Every evening, Wilmington daily commercial., 1921-04-19
CAPITAL IN LEAGUE
TO BRING |DLENESS,
SAYS SR. R. ECONOMIST
Railroads Vehicle to Initiate Ma
tionwide Labor Drive,
lauck Declares.
Debated THE FARMER FIRST
nv Associated Press to Every Evening

"capital combine" headed by 12 New
York financial institutions inaugurated
\ policy az nationwide shut downs. was
made today before the United States
l,ailroad Labor Board by W. Jett Lauck.
economist for the unions which are
nrhting any reduction in hearings be-
for, the United States Labor Board
Air Iauck named about 100 men
who through interlocking directorships.
he claimed. centered in these dozen IN
Sttutions control Of the majority OF
the countrys important railroads, and
al uasic raw materials. He charged
that.
This intcr-rclated capital group de-
lib.ratcly debated the farmers and then
undertook by prccipitating industrial
stagnation. to debate labor.
Iayofr Made Deliberately.
The railroads, he asserted. were the
chosen vehicle for this labor drive
lANofs OF repair men on railroads in
recent months. he charged. were made
deliberately, while much of the repair
work was let TO outside companies who
charged the roads about twice what the
same repairs would have cost in their
own shops. one purpose he said, Yas
a. gct this portion of railroad labor out
ul government jurisdiction by forcing it
Il work for the outside concerns. These
concerns, he said, were largely under
this same financial control as the roads.
The document that Mr.. Lauck pre-
scented. made about 125.000 words. 1t
was prepared by the American Fedora
tion Of Labor Bureau Of Research, Rail
way Employees Department, and en-
titled. Human Standards and Railroad
Policy"
The dozen New York financial insti-
tutions as named were: Mutual Life
Insurance Company of n. y. First Ma
tIonal Bank Equitable Trust Co. J. Il.
Morgan * Go. Guaranty Trust Co,
Equitable Life Assurance Society of
ntcd states. american Surety Co. Ma
tieual surety CO. Mechanics & Metals
\atioisal Eank National City Bank.
New York Trust Co. Chase National
I:auk
Nr Iauct charged that these banks
had directors in - class one railroads,
aad iu - ralroad equipment companies.
that 'hcir d.reotorships reached - coal
railroads and coal companies. and that
through non banking directors this al
l.s,d capital combine was still further
iatcrlocked Mr.. I4auck summarized the
report as follows:
Evidence OF Capital Combine.
Th, evidence shows there is a capt. I
ra ,.uauine consisting of the major
l,r.,~ ~, railroads and the industries
gtroIaaC basic materials. and that this
combine has and exercises power over I
tae oeouomic destiny of the United
sfatss II shows that within the identi-
,aI capitalist group lies the power to I
adjust or misadjust relative prices in .
d manner that will stimulate or sup /
iresS Industrial activity. It points out +
THAT tins focal capitalist group has de-
t,. rately maintained high prices Of
sfs cal. cement and other basic ma
/. l~ and that the railroads. financed
l ,h. same interests. have refused to .
Ia,. the orders for plant maintenance /.
cr even the orders necessary to prevent +
Ilant and equipment deterioration.
The exhibit shows that the greater
ftcturS in American industry the rail
way equipment producers. the railway
repair works, the steel interests. the
coal cement and other basic material
l.r,alu1trs-all are closely bound to-
e.th,r by intercapital relations and in
terlo, klng dtrectorates. coming TO focus +
i, III, house Of Morgan.
-Th. railway employees make no issue f
II H. the propriety Of a centralized sys- j
tim of economic control The point Of
the exhibit is its challenge of the un- f
Questionable misuse which the great /.
combine has made Of its power. The +
employees call attention to the national
responsibility which the possession of I
such power entails and note that this .
l-sponsibility in the case OF the railway
industry has been recognized and writ /.
tn into the Federal laws Of the United /
states and the employees specifically /
point out that this responsibility is be +
iug unscrupulously evaded.
Railroads Poor; Banks Rich.
The railroads are pleading poverty /
The banks are making unprecedented F
profits and declaring unprecedented .
dividends. and the same applies to steel, .
coal, railway equipment and similarly
situated concerns. The capital com
bine in preparing TO precipitate unem-
ployment. adopted the policy that the
railroads should do it first Railway
improvement programs were deferred
railway maintenance was reduced be-
low minimum legal requirement.
The report brings into clear relief
the fact that there is no foundation for
opinion which the employers publicity
machinery would popularize that the
railways and the other great Industries
are the victims Of some misfortune of
the times.
The industrial paralysis which has
staggered America is capital on strike
against society And capital. nationally
and internationally organized and con
centrated. takes the stand that the
capital strike shall go on until labor
comes TO its knees and consents to
sweeping reductions of wages, and also
consents TO surrender its right TO bar
gain collectively on scale co-extensive
with the organization of the employers"
Taking up first the lay off charges
.he report presented by Mr.. I.auck said
that railroad shop layOffs, incomplete |