I continue to believe that this controversy can and should be settled by voluntary and peaceful processes.

It is essential that the particular issues in dispute be resolved. It is equally important that the freedom of collective bargaining be preserved.

It is obvious that the parties cannot reach agreement on the specific terms of settlement before the deadline which has now been set for midnight tomorrow. They can, however, agree voluntarily on a procedure for reconciling these differences.

Yesterday the Brotherhood of Railway Clerks, largest of the unions representing rail and airline employees, entered into a voluntary agreement with Pan American World Airways to submit to binding arbitration all disputes which cannot be settled by the full processes of negotiation, convinced that they can resort to "voluntary referral to a system of impartial adjudication rather than economic warfare without weakening collective bargaining.'

The operating brotherhoods and the railroad carriers are equally free to avail themselves of similar voluntary settlement procedures. Such procedures are not substitutes for collective bargaining; they are part of such bargaining, to be used when the possibilities of negotiation have been exhausted.

It must be made clear, in this connection, that there has been no proposal for arbitration at any point in this case by any Government representative or board except after every effort has been made to get the parties to agree on specific settlement terms. These arbitration proposals have not reflected Government's desire or design; they have resulted solely from private failure or refusal or inability to agree.

I consider negotiated agreement infinitely superior to arbitration. But where private parties cannot negotiate successfully, arbitration is infinitely superior to a shutdown over a period of a vital segment of the Nation's economy.

I am convinced that an agreement now, in this case, to follow this course will be in the interest of the parties. I urge strongly that it be followed in the public interest-not only in maintaining continued rail transport but in preserving the freedom of private decisionmaking.

It is of vital importance that this most critical of all labor controversies end with the parties' agreement upon the procedure to be followed in resolving this dispute. The future of collective bargaining may well depend upon this being achieved.

I accordingly propose to the parties that they agree to submit all issues in dispute between them for final settlement to Associate Justice of the Supreme Court Arthur J. Goldberg, with the understanding that this matter will be completed before the convening of the next term of the Court. Mr. Justice Goldberg has previously made clear his intention to disqualify himself from any decisions coming before the Court which may arise out of this dispute. Although the use of a member of the High Court for additional duties has been and should be reserved for extraordinary situations such as the Nuremberg trials and the Pearl Harbor inquiry—I believe this situation is extraordinary, in terms of its impact on collective bargaining, its relationship to the whole problem of technological unemployment and the potential effects of a nationwide rail strike on our economy, our defense effort, and our citizenry.

I urge the adoption of this proposal by both parties, with the understanding that the rules change and strike notices be immediately withdrawn.

I request the parties to advise me by 10 a.m., tomorrow, July 10, of their response to this proposal.

APPENDIX A-3

[June 15, 1963-Office of the White House Press Secretary]

THE WHITE HOUSE.

STATEMENT Of the President

I am advised by the Secretary of Labor that you have reached no agreement. The report I have received indicates, beyond this, that there has actually been no real bargaining, in any effective sense, in this case-although it has gone on for almost three and a half years.

This means that in this vitally important case, involving great private interests and with the national welfare at stake, collective bargaining has failed-so far. It means that in its most vital testing, the procedures established in the Railway Labor Act have failed-so far.

I have supported free collective bargaining as a Member of the House of Representatives, as a Member of the Senate, and as President. I always will, for I consider it a keystone of private democracy. But it has to work.

I have always supported the Railway Labor Act, and its essential feature of recommendations that are to be the basis for bargaining, although the ultimate decision is up to the parties. I hope to be able to continue to support this act and this principle. But it must work, too.

This case has already dragged on much too long. There has been one postponement of the hour of showdown after another. Only the critical, crucial nature of the basic issues involved especially the replacement of men by technology-justifies this at all. But there have been two Presidential Board recommendations concerning these issues. It should be possible to find a solution which permits the termination of jobs which are not justified and protects the equities of the men involved.

It is clear, at the same time, that the whole future of free collective bargaining, and of the effectiveness of the Railway Labor Act as a supplement to free bargaining, is involved here. If no settlement is reached in this case, there will be no alternative to the enactment of new legislation which will protect the public against a loss of its rail transport. The effect of such legislation on free collective bargaining will be incalculable.

I therefore propose that you make one last major effort to resolve this dispute, not just as parties to this one case, but as stewards of the free bargaining tradition. I ask that you proceed immediately to the hardest kind of bargaining with the assistance of the Secretary of Labor, Assistant Secretary Reynolds, and the National Mediation Board.

If by July 10 there has still been no accord reached, I shall ask for an immediate report from the Secretary of Labor and from you on the circumstances of this failure. I shall then make such recommendations to the Congress as these circumstances appear to dictate.

I request that you agree to maintain the status quo to permit the completion of this proposed procedure.

I point out, in conclusion, these plain facts. If this case does have to go to the Congress, it is going to mean, necessarily, the disposition of the disputed issue or issues through some agency other than the parties. There is nothing which legislation can do which you are not free to do voluntarily, including the selection of your own special procedures if this is necessary to complete any part of your settlement. If either or both of you should decline to take advantage of this opportunity, the responsibility for what follows will have to be accepted where it lies.

I urge you to act, as it is in your power to act, not only to settle this case but to preserve the freedom of private collective bargaining and the effectiveness of the established statutory procedures.

APPENDIX B

ORIGINAL NOTICES FOR CHANGES IN RULES FILED BY THE

PARTIES

APPENDIX B-1

PROPOSALS OF THE CARRIERS

USE OF FIREMEN (HELPERS) ON OTHER THAN STEAMPOWER

A. Eliminate all agreements, rules, regulations, interpretations, and practices, however established, applicable to any class or grade of train, engine, or yard service employees, which require the employment or use of firemen (helpers) on other than steampower in any class of freight service (including all mixed, miscellaneous, and unclassified services) or in any class of yard service (including all transfer, belt line, and miscellaneous services to which mileage rates do not apply).

B. Establish a rule to provide that

1. Management shall have the unrestricted right, under all circumstances, to determine when and if a fireman (helper) shall be used on other than steampower in all classes of freight service (including all mixed, miscellaneous, and unclassified services) and in all classes of yard service (including

all transfer, belt line, and miscellaneous services to which mileage rates do not apply).

2. All agreements, rules, regulations, interpretations, and practices, however established, which conflict with the provisions of paragraph 1 of this rule shall be eliminated.

Basis of pay

BASIS OF PAY AND ASSIGNMENT OF EMPLOYEES

A. Except as hereinafter provided, eliminate all agreements, rules, regulations, interpretations, and practices, however established, applicable to any class or grade of train, engine, yard, or hostling service employees, which

(i) Provide for rates or bases of pay, daily earnings minimums, minimum daily earnings or daily, weekly, or monthly earnings guarantees,

(ii) Provide for arbitrary payments, or special or constructive allowances, which conflict with the payment of single time in miles or hours from the time called to report for duty until released from duty, or

(iii) Impose restrictions on weekly, monthly, or annual earnings through the limitation of miles run or paid for, hours worked or paid for or compensation received.

B. Establish a rule to provide that—

1. Train and engine service employees used in road service, including all miscellaneous and unclassified services, shall be paid single time in miles or hours, whichever is greater, from the time called to report for duty until released from duty at the end of the trip or tour of duty, as follows:

(a) All road miles actually run during each trip or tour of duty shall be paid for at the rates provided in paragraph 3 of this rule; or

(b) All time on duty shall be paid for on a minute basis at the straight-time hourly rates provided by paragraph 3 of this rule, except that (i) In freight service, overtime shall be paid for at 11⁄2 times each straight time hourly rates. In assigned local freight service, overtime shall begin when the time on duty exceeds the miles run divided by 12%, and in all other classes of freight service (including miscellaneous and unclassified services) overtime shall begin when the time on duty exceeds the miles run divided by 20; but in any case overtime shall not accrue until the expiration of 8 hours from time of first reporting for duty; and (ii) On short turnaround passenger runs, no single trip of which exceeds 80 miles, including suburban and branch line service, time shall be paid on the minute basis at straight-time hourly rates for all time actually on duty, or held for duty, in excess of 8 hours (computed on each run from the time required to report for duty to the end of that run) within 9 consecutive hours; and also for all time in excess of 9 consecutive hours computed continuously from the time first required to report to the final release at the end of the last run. Time shall be counted as continous service in all cases where the interval of release from duty at any point does not exceed 1 hour. For calculating time paid for as provided herein, the management may designate the initial trip.

2. Train and engine service employees used in yard service, including transfer, belt line, hostling, and all miscellaneous services to which mileage rates do not apply, shall be paid single time, from the time called to report for duty until released from duty, at the straight time rates provided in paragraph 3 of this rule; except that under circumstances where existing rules provide for the payment of overtime at 11⁄2 times the hourly rate, such payments shall be continued at 11⁄2 times the hourly rates provided in paragraph 3.

3. Mileage and straight time hourly rates of pay shall be as follows: NOTE. The mileage and straight time hourly rates to be provided in this paragraph 3 shall be determined by multiplying standard mileage and pro rata hourly rates currently paid under existing agreements immediately prior to the effective date of this proposed rule by the conversion factors set forth in the following table. For classes and grades of service where rates of pay are graduated, the rate paid in the weight on drivers or car scale rate bracket specified in column (2) of the table shall be used in computing the new single

rates.

NOTE. Under circumstances where existing rules provide for conversion from through to local freight rates, the following amounts shall be added to the above mileage and hourly rates:

(a) Engineers, motormen and conductors-0.35 cent to the mileage rates and 7 cents to the hourly rates.

(b) Firemen and helpers-0.25 cent to the mileage rate and 5 cents to the hourly rate. (c) Brakemen and flagmen-0.26875 cent to the mileage rate and 5.375 cents to the hourly rate. OTHER FREIGHT SERVICE (INCLUDING ALL MISCELLANEOUS AND UN

NOTE. The conversion factor shall be applied to the standard through freight rate paid in the bracket specified.

YARD, TRANSFER, BELT LINE AND ALL MISCELLANEOUS SERVICES TO WHICH MILEAGE RATES DO NOT APPLY

NOTE.-Where the 5-day workweek is in effect, the factors set forth above shall be applied to currently applicabe 5-day workweek rates. Where thle 5-day workweek is not in effect, such factors shall be applied to currently applicable (or basic) rates covering other than 5-day workweek service. Where existing rules provide for paid holidays, 4 cents per hour shall be deducted from the rates derived by such application of the foregoing factors.

4. Minimum earnings from all sources for each tour of duty, from the time called to report for duty until finally released, including aggregate service for which payment is made on a continuous time basis, shall not be less than pay for 5 hours at straight time rates in passenger engine service (other than short turnaround); 7%1⁄2 hours at straight time rates in passenger train service (other than short turnaround), and 8 hours at straight time rates in short turnaround passenger engine and train service, and in all classes of freight and yard engine and train service, including miscellaneous and unclassified services.

5. Compensation for time held at away from home terminal, deadheading, attending court, and attending investigations shall be paid underexisting rules (if any) at the rates provided in paragraph 3 of this rule or at a fractional part thereof as may in each case be provided by existing rules.

6. All agreements, rules, regulations, interpretations, and practices, however established, which conflict with the foregoing provisions of this rule shall be eliminated; and no employee paid pursuant to the provisions of this rule shall receive any other or additional compensation for any service performed during his tour of duty; Provided, That existing rules and practices considered by the carrier to be more favorable are preserved.

Road train and engine service assignments

A. Except as hereinafter provided, eliminate all agreements, rules, regulations, interpretations, and practices, however established, applicable to any class or grade of road train or engine service employees, which

(i) Prohibit or impose restrictions on the right of the carrier to establish, move, consolidate, or abolish crew terminals, or merge or consolidate seniority districts;

(ii) Prohibit or impose restrictions on the establishment or operation of interdivisional, interseniority district, intradivisional or intraseniority district runs;

(iii) Prohibit or provide penalties for running crews through established crew terminals; or

(iv) Provide for automatic release of crews upon arrival at terminals or end of run, or when off of assigned territory.

B. Establish a rule to provide that

1. The carrier shall have the right to establish, move, consolidate, ard abolish crew terminals, to merge and consolidate seniority districts and to establish interdivisional, interseniority district, ir tradivisional and intraseniority district runs in assigned and unassigned service with the right to operate any such run, whether assigned or unassigned (including extra service), on either a one-way or turnaround (including short turnaround) basis and through established crew terminals. The right to operate such runs as may be established under the provisions of this rule will be free of the im