Franklin D. Roosevelt

An Appeal to Railroad Management and Labor.

February 14, 1934

Gentlemen:

On June 22, 1933, the railroad managers and the railroad labor executives entered into an agreement under which the arrangement by which 10 percent is being deducted from the pay checks of railroad employees was extended from October 31, 1933, until June 30, 1934, and under which the date on which either party could submit a notice in accordance with the provisions of the Railway Labor Act, indicating a desire to change the basic rates of pay, was extended from June 15, 1933, to February 15, 1934.

It was stated that this agreement had been reached because both the railroads and the employees wished to do nothing which would in any way embarrass or threaten the policy of the Administration; that they realized that the Government had embarked upon a wholly new policy designed to promote business and industrial activity and to further the general welfare; that they appreciated that until the results of this policy could be more clearly determined, it would be difficult to deal wisely with the wage controversy; and that the active prosecution of such a controversy at that time might have a most disturbing and unsettling effect. Neither side relinquished in any way its views as to what the wages should be, but they agreed to a postponement of the controversy out of deference to what they believed to be the desire and policy of the Administration and in the general public interest.

The advent of February 15 makes it necessary again to give consideration to this wage matter. Marked progress toward national recovery has been made since last June, and I am sure that the goal will be reached. Nevertheless much remains to be accomplished; the emergency still exists, and the country has not yet attained conditions of stability. There has been comparatively little change in the cost of living, but prices are unsettled and I am hopeful that they will in general rise to higher levels. The traffic of the railroads is improving, but their financial condition is still impaired and their credit has not yet been restored so far as private capital is concerned. Under present conditions the prosecution of a bitter controversy between the railroads and their employees over wages would have a most disturbing influence, and I am further convinced that conditions are not yet sufficiently stable to permit of a wise determination of what the wages should be for the future.

In the circumstances I venture to express the hope that the railroads and their employees may be able to agree upon an extension of the present agreement for at least six months. I am confident that such an extension would be of advantage to those directly concerned, and also to the entire country.

Very sincerely yours,

To the Conference Committee of Managers (representing the Class I Railroads),

and the Railway Labor Executives Association.

Franklin D. Roosevelt, An Appeal to Railroad Management and Labor. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/208382

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