The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-02-04
THE RAILROADS.
BAD NEW SCHEME

Failing to secure further SuSpen-
sion of the antitrust laws forbid
ding dealings between concerns that
have common directors, and doubt
full of their ability to secure new
legislation to facilitate manipula-
ton of and grating in supply and
equipment contracts, the railroad
managers have adopted a new plan
of operations that will give them
the results desired.
The Clayptn act makes it unlaw-
full for railroads to purchase ma
terials from equipment concerns in
which railroad officials have a sub
stantial interest. 1t aims at inter
locking directorates. But there is
nothing in the law to prevent deal
ings between railroads and equip
ment concerns that are owned by the
same parties, so long as they set
up different boards of directors.
This is what they are now doing.
Railroad directors are resigning from
the boards of equipment companies,
making everything fine and lovely
for further raids upon the public.
The house of Morgan owns or con-
trolls the Pennsylvania railroad. 1t
also owns or controls the Baldwin
locomotive works. Directors of the
| Pennsylvania are also directors of
Baldwin's. When this direct contact
is broken, and separate boards es-
| tablished, the Pennsylvania may deal
with Baldwin's, paying excessive
prices, without any interference from
the law.
1t is clearly established that large
financial groups in Wall street are
backing everything evil and vicious
that has developed during the past
| 10 years. They are behind the con-
tract CRAFTS that are costing the
nation more than a billion dollars
yearly. The money that the rail-
roads take from the people is turned
| into the treasures of the supply
companies, and then it goes into the
Golfers of the bankers. And the
Clayton law will not stop this until
radically amended.
| That an effort to secure protec-
ton will be made early during the
extraordinary session of Congress
is forecasted. Whether or not it
will be successful depends entirely
upon the militancy of public opin-
ion and the response of Congress.
| Privilege has been having things
pretty much its own way during the
past few years. Congress has been
eager to serve it. But a change is
noted. Recent developments have
scared congressman who are anxious
to keep their places of profit and
power, and they are less inclined
| than heretofore to take chances with
the popular temper. At this mo-
ment there is no disposition to in
| crease opportunities for loot, and
| tomorrow Congress may have turned
completely about and set seriously
to the task of affording protection
| against railroad cupidity.
Recent disclosures concerning To-
connective and car repair contracts
made by many railroads with Gin
side" concerns have forced railroad
managers to make explanations, I'M
| convincing to be sure, but the best
that can be offered. This in itself
is a marked change from their cock
sure attitude of a few months ago,
when they boldly dictated to Con-
gress and advised the public that
it might be damned for all they
cared. Today they know that a great
deal of their propaganda has been
digested and discarded, and they
again are face to face with a pop
ular demand that railroad manage
ment be reasonably honest and eff
ficient. The next turn of the wheel
will bring them up against restric-
tive regulations that will measurably
eliminate graft from railroad man
agement, and that day will mark the
beginning of the end of private
ownership. and operation of the
means of TRANSFORMATION.