Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1921-04-19
(By The Associated Press)

(By The Associated Press)
CHICAGO, April 19-Charges
that capital combine" headed by
IL New York financial institutions
inaugurated policy Of nation wide
shut downs, was made today before
the United States Railroad Labor
by w. Jett Lauck, economist for the
unions which are arguing for perpe-
tuation Of their national agreements
with the railroads.
Mr.. Lauck named about 100 men
who through interlocking director
ships, he claimed, centered in .hcse
dozen institutions control Of the ria
Jofity Of the country's ,mportan:
railroads, and of basic raw mater ;als
He charged that:
This inter related capital rroup
deliberately deflated the farmers
and then undertook by precipitating
industrial stagnation, to deflate
labor"
The railroads, he asserted. were
the chosen vehicle for this labor
drive. Layoffs Of repair men on rail-
roads in recent months, he charged.
were made deliberately, while much
OF the repair work was let to out
side companies who charged the
roads about twice what the same re-
pairs would have cost in their own
shops. One purpose, he said. was to
get this portion of railroad labor out
Of government jurisdiction by fore
ing II TO work for the outside con
Germs. These concerns, ne said. were
largely under this same financial
control as the roads.
The document that Mr. Lauck
presented made about 1851 words
1t was prepared by the American
Federation Of Labor Bureau of Re-
search, Railway Employees Depart
ment, and entitled, Human Stand
ards and Railroad Policy"
The dozen New York financial in
stitutions as named were:
Mutual Life Insurance Company
Of n. Y.
First National Bank
Equitable Trust Co.
j. p. Morgan and Co.
Guaranty Trust Co.
Equitable Life Assurance Socic-
ty Of United States.
American Surety Co.
National Surety Co.
Mechanics & Metals National
Bank.
National City Bank.
New York Trust GO
Chase National Bank.
Mr.. Lauck charged that these
banks had directors in 90 Class One
railroads, and in 20 railroad equip
ment companies, that their director
ships reached "a coal railroads and
coal companies. and that through
non-banking directors this alleged
capital combine was still further in
terlocked. In presenting the report
Mr.. Lauck gave this summary of its
contents:
The evidence shows there IL a
capital combine consisting of the
major banks. the railroads and the
industries controlling basic materials
and that this combine has and ex-
ercises a power over the economic
destiny Of the United States II
/ shows that within the Identical cap
! itallSt group lies the power to ad-
just or misadjust relative prices in
a manner that will stimulate or sup
press industrial activity II 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 in
;e-ests. have refused TO place the or
ders for plant maintenance, or
! even the orders necessary TO prevent
plant and equipment deterioration
THE exhibit shows that the grclt-
or factors in American industry, the
ra;lway equipment producers. tire
railway repair works, the steel m
torestS, the coal, cement and OF! -
ragic material producers-all ar.
clasely bound together bv inter
capital relations and interlocking di-
rectorates. coming 70 focus in the
! House Of Morgan.
THE Railway Employees make 10
issue az to the propriety Of cen
/ tralized system Of economic control.
The point Of the exhibit is its chal
lenge of the unconscionablc misuse
which the great combine has made
Of it, power. The employees call at
tention TO the national responsibility
which the possession of such power
entails and note that this responsible
/ lity in the case Of the railway in
dustry has been recognized and writ
ten into the Federal Laws Of the