The first seven paragraphs pertain to the Commission of Public Docks, whereas, paragraph No. 8 enumerates various labor troubles affecting employers other than the commission.

Also attached hereto is a memorandum, dated January 6, 1937, and prepared by C. H. Castner, which will give you a cross section of public opinion up-State during the 1936-37 strike, as well as the principal products shipped from the various localities. As you know, public opinion today is more incensed with the existing labor situation than it was at this time last year.

The following table, showing water shipments of fruits and vegetables to Portland from California points, clearly shows the large amount of this tonnage which was diverted from coastwise traffic to rail as a result of the 1934 strike. At municipal terminal No. 2 prior to the 1934 strike, the commission enjoyed a citrus-fruit tonnage of hundreds of tons per year; but, following the 1934 strike, no citrus fruit has been handled at this terminal. Practically all of this business now moves by rail, with attendant loss in revenue to shipping, and at an added cost to the consumer of approximately 5 cents per case.

Coastwise imports, Portland, Oreg.-fruits and vegetables

The Yakima Valley Traffic & Credit Association, in reply to my inquiry, advises that the Yakima area diverted during the 1936–37 strike about 25,000 cars, or nearly 2,000,000 boxes of fruit which otherwise would have moved through Portland, or Puget Sound. No information is available however to show what proportion would have gone via Puget Sound or through this port, had the strike not occurred. Very little fruit for Europe moved by rail during the 1936-37 strike from Yakima Valley as "Value fruits prevented movement except by any but the cheapest route." The quotation is from the Yakima Valley Traffic & Credit Association's communication.

The Hood River district, according to information just received, diverted during the 1936-37 strike 624 cars of apples and pears, and 15 cars were shipped to Europe via Transcontinental Rail to New York. They also estimate that during the fall of 1937 nine cars were diverted to Transcontinental Rail because of fear that another strike would be called.

Roughly speaking, apples which move over our terminals produce an approximate revenue of $1.50 per ton. Of course, where apples are placed in cold storage at the port, additional revenue is earned. As I told you the other day, due primarily to the increased cold storage facilities at Medford and Hood River, the commission has not opened its cold storage for the last three seasons. However, last fall had there not been a threat of another waterfront strike, I feel certain that we could have secured substantial tonnage for our cold storage.

Last October, you will recall, the Elizabeth Bakke was endeavoring to load five cars of hot lumber, as a result of which pickets were placed at the Oceanic Terminal entrance, not to prevent the loading of the vessel, but merely to keep the five cars of lumber from being placed on board. In talking to the Oceanic Terminal yesterday, they informed me that as a result of the pickets being placed at the terminal in connection with the Elizabeth Bakke incident, they had a substantial number of cancelations for their cold storage, amounting approximately to 100 cars of fruit.

In connection with the Oceanic Terminal, during the 1936-37 strike the unions, you will recall, after several days' delay permitted the unloading of cars into cold storage, but it was impossible to load this fruit out, and as a result, from the Oceanic Terminal alone during this strike period, 144 cars of apples and 54 cars of pears were reloaded into refrigeration cars and diverted for shipment to Europe.

Have wired Medford for information, but so far have had no reply, and as I am anxious to get this into the mail, will forward anything I receive from Medford later. Besides losses to the port and to shippers because of chaotic

conditions, it might be well to remind you, for possible use at the Senate hearing, that 610,000 pounds of flour at terminal No. 4 were ordered loaded into cars by the Army Quartermaster at Vancouver Barracks on May 16, 1934, for shipment to Fort Mason. This flour was not loaded, and was finally picked up by the Army Transport Meigs. Another point, during the 1934 strike, in order to get mail and parcels from the main office through the picket line at terminal No. 4, Special Delivery was resorted to. But, under date of July 14 deliveries to terminal No. 4 were discontinued by Postmaster Hedlund, who stated in his communication to this office: "We consider it inadvisable to deliver any mail into the strike area on account of the prevalence or riots." The above instances are only two of many with which you are personally familiar, and to which you could add dozens of similar cases yourself. During the 1934 strike, the railroads were unable to perform normal switching services at the commission's terminals between May 9 and July 31, and again during the 1933-37 strike an embargo was placed on all terminals in this port by the Union Pacific. Cases heard before the Interstate Commerce Commission involving large sums for demurrage which accrued during the 1934 strike have as yet not been settled.

If there is any information which we can furnish, please wire, and we will get it to you as rapidly as possible.

Very sincerely yours,

PHILIP H. CARROLL, Executive Secretary.

PORTLAND, OREG.,

March 21, 1935.

MEMO REPORT LABOR CONDITIONS AT PORTLAND SUBSEQUENT TO TERMINATION OF

LONGSHORE STRIKE

1. The maritime commerce of the port is handled through two types of facilities: (a) Public terminals, (b) private terminals.

2. The Commission of Public Docks owns and operates the public-terminal facilities of the port consisting of terminals 1, 2, and 4. By amendment to the city charter in November 1910, the voters of the city of Portland created a separate department of the city known as the Commission of Public Docks, said department being administered by five commissioners appointed by the mayor and serving without compensation. Among the duties imposed upon the commission are to provide for the needs of water-borne commerce, construct and operate publicly-owned terminals, and to establish by ordinance various terminal charges thereat. Under the duties imposed upon the commission by the voters in its operations it employs, among other personnel dock laborers and grain handlers who were involved, either willingly or through intimidation, in the labor disputes resulting from the longshore strike which ended in July of last year.

3. Obviously the commission as a public body in its governmental or in its proprietory functions, cannot legally, as a department of the city of Portland. differentiate between the persons it employs, their qualifications being equal, because of union or nonunion affiliations, and this position has been repeatedly recognized by officials of organized labor, including the president of the local International Longshoreman's Association.

4. The commission has always recognized the rights of employees to petition in connection with any grievances as to wages or working conditions. At no time has the commission been a party to any agreements with the International Longshoreman's Association dock labor or grain handlers groups, nor has it been a party to any agreement with the waterfront employers or any employers' groups under the various arbitration awards handed down last fall following the longshore strike.

5. It has been and is now the policy of the commisison to follow established waterfront practices as to wages and working conditions in effect at private terminals and elevators. Since the publication of the arbitrators awards covering longshoremen, grain handlers, dock workers, and checkers (copies attached), the commission has endeavored to comply strictly with these decisions. In its operations the commission employs no longshore labor itself, but, as provided in the awards where its dock workers or grain handlers have performed longshore work, as defined in the longshore award, i. e. between pile on dock and ship's gear, the dock labor or the grain handlers performing this service

have always been paid longshore wages. Further, the commission is dependent upon its terminal-operating revenues to defray its operating expenses and maintenance, as under the charter only its bonded debt and interest thereon is provided for by taxation.

6. The commission intends to continue the operation of its terminal facilities as heretofore in accordance with the mandate of the voters and in line with its established policies with due regard for the rights of all concerned, and having in mind the development of the maritime commerce of the port. Labor disputes involving delays or loss in earnings to the commission are therefore highly important to the commission and to the commerce of the port.

7. The following labor difficulties (together with other minor disputes not listed below) have directly affected the activities of the commission since the longshoremen's, dock workers', grain handlers' and checkers' awards became effective:

(a) November 8, 1934, the tanker Tejon at pier 5, terminal 4. About 15 pickets were on pier and attempted to interfere with commission's watchman on his rounds. The trouble was reported to be, according to members of the crew leaving the tanker, that some pumpmen aboard were not eligible under award for employment.

(b) November 14, 1934, terminal No. 2, McCormick Steamship Co.'s Wallingford working, had about 15 minutes work to finish at 12 o'clock noon. The longshoremen refused to work this 15 minutes after noon unless paid for 1 hour at rate of time and one-half. Ship refused and small balance of cargo was taken to McCormick Terminal on West Side to discharge, the revenue from this tonnage being lost to terminal No. 2.

(c) December 18, 1934, pier B, terminal No. 1, steamship Montanan, AmericanHawaiian Steamship Co. The hourly checkers walked off pier because steamship company employed monthly men for checking. The checkers' walk-off was followed by the longshoremen on dock and later by the ship's crew. The checkers walked off again the afternoon of the 20th when the four monthly checkers were put to work. On morning of the 21st truck drivers refused to handle freight checked by these monthly checkers. Shortly after noon the dock workers working for the commission and in no way involved in this controversy, were told to handle no freight to or from cars for the American-Hawaiian Steamship Co. As a result we were unable to continue our dock operations. The I. L. A. further placed a boycott against all freight moving over pier B for the AmericanHawaiian in spite of the fact that the matter had been placed in the hands of the labor relations committee for appropriate action. The commission's employees who were union men would not work and nonunion men were afraid to work on account of having been intimidated. On December 22 the situation remained the same, longshoremen, checkers, teamsters, and dock workers refusing to handle any cargo at pier B, thus completely paralyzing operations. On December 26 longshore gangs reported for work, worked from 8:30 to 9:30, walked off again account monthly checkers of the steamship company being employed. When they walked off the longshoremen called off the commission's dock laborers engaged in unloading cars on pier B. On 8 a. m. December 27 this matter was finally adjusted and the Montanan started working, also dock labor, truck drivers, etc. (d) On December 20 at terminal No. 1, the crew of the Quaker Line San Anselmo walked off over wage dispute.

(e) On December 21, States Steamship Co. Washington, terminal No. 1, crew walked off account wages dispute.

(f) States Steamship Co. Jefferson Myers, terminal No. 1, crew did not leave ship but refused to move ship forward a few feet to clear Barlow elevator, use of which was needed by the commission for handling river-boat shipments.

The ships San Anselmo, Washington, Jefferson Myers, were picketed until about 10 a. m., December 21, when part of the crews returned to their ships to await the result of a meeting of labor relations committee and owners. At 10:30 a. m., December 21, Jefferson Myers' engine crew cut off steam on deck winches so the longshoremen were unable to work. As a result of the abovenoted meeting the crews of the three above-mentioned vessels returned to work about 1 p. m. December 21.

(g) January 1, 1935. Surcharges for longshoremen working at certain terminals in the port were adopted by the labor relations committee, consisting of representatives of the I. L. A. and the Waterfront Employers, effective this date. Insofar as the commission is concerned the only discrimination is the surcharge of 25 cents per man for longshoremen employed at terminal No. 4. It is our contention that the imposition of this 25-cent surcharge is beyond the

jurisdiction of the labor relations committee. Paragraph (d) of section 10 of the longshore award states that the duty of the labor relations committee shall be "to investigate and adjudicate all grievances and disputes relating to working conditions," and (f) "to decide any other question of mutual concern relating to the industry and not covered by this award." The longshore award definitely provides for the rate of pay to be paid at Portland, Oreg., and neither (d) nor (f) gives the labor relations committee any authority over the question of compensation of longshoremen. Therefore, if longshoremen are called to work at terminal No. 4, which is within the city limits though approximately 10 miles from the hiring hall, the rates stipulated under the award for longshoremen at Portland should apply, and any surcharges arbitrarily assessed by the labor relations committee or others for work at terminal No. 4 are unjust and discriminatory. For your information I am attaching map of the harbor showing locations of the various terminals in relation to the hiring hall (in red). Further, in connection with this surcharge the officials of the I. L. A. have on several occasions stated that the hiring of dock labor should be done through the hall. In this event it is certain that a surcharge on dock labor, which receives less than longshore work, would promptly be assessed on those reporting to terminal No. 4 for work.

(h) January 25. The American-Hawaiian steamship Oregonian, pier B, terminal No. 1. On account of the longshoremen refusing to work this ship at the Crown Mills because of the claim that there were four nonunion men in the crew, the Oregonian was moved at 2 p. m. to its regular berth at pier B, terminal No. 1, and there picketed.

(i) January 28. Pickets at pier B, terminal No. 1, told commission's dock laborers not to unload cars at pier B account strike on Oregonian.

(j) This same date representatives of I. L. A. labor relations committee advised our superintendent of operation that the commission was not living up to awards as to rates of pay, which of course was incorrect, and that the commission was further violating awards by not hiring dock labor through the hall. Section 4 of dock workers award states "the demand with respect to hiring shall not be made effective. The parties to this award may make provision by agreement regarding methods of hiring." Thus there is no provision under the above award for hiring through hall even if the commission were a party to the agreement.

(k) January 29. Cars spotted at pier B were unloaded by dock labor without interference on part of the strikers.

(7) January 31. Settlement of strike on Oregonian at pier B reached this date. Ohioan arrived about 2 p. m. Pickets withdrawn and gangs ordered to work ships.

(m) March 9. Norton-Lilly steamship Steel Trader, pier A, terminal No: 1. Shortly after this vessel's arrival at noon, business agent of I. S. U. boarded the ship and called off the crew, there being only one union man aboard. Pickets were placed outside the gate.

(n) March 10. The General Petroleum Corporation tanker Tejon berthed at pier 5, terminal 4, and discharged oil that evening. The same evening the crew was called off and the Tejon lay idle at pier 5 until March 19.

(0) March 16. Strike of I. S. U. on Steel Trader called off at 2:15 pm. and ship started to work at 3:15, and finished that evening, clearing in time to permit the steamship Santa Cecilia to berth.

(p) Direct transfer has also been the subject of considerable discussion and annoyance. Section 1 of the longshore award in defining longshore work states "Longshore work is all handling of cargo in its transfer from vessel to first place of rest, including sorting and piling of cargo on the dock, and the direct transfer of cargo from vessel to railroad car or barge and vice versa. Rule 6 of the published tariff of the Commission of Public Docks, which is a city ordinance, specifically exempts boxcars from being considered as subject to direct transfer charges and states: * boxcars spotted alongside,

*

will be considered the same as freight handled from boxcars to place of rest on wharf and from thence to ship's slings and vice versa, and will be subject to like charges." Direct transfer consists, with certain exceptions, of freight handled direct between open cars and vessel by ship's gear or equipment under rental from the commission. In other words, direct transfer, according to the commission's tariff does not include other than open cars and then only when alongside. Thus the award and the tariff are at variance. though it must be borne in mind that the commission, as already stated, is in no wise party to any of the awards in question and is empowered by the voters of the city

to make such rules and regulations for its public terminals by ordinance as it deems necessary.

8. The following are some of the labor difficulties which have taken place since termination of the longshoremen's strike and primarily involve others than the commission. However, this list does refer to some cases where vessels berthed at the public terminals have already been mentioned as affecting the commission's activities. This list was submitted by the Waterfront Employers to Mr. Ernest Marsh in a letter on February 8:

Merchant ship Annie Johnson, Johnson Line, September 15, 1934: Two gangs longshoremen quit work and refused to handle cargo shipped by Swift & Co. because of local strike of meat cutters against Swift & Co. Cargo was loaded with nonunion men but vessel was delayed at San Francisco a full day by sympathetic action of the San Francisco I. L. A. account this cargo having been handled by nonunion men at Portland.

Merchant ship Java, East Asiatic Co., October 30, 1934: Four gangs of longshoremen were ordered from the joint hiring hall to report for work on this vessel. One of the gangs consisted entirely of nonunion men and was dispatched after agreement with I. L. A. officials. On arrival at the dock the three union gangs refused to work, demanding that nonunion gang be replaced by a union gang. Vessel was delayed one-half day after which nonunion gang was laid off and work resumed with all union men.

Steamship American Eagle, Pacific Continental Grain Co., November 10, 1934: Four gangs commenced work at 7 p. m. At 9 p. m. all four gangs struck, demanding the discharge of one nonunion winch driver, who was a regular qualified longshoreman and registered as such under the terms of the award. This ship was delayed 1 day and the work was resumed and completed with all nonunion men, despite threats of violence from the I. L. A.

Merchant ship California Express, Fruit Express Line, November 20, 1934: Two gangs longshoremen started work 8 a. m., struck at 8:30 a. m. demanding the discharge of one nonunion longshoreman who was qualified and registered to work under terms of the award. Work was finally resumed and completed

with all nonunion gangs.

I. L. A. officials of Portland threatened vessel's agents with a strike against the ship at San Francisco. This threat was accomplished and the vessel was delayed 22 days at San Francisco.

noon.

Steamship Hollywood, McCormick Steamship Co., November 21, 1934: Arrived in Portland Wednesday evening, November 21, scheduled to commence work 8 a. m. on the 22d. Work was started at that time and vessel worked until At that time ship's crew demanded of master an increase in pay to the Shipping Board scale, paid during 1929, plus overtime for all extra work performed. Firemen made similar demands for increase in wages and overtime allowance. The bos'n and one oiler acted as spokesmen for the crew, and in spite of the owners informing them that crew's wages were under negotiation and that nothing could be done until an award had been published, the spokesmen informed the owners that they were going on strike and would not return until demand had been met. Negotiations with Mr. Carter, of the Seaman's Union, and Mr. Rheems, representing the firemen, accomplished nothing and these officials were unable to return men to work. The longshoremen upon returning at 1 p. m. after the lunch hour, were obliged to knock off for lack of steam. Repeated conferences were held with the spokesman of the crew and Mr. Charles Hope, of the regional labor board, but it was impossible to accomplish any sort of an agreement.

On Sunday, November 25, the strikers agreed amongst themselves to return to work 8 a. m. Monday, under the old scale of wages and all did so with the exception of the oiler spokesman. Another man was shipped in his place.

Steamship Jefferson Myers, States Steamship Co., December 18, 1934: Two gangs of thirteen men each worked ties until 11 a. m. when ties were completed and gangs ordered reduced to standard gangs of nine men each to work logs. The men refused to work with less than eleven men in the gangs, quit the job and returned to the hall. I. L. A. labor relations committee notified gangs that they must return to the job with the number of men as required by employers. Work was resumed at 2 p m. after a delay of 2 hours for these two gangs. Three other gangs on the vessel continued work on ties during this delay. The net result, however, was a 2-hours' delay to the vessel and the expense of 2 hours' overtime to one gang; the second gang involved finished work before overtime was incurred.

32437-38-pt. 7-5