The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-02-16
CHURCH REPORT
BLAMES JOHN D.
FOR BIG STRIKE
Shows Greed for Profits
Thru Western Maryland
By LAURENCE TODD
Federated Press)

Federated Press)
WASHINGTON (FP)-Greed for
big dividends on watered stock held
by John D. Rockefeller, Jr., and his
friends, was the primary cause Of
the locking out of locomotive engi-
neers, firemen and hostlers on the
Western Maryland Railroad, and for
the resultant strike which has lasted
two years.
That is the verdict Of the joint
committee of Investigators represent
ing the research department Of the
Federal Council Of Churches, the So
cial action department of the Natl.
Catholic Welfare Conference, and the.
social justice commission of the Cen
trail Conference of American Rabbis.
They have been investigating the
cause and consequences of this long
struggle between Rockefeler's coal
railroad and the train service brother
hood for the past six months.
Found Labor Right.
In their report, which is divided
into IL sections, each devoted to facts
ard conclusions on some phase of the
dispute, the first joint committee Of
the American churches to pass judg-
Inent on labor battle against aggre-
gated wealth has found labor in the
right. 1t finds that the wrkers did
everything within their power to
avert the conflict, and that the roads
president, Byers, and the chairman Of
| its board, Greer, arbitrarily refused
to meet the labor representatives to
adjust the points Of difference. Be-
meath it lay the demand Of the man.
agement for bigger returns on the
preferred stock.
Against Discrimination.
This dispute arose over a demand
that the company grant the same
slight increase in wages that had
been granted by all other class /
roads in the eastern traffic territory.
The management replied that higher
wages would require higher freight
rates. 1t began Diminishing the men
when strike vote-an ordinary pro-
cedure in negotiations-was taken.
The total wage increase asked was
$4,000 year, and the men would
have granted concessions in the rules
that would have saved the company
$4,000 of this.
Controlling Interest.
Rockefeller, according to the re-
port, with what are known as the
Rockefeller interests, holds about
one-fifth Of the stock, nearly all OF
it first preferred cumulative, with 4
corresponding share in the Davl
Coal & Coke Co. He holds about
three-fourths of the first preferred
stock. The alien property custodian
holds for the German Bank some
10000 shares of stock, most of il
common. These two interests togeth-
er hold over 20 percent of the stock
and 43 percent of the stock that was
voted at the 1926 stockholders meet
ing about half of the stock, and about
70 percent of the amount voted in
1925, is held by 20 individuals, finan-
cial groups or brokers
Not Poor Road.
THE financial condition of the
4 Western Maryland now puts it in
position where it cannot continue to
plead poverty as a reason for not adj
justing wages. The fact that no de
vidends have been paid does not in
dictate insufficient earnings in rsla-
ton to operating cost costs
"The conflict is not between
wage settlement and bankruptcy, but
between wage settlement and divi-
dends on stock. It is specifically
! conflict between a wage settlement
and dividends on the first preferred
!, stock which has the first claim on
the net income Of the road, and
: which, after the extraordinary bond
! issue, stands as the next financial
J barrier to normal dividend-paying
J prosperity. The situation from the
standpoint of the economist shows
financial structure
Could Pay.
"In the last year the company
: could have paid the interest charges
and over $50 on its capital stock is
/ sue if all stock were on the same
footing. AS it was, it paid interest
on the bond issue and had left for
unpaid indicated earnings II 1870
for the first preferred, 7.779s for the
second preferred, and 0.75qo for the
common stock"
Rockefeller, in other words, got
over l1ao last year, while fighting
r the brotherhoods. He and the other
first-preferred stockholders also re-
eeived SS25,000 year since June,
1922, on the coal properties given
them with their rail stock.
But the $4,000 a year to train