The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-02-11


eminent. Well more carefully scru-
tinize appropriations made by Con-
gress, and when hundreds of mil
lions of dollars are being lavished
upon special interests our empty
stomachs will tell us that we are
not getting a fair deal and we'll
let out a howl of protest that will
reach and be heard at Washington
maybe.
The nation that is compelled to
tax the bellies and the backs of its
people is in bad way. 1t is trod-
ding the dangerous road. We have
endured many injustices and hard
ships during the past few years, but
the popular patience is frayed and
ragged. 1t should not be put to
unduly severe tests. For it may
give way, and then something hor-
rendous may happen to those medic
critics in Congress who throw up
their hands in despair when a really
serious proposition in government
demands attention. They have been
trained so long in that school which
yields it's first allegiance to the in
terests that they know precious lit
tie of what the great body of the
public is doing and thinking. If
the government succeeds in pluck
ing the goose without the goose
realizing that it is losing its feath-
ers, all will be well. Otherwise,
otherwise.
Railroads COmplicate Problem
While government funds are at
tenuated and lawmakers are search
ing about for forms of taxation to
meet accruing deficits, it comes with
interests to offer new and impor-
tunate demands for largess from the
national treasury. Yet that is eX-
actly what the railroads are doing.
Lobbyists and managers are in
Washington in great force urging
Congress to enact laws requiring the
secretary of the treasury to pay to
them without further delay more
than four hundred millions of dol
lars which they claim is due under
the guaranty provisions of the Cum
mins-Esch law.
During the first six months of
private operation the government
was presented with bill of $67,-
100000 to cover losses sustained by
the RAJ loads under private manage
ment. 1t is stated by spokesman
for the, railroads that claims aggre-
eating more than $400,000,000 are
ready for presentation to the gov
eminent, and that additional claims
will come over a period of many
years. Nobody will attempt to es-
innate just what it is going to cost
the nation meeting the greedy de-
mands of the railroad interests.
More than $250000,O00 has al
ready been paid to the railroads, and
they want at least $400,000,000 with
which to pay their bills, including
dividends. Thomas Dewitt Cuyler,
chairman of the Railway Executives
Association, told a House committee
that the Cummins- Esch bill guaran-
teed returns on investment, and that
unless the government provides the
cash it will be impossible to pay this
return. A bill has been prepared
and now ponds before Congress au-
thorizing and directing the treasurer
to pay over this sum without delay
The treasury is empty and the
government is hobbling along by
hypothecating its notes. To meet
the exactons of the railroads it will
be necessary to negotiate new loans
from the big bankers, at rates of
interest not less than six per cent
1t thus happens that the people not
only give their money, but are COM
PEELED to pay interest on their gift.
This incident gives a fair illustra-
ton of how affairs are managed by
government in the interest of Big
Business.
First, the government goes to the
bankers and borrows $400, 100000 at
say, per cent The money is then
whom it was borrowed, because these
bankers own the railroads. The
bankers made a bookkeeping entry
transferring the money to the rail-
roads, and another bookkeeping
transaction turning it back to them
selves, as owners of the supply and
equipment concerns to whom the
railroads owe money.
This may seem like lot of bust
ness, but the money really never
leaves the banks vaults. All that
happens in the various manipula-
tons of the $400,000,000 fund is
that the government becomes obi
gated to pay interest upon it.
When railroad presidents and lob
byists were demanding their pound
of flesh they were asked if it was
not going a little too far to make
ho e., ,el, L oh
to pay dividends when the farmers
are bankrupt, when millions of work
ers are disemployed and thousands
of small business are being cleaned
out. A few members of the COM
mittee thought that under the stress
of unusual conditions the railroads
should withhold their demands, that
all interests might suffer together
But the railroad people could not
see it that way. They argued that
Congress had assumed a moral and
legal obligation when it guaranteed
railroad earnings, and that it would
reflect upon the credit and good
faith of the government if it does
not promptly pay its debts. Con-
gress, of course, is quite willing to
give the railroads everything they
demand, and it is going to approve
pending legislation without delay.
The people will learn in the next
week or two who owns Congress.
The farmers also have asked for
relief, and millions of workers have
urged that some consideration be
given to their difficulties, but Con-
gress moves with that exasperating
deliberation that is characteristic of