Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-04-19
Says IL New York Financial
Institutions Head War on
Rail Workers.
INTERALLIED GROUP
DEFEATED THE FARMERS
Many Instances Told of Manipula-
tions to Bring Labor
Stagnation.
hy the Associated Press
Cuvrarn

CHICAGO. April l9.-Charres that
capital combine" headed by twelve
-" hork financial institutions, in
aug urated policy of nation-wid.
shut-downs, was made today befor.
the United States Railroad l.ahor
oy w Jett Lauck. economist
i'' 'he unions, which are fighting
any reduction in hearings before the
labor board.
M Lauck named about 100 men
VINO through interIocking director
'ipS' he claimed, centered in these
oozen institutions control of the ma
Jor!ty of the country's imnor,,,,
railroads. and of basic raw materials
lie charged that:
ms interrelated capital -roup
ueliperately debated the farmers and
Lheh undertook. by precipitating in
~ 'ai slasnation. to debate labor"
ne railroads, he asserted were the
CHOSEN vehicle for this labor drive
-dS -oHs OF repair men On railroads
ia recent months, he charged. were
MADE deliberately, while much of the
iepair work was let to outside com
panies, who charged the roads abou,
twice what the same renairs uoI,IG
nave cost in their own shops. One
purpose, he said, was to ger This
portlon OF railroad labor out of gov
einment jurisdiction by forcing it to
WI LOT Inc outside concerns These
concerns, he said, were largely un-
der this same financial control AS
the roads.
Long Document Offered.
The document that Mr.. Lauck pre-
sehted made about $4,000 words. 1t
was prepared by the American Fed
Grafton of Labor bureau of research.
railway employees department., and
enll.lea human Standards and Rail-
road Policy"
The dozen New York financial in
stitutions as named were:
Mutual Life Insurance Company of
New York. First National Bank.
Equitable Trust Company. J. p Nor
gan Co, Guaranty Trust Company.
Equitable Life Assurance Society of
me United States, American Surety
company, National Surety Company
Mechanics and Metals National Bank
National City Bank, New York Trust
Company and Chase National Bank
mad directors in ninetyrtwo class /
railroads and in twenty railroad
equipment companies, that their di-
rectorships reached twenty-four coal
ranroads and coal companies, and
that. through non-banking directors.
further interlocked.
Summary OF Contents.
Mr. Lauck summarized the report
as follows:
The evidence shows there is
capital combine. consisting of the
major banks. the railroads and the
industries controlling basic ma
terials. and that this combine has
and exercises a power over the eco
nomic destiny of the United States
1t shows that within the Identical
capitalist group lies the power to
adjust or misadjuSt relative prices
in a manner that will stimulate or
out that this focal capitalist group
has deliberately maintained high
pfices of steel. coal. cement and
other basic materials. and that the
railroads financed by the same in
terests have refused to place the
orders for plant maintenance. or
even the ORDERS necessary to prevent
plant and equipment deterioration.
The exhibit shows that the greater
factors in American industry-the
railway repair works. the steel in
tereSts, the coal. cement and other
basic material producerS-all are
closely bound together by intercapi-
tai srelations and interlock di-
rectorates. coming to focus in the
house of Morgan.
The rail say employees make no
issue as to the propriety of CEN
traliZed system of economic control.
The point of the exhibit is its chal-
lenge of the uncoAscionabl misuse
which the great combine has made
of its power. The employees call at
tention to the national responsibility
which the possession of such power
entails and note that this RESPONSE
bility in the case of the railway in
n II a 10 a n cd md -pit
ten into the federal Laws of the
ed States. and the employees spe-
point out that this RESPONSE
bility is being unscrupulously evaded.
Roads Plead Poverty
THE railroads are pleading pow
erty. The banks are making un-
profitS and declaring un-
precedented dividends and Ahe same
applies to steel coal. railway equip
ment and similarly situated concerns
The capital combine. in preparing to
unemployment. adopted
DO it first Railway Improvement
programs were deferred: railway
was reduced below min
mum legal 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
las staggered America. is 'capi-
al on strike against society And
,apital. nationally and internationally .
organized and concentrated. takes the
tand that the capital strike shall go
m until labor comes to its knees and
consents TO sweeping reductions of
wages. and also consents to surrender