The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-01-04
RAILROADS
Ask HELPOF
saN
CONGRESS-
Senate May Suspend Op.
GRAFTON Of Clayton Act
Over Wilson Veto.

Washington, Jan. THE senate
finance committee decided today
against an attempt to override
President Wilson's veto OF the bill
to suspend for another year opera
tion Of section 10 Of the Clayton
anti-trust act, prohibiting railroads
under certain conditions from pur-
chasing materials from corpora
tions whose directors interlock
with those Of the carriers. New
legislation, 1t was announced, will
be considered as a substitute.
Senators said conditions which
the Clayton act provision was de-
signed to meet had changed as q
result Of the enactment Of the new
transportation law and that 1t was
deemed advisable to consider the
whole field with . view to enact
ment of q law to meet the existing
situation.
Washington, Jan. 4.-(By United
Press. Important phases of the
railroad problem were back In con-
gress today.
The senate interstate commerce
committee was considering whether
it will recommend an effort to pass
over President Wilson's veto the
resolution suspending the opera
tion OF section 10 Of the Clayton
act.
Railroad executives planned to
ask the senate committee as we'll
as the house interstate commerce
committee to amend the transpor-
tation act so that the $400. .000, 900
due them from, the government
under the guarantee provisions Of
the act will be made available i'm
a;Ssstas fas asslst6n u Il ssnSrs.s q Ties. .,
questions will determine Hhsthsr
the roads can 90 ahead With plans
to spend about $3.50, 100000 for
equipment this year, according to
railroad executives.
Organized railroad labor and
some congressman are expected to
advance the argument that profits
to railroad executives and . fur
ther deficit to the treasury are also
involved.
Section 10 Of the Clayton act,
passed six years ago but never al
lowed to go into effect, is aimed at
inter 'ocking of officials between
railroads and equipment companies
and between railroads and banks.
Under it, roads can buy equipment
from companies in which railroad
officials are interested only after
competitive bidding. The same pro-
visions apply to banks floating rail-
road securities. according to the
interstate commerce commission.
Want Suspension.
Members Of the senate commit
tec today said they had been in
formed railroads wanted q further
sspension because they have large
orders for equipment with compa-
nies which are in fact subsidiaries
Of the roads. william H. Johnston.
head of the International Associa-
ton Of Machinists, recently made
this charge and declared that be-
cause Of continued suspension Of
section 10 railroad executives were
reaping large personal profits.
According to Robert 8. Binkerd.
the equipment orders which rail-
roads have placed or plan to place
II they can get financial aid, total
$349, 100000. This includes $4,000
freight cars, $4,000 refrigerator
cars, 1900 locomotives and 100
passenger coaches.
Railroad executives contended
that the putting into effect Of sec
ton 10. will delay placing these or
ders because there will have to be
an "unscrambling" Of existing in
terlocking interests. They also ar
gue that unless the government
funds due them are paid soon they
cannot get the credit to enable
them to place the orders. ~
The railroad decision to ask con-
eress to change the transportation
law to enable the roads to collect
Immediately was reached after To-
cal courts had refused to 0verturn
4 treasury decision that the roads
could get no money at all until a
final accounting with the govern
ment was had. Under this ruling,
the railroad executives say, the
money due the roads may not be
Maid them for years.