The labor world. [volume] (Duluth, Minn.) 1896-current, 1922-04-22
'ST'lOC & { GAMBLING 6 !.
CHIEF CAUSE OF
RAILROAD GRIEF
Railroad Employees Tell Senate
Committee Why Roads Face
Bankruptcy Or Control.
Continued from page ~
flagmen and gatemer can earn only
S21O "a

sS1O.84.
Their Average Earnings.
"Here.' said Mr.. Lauck, lis a
total of over 100000 employees, about
one-quarter Of all railroad employees,
whose average earnings run between
$50 and $1,000 per year, and for
the largest group-section men
average only 1925 per year. More
over, the earning of these amounts
per. year depends on absolutely con-
tinuous employment without loss of
time through sickness, accident or
other cause, condition which of
course is almost utterly impossible.
Instead of seeking further to re-
duce the wages Of men now made
quately paid Mr.. Lauck said the
railroad executives :hould at least
first make some effort to economic
their OUTLAWS for fuel. supplies and
equipment, a conservative estimate
of the possible annual saving in that
direction being $4,000, 900, 900, on
the basis of 1920 prices.
High Price OF Fuel.
"There never has been and is not
now any public protest on the part
of railway management against ex-
cessive prices for steel tails, coal,
or other materials and supplies"
said Mr.. Lauck. "Although in 1920
their. fuel bill at prices then pre-
vailing was 100000, 900, and their
cost of supplies and materials was
50, 600, 000,0 900, there was no pro-
test. The indefensible prices of ma
terials, fuel and supplies were ae-
cepted, but most determined drive
was made in 1921, and has been
growing in strength ever since, to
reduce railroad wages.
This seemingly inconsistent at
titude on the part of theh railroad
eXecutives-to accept exorbitant
prices for fuel, materials and sup
plies on the one. hand, and to at
tempt, on the other, to debate rail-
road labor without regard to human
standards or adequateness of COM
pensation-would be inexplicable
were it not for the results of Off
cial and private Investigations as to
the control of credit in this country,
and the relations between large pro-
ducerS of fuel, iron and steel and
other basic railroad materials, and
certain groups of private banking
houses and financial institutions. 1t
has been shown that the control OF
railroads, manufacturing and mining
finances and credit centers in a
small inner group of New York
bankers and financiers of which the
banking house of J, p. Morgan e.
CO. is the apex. This same group
not only controls the railroads. but
also the anthracite coal industry,
the dominant operations in the soft
coal industry. the United States Steel
corporation, and railway LOGON olive
| building and equipment manufac-
turing concerns. It also controls and
directs the Association of Railway
Executives and through the me I'M
bers Of this organizati ton gives ex-
preston to it's public policies and
propaganda
Big Rail Combine.
Mr.. Lauck presented an exhibit
evidence of an interindustrial-r rail-
way-and- banking ombination in
control of national. railroad policy
and "indubitable evidence Of the in
tention and design Of this combina-
ton with respect to the intensified
ton of general unemployment"
1T shows" said Mr.. Lauck, that
there is a capital and credit combine
consisting of the major banks, the
railroads and the industries controll-
ing basic materials. and that this
| ho
over the economic destiny of the
United States. It shows that this in
ter-related capital group deliberate
ly Debated the farmers and then I'M
dertook to deflate labor. It shows
that within one and the same cap
italist group lies the power to ad-
just or ,misadjust relative prices in
a manner that will stimulate or
suppress industrial activity. 1t is
pointed out that this local capitalist
Or credit group has deliberately
maintained high prices of steel, coal,
cement and other basic materials,
the same interests, have refused to
place orders for plant maintenance,
or even the orders necessary to pre-
vent plant and equipment deterior-
alton. The consequences Of the gen.
eral policy practised by every branch
Of the giant combination in ulti-
mate control of capital and credit,
beginning with the construction of
bank credit itself. has, in addition
to the fundamental causes of de-
preston clamped a brake, SO to
speak, upon all industry and has
intensified unemployment, designed
in the general policy of the capital
combination.
How They Interlock.
"The exhibit shows that the great
er factors in American industry, the
railway equipment producers, the
railway repair works, the steel in
terests, the coal. cement and. other
basic material producers, are all
closely bound together by inter-cap.
ital relations and interlocking direc.
torates, coming to a focus in the
banking house of Morgan & Co..
and that the determination of their
major policies centers in and is con-
trolled by a number of men scarcely
Il larger than go to make up the ad-
ministrative and executive staff Of
the Federal govern +. This gen
eral statement is supported by docu-
mentary evidence, Indicating speci-
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