The labor world., 1921-09-24

been handed . bitter pill in tho arbitra.
tion award holding that they refe.Tsd
and common stocks Of the Grand Trunk
railway, which owners claim possesses
a value close to $175,ooo,ooo, are abso.
lutely worthless.
It will not be easier to swallow be.
cause Of the sugar-coating given it by
Chief Justice Taft, who, representing
railroad security owners, dissents from
the majority Of the arbitration COM
mission and contends that shareholders
are "entitled to some consideration. -
The government of Canada was COM
PEELED to take over the Grand Trunk to
save it from the junk pile. It's man
agement had been atrocious, no differ.
ent in any particular from the typical
American railroad management. It had
been jobbed and robbed, inside and out
side, until it was about to collapse.
10 determine what the government
should pay for the property, a commits
sion was set up. It went at great
length into the evidence and listened
patiently to the arguments of many
pleaders. Finally it rendered its deci.
sion, the nub Of which is: "There is no
value in any of the four classes Of
stocks.' Unless the courts overrule
this decision, or the Dominion parlia-
ment offers compensation to stock
holders on compassionate considera-
tions,'' lot of people who foolishly
invested their money and their faith in
private management will be left out in
the cold, cold world.
While reading and ,digesting the con-
clusions Of the learned arbitrators they
viii gain wisdom if not consolation.
They will there learn more of. the true
history of American railroading than
they could get in whole years. course
Of study under any Of the James J. Hill
professors established in impecunious
colleges.
Incidentally, American security OWL
ers should also read and note carefully
for the day comes when they, too, will
be handed similar doleful tidings. What
is true of the Grand Trunk is true in
marked degree in many if not all of thy
railroad arrangements in this country.
Members of our own Interstate Com.
merce Commission, were they entirely
frank, would accept and approve this
statement Of the award as applicable to
many roads under their Jurisdiction:
"The accounts Of the Grand Trunk sys-
tenn have been so manipulated as to
render the accounts as presented BY the
books unreliable and unsatisfactory"
Recently a responsible government Of.
ficial charged that western railroads
had so manipulated their books and ac-
counts as to conceal earnings of nearly
5000, 100000 that their managers might
with greater facility rob the govern
ment.
The Grand Trunk management en-
tirely lost sight Of the interests and
rights Of stockholders when it was en-
gagged in schemes that tended to enrich
insiders. This, recreancy could have
but one possible result, since the law
of compensation works inexorably and
unsympathetically. In this instance
the management was not bit less
venal or efficient than the manage
ments Of some American roads. Its end
came ahead of a general breakup be.
cause in Canada the government is not
controlled, as is our government, by
financial interests that are able to pry
large subsidies from the peoples treas
ury every time they run short Of cash.
After while public opinion here will
change, or the government will have
NO. more funds to give, and then. we'll
be having arbitration tribunals set mp
to determine that the stocks Of mest Of
our carriers are also worthless.
GERMAN LABOR COMPETITION.
Somehow we cannot fathorn the re-