The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-10-28
FIVE MILLION
RAILROAD STEAL

On May 10Th this year Mr.. George
P. Hampton, who until his death in
June was Managing Director of the
Farmers National Council, sent to
President Harding the well substan-
tiated charges of the Railway De-
partment of the American Federation
of Labor that the officials of the
railroads under the Cummins -Esch
law have wasted or looted the rail-
roads of hundreds of millions of dol
lars. At previous conference with
Mr.. Hampton the President had
promised him that he would trans
nit this data to the Attorney Cen
eral of the United States to investi-
gate whether criminal or civil pro-
ceedings or both could be instituted
against those responsible for this
waste and loot and what if any
money could be recovered.
On May 10Th Mr.. George B. Chris
tian, Secretary to the President ac-
knowledged receipt of this letter to
the President and said: "By his di-
rection l am referring it to the
Attorney General" Why doesn't
the Attorney General act?
On July 25th the President sent
message to Congress asking that
Congress help the poor railroads by
extending to them $500000,000 of
additional credit at 6 per cent or
less. In the meantime the Presi-
dent through Secretary Hoover and
Mr.. Eugene Meyer, Managing Direc
tor of the War Finance CORPORATION
opposed the Norris bill to ensure
farmers a foreign market for their
surplus farm products, and on Au
gust 4th the administration bill
drafted by Messrs. Hoover and Mey-
er passed the Senate.
Four Billions to the Railroads
In the last three years and half
the railroads have ''lifted" about
$4,000,000,000 out of the Public
Treasury. Congress let them do it.
Chairman Winslow of the House
Committee on Interstate and For
eign Commerce and Senator Town
send Acting Chairman of the Sem
ate Committee on Interstate Com
merce have introduced bills to carry
out the Presidents plan to feed up
the railroads some hundreds of mill
lions more at the expense of the
American people. This is how the
great skin game on farmers and the
American people generally is to be
worked:
The War Finance Corporation head
eded by Eugene Meyer who said the
farmers don't care what rate of in
terest they pay so they get money
quickly, is to work the deal. This
War Finance Corporation was re-
habilitated to help farmers-up to
date it has chiefly strung them.
This corporation, Wall Street con-
trolled-is to sell the securities
placed with the government by the
railroads to ensure the repayment
of the $800,000,000 or more which
the railroads now owe the govern
ment. Then the security the govern
ment holds will be gone, but the
railroads will have the extra $780,
100000 loan. That is the railroads
will get without any security ten
times as much additional credit as
the $50,O00,00O loan which the live
stock interests tried to get from
the government on the best of Sc
curity and could not get.
Now Mr.. Farmer won't you do
some hard thinking and then some
heavy telegraphing to the President
and to both your United States
Senators and your Congressman,
protesting against this big railroad
steal?
The railroads laid off about AGO..
900 employees, a fifth of their total
employees during the past or so,
and they have had the wages of
their employees reduced by $400,-
100000. They have had billions of
government credit at two-thirds to
one-half the interest rates you can
get credit for and freight rates are
still up, and they are not coming
down, unless you get very busy.
The present administration is help
ing the railroads to loot the farmers.
Ask the President why. Demand
that Congress promptly restore the
railroads to unified government op-
Grafton, cut out the graft, reduce
freight rates to those in force when
the railroads were returned under
the Cummins-Esch law so the farm
er can live, and let consumers of
his farm products live too.
The railroads were made for the
producers and consumers and not the
producers and consumers for the
bunch of Wall Street gamblers who
today control the railroads.