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                                Case No. 568


          Parties Brotherhood of Maintenance of Way Employes

          to and

          Dispute Union Pacific Railroad Company

          (Former Missouri Pacific Railroad


          Statement

          of Claim: 1. Carrier violated the Agreement, especially Rule 12,

          when T. W. Dillard was dismissed from service.


                2. Claim in behalf of Mr. Dillard for wage loss suffered including overtime and holidays beginning October 9, 1990, until reinstated with seniority, vacation and all other rights unimpaired.


          Findings: The Board has jurisdiction of this dispute by reason

          of the Parties Agreement establishing this Board therefor.

          Claimant, Track Foreman Terry W. Dillard, followinga

          formal investigation which began on November 5, 1990,

          reconvened July 5, 1991 was finalized on July 16, 1991 on

          the charge of removal and sale of company property was

          concluded therefrom that the Claimant was guilty of the

          charges placed against him and he was dismissed from service

          as discipline.

          The due process as to Rule 12 was complied with. There

          was sufficient evidence adduced, including the admissions of

          Claimant, that served to provide support for the Carrier's

          conclusion of guilt of the charges placed against Claimant.

          Rule 613 in pertinent part states:


                "Property of the railroad must not be sold or in any way disposed of without proper authority."


                The record reflects that Terry Dillard, the Foreman of Gang 2805, which was created for retiring tracks, had gone to the Harris County Clerk's office, and registered himself as doing business (d/b/a) under the assumed name of Dee Cee Enterprise. The copy of the certification of operation was made part of the transcript. The Claimant agreed that he had set the company up, that it was a company ostensibly to locate a cost-free dumping area for Union Pacific material that needed to be dumped. The evidence also shows Dee Cee Enterprise authorized contractors and sub-contractors to clean and bundle ties as well as clearing ballast and sold them to outside contractors and various individuals. The profits therefrom were then split with two partners, one a

                        -2- Award No. 568


        corporation who was the contractor and the other a trucking company. Distribution of sums of money were demonstrated. It was noted that the contractor overcharged the UP for track retirement. It was a most serious charge that was proven.


        The discipline is deemed reasonable. This Board will follow the well settled rule that unless the Carrier's actions is unjust, discriminatory, arbitrary, capricious or unfair, the Board should not interfere to substitute its judgment for that of the Carrier.


Award: Claim denied.

 S. A ammons, Jr., Lmployee Member

                  rt u . an art, ~ airman

                                      G


                      and Neutral Member


Issued May 22, 1993.