Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-04-19
INTERLOCKINC
DIRECTORSHIPS
CITED BOARD
Jett Lauck, Unions
Economist, Files l25,-
900 Word Message

CHICAGO, April 19.-(By Asso-
ciated Press.) Charges that
"capital combine" headed by IL
New York financial institutions in
augurated a policy of nation wide
shut downs. was made today before
the United States Railroad Labor
| Board by w Jett Lauck, economist
| for the unions which are fighting
any reductions in wages in hearings
before the IT,. S. Labor Board.
Mr.. Lauck named about 100 men
who through interlocking director
ships, he claimed, centered in these
dozen institutions control of the ma
| iority of the country's important
railroads, and of basic raw materials.
He charged that:
"This inter-related capital group
deliberately deflated the farmers
and then undertook by precipltating
industrial stagnation, to deflate la
! bor"
The railroads, he asserted, were
the chosen vehicle for this labor
| drive Layoffs of repair men on
railroads in recent months, he charg-
! cd, were made deliberately, while
much of the repair work was let to
outside 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 it to work for the outside con-
Germs. These concerns, he said, were
| largely under this same financial
control as the roads.
The document that Mr. Lauck pre-
sented made about 125, 900 words. II
was prepared by the American Fed
| Grafton of Labor Bureau of Research,
Railway Employees Department,
and entitled Human Standards and
Railroad Policy"
Institutions Named.
The dozen New York financial in
stitutions as named were;sza
Mutual Life Insurance company OF
| New York.
Z First NATIONAL Bank.
Equitable Trust Co.
J. p. Morgn and Co.
Guaranty Trust Co.
Equitable Life Assurance Society
of United States.
American Surety Co.
National Surety Co.
Mechanics and Metals National Bank.
National CITY Bank.
New York Trust Co.
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 comuanies, and that through
non-banking directors this alleged
cpital combine WIS still further inter
| locked. Mr.. Lauck summarized the
report as follows;
"The evidence shows there is
! capital combine consisting of the
majcr banks, TIE railroads and the m
dustries controlling basic materials,
and that this combine has and eXer-
cises power over the econimoc des-
tiny of the United Sites. / t shows
that within the identical capitalist
group lies the power to adjust or mis-
adjust relative price in manner
! that will stimulate or suppress IN
dustrial activity. 1t points out that
this focal capitalist group has de-
liberately maintained high prices Of
steel coal, cement and other basic
materials and that the railroads. n
nanced by the same interests, have
refused to place the orders for plant
I maintenance, or even the orders
necessary to prevent plant and equlp-
ment deterioration.
Closely Bound Together.
"Thc exhibit shows that the great
er factors in American industry, the
railway equipment producers, the
railway repair works, the steel in
terests, the coal cement and other
basic material producers all are
closely bound together by intercapiA
tai relations and interlocking direc~
torates, coming to focus in the House
of Morgan.
"Tbe Railway 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 unconscionable
misuse which the great combine has
made of its power The employees
call attention to the national respon-
sibility which.the possession of such
power entails and note that this re-
sponsibiIity in the case of the rail
way industry has been recognized
and written into the Federal laws
of the United States, and the EN-
ployces specifically point out that
this responsibility is being sunscrup-
ulouslylcvaded.
"The railroads are pleading power,
| ty The banks. are making unpre-
| cedented profits and declaring un-
| precedented dividends and the same
applies to steel, coal, railway equip
ment and similarly situated concerns
The capital combine, in preparing
TO precipitate unemployment, adopt
cd the policy that the railroads
should do it first Railway improve,
ment programs were deferred; rail.
way maintenance was reduced be
low minimum legal requirements.
"The report brings into clear re
lief the fact that there Is no foun-
: dation for opinion which the employ
ers' publicity machinery would pom