The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-07-29
SCAB RAILROAD
GOES BANKRUPT
Nearly $2,000,00O Squandered
In Futile Effort of Receiver
To Break Unions

C, A. Phelan, who as receiver
forced the workers of the Missouri
4 North Arkansas Railroad to strike
in defense of the transportation law
and awards of the United States
Railroad Labor Board, has resigned
and left Harrison, Ark. He is sue
ceeded by j. C. Murray, formerly
traffic manager of the M. & N. A.
Until named receiver Phelan was
general manager of the road. 1t
has been charged that he recon-
mended the receivership to enable
him to evade jurisdiction of the
Railroad Labor Board Upon as
suming his judicial authority Phelan
put into effect heavy wage cut
in violation of the specific instruc-
tions of the board, and the work
ers went on strike. They are still
out, their lines unbroken by the
heavy attacks made against them.
Their refusal to work under the
receivers arbitrary regulations has
been disastrous to the railroad.
Receiver Squandered Millions
Several days ago a committee
representng financial interests in
the M. & N A. met at st. Louis
to canvass the situation. A sub
committee that had made an in
spection of the company's affairs
at Harrison reported that the re-
ceiver was without funds. Nearly
$2,000,000 of receivers certificates
are outstanding, a considerable por-
ton of this fund having been dis
sipated by Phelan in his lawless
fight against the workers.
Money must be Immediately raised
to carry the road through, either
by issuing additional receivership
certificates, by having the stock
holders advance money or borrowing
from the banks. The committee
concluded that the outlook was
everything but favorable.
A., b. & A. Up Against 1t
The Atlanta, Birmingham q At
lantic Railroad, whose workers also
went on strike when Col. Bugg, re-
ceiver, directed a wage cut in vio-
lation of the award of the Railroad
Labor Board is also meeting heavy
financial reverses. Since the strike
the road has piled up large de-
ficit and the management, in Circu-
lar No. 107, just issued to its strike
breakers, urges them to put forth
especial efforts to win back traffic
that has gone elsewhere.
The circular is signed by R. H
Mckay, superintendent, and quotes
Mr.. Kealhofer, higher official, as
having declared sit is necessary
that l again direct your attention
to our fearful decreases"
The statement says that in COM
rarison with other lines serving
the territory "our decreases are by
far the greatest" Open-shop bust
ness men had promised the man
agement that they would assist il
in fighting the workers, but evil
IDENTIFY they have refused to patron
ize a road that can not make de-
liveries, for Mckay says: "ln view
of the voluntary assurances which
we have received from shippers
that they would stand by us be-
cause of our handling of the strike
it is somewhat strange that the
other lines are getting the major
portion of the business"
The road, the circular continues
is mot meeting it's bare operating
expenses by many thousands OF
dollars" and this "can only be
overcome through an increased vol
ume of tonnage" Strikebreakers
are requested to go out aniong the
business men and solicit traffic.