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railroads, and one each by the chief executive officer of each of the 4 organizations of employees hereinbefore named and compensated by such organizations.

2. This Board of Adjustment No. 3 shall meet in the city of Washington within 10 days after the selection of its members and elect a chairman and vice chairman, who shall be members of the board. The chairman or vice chairman will preside at meetings of the board and both will be required to vote upon the adoption of all decisions of the board.

3. The board shall meet regularly at stated times each month, and continue in session until all matters before it are considered. 4. Unless otherwise mutually agreed, all meetings of the board shall be held in the city of Washington: Provided, That the board shall have authority to empower two or more of its members to conduct hearings and pass upon controversies, when properly submitted at any place designated by the board: Provided further, That such subdivision of the board will not be authorized to make final decision. All decisions shall be made and approved by the entire board, as herein provided.

5. Should a vacancy occur in the board for any cause, such vacancies shall be immediately filled by the same appointive authority which made the original selection.

6. (Article 6 left blank in this memorandum because Article 6 for Railway Board of Adjustment No. 1 refers to matters pertaining to the Commission of Eight. In order that all other articles in this Memorandum of Understanding may bear the same numbers as similar articles for Railway Board of Adjustment No. 1, Article 6 has been left blank.)

7. The Board of Adjustment No. 3 shall render decisions on all matters in dispute as provided in the preamble hereof, and when properly submitted to the board.

8. The broad question of wages and hours will be considered by The Board of Railroad Wages and Working Conditions, but matters of controversies arising from interpretations of wage agreements, not including matters passed upon by The Board of Railroad Wages and Working Conditions, shall be decided by the Railway Board of Adjustment No. 3, when properly presented to it.

9. Wages and hours, when fixed by the Director General, shall be incorporated into existing agreements on the several railroads, and should differences arise between the management and the employees of any of the railroads as to such incorporation, such questions of difference shall be decided by the Railway Board of Adjustment No. 3, when properly presented, subject always to review by the Director General.

10. Personal grievances or controversies arising under interpretation of wage agreements, and all other disputes arising between officials of a railroad and its employees, covered by this understanding, will be handled in their usual manner by general committee of the employees up to and including the chief operating officer of the railroad (or some one officially designated by him), when, if an agreement is not reached, the chairman of the general committee of employees may refer the matter to the chief executive officer of the organization concerned, and if the contention of the employees' committee is approved by such executive officer, then the chief operating officer of the railroad and the chief executive officer of the organization concerned shall refer the matter, with all supporting papers, to the Director, of the Division of Labor of the United States Railroad Administration, who will in turn present the case to the Railway Board of Adjustment No. 3, which board shall promptly hear and decide the case, giving due notice to the chief operating officer of the railroad interested and to the chief executive officer of the organization concerned of the time set for hearing.

11. No matter will be considered by the Railway Board of Adjustment No. 3 unless officially referred to it in the manner herein prescribed.

12. In hearings before the Railway Board of Adjustment No. 3, in matters properly submitted for its consideration, the railroad shall be represented by such person or persons as may be designated by the chief operating officer, and the employees shall be represented by such person or persons as may be designated by the chief executive officer of the organization concerned.

13. All clerical and office expenses will be paid by the United States Railroad Administration. The railroad directly concerned and the organization involved in a hearing will, respectively, assume any expense incurred in presenting a case.

14. In each case an effort should be made to present a joint concrete statement of facts as to any controversies, but the board is fully authorized to require information in addition to the concrete statement of facts, and may call upon the chief operating officer of the railroad or the chief executive officer of the organization concerned for additional evidence, either oral or written.

15. All decisions of the Railway Board of Adjustment No. 3 shall be approved by a majority vote of all members of the board.

16. After a matter has been considered by the board, and in the event a majority vote can not be obtained, then any six members of the board may elect to refer the matter upon which no decision has been reached to the Director General of Railroads for a final decision.

17. The Railway Board of Adjustment No. 3 shall keep a complete and accurate record of all matters submitted for its consideration and of all decisions made by the board.

18. A report of all cases decided, including the decision, will be filed with the Director, Division of Labor of the United States Railroad Administration, with the chief operating officer of the railroad affected, the several regional directors, and with the chief executive officers of the organizations concerned.

19. This understanding shall become effective upon its approval by the Director General of Railroads and shall remain in full force and effect during the period of the present war, and thereafter, unless a majority of the regional directors, on the one hand, as representing the railroads, or a majority of the chief executive officers of the organizations, on the other hand, as representing the employees, shall desire to terminate the same, which can, in these circumstances, be done on thirty (30) days' formal notice, or shall be terminated by the Director General himself, at his discretion, on thirty (30) days' formal notice.

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Whereas in Supplement No. 9 to General Order No. 27 the Board of Railroad Wages and Working Conditions were assigned the duty of hearing and investigating matters presented by officers and employees of the American Railway Express Company, or their representative, affecting wages and working conditions; and

Whereas no tribunal has heretofore been created for the adjustment of disputes arising between the American Railway Express Company and its employees other than those affecting wages and working conditions:

IT IS HEREBY ORDERED, That the Division of Labor of the United States Railroad Administration will hear and investigate, and recommend adjustments of any disputes between said Express Company and its employees not affecting wages and working conditions. Any such dispute shall be transmitted to the Director of the Division of Labor, in accordance with procedure established by him, being substantially as follows:

Personal grievances or controversies will be handled in the usual manner by the individual, his representative, or by committees of employees, up to and including the chief operating officer of the American Railway Express Company, or officer designated by him, when, if an agreement is not reached, the individual, his representative or the chairman of his Committee and the officer of the Express Company will refer the matter to the Director of the Division of Labor.

A complete statement of the cause of complaint will be filed with the Director of the Division of Labor. When an adjustment is not reached through correspondence, a representative will be assigned to investigate, and if by his assistance no agreement is then reached, the matter in controversy will be referred again to the Director of the Division of Labor.

General Order No. 8, issued February 21, 1918, shall also be applicable to employees of the American Railway Express Company, except where the text of same is clearly not applicable. Especial attention is directed to Article 5 of General Order No. 8, as follows: No discrimination will be made in the employment, retention, or conditions of employment of employees because of membership or nonmembership in labor organizations.

Now that a proper method has been established for the adjustment of controversies there is no longer any occasion or excuse for employees of the Express Company adopting other methods for securing what they believe is just treatment. I quote from General Order No. 8 as follows, and urge that the officials and employees of the American Railway Express Company be governed thereby:

There must be cooperation, not antagonism; confidence, not suspicion; mutual helpfulness, not grudging performance; just consideration, not arbitrary disregard of each other's rights and feelings; a fine discipline based on mutual respect and sympathy; and an earnest desire to serve the great public faithfully and efficiently. This is the new spirit and purpose that must pervade every part and branch of the national railroad service.

W. G. McADOO,

Director General of Railroads.

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GENERAL ORDER No. 55.

COLLECTION OF TRANSPORTATION CHARGES AND DISPOSITION OF OVERCHARGES, UNDERCHARGES, AND AGENCY RELIEF CLAIMS.

WASHINGTON, November 14, 1918.

The following regulations shall govern the assessment and collection of transportation and other charges for all services performed by carriers under Federal control; the refund of overcharges, and the collection of undercharges, and also the disposition in the accounts of such carriers of uncollectible undercharges and agency relief claims.

(1) Officers and agents of carriers under Federal control are re-
quired and expected to collect the correct amount due for
each service performed, determined or determinable by
the application of the lawfully published rate or rates
applicable to such services, plus charges for intermediate
or terminal service not included in and made a part of
such rate or rates, and war taxes applicable to the fore-
going.
(2) They shall continue, or if not already established, institute
such methods as may be necessary to insure, as accurately
as possible, the correctness of such charges before the
collection thereof.

(3) When the amount of overcharge is determined after collection of charges, refund shall be made on presentation of original freight receipt, and the amount of such refund shall be indorsed on such receipt.

(4) Formal claims for overcharge presented by claimants shall be prepared on the standard form approved by the Interstate Commerce Commission. They shall be supported by the original paid freight receipt, and if claim is based on weight, misrouting, valuation, etc., by all other obtainable. documents or particulars. If the original paid freight receipt can not be presented, claimant's indemnity bond may be required. If overcharge is based on the rate clear, reference shall be shown to the tariff or base in which the rate claimed is published. Such formal claims shall be presented to, and adjusted by, either the initial or the destination carrier. If claims are presented to intermediate carriers, they shall be immediately transmitted to one of those named.

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