Arizona republican., 1921-04-20
Republican A. P. Leased Wire1

IRepubIican A. P. Leased Wire1
 CHICAGO. April Exchanges that a -capital combine,~ headed by l2 New York financial institutions in augurated a policy of nation Wiue shut downs was made today before the United States Railroad Labor by w. Jett I.auck, economist for me unions which are arguing for perpet- uation of their national agreement with the railroads.
 MT. Lauck named about 100 men who through interlocking director ehips. he claimed, centered in these dozen institutions control of the ma 5ority of the country's important railroads. and of basic raw materials. He charged that:
 This interrelated capital group deliberately deflated the farmers and then undertook by precipitating in dustrial stagnation, to deflate labor
 The railroads, he asserted, were the chosen vehicle for this labor drive. Layoffs 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. was to get this portion of
 
 isdiction by forcing it to work for the outside concerns. These concerns, he said. were largely under this same financial control as the roads.
 The document that MT. Lauck pre- scented made about 125, 900 words. It was prepared by the American Fed eration of Labor Bureau of Research, Railway Employees Department, and entitled, Human Standards and Railroad Policy"
 The dozen New York financial in- stitutions as named were:
 Mutual Life Insurance Company of New York. First National bank. Equitable Trust company, J. P. Nor gan and company, Guaranty Trust company. Equitable Life Assurance Society of United States, American Surety company, National Surety company. Mechanics and Metals Ma tionai bank. National City bank, New York Trust company, Chase Ma ffonal bank
 Charges Intoxicating Combine
 Mir. Lsuck charged that these banks had directors in 92 class one railroads. and in 20 railroad equip nlent companies. that their director ships reached "A coal railroads and coal companies, and that through non-banling directors this alleged capital combine was still further in teriocked.
 Mir. Lauck summarized the report as follows:
 The evidence shows there is a capital combine consisting of the major banks, the railroads and the industries controlling basic materials and that this combine has and exer- cises d power over the economic des- tiny of the United States. It shows that within the identical capitalist group lies the power to adjust oI miSadjust relative prices in a man. ner that will stimulate or suppress industrial activity. It points out that this focal capitalist group has delib- erately maintained high prices ot steel. coal, cement and other basis materials and that the railroads financed by the same interests, have refused to place the orders for plan1 maintenance. or even the orders nee eSSary to prevent plant and equip. ment deteriora ton.
 s'The exhibit shows that the great t. CT factors in American industry. tn, railway equipment producers, the railway repair works, the steel in terests, the coal, cement and othe basic material producers-all ar. closely bound together by intercapi tai relations and interlocking direc torates. coming to focus in the Hous, of Morgan.
 'sThe railway employees make no is sue as to the propriety of a central ized system of economic control. Tn point of the exhibit is it's challeng of the unconscionable misuse whic the great combine has made of it power. The employees call attention to the national responsibility whic the possession of such power entail and note that this responsibility i the case of the railway industry ha been recognized and written into tn federal laws of the United States, an inc employees specifically point ou that this responsibility is being un scruplously evaded.
 Scouts Roads Poverty
 4 The railroads are pleading pov IA The banks are making un nrecedented profits and decIarin unprecedented dividends, and tn same applies to steel, coal, railwa equipment and similarly situate concerns. The capital combine, rreparing to precipitate unemploy ment. adopted the policy that tn railroads should do it first Railwa improvement programs were de ferred: railway maintenance was re auced below minimum legal require menr.
 s.The report brings into clear relic ,hs fact that there is no foundatio so~ opinion which the employers put ts.-tt. machinery would populari2 Nat the railways and the other grea -<,austries are the victims of som misfortune of the times.
 .aThe industrial paralysis which ha .t,.-geref America is capital 0 strike against society And capita .,,ti.,,al and internationally orgar irss and concentrated takes tf stand that the capital strike shall 2