New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-20
Accuses Banks
Here of Plot to
Throttle Labor
I.auck Says IL Financial In
stitlsiions Form Combine
to Reduce Wages and to
Force Unions TO Knees
Start Made on Roads
Asserts Fight Is Conducted
by Means of Intcrlocking
Directors Board System

CHICAGO, April 19.-Twelvc New
York financial institutions were ac-
eused to-day by w. Jctt Lauck, spoSes-
man for the railroad labor unions be-
fore the Labor Board, of having ini-
tiated q policy Of nationwide shut
downs to force reduction Of wages Mr..
Lauck, former member Of the War
Labor Board and now economist for
the unions that are fighting the car
riers' pleas for wage cuts, named about
one hundred men. who, he said, domi
mated these twelve financial institu-
tons and through them controlled a
majority Of the country's important
railroads and of the principal raw ma
terials.
Mr.. Lauck accused this Capital COM
bine" of deliberately debating the
farmers, and said they were now under
taking to debate labor by producing
industrial stagnation. The financial in
situations he named were Mutual Life
Insurance Company of New York, First
National Bank, Equitable Trust Com
Trust Company, Equitable Life Assur-
ance Society of United States, Amer-
can Surety Company, National Surety
Company, Mechanics and Metals Ma
tional Bank, National City Bank, New
York Trust Company and Chase Ma
tional Bank.
Railroads Make Wage Pleas
The Labor Board to-day also heard
the pleas of more than score of rail
roads in support of their request for
authority to redure wages. Spokes
men for several roads predicted bank
ruptcy and receiverships if the stua-
ton were not remedied at once. One
witness, pointing out the imitation ex
listing in railroad wages, said that
negro women in the South who wash
windows of railroad cars get S120
moth. while postal employees get only
from SIG to 1925 a month.
In presenting his $4,000 word state
ment Mr.. Lauck charged that the "capi
tai combine" had made the railroads
the vehicle of their drive against labor.
He said that the twelve financial in
stitutions he named had directors in
ninety-two Class l railroads, and in
twenty railroad equipment companies,
that their drectorships reached twenty
four coal railroads and coal companies,
and that through nom banking directors
this alleged capital combine was still
further interlocked.
Lauck's Charge of Combine
Mr.. Lauck in his report said:
"The evidence shows there is a CAPT
tai combine consisting of the major
banks, the railroads and the industries
controlling basic materials, and that
this combine has and exercises power
do Of
United States. 1t shows that within
the identical capitalist group lies the
power to adjust or misadjust relative
prices in 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 neces-
sary to prevent plant and equipment
deterioration.
"The exhibit shows that the greater
factors in American industry, the rail
way equipment producers, the railway
repair works, the steel interests, the
coal, cement and other basic material
producers, all are closely bound to-
gether by Intercepted relations and in
terlocking directorates, coming to
focus in the house of Morgan.
Alleges Misuse of Power
"The railway employees make no
issue as to the propriety of 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 ma
nal HI tfxy l. oh