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avoid any interruption to the operation of any carrier growing out of any dispute between the carrier and the employees or subordinate officials thereof. All such disputes are to be considered and, if possible, decided in conference between representatives designated and authorized so to confer by the carriers or the employees or subordinate officials thereof directly interested in the dispute.

As a means of effecting settlement of such disputes, the law further provides that Railroad Boards of Labor Adjustment may be established by agreement between carriers and their employees or subordinate officials or organizations thereof. Each such Adjustment Board is to receive for hearing and decide disputes involving only grievances, rules, or working conditions, not decided in conference, as provided above, between the carrier and its employees or subordinate officials, who are, or any organization thereof which is, represented upon any such Adjustment Board.

Disputes may be brought before the Adjustment Board upon

(1) The application of the chief executive of any carrier or organization of employees or subordinate officials whose members are directly interested in the dispute,

(2) A written petition signed by at least one hundred unorganized employees or subordinate officials directly interested in the dispute,

(3) The Adjustment Board's own motion, or

(4) The request of the Labor Board, whenever such Board is of the opinion that the dispute is likely to substantially interrupt commerce.

As a further means of settling disputes, a board is created to be known as the Railroad Labor Board, to be composed of nine members selected as follows:

(1) Three members representing employees and sub

ordinate officials, to be appointed by the President with the consent of the Senate, from not less than six nominees offered by such employees;

(2) Three members representing the carriers, to be appointed by the President with the consent of the Senate, from not less than six nominees offered by the carriers; and

(3) Three members representing the public, to be appointed directly by the President with the consent of the Senate.

Any member of the Labor Board who, during his term of office, is an active member or in the employ of or holds any office in any organization of employees or subordinate officials or any carrier, or who owns any stocks or bonds thereof, or who is pecuniarily interested therein, is ineligible for membership upon the Board. No member, however, is required to relinquish honorary membership in, or his rights in any insurance or pension or other benefit fund maintained by any organization of employees or subordinate officials or by a carrier.

The Labor Board is empowered to hear and decide disputes involving grievances, rules, or working con ditions, upon certification to it by any Adjustment Board that in its opinion it has failed or will fail to reach a decision within a reasonable time, or in respect of which the Labor Board determines that any Adjustment Board has so failed or is not using due diligence in its consideration thereof.

Where an appropriate Adjustment Board is not organized the Labor Board shall receive for hearing and decide disputes involving grievances, rules, or working conditions which are not decided by conference between the carriers, their employees, or

subordinate officials, and which such Adjustment

Board would be required to receive for hearing and decision. It shall also receive for hearing and decide disputes with respect to wages or salaries not decided by conference between carriers, their employees or subordinate officials.

The Labor Board shall for these purposes act upon (1) The application of the chief executive of any carrier or organization of employees or subordinate officials whose members are directly interested in the dispute, (2) A written petition signed by not less than one hundred unorganized employees or subordinate officials directly interested in the dispute, or

(3) Its own motion, if it is of the opinion that the dispute is likely to substantially interrupt commerce. The Labor Board may also, upon its own motion, within ten days after a decision has been reached between a carrier and its employees or subordinate officials, suspend the operation of such decision if it is of the opinion that it involves such an increase in wages or salaries as will be likely to necessitate a substantial readjustment of the rates of any carrier, and it may affirm or modify such suspended decision.

Decisions of the Labor Board shall require the concurrence of at least five of the nine members, and in cases of decisions regarding wages or salaries, at least one of the representatives of the public must concur in the decision. Broad powers are vested in the Labor Board with respect to compelling the attendance of witnesses, production of books, documents, etc., and if it has reason to believe that any of its decisions or the decisions of an Adjustment Board are violated by a carrier or its employees, subordinate officials or any organization thereof, it may, after due notice and hearing to all persons directly interested in such violation,

determine whether in its opinion such violation has occurred, and make public its decision in such manner as it may determine. No penalty is provided for the violation of a decision of the Labor Board.

Prior to September 1, 1920, each carrier is required, under penalty, to pay to each of its employees or subordinate officials wages or salaries at a rate not less than that fixed by any agency, or railway board of adjustment in connection therewith, established for executing the powers granted the President under the Federal Control Act, in effect upon the termination of Federal control.

Amendments to the Interstate

Commerce Act.

The Transportation Act, 1920, makes many changes in the Interstate Commerce Act, the most important of which are outlined below. For the details of these changes, the reader is referred to Sections 400-502 of the law, beginning on page 66, of this booklet.

Rates

The Commission is directed to establish rates which will be adequate to provide the carriers as a whole, either in the entire country or in rate groups or territories to be established by the Commission, with an aggregate annual net railway operating income equal as nearly as may be to a fair return upon the aggregate value of the railway property of such carriers held for and used in the service of transportation. The Commission is required, from time to time, to determine and publish the aggregate value of the property of the carriers and to determine what constitutes a fair return

upon such property, except that for the two years. beginning March 1, 1920, it is directed to take as such fair return a sum equal to 52 per centum of such aggregate value. It may, in its discretion, however, add not more than one-half of one per centum of such aggregate value to make provision for improvements, betterments or equipment chargeable to capital amount. For the purpose of determining the aggregate value of the carriers' property the Commission is directed to give to the property investment accounts, only that consideration to which they are entitled in establishing values for rate-making purposes.

If any carrier earns in any one year a net railway operating income in excess of 6 per centum of the value of the railway property held for and used by it in the service of transportation, one-half of such excess shall be placed in a reserve fund maintained by such carrier, until it equals 5 per centum of the value of the property, and the remainder paid to the Commission for the purpose of maintaining a general contingent fund. When a carrier's reserve fund equals 5 per centum of the value of its railway property, the portion of its excess income, which it is permitted to retain, may be used for any lawful purpose. The general contingent fund referred to above is to be used to make loans to carriers to meet expenditures for capital account and for other purposes described in the law.

Whenever the Commission finds that any rate, fare, charge, classification, regulation, or practice causes any undue or unreasonable advantage, preference, or prejudice as between persons or localities in intrastate commerce, or in interstate or foreign commerce, or any undue, unreasonable, or unjust discrimination against interstate or foreign commerce, it shall prescribe the

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