Manchester Democrat., 1921-04-20
CAPITAL FORCES
WAGE REDUCTIONS
W. lett Lauck, Economist for
Rail Unions, Tells Labor
Board Of "Plot."
NAMES u EASTERN CONCERNS
ManipuIations Emanating From "House
Of Morgan" Report Declares, Seeking
to Cause Workers to Surrender
Right Of Collective Bargaining.

Chicago, April 20.-Charges that a
"capital combine" headed by II New
York financial institutions, put into
effect policy of nationwide shut
down were made before the United
States railroad labor board by w.
Jett Lauck, economist for the unions,
which are fighting any reduction in
wages
Mr.. Lauck named about 100 men
who through interlocking director
ships, he asserted, centered in these
dozen institutions control of the ma
jOrity of the country's important rail-
roads, and of basic raw materials. He
charged that: "This interrelated capt.
tai group deliberately Debated the
farmers and then undertook by pre-
cipitating Industrial stagnation, to de-
fate labor"
Charges Railroads Were Vehicle.
The railroads, he asserted, We're the
chosen vehicle for this labor drive.
Layoffs of repair men on railroads in
recent months, he charged, were made
deliberately, while much of the repair
work was let to outside companies,
who charged the roads about twice
what the same repairs would have
cost in their own shops. One purpose,
he said, was to get this part of rail-
road labor out of government juris-
diction by forcing 1t to work for the
outside concerns. These concerns. he
said, We're largely under the same
financial control as the roads.
The document that Mr.. Lauck pre-
sented was composed Of about 1885,
600 words. 1t was prepared by the
American Federation of Labor bureau
Of research, railway employees de-
>partment, and entitled Human Stand
ards and Railway POlicy."'
Dozen Eastern Concerns Named.
The dozen New York financial in
stitutiOns as named were:
Mutual Life Insurance company Of
New York, First National bank, Equit-
able Trust company, J. P. Morgan &
CO., Guaranty Trust company, Equit-
able Life Assurance Society of United
States, American Surety company,
National Surety company, Mechanics
and Metals National bank, National
City bank, New York Trust company,
Chase National bank.
Mr.. Lauck charged that these banks
had directors in 92 class one railroads,
and in 20 railroad equipment COM
panies, that their directorships reached
many railroads and coal companies,
and that through non-banking directors
this alleged capital combine still was
further interlocked.
Takes Up Layoff Charges.
Taking up first the layoff charges,
the report presented by Mr.. Lauck
said railroad shop layoffs, incomplete,
in the last nine months were more than |
100000.
A letter from Ration, New Mexico, of
March II last. charged that on the
Santa Fe, in January, after six ma
chinists had been laid off. the remain
ing machinists were worked overtime
1916 hours in that month.
Examples of what the report called
"the lay-off policy" were instanced
from indianapolis, Los Angeles, Nash
Vile, Oswego. N. T., Horton, KAN,
Du Bois, Pa, and Ottumwa, la.
A report from Oswego, N. Y,
charged that "In March 1919 the shop
here was full of steel fiat cars (that
was under government controD and
the foreman only had about "a men
cutting them down. The rest of the
men were walking about doing moth
ing and drawing their pay, but there
was no lay-off then. The government
was paying for it, and not the N. 7.
C. Now we have all kinds Of work
and we are laid off"