CONFLICT AND RECONSTRUCTION 57 
alternative but to throw aside all restraints and to use 
their organized strength to protect their economic welfare. 
They contended that they could not suffer further delays 
in securing wage adjustments, but were forced by current 
conditions to resort to direct action. 
WAGE ADJUSTMENTS OF MINE WORKERS AND 
RaiLway EMPLOYEES 
In the meantime, in the early part of the year 1920 the 
Transportation Act had been passed by the Congress, mak- 
ing provision for the return of the railroads to private 
ownership and operation, and creating the Railroad Labor 
Board for the adjustment of outstanding wage contro- 
versies. All classes of employees at once submitted their 
complaints. They denounced the “vicious circle” theory, 
as to the alleged relation between wages and prices, as 
wrong in fact and principle. They contended that rates 
of pay should at least be advanced to keep pace with living 
costs, but that the cost-of-living principle in itself was 
unacceptable, as it merely perpetuated, at best, preexisting 
standards. The demand was also made that all employees 
not receiving a “living wage” be granted a wage sufficient 
to maintain an average family on a level of “minimum 
health and decency,” and above this basic wage existing 
differentials should be maintained for higher grade em- 
ployees in accordance with their skill, responsibility, haz- 
ard, and productive efficiency.! 
The United Mine Workers of America, after interven- 
tion by the Federal Government, agreed to end their strike 
and submit their grievances to arbitration. An arbitration 
board was selected by the President, and hearings began 
in Washington in January, 1920. In presenting their 
1 Proceedings Before, and Exhibits Submitted to United States Railroad 
Labor Board, Washington, D. C.. May. 1920.