The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-07
LABOR BEFOGS ISSUE,
RAILROADS REPLY
Mismanagement Alleged by
Unions Has No Effect on
Wages, Says Counsel.

CHICAGO. May Charges of "finan-
cial combine" among New York banks
and the steel and railroad Industries
were declared irrelevant and immaterial
to the wage reduction now before the
Railroad Labor Board to-day by z. H
Senniff. general solicitor for the Penn
sylvania Railroad, In replying to the
employees recital of alleged misman-
agement.
Diminishing the employees charges as
water over the DAM" MIR. Senniff made
no answer to their contentious that the
financial combine" had Debated labor,
and said the employees had failed to
show any injury had resulted from the
transactions between the railroads and
corporations which had interlocking
directorates
The employees are attempting to
create the impression that because Of
these interlocking directorates some
great wrong Is being done the public and
the railroads themselves" Mr.. Senniff
said. This claim cannot be supported
In fact, 1t has not been shown that any
transactions between the railroads and
the corporations having interlocking di-
rectorates have resulted in any injury to
tons are now governed by the Clayton
act, furthermore. so all the charges are
water over the dam.
AT all events. railroad capitalization
has no effect whatever on railroad wages
or rates. If any transactions have proven
unJustffable In the past the bad results
have been borne by the investors and
not by the employees or public. Wages
have been determined Irrespective OF any
railroads capitalization; the attempt to
introduce these transactions in past years
only conduces to confusion and beclouds
the whole Issue respecting just and rea-
sonable wages"
Mr.. Senniff declared that the right of
the railroads to apply surplus earnings
TO property improvements and subse-
quently capitalize them was a method
universally approved and had been
largely responsible for the efficient
transportation system this country now
enjoys" He added that the valuation of
the Interstate Commerce Commission
even now proves that the value of the
railroads assets far exceeds capitaliza-
ton"
The replies We e made In answer to
employees charges that earnings turned
back into the property should have gone
to the employees In Increased wages or
to the public In lower rates.
Speaking in behalf Of the Eastern
roads. John @. Walber, secretary of the
Roads Bureau Of Information, declared
that the voluminous exhibits offered by
the employees were -'entireIy irrelevant
to the wage issue" and that the como
mics suggested by w. Jett Lauck, econo-
mist for the unions, were "fallac!ous.
theoretical and visionary"
Alleged possible economies amounting
to s2,026,355.000 through the use of me-
chanical appliances and revamping OF
equipment were declared not to be origi-
nal suggestions.
If Americas Industrial leaders read
more Of Paine, Carlyle and Dickens and
less of Wall Street journals they would
have a better understanding OF the ma
TONS Industrial problem. w. s. Carter.
head of the railway firemen's organiza-
ton. declared before the board. Speak
ing in behalf OF the big four brother
hoods Mr.. Carter closed the employees
defence against any cut In the payroll of
railroads asking wage reductions of the
board.
when business men say. as I over
heard one man say. Wait till we get our
hands on labor. Well make the dirty
dogs eat out of our hands, then look
out" Mr.. Carter exclaimed in a dra-
matte appeal to the board.