grand salaam in order to get cars in order to ship. I think that management should seriously study management. Mr. HEALY. Mr. Brock, may I say something there, please, sir? I used to be district manager of the Association of American Railroads in Atlanta, Ga., for 15 years and 90 percent of my life was spent in trying to get shippers their cars and on time. The CHAIRMAN. Thank you very much, Mr. Healy. We appreciate having your statement. Mr. HEALY. Thank you, Mr. Chairman. The CHAIRMAN. I have a joint letter here from the Association of American Railroads and the Railway Labor Executives' Association, addressed to the committee with reference to an agreement which had been reached on the question of authority to borrow from the railroad retirement account for the payment of benefits under the Railroad Unemployment Insurance Act under conditions as set forth therein. For the information of the committee this will be included in the record. (The letter referred to follows:) Hon. OREN HARRIS, ASSOCIATION OF AMERICAN RAILROADS, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. HARRIS: We, the Association of American Railroads and the Railway Labor Executives' Association, are in agreement that the Board should have the authority to borrow from the railroad retirement account for the payment of benefits under the Railroad Unemployment Insurance Act under conditions set forth below. We propose that this authority be conferred upon the Board by substituting the following for subsection (d) of section 10 of the Railroad Unemployment Insurance Act: "(d) Whenever the Board finds at any time that the balance in the railroad unemployment insurance account will be insufficient to pay the benefits and refunds which it estimates are due, or will become due, under this act, it shall request the Secretary of the Treasury to transfer from the railroad retirement account to the credit of the railroad unemployment insurance account such moneys as the Board estimates would be necessary for the payment of such benefits and refunds, and the Secretary shall make such transfer. Whenever the Board finds that the balance in the railroad unemployment insurance account, without regard to the amounts transferred pursuant to the next preceding sentence, is sufficient to pay such benefits and refunds, it shall request the Secretary of the Treasury to retransfer from the railroad unemployment insurance account to the credit of the railroad retirement account such moneys as in its judgment are not needed for the payment of such benefits and refunds, plus interest at the rate of 3 percent per annum, and the Secretary shall make such retransfer. In determining the balance in the railroad unemployment insurance account as of September 30 of any year pursuant to section 8(a) (2) of this act, any moneys transferred from the railroad retirement account to the credit of the railroad unemployment insurance account which have not been retransferred as of such date from the latter account to the credit of the former, plus the interest accrued thereon to that date, shall be disregarded." Sincerely yours, ASSOCIATION OF AMERICAN RAILROADS, RAILWAY LABOR EXECUTIVES' ASSOCIATION, The CHAIRMAN. So far as the Chair is able to ascertain thus far, we have two other witnesses, Mr. Schoene, who represents the Railway Labor Executives' Association, and Mr. Stack, who represents his organization. May I inquire if there is anyone else in the audience who desires to be heard during this series of hearings? It is understood, of course, that the representatives of the railroad industry will appear on Monday, February 16. The committee, therefore, will adjourn until 10 o'clock in the morning at which time Mr. Schoene, representing the Railway Labor Executives' Association, will be the witness. (Whereupon, at 12:05 p.m., the hearing in the above-entitled matter was recessed, to be reconvened at 10 a.m., on the following day.) RAILROAD RETIREMENT AND RAILROAD UNEMPLOY MENT INSURANCE LEGISLATION THURSDAY, FEBRUARY 5, 1959 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The committee met, pursuant to recess, at 10 a.m., in room 1334, New House Office Building, Washington, D.C., Hon. Oren Harris (chairman) presiding. The CHAIRMAN. The committee will come to order. The first witness this morning as we resume hearings on bills to amend the Railroad Retirement Act, the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance Act, is Mr. Lester P. Schoene, representing the Railway Labor Executives' Association. Mr. Schoene, we are glad to have you back before the committee. Do you have a prepared statement? STATEMENT OF LESTER P. SCHOENE, REPRESENTING RAILWAY LABOR EXECUTIVES' ASSOCIATION Mr. SCHOENE. I do not, I am sorry. I did not have an opportunity to write one up to furnish to the committee. The CHAIRMAN. You may proceed. Mr. SCHOENE. My name is Lester P. Schoene. I am a lawyer engaged in the general practice of law, with offices at 1625 K Street NW., in Washington, D.C. Although I am well acquainted with the veteran members of the committee, it has been suggested to me that perhaps for the benefit of members serving for the first time on the committee, it would be appropriate for me to introduce myself in a little more detail. I entered Government service 25 years ago as an assistant general counsel to the first Railroad Retirement Board, which was established in 1934, and participated in the litigation involving the constitutionality of that legislation. When it was found unconstitutional, I transferred to other Government service, but returned to the Railroad Retirement Board in 1937, when the railroad retirement system was established on a permanent basis, in the capacity of general counsel. I served in that capacity until 1942, at which time I transferred to the Department of Justice. I entered private practice in 1944 and one of the first assignments that I received was to draft amendments to the Railroad Retirement Act on behalf of the Railway Labor Executives' Association, and for the past 15 years I have represented the Railway Labor Executives' Association in the preparation of and in the presentation to congressional committees of all amendments to the Railroad Retirement and Unemployment Insurance Acts that that association has proposed. The Railway Labor Executives' Association is an association composed of the chief executives of all the standard railway labor organizations. They are 22 in number and, in addition, include the chief executive, the president, of the railway employees' department of the American Federation of Labor-CIO, which is itself a federation of the organizations representing the shop crafts. I would like to include a list of these organizations in the record. The CHAIRMAN. Without objection, that may be done. (List referred to follows:) ORGANIZATIONS AFFILIATED WITH RAILWAY LABOR EXECUTIVES' ASSOCIATION American Railway Supervisors' Association. American Train Dispatchers' Association. Brotherhood of Locomotive Engineers. Brotherhood of Locomotive Firemen & Enginemen. Brotherhood of Maintenance of Way Employees. Brotherhood of Railroad Signalmen of America. Brotherhood of Railroad Trainmen. Brotherhood of Railway Carmen of America. Brotherhood of Railway & Steamships Clerks, Freight Handlers, Express & Station Employes. Brotherhood of Sleeping Car Porters. Hotel & Restaurant Employees & Bartenders International Union. International Association of Machinists. International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers. International Brotherhood of Electrical Workers. International Brotherhood of Firemen & Oilers. International Organization Masters, Mates & Pilots of America. Order of Railway Conductors & Brakemen. Railroad Yardmasters of America. Railway Employees' Department, AFL-CIO. Sheet Metal Workers' International Association. The Order of Railroad Telegraphers. Mr. SCHOENE. The Railway Labor Executives' Association was party, along with the Association of American Railroads, in the formulation by agreement of the railroad retirement system of 1937. That association has constantly maintained a standing committee under the chairmanship of Mr. George M. Harrison, the president of the Brotherhood of Railway & Steamship Clerks, Freight Handlers, Express & Station Employes. This committee pays constant attention to the functioning of the railroad retirement and unemployment insurance systems and from time to time, when it believes that legislation is needed or appropriate, makes recommendations to the association and with the approval of the association in turn makes recommendations to the Congress. Virtually all of the legislation that has been adopted since the original Railroad Retirement and Unemployment Insurance Acts were adopted has had its origin in recommendations made by Railway Labor Executives' Association. I do not mean that Congress has at all times accepted without modification the recommendations that the association has made, but the legislation that has been adopted has had its origins in such recommendations. |