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, making
 provision for the return of the railroads to private
ownership and operation, and creating the Railroad Labor
Board for the adjustment of outstanding wage controversies.
 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 employees
 in accordance with their skill, responsibility, hazard,
 and productive efficiency.!
The United Mine Workers of America, after intervention
 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.