The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-08-26
THE 48-ERS ARE
IN THE FIGHT
Forcefully Condemn the Rail-
road Robbers.
ADMINISTRATIONS IN BAD
Roundabout Way to Rob the
Treasury.

President Harding's proposal to
loan the railroads 100000 more
of the taxpayers money is startling,
both in what it says and what it
omits to say.
In few words, the proposition
is to capitalize the indebtedness of
the railroads. The latter owe the
government millions of dollars for
monies spent on their behalf dur
ing the period of government con-
troll. Instead of insisting that this
debt be paid, Mr.. Harding proposes
that the railroads be permitted to
fund" their Indebtedness by issuing
their own bonds for the money they
owe the government, that the War
Finance Corporation purchase these
bonds, sell them to the public with
government guarantee attached,
and turn the proceeds back to the
railroad companies for their own
use.
In other words, the railroads are
freed from their obligations to the
Government, the Government as
sumes an additional indebtedness of
$500,000,000 taken out of the pub
lies pockets, and hands it back to
the railroads to be used-for what?
ITO STIMULATE THE STEEL
COMPANIES AND EQUIPMENT
COMPANIES" who are to receive
additional contracts from the rail
roads as soon as the money is
paid over. These companies are
owned and controlled by the same
banking group who control the rail
roads to private ownership their
repair and equipment work has been
largely shifted to these private
equipment companies, and it has
been estimated that the equipment
companies, in which the railroad
magnates hold stock, charge the
railroads some $700,000,000 per an
mum in excess of what it would cost
to do the same work in the rail
read shops.
The railroad executives assert that
they are practically bankrupt and
that they are not in a position at
present to contract for any additional
equipment; therefore they need
$500,000,000 with which to "stimu-
late" the equipment companies. In
other words, the latter have some
hesitancy in accepting contracts
from the railroads until the govern
ment takes $500,000,000 more out of
the pockets of the taxpayers and
hands it over to the railroads for
the benefit of the equipment COM
panies.
President Harding puts forward
the contention that we are "moral-
ly obligated" to perform this gym
nastic feat, and that "at no time
has there been any question about
the Justice" of so doing, because
such action was recognized and
authorized by congress in the pas
sage of the iniquitous Esch-Cum-
Minis Transportation Act.
Ye Gods If the Republican Ad-
ministration wish to flagrantly rob
the public for the benefit of the
railroads, have they not at least
the courage to do so openly? Or
have they sunk so low that they
must offend our sense of decency
by designating their scheme as
"just" and moral" obligation, for
which they frankly admit they pay
ed the way in the passage of the
Esch- -Cummns law? Is it neces-
sary for them to insult our in
telligence by stating that this pro-
posal involves mo added expense,
no added investment, no added La
bility, and no added tax burden?"
The railroads already owe the
government millions of dollars. AS
an offset to this they have pre-
sented claims against the govern
ment for which they are demand
ing payment. These claims have
never been investigated nor prop
erly certified. 1t has been freely
charged, apparently with good rea-
son. that they are without warrant
of law, that they are in large part
false and fraudulent, that they are
based upon eXtravagant estimates,
and that they are contrary to the
facts contained in the sworn state
ments filed with the Interstate
Commerce Commission by the rail
roads. An investigation of these
charges has already been demanded
and the railroads have been called
upon to substantiate their claims
Naturally, as Mr.. Harding says,
"the railroads are willing to eX-
pedite a settlement by waving their
claims without surrendering any of
their rights avoiding any in
vestigation.
If, as they contend, their claims
against the government exceed the
governments indebtedness to them,
why should they waive their claims
in return for cancelling the in
debtedness, and why should they
hesitate to invite and demand full
investigation of the whole disgrace
full mess, relying upon the Ameri-
can people to discharge any obliga-
tion, moral or otherwise, which the
result of the investigation would
Justify?
The above proposal, we are told
was put forward by Wall Street
Bankers, who were successful in
obtaining the approval of the Sec
retary of the Treasury. Mr.. Hard
ing, however, does not refer to this
fact in his message. Neither does
he call attention to the fact thai
it followed very closely upon the
heels of his conference with the
banking group at the white house
on May 26th, at which further
conferences were arranged in the
hope that out of these conference
a definite understanding may be
reached on the general principles