The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-01-28

road contractural relations with IN
terlocking supply companies, but it
seems to be in no hurry to get under
way. There is a general impress
sion in Washington that everything
that can be done is being done to
prevent discussion of this new phase
Of railroad management until legis-
lation now pending has been rushed
through Congress. Then, when the
investigation is made, if sensational
disclosures come, it will be too late
to accomplish any beneficial pur-
pose.
Vicious Bill Pending
Testifying before the Senate Com
mittee on Interstate and Foreign
Commerce, Edgar f. Clark, chair
man of the Interstate Commerce
Commission, declared that the Ere
linghuysen bill, introduced at the
request of railroad lobbyists and
supported by railroad senator's, alb
solutely defeats any beneficial pur,
poses of the transportation act and
the Clayton antitrust act
The transportation act, Mr.. Clark
said, guarantees the railroads a re-
d
basis, but this guarantee is predicat-
ID upon the assumption that the
railroads will give honest, efficient
md economical management. If the
Frelinghuysen bill is adopted, he
said, there will be no check to rail
road rascality, and he intimated that
in that event the public might be
prepared for the resumption of an
enlarged scale of riotous manipula-
ton of contracts in the interest of
inside concerns.
81 do not assume" testified Chair
man Clark, that all railroad officials
are dishonest. | will not assume
that a majority are dishonest. But
we know that minority of officials,
be that minority large or small,
have been guilty of criminal prac-
tices, and they are today doing
things that are detrimental to the
public. If this bill is approved in
its present form there will be no
restraint upon them and the public
will be helpless in defending itself
from venal transactions"
For several years railroad man
ayers have been coming regularly TO
Washington with the plea that the
carriers were starved by severe re-
strictions, and they urged this plea
so earnestly upon Congress that il
was induced to make the most liber-
Al provisions for the maintenance Of
he transportation agencies The In
-erstate Commerce Commission was
commanded 10 establish rates high
enough 70 provide ample funds for
operation and maintenance and over
and above these charges an income
Tor dividend requirements Of 6 per
cent No interest ever before was
treated so generously. The railroads
had dared 10 ask for the maximum
ana Congress had dared to give it.
Prophecies Are Realized
Il was argued by opponents Of
The trans pOrtatiOQ bill that this pro-
vision would invite and encourage
waste and graft, because the rail
roads, being assured OF their in
come, would have no incentive to be
faithful TO their trust. No matter
now much money might be wasted.
the public was to be forced 10 pav
freight rates that would be suffi-
clent to meet the requirements Of
the transportation act. Of course.
the railroad heads denied that any
thing of the sort would happen.
They succeeded in creating a pref
udlced opinion against government
ownership, and while the public was
off guard got by with the whole Of
its eXorbitant demands.
The railroads had not been back
IN private hands three months when
manipulation of contracts began.
and it has progressed to point
where the public is being MIXED"
according to Mr.. Lauck. to the tune
OF three-quarters of a billion dollars
a year on two items. What the loss
will amount to on all items that
enter railroad economy cannot be
calculated. With manipulation and
he Incidental graft Of printing. rail.
tie and other accounts still 10 be
reckoned, the aggregate loss 70 The
pubic must attain staggering pro
portions.
The logic of the situation is that
private management Of transyorra-
ton and honesty are incomparihle
For more than quarter Of q CEN
fury and until the last two vesrs
the trend of legislation has been In
the direction of restricting oppor-
tunitles for improper practices and
explorations. Yet in all that time.
despite multitude of laws and req
ulations, little if anything in the
way OF regeneration has been &C.
compllshed. The railroads TODAY ere
dong the identical things that made
transportation byword and re-
proach score of years ago.
The fatal defect of private man
agement is that the railroads have
come under the domination Of large
banking concerns whose only inteT-
est IN railroads is to exploit them.
Practical railroad men are mere fig
ureheads IN management. These
bankers are loOting the railroads.
and through them the public, for the
benefit of the equipment concerns
that We're built up for this EXPRESS
purpose. With railroad profits
largely restricted, and their opera
ton hedged about with safeguards
that seriously interfere with the old
fashioned manipulation, these bank
er-speculators are getting their ex-
tortlonate profits through the easv
method of initiating repair bills.
That is why they seek to kill the
antitrust laws and are making des-
perate efforts to secure the enact
ment of innocuous legislation that
Will give them a free hand in their
game of graft. They are TODAY
fighting for the real prize sought
when they were urging the trans