New-York tribune., 1920-12-31
Wilson VetOes
Bill ltoCurtail
Clayton Law
Measure Would Give Rail
Officials Right to Buy
Supplies From Firms in
Which They Are Interested
Called Open Shop Move
La Toilette Urged Enforce
ment as Bar to Graft; La
Dor Opposed Suspension

r,or. The Tribunc's WASHINGTON Bureau
WASHINGTON, Dec. 3O-President
Wilson surprised Congress to-day by
vetong the bill to suspend for a year
from january l, 1921, Section 10 of
the Clayton Act of 1914. This is the
section which is intended to prevent
railroads and other common carriers
purchasing without bids supplies or
securities from concerns in which Of
6eers, directors or purchasing agents
o. the roads are substantially in
terested. The law will so into effect
tomorrow ~ midnight.
In his message returning the bill
without his signature, the President
recalled that the operation of the pro-
vision had already been twice sus-
pended, and that the roads had had
r.ore than six years in which to adjust
their affairs SO that no inconvenience
or confusion wouio result from the
enforcement Ct the law He pointed
out that Section 10 was already in eff
feet as far as corporations organized
since January IL, 1918. were concerned,
and that therefore the question was
whether the law should be enforced
partly or fully.
Reasons Held Inadequate
The President held that the reasons
advanced by the roads for further de-
lay were inadequate, and that as the
soundness of the principle embodied in
Section 10 was generally admitted, he
thought that the wholesome effects
which its application was intended to
produce should no longer be withheld
from the public.
The railroad companies have sought
for further suspension on the plea
that Section 10 was not workable, that
its operation would entail enormous
additional ex'ense, and that it was in
consistent with the transportation act
President Wilson argued that as Con-
gNss was IN session any needed
amendments could readily be adopted.
In vetoing the bill the President
acted at the instance of the railroad
brotherhoods and other labor forces,
and also at the request of Senator La
Toilette
The bill for the suspension was re-
Gently put through both houses with
prac cally no discussion. Senator La
Toilette, backed by several other SEN
ators and House members, conferred
over the bill later, and Senator La
Toilette then wrote letter to the
President urging a veto. This was the
FIST time in three years Senator La
Toilette had communicated with the
President.
William H. Johnston, president of
the international Association of Ma
OH s-.- 81
besought veto, speaking for the rail-
road brotherhoods and organizations Of
railway employees, as we'll as the ma
chlnists.
See Open-Shop Move
Prominent members of the Senate
Interstate Commerce Committee, where
the Sill originated, expressed doubt
whether an ATTEMPT would be made by
supporters of the bill to pass it over
The veto. If there is. Senator La Fol-
lette IS prepared q make a hard fight
on the floor to have the veto sustained.
He expects to call up the :eto message,
which was laid on the table to-day, at
the convenience of the Senate, Tuesday
or Wednesday. II he does so, vote
will be forced
Senator La Toilette to-day declared
the supply companies and similar com
paries. in which railroad officials, d-
rectors or stockholders are interested,
are exacting enormous graft from the
railroads. and tina. it is high time that
Section 10 be enforced.
Sen-.t,r La Toilette has armed him
self with figures showing what in the
aggregate this practice of the roads
buying from favored companies is cost
ing the public. He said to-day he
would not discuss these figures until
ne spoke on the floor
IT is charged by the machinists and
railroad employees that lack of the
effort of the roads to continue the old
method of buying supplies or having
repairs done by companies in which
the roads or some of their owners are
themselves interested is a purpose tc
force the open shop on some of the big
concerns manufacturing railroad sup
Plies and equipment.
The Baldwin Locomo otive Works is
one Of the plants whose employees are
stirred up over the matter 1t was or
account Of the open shop phase of the
case that Mr. Johnston sought the veto
Of the bill, the idea being that if the
support of the railroads should be
Withdrawn from favored concerns they
would be less Independent and more
dlsposed to accede to the wishes Of
labor