The New York herald., 1921-04-20
RAIL MAN ACCUSES
CAPITALIST GROUP
Lauck Tells Labor Board Il
New York Institutions
Promote ShutdOwns.
GOVERN MOST ROADS
100 Men Named as Trying
to Deflate W0rkingmen
in Industrial Plot.
SAYS POWER is MISUSED
A. T. Of L. Spokesman Admits
Propriety Of Central Economic
Control in Principle.
SAYS POWER IS MISUSED

x CHICAGO, April 19.-Charges that a
capital combination" headed by twelve
New York financial institutions in
augurated a policy OF nationwide shut
downs was made to-day before the
United States Railroad Labor Board
by w. Jett Lauck, economist for the
unions which are fighting any reduc-
ton in their earnings.
Mr.. Lauck named about one hundred
men who, through interlocking direc-
torships, he said, centred in these
dozen institutions control Of the ma
jority of the country's railroads and
of basic raw materials. He charged
that:
This interrelated capital group de-
Mberately Debated the farmers and
then undertook by preciptating indus
trial stagnation to defate labor"
The railroads, he asserted. were the
chosen vehicle for this labor drive.
Layoffs of repair men on railroads In re-
cent months, he charged, were made de-
liperately. while much of the repair work
was let to outside companies, which
same repairs would have cost In their
own shops. One purpose. he said, was TO
get this part of railroad labor out OF
Government jurisdiction by forcing II to
work for the outside concerns. These
concerns, he said, were largely under the
same financial control as the roads.
The document that Mr.. Lauck pre-
sented made about 125.000 words. 1t
was prepared by the American Fedora
ton of Labor Bureau OF Research. Rail-
way Employees Department, and en-
titled Human Standards and Railroad
Policy" The dozen New York financial
institutions as named were:
Mutual Life Insurance Company.
First National Bank.
Equitable Trust Company.
j. p. Morgan & Co.
Guaranty Trust Company.
Equitable Life Assurance Society.
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 !nstitu-
tions had directors In ninety-two Glass
railroads and in twenty railroad equip
ment companies. that their directorships
coal companies and that through nom
banking directors this alleged combine
was still further interlocked. Mr. Lauck
gave this summary OF the report:
THE exhibit shows that the greater
factors In American industry. the rail-
way equipment producers, the rail-
way repair works. the steel interests
the coal. cement and other basic ma
terial producers-all are closely bound
together by intercapitai relations and
interloclSing directorates. coming TO
focus In the house OF Morgan.
''The railway employees make no
issue as to the propriety of a central
ized system OF economical control. The
point of the exhibit is its challenge of
the uncomfortable misuse which the
great combine has made of it's power.
The employees call attention to the
national responsibility which the pos
session OF such power entails. and note
that this responsibility In the case of
the railway industry has been recog-
nized and written into the Federal
laws OF the United States. and the EN-
pioyees specifically point out that this
responsibility is being unscrupuousiy
evaded.
THE railroads are pleading poverty.
The banks are making unprecedented
profits and o<ciaring unprecedented
dividends, and the same applies to
steel coal. railway equipment and
similarly situated concerns. The capt.
tai combine, In preparing to precipi-
tate unemployment adopted the policy
that the railroads should do II first.
Railway Improvement programmes
were deferred: railway maintenance
was reduced below minimum legal re-
auirement-"