Kankakee Valley Post, Volume 16, Number 23, DeMotte, Jasper County, 19 April 1946 — WEEKLY NEWS ANALYSIS. UNO Weathers First Big Test; Rail Unions Balk at Pay Award; Civilian Output at Peak Rate [ARTICLE+ILLUSTRATION]

WEEKLY NEWS ANALYSIS. UNO Weathers First Big Test; Rail Unions Balk at Pay Award; Civilian Output at Peak Rate

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UNO: Weather Storm Fraught with danger to the United Nations Organization and world peace, the tense Russo-Iran-ian dispute melted under the promise of diplomatic compromise, with Moscow saving face and Tehran its sovereignty. Secretary of State James Byrnes, chief U. S. delegate to the UNO security council, started the happy train of events, suggesting that both countries state their position in the dispute over Russian failure to withdraw from Iran before UNO considered action in the case. Russia had walked out of the security council after its decision to consider the question and Byrnes’ proposal offered an excellent opportunity for the Reds to walk back in without losing prestige. Making the most of the chance, the Russians wrote UNO that they were {Milling out of Iran without imposing any conditions for their retirement and their troops should be gone by May 6. Taking his cue, Iran’s representative then told the security council that if definite assurances could be obtained that the Russians would apply no pressure for oil concessions or Red-backed provincial governments as a condition for withdrawal, Iran would consider the matter closed. And upon that happy note, UNO appeared to have overcome its first great hurdle. RAIL PAY: Balk at Findings In protesting the 16-cent-an-hour raise awarded by a labor-manage-ment arbitration board, railroad union officials declared that the boost granted failed to meet higher living costs and adjust differences In pay between railroad workers and employees in other industries. Declaring railroad workers were entitled to a 46-cent-an-hour increase, B. M. Jewell, representing 15 non-operating unions, and E. E. Mllllman, president of the Brotherhood of Maintenance of Way Employees, asserted that the minimum award should have included 11V4 cents an hour for higher living costs plus the general industry-wide 18Vt eent-an-hour postwar advance. Meanwhile, railroad officials also complained against the arbitration board's wage decisions, estimated to add up to MOO per year for 1,220,000 members of three operating and 15 non-operating unions and cost the carriers $584,000,000 annually. Echoing the carriers’ warnings that increased wages would require rate boosts. President Fred G. Gurley of the Santa Fe announced that the 18-cent-an-hour award was too large and his road would immediately appeal for higher freight tariffs. Stating that the wage Increases would add $25,000,000 yearly to Santa Fe operating costs, Gurley said the boost coupled with higher material, supply and fuel costs against reduced income made the step necessary. Because both the railroads and unions had agreed to accept the arbitration boards' findings as final in submitting their dispute for settlement, no work stoppage loomed because of disagreement over terms. The recommendations were handed down even as a fact-finding panel conducted hearings on demands of the Brotherhood of Locomotive

Engineers and Brotherhood of Railway Trainmen for a 25 per cent wage increase and changes in working rules. In demanding that wages and working rules be considered simultaneously, the two unions refused to Join the other 18 in submitting the pay issue to arbitration. CONGRESS: Pay Adjustment Government employees were In line for a pay increase as a result of congressional action but an administration measure to raise the minimum wage to 60 cents an hour appeared doomed because of the farm bloc’s insistence that the same bill hike the parity formula over President Truman’s protest. The senate and house strove to get together on a uniform pay increase for U. S. employees following their approval of conflicting raises. While the senate had o.k.’d an 11 per cent boost, the house voted a S4OO a year advance. Since the house also decided to limit department appropriations in the 1947 fiscal year to those of 1946, however. the higher pay would cover fewer employees and thus cut the federal payroll by 2000,000. In pushing for an upward revision of the parity formula as an amendment to the 60-cent-an-hour minimum wage bill over President Truman's veto threat, the farm bloc sought to protect farmers' returns in a period of rising costs. Trumpeting administration disapproval. Secretary of Agriculture Ajiderson declared revision of the parity formula to include farm wages would result in a 33 per cent boost in farm prices and spark an inflationary cycle. PRODUCTION: Rosy Prospects In meeting the pent-up and ordinary demands of consumers, re-

quirements for a large military establishment and heavy exports, the U. S. faces an unparalleled period of prosperity, Reconversion Director John W. Snyder indicated in a report to President Truman. Despite work stoppages and material shortages, civilian

production had reached a rate of 150 billion dollars during the first three months of 1946, Snyder said, with private wages and salary payments returning almost to the pre-V-J Day date of 82 billion dollars. Non-agricultural employment totaled 44,700,000 In February, with 2,700,000 jobless seeking work. Indicative of the huge demand for goods, Snyder said that consumer and business purchases during the flrit quarter of 1946 equalled those of the Christmas period in contrast to an ordinary drop of 10 to 12 billion dollars. Though overall civilian production rose, the textile shortage remained acute, being aggravated by mills’ refusal to aell unfinished goods because of higher profits on bleached or printed cloth. Notwithstanding increasing production and high taxes, the threat of an inflationary spiral remains, Snyder said. Noting the trend, he pointed out that on March 15 wholesale food prices were s.l per cent above those on the same date last year and the prices of other products were up 2.5 per cent.

Seated on stone block of mined public building, Polish girl views desolation of once modern building section of Warsaw. Once proud Polish capital Is now ghost city of Europe, with half of Its population half-starved and 111-clad.

John Snyder