Statement by the President Upon Receiving Report of Special Panel To Investigate the Railroad Labor Dispute.

ON JANUARY 28, 1967, I appointed an emergency board under the Railway Labor Act to investigate the dispute between virtually all of the Nation's railroad carriers and six shopcraft unions representing 137,000 employees.

That board transmitted its report and recommendations to me on March 10. The carriers accepted the board's report. The unions, however, rejected it and the "no strike" period under the Railway Labor Act was scheduled to expire at 12:01 a.m. on Thursday, April 13.

On April 10, I sent a message to the Congress recommending that it enact a joint resolution extending the "no strike" period for an additional 20 days. On April 11, Congress passed that resolution by an overwhelming vote. I signed the resolution on April 12, and the period of statutory restraint was thus extended to 12:01 a.m. on May 3..

I immediately appointed a special panel of distinguished Americans: Judge Charles Fahy, recently retired Judge of the United States Court of Appeals for the District of Columbia; Dr. George W. Taylor, professor of industry at the University of Pennsylvania; and John T. Dunlop, professor of economics at Harvard University. I asked this panel to help the parties mediate their differences and if the parties should fail to reach agreement to recommend whatever additional action may be necessary.

Since their appointment on April 12, this special panel has been working around the clock with the unions and the railroads and conferring among themselves to help the parties reach a voluntary settlement.

Today the panel reported to me that the parties have not yet been able to reach agreement. They have also not accepted a proposal offered by the panel around which a settlement could be shaped.

The panel reports that the parties are not far apart: that no basic principles stand in the way of settlement and that the differences over wage increases are not of great magnitude. On the key issue of a general wage increase, for example, the unions seek a 6.5 percent increase for 1967 and a 5 percent increase for 1968. The railroads have offered a 5 percent increase for a 1-year period. The panel has recommended a 6 percent increase over an 18-month period. On the matter of correction of wage inequities for skilled workers, the panel proposed a gradual adjustment of three 5¢ per hour payments during the 18-month period.

I know of no better way to describe the situation than in the words of the panel's report, which I am releasing today:

"The matter is one of dollars and cents alone, and the real differences between the parties in our judgment are not great ....

To carry the dispute further, in light of the consequences in doing so, would not be justifiable, especially after so much consideration has been given to the matter.

"Acceptance of the terms we propose would be a far better thing for all than a tragic industrial war over what differences now remain. Moreover, those differences are not so serious that they should be the occasion for further legislation by the Congress. Unfortunately, as of this time, neither party has accepted our proposal.

"May this dispute now be ended, peaceably and in good will."

I have already informed the Congress and the American people, in my message of April 10, of the tragic consequences of nationwide railroad strike. The cost is incalculable-food shortages would occur, health hazards would develop, factories would close and workers across the Nation would be idled. Our prosperity would be seriously imperiled. Beyond this, the impact of a railroad stoppage on our efforts to support the 500,000 valiant servicemen in Southeast Asia makes it abundantly clear that a strike at this time cannot be tolerated.

I am making the panel's report public because it is important that the American people and the parties weigh the impact of a rail strike against the narrow issues that separate the parties. I have also directed the special panel to continue to use every minute of every hour to get the parties to achieve a voluntary settlement through collective bargaining.

The Senate Labor Committee has asked the panel to testify on the situation on Monday morning.

Finally, if all efforts should fail, I have asked the panel to make recommendations to me as to what additional action they believe will be necessary to prevent a strike and achieve a fair and just settlement in this case.

As I leave for Europe, I make one final appeal to the parties: consider the broader national interest, recognize the significance of a strike to the economic welfare of our Nation, to our national health and safety, and to our soldiers in the jungles of Vietnam, and reach a settlement, in the spirit of free collective bargaining, without the necessity for additional legislation by the Congress to prevent a crippling nationwide strike.