The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-04-17
CAPITAL CLIQUE
HAS CONSPIRED
TODOWN LABOR

Serious Charges Are
Laid Before Senate In
terstate c O m m cree
Committee By Repre-
sentative of the Ameri-
can Federation of La
Dor
Washington, April 17.-Existence OF
an industrial railway banking COM
bination." headed by J. p. Morgan &
Co. and in control of railroads ana
coal mines, banks and steel and other
Industries. was charged today before
the Senate Interstate Commerce COM
mittee by w. Jett Lauck. economist
for the American Federation of Labor.
Mr.. Lauck's statement. made in con-
tinuance of the committees general
railway survey, was coupled with the
ascertain that the financiers, rather
than operating officials, were respon-
;ible for the present plight OF the
railroads.
He opposed vigorously reduction OF
railroad employees wages, declaring
that railroad financiers were attempt
ing to dehate railroad as well as other
labor.
Submitting numerous statistics,
charts and diagrams of railroad labor
operating costs and financing, Mr..
Lauck declared:
"It has been shown that the con-
troll of railroads, manufacturing, min
ing, finance and credit. centers in
small group of New York bankers and
financiers of which the banking house
of J. p Morgan and Company is the
apex This same group not only con-
trolls the railroads but also the an s
thracite coal industry, the dominant
operations in the soft coal industry,
the United States Steel Corporation,
and the railway locomotive building
and equipment manufacturing icon-
Germs. 1t also controls and directs the
Association of Railway Executives
and through the members of this or
eaniZa tion gives expression to is pub
lie policies and propaganda.
There is a capital and credit COM
bine consisting of the major banks,
the railroads and the industries, con-
trolling basic materials. and this com-
bine has exercised and exercises a
mower over the economic destiny of
the United States. 1t shows now that
this inter-related capital group de-
liberately debated the farm and then
undertook to debate labor 1t is point
ed out that this local capitalist or
credit group has deliberately main
Il 1, NF Ao1
ment and other basic materials and
that railroads financed by the small
interests have refused to place orders
for plant maintenance.
The consequences of the general
policy practiced by every branch Of
the giant commission in ultimate con-
troll of capital and credit, beginning
with the construction of bank credit
itself. has, in addition to the funda-
mental causes of depression. clamped
brake so to speak upon all industry
and has intensified unemployment, de-
signed in the general policy of the
capital commission
Mr.. Lauck submitted exhibits to
show, he said. that the greater fac
tors in American industry. the rail.
way equipment producers, the railway
repair shops, the steel interests, the
coal. cement and other basic material
producers all are closely bound to-
gether by inter-capital retaliations
and interlockine directorates. coming
to focus in the banking house of J.
/ p. Morgan and Company. and that the
determination of their major policies
| centers and is controlled by number
of men scarcely larger than go to
make up the administrative and ex-
! ecutive staff of the federal govern
ment." Other points which Mr. Lauck
said he desired to emphasize were:
! The labor costs of the railroads are
/ no doubt too high as are all operat-
! ing costs but this is due to inadeQua-
cies of management and equipment
| and not to the wage rates of indi-
vidual employees. within increase
of capital investment with manage
ment divorced from banking control,
and with the resulting incidents in the
efficiency of operations. huge savings
may be effected in labor costs and in
all other operating expenses.
Present wages of unskilled rail-
road labor are below the level actual
ly essential to permit these employees
to maintain healthy. decent Ameri-
can standard of living. This condition
applies to much of the skilled labor
force.
Therefore. no reductions in wages
can be contemplated and. if Justice
prevails, many if not all railroad wage
rates will tend to increase.
THE payment OF living wage I'd
the humblest worker. with appropri.
ate dlfferentials to the skille dand ex-
perienced is a primary obligation ups|
on the railroads, and the government
certainly cannot sanction any other
policy"
lALM M.rNnnnAn. .ss1