdby the interested parties cannot agree on the third arbitrator.The fairness and impartiality of the Mediation lJoard become most vital factors in considering arbi-tration under tlie Railway Labor Act. Unfortunately, various events which have taken place froin time totime have not inspired us with confidenceas to the fairness and impartiality of the Mediation Board.As previously stated, the \fediation Board could have avoided this entire strike, if it had r.ecommendeclthat you appoint an !)mergency Board under the clear and specific provisions of the Railu'ay Labor Actintended to cover just such situations. But it was apparent that the brotherhoods did not want ttre publichearings which would be an essential part of an investigation by an Emergency Board inquiring into oursituationl and that they did not want a public airing of the wasteful effectsof their featherbeci ules, spelledout in language that anyo4e could understand, or the widespread public criticism they knew would resultfrom sut'hexfosurc.These brotherhoods u'ell knew that the one sure and complete '\ ay to expose he whole rness o thepublic view, not only the featherbed rules they were trying to impose upon our railroad but the wastesand extravagances they cause to the railroad industry as a whole, was through the appointrnent ofan Emergency Board in our two cases hen pending before the Mediation Board. They also knew that thefacts which would have been presented at such public hearings and the published report of such Boardwould have brought an end to their unreasonable demands upon us and the beginning of essentialadjust-ments on the railroads generally.Other evidencesof favoritism to the brotherhoods were shown by the Mediation Board's mediator,John F. Murray. When he was in Peoria during the long mediation proceedingshe and the brotherhoodrepresentatives stayed at the same hotel, they were frequently seen together, and he stated towards the


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cioseof the mediation,at a full meetingattendedby employeas well as brotherhoodrepresentatives,hatin his opinion if there was a strike the employesof connecting ines would refuse o deliver cars o us'Regardlessof our protest to the Mediation Board about his actions, it was Mediator Murray who

again cime to peoria on March 7th to carry out the Directive Order of the National War Labor Boarduld dru* up the arbitratiorr agreement. nstead of holding the meeting for that purpose at the FederalBuilding o, .o11"other appropriateplace,he specified hat the meetingwould be held at the hotel whichhas beenfor months the^headquarters f the brotherhoods,and the specificmeeting room he designatedfor us to come o was the 1,,ery ame oom the brotherhoodshave beenusing for their meetings, ncludinga meeting tliat sameevening. think you can understand,Mr. President,why we could not' at'tendanysuch performanceas that.Mediator Murray remained n Peoria the following week when the violencewas renewedand when,for the first time alring the strike, the employesof important railroad connectionsat Peoria and EastPeoria efused o deiiver cars o us'It is for thesereasons,amorlgothers, that we felt almost from the beginning hat arbitration under

the auspices f the MediationBoard asprovided n the Railway Labor Act wouldhavebeenunfair to us;

and thal it would haveresulted n the saddlingon us of the wastefulpracticesand grosswastesof manpowerunder he featherbed ules, ust as desired y the brotherhoods. ndoubtedly t was he recognition f suchpossibilities hat led Congresswisely to refrain from attempting to make arbitration compulsoryunderthe RailwayLabor Act.Validity of the Order of the National War Labor Board

We respectfullyraise he questionof the power of the National lYar Labor Board to order the arbitra-tion it did in its orderof February 27,1942.Your ExecutiveOrderof January12th creating he NationalWar Labor Boa1dspecificaily rwides that nothing n that ordershallbe construed s supersedingr inconflictwith ttre Railway Latot Act. The Railway Labor Act expresslyprovides hat the failure or refusalof either party to submit a controversyto arbitration shall not be construedas a violation of any legalobligation mposedupon suchparty by the terms of the Railway Labor Act or otherwise.

The National War Labor Board refers o the National AgreementbetweenManagementand Labor,mentionedn the second aragraphof your Executiveorder. We do not understand hat that agreementis law. We understand t wasmadeby a selectedgroup to avoid impendingcongressionalegislationwhichthe labor peopledid not like, but which otherwisewas nevitablebecause i the strikes,slow-downs nd otherlabor interferencewith our war program.If our experiences typical, we hope Congresswill proceed n the customaryand proper manner sothat the fundamentalprinciples of the right to work and the preservationof law and order can be reestab-lished.We believe hat the peoplewho want to work efficiently shouldbe allowedto continue with their

work, so that all of us can render every possibleserviceand continueour contributions as taxpayers.The pressure ow beingexertedby the brotherhoods pon our Governmentapparentlycomesrom theirfear that if any railroad is permitted successfullyo operateunder rules differing from so-ealled tandardrules, their carefully protected and ever expandingfeatherbedpractices would thereby be endangered.An6 the brotherhoodshave beenmaking every attempt to evade he trial of their officials n the Federalcourt on the chargeof plotting to dlmamite one of our largestbridges.We sincerelyregret that the peoplewho were operatingthe trains decided o leave their jobs and goout on strike December28, 1941. Ve felt they werebeingmisinformedand misled.We djd our best tocorrectany misinformationw th our circular letter datedDecember20th. The prohibitory featuresof the

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Railway Labor Act preventedus from expressing urselves s to how they were beingmisled,and"how thebrotherhoods ere nfluencinghem away rom good obs at high pay merely o protect the brotherhoods'nationaland organizationalpolicies.We weremighty sorry to lose he services f these nen,and the pleasantassociationwith them. But the railroad had a public duty to renderefficient ransportationservice,and itdid its best to perform that duty.Aside rom the legalaspects f the order o arbitrate,and our objectionso the form of arbitrationsoordered, t would be difficult to developany agreement or arbitration at this late date. There is little lefta,boutwhich to arbitrate.Our presentschedules f ratesof pay, rulesand working conditions,whichhavelreen awfullyput into effect, anonlybechangedn accordance ith theprovisions f theRailwayLaborAct.

Also, we now havea full complementof competentand well satisfiedmen running the railroad. Theyare doing their utmost to deliver the goods aster and better than ever and we could not fairly take anystepthat might leadto their beingarbitrated out of their jobs and turn this railroad over to the inefficient,wasteful eatherbedpracticeswhere hree hoursor less s a day's work and where83 men would be requiredto do the work whichcannowbe betterdoneby 50 men.Furthermore, venwerewe nowto arbitrate,whilethe lengthy arbitration proceedings eregoingon the talk set looseby the brotherhoods nd the uncer-tainty of the future would undermine he moraleof the full complementof competentmen now operatingour trains, and our organizationwould becomedisrupted and our efficiencygreatly impaired.Our operations re now beingsuccessfully arried on under the protectionof the injunctiongrantedby the FederalCourt, except or the recentcurtailment in operation,due to last week'sviolenceand.nter-ference. ust prior to the development f this recentviolenceand interference, e announcedhe fastestand mostcomplete rain servicen the history of the railroad,and we askedMr. DonaldNelson,Chairmanof the War ProductionBoard, for the opportunity of competing or awardsof merit in the field of trans-portation, n suchmatters as speed, afety, ef&ciency nd utilization of manpower, imilar to thosepro-posedo speed p industry.The soundnessf our recentlyestablishedatesof pay, rulesandworkingconditions avealreadybecndemonstrated.We strongly feel that the best way by which the TP&W ean continue o cooperate ndrender he greatest nd most efficient ervice n the war program s for us to continue o operate nder ireprotectionof the injunction grantedby the FederalCourt, with the strict enforcement f that iniunctionand the preservation f law and order.We realize,of course, hat it is our patriotic duty to comply with your wishesn every way we can.We have every desire o fulfill this duty. However, for the reasonsabovementioned. nd which I d.onotbelievewereclear o you whenyou addressed s your letter of March 14th, we couldnot, as ong as weare responsibleor the operationof this railroad, enter into the arbitration orderedby the National WarLabor Board.We strongly feel hat to do sowouldbe definitely contrary to the best nterestsof our Country.With this terrific war now on our hands, he need or fast and efficient ransportationand the effectiveuseof manpower s more desperatehan ever before.We hopeyou will decide hat law and orderare o be enforced, nd hat arrangements il l be made orthe localUnited StatesMarshal o have he necessaryelp o enforcehe injunctionagainst iolencessued.by the Federal Court of this District. If given reasonable rotection against violence,we can and

will provide the fastest possible movement of war traffic, with efficient operation and effectiveutilization of manpower.Most respectfully yours,

1 1

GEO. P. McNEAR. Jr.


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EXECUTIVE ORDERDIRECTING THE DIRECTOR OF THE OFFICE OF DEFENSETRANSPORTATION TO TAKE CONTROL OF THE TOLEDO,

PEORIA, AND WESTERN RAILROAD COMPANYWIIEREAS, the national interest and security demandsthat there be no interruption in the flow ofgoodsessential o effectiveprosecutionof the war, andWHEREAS, representatives f labor and industry, meeting at the call of the President,have agreedthat there shall be no strikes or lockouts during the period of the war and that all labor disputesshall besettledby peacefulmeans,and, to further that agreement,he National War Labor Board has beenestab-lished by ExecutiveOrder No. 9017 o bring about the peacefulsettlementof all such abor disputes,andWHEREAS, a labor dispute has existed between he employeesand the management f the Toledo,Peoriaand WesternRailroad Company sinceDecember29, 1941 and has interrupted the transporbationof goodsessentialor the prosecutionof the war, andWHEREAS, the National War Labor Board, by order dated February 27,1942, directed hat the dis-

pute be submitted to arbitration under the terms of Section8 of the Railway Labor Act, and the repre-sentativesof the employeeshave agreed hereto, but the Company has refused and continues o refuseto submit tbe dispute to arbitration, despiteurgent requestsby the National War Labor Board and bythe Presidentthat it do so; andWHEREAS, for the time being and under the circumstances et forth, it is essential hat the Toledo,Peoria and WesternRailroad Companybe operatedby or for the United States n order to assure uccessfulprosecutionof the war;NOW, THEREFORE, by virtue of the authority vested n me by the Constitution and laws of theUnited States,and as Presidentof the United Statesand as Commander n Chief of the Army and Navy,it is herebyordered:l. The Director of the Officeof DefenseTransportation is directed to take immediate possession fall real and personalproperty, franchises, ights and other assets,angible and intangible, of the Toledo,Peoria and W'esternRailroad Company,and to operateor arrange or the operationof such railroad insuchmanner as he deemsnecessaryor the successful rosecutionof the war, through or with the aid ofsuchpublic or private agencies, ersonsor corporations,ncluding the armed forces of the United States,ashe may designate,2. Such real and personalproperty, franchises, ights and other assets, angible and intangible, ofthe Toledo,Peoriaand WesternRailroad Companyas the Director of the Officeof DefenseTransportationdeemsunnecessaryo carry on the operation of suchrailroad may, from time to time, in his discretion,bereturnedto the Toledo,Peoriaand WesternRailroad Company.3. The Director of the Office of DefenseTransportationshall manageor arrange or the managementof saidrailroad under such erms and conditionsof employmentas he deemsadvisableand proper,pendingsuch ermination of the existing abor disputeasmay be approvedby the National War Labor Board. Noth-ing hereinshallbe deemedo render napplicableexistingstate or Federal aws concerninghe health,safety,securityand employmentstandardsof the employees f said railroad.4. Except with the prior written consentof the Director of the Officeof DefenseTransportation,noattachmentby mesneor garnishee rocess r on executionshall be levied on or againstany of the real andpersonalproperty, franchises, ights and other assets, angible and intangible, of the Toledo, Peoria andWestern Railroad Company in the possession f the Director.b. Possession nd operation hereundershall be continued only until the Presidentdetermines hatsuch temporary possessionnd operation are no longer required for successful rosecutionof the war.

THE WHITE IIOUSE.March21,1942.FRANKLIN D. ROOSEVELT


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tp&w annual report 1942

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