The daily star-mirror. (Moscow, Idaho) 1911-1939, 1921-04-19

headed by twelve New York flnancia
institutions inaugurated policy 0
nationwide shut-downs, were mad
today before the United States rail
way labor board by w. Jett Lauck
economist for the unions which ar
fighting any reduction in wages il
the hearings before the United State
board.
Mr.. Lauck named about 100 mel
who through interlocking director
ships, he claimed, centered in thes'
dozen institutions control of the ma
jority of the country's importan
railroads, and of basic raw materials
He charged that:
.'This inter-related capital groul
deliberately deflated the farmers ant
then undertook by precipitating in
.dustrial stagnation, to deflate labor.
The railroads, he asserted, were the
chosen vehicle for this labor drive
Layoffs of repair men on railroads II
recent months, he charged, were
made deliberately, while much of the
repair work was let to outside COM
panies who charged the roads about
twice what the same repairs would
have cost in their own shops. One
purpose, he said, was to get this por-
tion of railroad labor out of govern
ment jurisdiction by forcing it to
work for the outside concerns. These
concerns, he said, were largely under
this same financial control as the
roads.
The document that Mr.. Lauck pre-
sented, made about 125,000 words. 1t
was prepared by the American Fed
Grafton of Labor Bureau of Research,
Railway Employees Department, and
entitled, Human Standards and Rail
road Policy"
The dozen New York financial in
stitutions as named were: Mutual
Life Insurance Company OF N: T.,
First National Bank, Equitable Trust
Co., J. P. Morgan and Co., Guaranty
Trust Co., Equitable Life Insurance
Society of United States, American
Surety Co., National Surety Co., Me-
chanics & Metals National Bank,
National City Bank, New York Trust
Co., Chase National Bank.
Mr.. Lauck charged that these banks
had directors in 92 class one rail-
roads, and in 20 railroad equipment
companies, that their directorship
reached "a coal railroads and coal
companies, and that through nom
banking directors this alleged capital
combine was still further interlocked.
Mr.. Lauck summarized his report as
follows:
seThe evidence shows there is cap
ital combine consisting of the major
banks, the railroads and the indus
tries controlling basic materials, and
that this combine has and exercises
power over the economic destiny OF
the United States 1t shows that
within the identical capitalist group
lies the power to adjust or mlsad]ust
relative prices in a manner that Will
stimulate or suppress industrial
activity. 1t points out that this focal
capitalist group has deliberately
maintained high prices Of steel, coal,
cement and other basic materials and
that the railroads, financed by the
same interests, have refused to place
the orders for plant maintenance, or
even the orders necessary to preVent
plant and equipment deterioration.
iThe exhibit Shows that the greater
factors init American industry, the
railway equipment producers, the
railway repair works, the steel inter
ests, the coal, cement and other basic
material producers all are closely
bound together by intercapital rela-
tions and interlocking directorates,
coming to focus in the House OF Nor
gan.
"The Railway Employees make no
issue as to the propriety of a central
lied system Of economic control. The
point of the exhibit is it's challenge OF
the unconscionable misuse which the
great combine has made of it's power.
The employees call attention to the
national responsibility which the pos
session of such power entails and
note that this responsibility in the
case Of the railway industry has been
recognized and written into the Fed
eral Laws of the United States, and
The employees specifically point out
that this responsibility is being un-
evaded.
"The railroads are pleading power
ty. The banks are making unpre-
lented profits and declaring unpre-
.edented dividends an the same ap-
plies to steel, coal, railway equipment
IN similarity situated concerns. The
capital combine, in preparing to pre-
,lpltate Unemployment, auOpteu C.e
policy that the railroads Should do it t
'irst.' Railway improvement pro-
grams were deferred; railway main
;enance was reduced below minimum
egal requirement. :.
.'The report brings into clear relief (
he fact that there is no foundation
or opinion which the employers. pub
icity machinery would popularize
hat the railways and the other great
Industries are the victims OF some
Misfortune of the times.
The industrial paralysis which has
staggered America is capital on
trike against society And capital,
and internationally organ
zed and concentrated, takes the
tand that the capital strike shall
% on until labor comes to it's knees
md consents to sweeping reductions
t wages, and also consents to sur
ender it's right to bargain collective
' on scale co-extensive with the or
Of the employers"
Taking up first the lay-off charges
he report presented by Mr.. Lauck
aid that Railroad shop layoffs, in