The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-04-19
LABOR ECONOMIST SAYS
CAPITALIST MADE use
OF RAILROADS IN DRIVE
Eastern Money Kings Ac-
cused Of Conspiracy to
b. Debate Labor.
Chicago, April 1s.-Testimony

OHlC4SVs April lVs-lccumVny
by railroad witnesses before the
railroad labor board today thst
the roads are Disseminated
against and robbed Of their
freedom In having to pay high.
er wages for unskilled labor
than Is paid in other Industries,
WAS coupled with . statement
by the labor side charging that
II New York financial insti.
tutions. through the roads. had
inaugurated y policy Of nation.
wide shutdOMns.
The railroad testimony came in
the formal presentation of their
evidence in the consolidated hear
ings into the requests Of 80 roads
for lower wages, while the labor
contentious were made in an ex-
traneous statement filed by W. Jett
Lauck, consulting economist for the
unions, the regular presentation Of
union testimony not being sched-
uled until the roads have finished.
B. A. Worthington, president of
the Cincinnati, Indianapolis &
Western declared that the roads
were in a terrible plight" that
they were facing a great emer-
gency" and that unless his road
received aid within two or three
months it would go into the hands
Of . receiver. This concluded the
eastern roads testimony and west
ern roads witnesses were called.
| Ralph NJ. Shaw. counsel for the
Chicago, Great Western, which re-
Gently proposed 20 per cent re-
duction for skilled labor and the
placing Of unskilled labor on q
wage par with similar workers In
other industries, declared that the
roads now we're forced to pay their
, unskilled employees "a per cent
higher wages than were paid in
other industries.
"If A is required to pay B a
higher wage than he can hire c to
do the same work, then A ceases to
be free man." he said. THAT is
the position the roads now are in."
He urged the board to consider
the wages paid in other work and
the cost of living in making its
decision.
Jewell's Query.
B. NJ Jewell of the labor SIDE,
then interrupted him.
What do you want to pay un-
skilled labOr?" he asked.
Thirty to thirtyfiye cents an
, hour answered Mr.. Shaw.
We'll, assuming a man is paid
40 cents an hour" said Mr.. Jewell
working eight hours a day, &c
days a month. he would get $3.50
: a month. Statistics show that food
takes up 3S.2 per cent of the wages
: Of the head OF a family of five. That
would be $115 day Can you Guy
Is meals for that?'
W. G. Lee. another union leader.
/. joined in Mr.. JEWELS questioning
, and asked Mr.. Shaw why the roads
didn't reduce the pay of their Of
ficials where they were free to
act"
A. o. Whalen. labor member of
2 the board, broke in to ask Mr..
/. Shaw the fundamental reasons for
asking for wage reductions?
Because the present wages no
longer are justifable and because
the roads can't obey the transpor-
tation act, which calls for efficient
J and economical operation, at pres
l ent wages" answered Mr.. Shaw.
Labor's Side.
The document that Mr.. Lauck
presented made about 125,000
t words. 1t was prepared by the
0 American Federation of Labor bu-
reau of research, railway employees
department, and entitled. Human
e Standards and Railroad Policy"
: Names Twelve.
= The dozen New York financial In
s stitutions as named we're:
Mutual Life Insurance compan,
II OF New York.
" First National bank.
y Equitable Trust company.
81 ]. P. Morgan & Co.
IL Guaranty Trust company.
~ Equitable Lie Assurance SOClet.
OF United States.
y American Surety company.
y National Surety company.
y Mechanics & Metals Nationa
e. bank.
National City bank.
New York Trust company.
Chase National bank.
Mr.. Lauck charged that thes
banks had directors in 80 class
railroads, and in 20 railroad eQuil
p ment companies. that their diret
h torships reached "a coal railroad
and coal companies, and tn,
through non-banking directors tn
ed alleged capital combine was sti
ce further interlocked.
n Gives Summary.
ed Mr.. Lauck summarized the repo
st as follows:
THE evidence shows there is
ss.l Continued on Page Three.)