Arizona republican., 1921-04-29
FRIDAY MORNING. APRIL ss, 1921.
Commonly they use their feet for detense, achose tongue is their acedpon. Sir Philip Sidney.
Mir. Lauck's Statement


 Press dispatches of The Republican a two-column statement W. Jett Lauck, styled the "economist' of the railway labor organizations, which he let the cat out of the bag. disclosed the Ethiopian the woodpile. removed the chip covering from the bug and generally showed how the COW consumed the cabbage.
 He stated generally that the present depression Throughout the country the result of conspi- racy of financial institutions deflate labor Among fhe assertions of MT. Lauck was that the Guaranty Trust company of New York, of the alleged fpirators. owned and controlled by J. P gan O. We have just received in weekly state ment of the Guaranty Trust company a reply that particular assertion, in which it is denied gan Co or group is in control of the Guaranty Trust company.
 is declared that the largest stockholding in- ferest in the company that of employees of Institution aggregating nearly 25.ooo shares The balance of the stock is widely distributed and no individual interest has any holding remotely approaching control No stock of the company is included in voting trust. It is further denied that the Guaranty Trust company is part of any financial combine conspiracy or that it is con- trolled by any outside factor.
 Another assertion by Mir. Lauck was that the net earnings of the company 1920 133 per The figures show that the net profits of the company for that year $12,3sss s5o5o about 20 pper of ss2.s75s72.37 which includes it's capital, surplus and undivided profits.
 The Guaranty Trust company goes into no part of the Lauck statement except that which touches itself It apparent. however. that the state ment based either upon gross ignorance or was effort deceive those who the "economist'' be- neved ignorant and incapable of thinking.
 It is a matter of common knowledge that the process of deflation set in operation by the federal board controlled by the Wilson minstration under which MT. Lauck himself had I.~44 federal reserve board proposed deflation Nor the purpose of it secret-to check profiteering put stop to the wild pyramding of prices It expected that it would be disturbing business all business but somehow the orgy brought to n end. Perhaps neither the reserve board anybody foresaw the extent and acuteness of the disturbance that would follow. but could have been foreseen operation would only appeared the necessary Things could be allowed to go on they then going and there appeared orother way stop them- Even can think of no other preparation readjustment might have been made.
 One thing that the Federal Reserve board must have foreseen that the capital group would be hard hit by the result of deflaton. The thing that could escaped prognostication that there would be great slump in securities of which the larger banks everywhere owners holders of them as collateral Of such doubtful character became many of securities that the hold ing them found themselves in embarrassing situa- tons-
 Yet MT Lauck described the present situation ss result of strike capital against society"
 The fact is as everybody must realize and all thoughtful persons do realize that something had to be done to get down to bedrock. It was pleasant costly job to the silt sand and debris which three years had deposited over firm foundation and and labor had to be borne Inv all merchants, security owners and holders far ,,ers laborers and manufacturers. There other way in which the nation could begin to re- build.