Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-03-03
Report of Pujo mvestigat-
ing Committee Evidence
in Wage Hearing.
DIRECTORATE LOCKED
Claim One Hundred and
Seventy Men in the IN
ncr Circle Of Control.

CHICAGO, March 2-The alleged
concentration Of control Of the rail
roads Of the United states into a few
hands a. indicated by testimony gath
cred by the Pujo and other congress
siOnal committees was placed in evil
dence here today before the board Of
arbitration in the western railroad
wage arbitration
Whether the evidence was Rermane
10 the case was questioned by James
NJ. Sheean, attorney for the railroads,
on the grounds that ability of the
railroads to pay the wage increases
demanded is not to be considered by
the board.
w s. stone, for the men, said that
the railroad witnesses had attempted
to show that the railroads had not in
creased their productivity and that it
was therefore proper in rebuttal to
argue by evidence that the increased
productivity had been absorbed by
final manipulation made possible
through the concentration of control
W. j. Lapck, who compiled the evi-
dence, then proceeded to analyze his
figures and to quote ]. p Morgan and
other tinanciers who testified before
the Pujo committee.
IlbNt III NOilIOis
In the period l905-19l2. Mr. Lauck
stated, j. p, Morgan d Co, the First
National bank of New York. the VA
tional city bank Of New York; Kuhn,
Loeb & Co. the Illinois Trust q Saw
inPs bank Of Chicago, and the First
National bank Of Chicago made Joint
purchases and underworld securities
aggregating 1895, 6,07S, 437, all in bonds
except an issue Of stock by the Chi
cago Great Western.
The total number Of employees Of
railroads in the United States on June
80, 1913, as reported to the Interstate
commerce commission, was l,Slj.239,"
said Mr.. Lauck "Of these, 1,653,566
were employed on railroads controlled
through voting trusts and interlock-
ing direCtorates by the inner circle
Of financiers. Therefore 81 per cent
Of the railroad employees of the coun-
try were controlled by this inner cir
Gle. The total number Of directors
of inner groups and corporations who
were also directors of railroads was
III. Forty one of these men were Of
iicials Of the roads either practical
railroad men or railroad attorneys.
In considering the real control Of the
roads they had been eliminated as
they did not owe their positions TO
financial power. This leaves 40 men
who dominate the railroads controlled
by the inner circle The capitaliza-
ton Of these roads was more than
eleven billions of dollars. A study OF
the situation shows that the concen-
tration is much greater than these
figures show It is a fact that rail-
roads capitalized Mt more than ten bill
lions, employing -.512,O00 men, are
by four great financial
groups"
Officials POWcrlcsS.
Mr. Lauck declared that operating
officials of the railroad had been pow
erless against the Gnanciers i'm con-
trolling the revenues from operation
and that the really great earnings Of
the properties had been absorbed and
concealed by stock manipulation He
introduced separate exhibit dealing
with ;he so-called scandals OF the land
grants made IN the promotion of west.
ern roads i'm he parIt- dave