Arizona republican., 1921-05-07
'LAbOR'S CHARGE OF INEFFICIENT
 MANAGEk|ENT OF
 NATION $ ROADS
 BRANDED FALSE
Rail Representatives in Argument Before Labor Board Declares Lauck's
 Charges Are Visionary
TReoubIican A. p. Leased Wirel

tRepublican A. P. Leased WTS1
 CHICAGO. May 6.-Labors charg- es of financial mismanagement by railroads were deciared irrelevant, visionary and fallaciotIs today when representatives of eastern roads be- gan their closing argument before the railroad labor board in the wage re- dncfion hearing of nearly luO roads The exhibits compiled by w. J. Iauck. in behalf of the railway un- ions. came under fire from E. H. Sen neff. counsel for the Pennsylvania; John G. WaIber, speaking for all eastern roads. C. l.. Bardo, in behalf of the New England roads, and Jac- ob Aronson. counsel for the New York Central. The railroads took up their rebuttal this afternoon follow ing the closing arguments for the exrployes made by Heads of the big four brotherhoods, this morning.
 Charges of past financial misman- axeuent was water over the dam, MT. Senneff said, adding that the in rerState commerce commission now controlled all financial transactions Mir. ,Walber said that from reading NIT. I.auck's exhibits, one might get the impression that American roads are antiquated and inefficiently man. aged He denied such presumptions, he said. and pointed with pride to American transportation. "acknoWl- edged superior to any railroad serv- ice in the world"
 Dismissing the employees charges, NIT. Senneff made no answer to their contentious that the financial com bsne- had deflated labor. He declar- ed that the employees had failed to show any injury had resulted from the transactions between the rail- roads and corporations which had in terlocked directorates.
 Such transactions are now gov erned by the Clayton act" he said so all these charges are water over the dam
 Many of these carriers have been charged with improper financial transactions. though long prior to the passage of the transportation act such transactions have been in most eases most carefully scrutinized by the public service commissions oi several cities. Even if there hat been improper financial transactions as claimed. a repitition of such finan- cial transactions would now be i'm possible because the interstate com nerce commission now regulates the past the bad results have beer such matters
 At all events railroad capitaliza Il0n mas no tllcNl NlletttNCl Oit dti road wages or rates. If any trans actions have proved unjustifiable il the past, the bad results have beel borne hy the investors and not by tn employes or public Wages and rate have been determined and will here after be determined irrespective o any railroads capitalization.
 Mir. Senneff declared that the righ of the. railroads to apply surplu earnings to property improvement and subsequently capitalize them wa a method universally approved an had been largely responsible for tn efficient transportation system thi country now enjoys. He added tha the valuations of the Interstate com aerce commission even now prov that the value of the railroads as sets far exceeds capitalization
 These replies were made in answe to employees charges that earning turned back into the property shoul have gone to the employees in increas ed wages or to the public in lowe rates.
 Speaking in behalf of the easter roads John C. Walber, secretary C he roads bureau of information, de clared that the voluminous exhibit offered by the employees were len tirely irrelevant to the wage issue and that the economies suggested b W. Jett Lauck. economist for the un ions. were "fallacious, theoretical an visionary"
 The alleged possible economic amounting to s2.026. .355. 900 throug 'he use of mechanical appliances an revamping of equipment were d' dared not to he original suggestion
 From reading these exhibits or might get the impression that u American railroads are antiquate and inefficiently managed MT. Wa ber said. "We deny these presuml lions and point with pride to the re' ords of performance, cost of opera ton and service rendered the publ which are acknowledged as being sl perior to any railroad service in u