The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-07-10
HIRING OF FEW HUNDRED
RAILROAD WORKERS STILL
LEAVES MILLION JOBLESS
Recovery Act Used to Turn Huge Sums Over
To the Railroads

this all. Under the terms Of the
Recovery Law, New types OF equip
ment which would add to the ef-
ficiency of the railroad systems, it is
understood, would be among projects
to receive special mention" Thus
under a bill ito create employment
the government obliges the rail en-
pleyerS by assisting them to me-
ehanize their roads further so that
more men can be laid off. (And, in
oidentally, since this announcement
was made Wall Street brokers have
been advising clients to buy shares
OF railway equipment companies
Secretary of Treasury Woodin's
American Car 81 Foundry Co. would
be expected to benefit The Wall
Street Journal reports that, despite
four years of economic crisis. the
outstanding railway equipment COM
panies have managed to preserve
an exceptionally strong financial po-
sition.O
Rail Bankers Pay No Income Tax
While Employers Get Tax Reduction
Hearings at Washington brought
out the fact that Otto Kahn, j. p.
Morgan and their wealthy associates
got around payment OF income
/ taxes, but railroads in which these
men and others of their class are
! interested reap the benefit of tax
reductions. Thus a recent federal
court ruling saves the Central R&J-
road of New Jersey, S2,717920 and
the Lehigh Valley Railroad and two
associates S1,126,642 in State taxes
for 1882 And the New York Cen
trail, in which Morgan interests have
considerable influence. has just
asked that the $37,775,0 900 assess
ment on its Grand Central property
be reviewed, contending that the
actual value of the property was not
more than $50, 100000.
The most recent hearings men
toned above revealed the fact that
Kuhn, Loeb g. Co., Kahn's banking
firm, made a profit of S. IA millions
from underwriting the Pennroad
Corp, a holding company which it
assisted in setting up, and that the
Cleveland capitalist, Frank T. Tap
lin, headed a group which in 1929
sold the Pittsburgh & West Virginia
Railway to the Pennroad Co. at
profit of s1112 million to Taplin and
his family. And these are but
few Of the high spots of financiering
whereby wealthy bankers and ca
pitalistS reap millions and go with
out paying income taxes while 1,000,-
900 railroad workers remain unem-
ployed, hundreds of thousands sur
fer wage-cuts and countless others
undergo speed-up or layoffs.
Reign of Terror Against Miss. Negro
RR Workers; Z Killed
A reign of terror against Negro
firemen on the Mississippi section Of
the Illinois Central Railroad by Ku
KluX Khan elements has taken a toll
of Is Negro rail workers. Seven
were murdered, shot in cold blood.
an equal number were shot and
wounded and one was flogged. Hilton
Blutler tells the story Of each case
in the Nation, July IL, 1883 of
which the following is typical;
"A lighted flare lured Wilbur AM
derson, Vicksburg Negro fireman, to
his death. His engineer stopped the
train in the southern yards Of
Vicksburg TO investigate the warning
signal. Wilburn climbed down, and
as he did so the flare went out. A
shotgun was fired at close range,
and the Negro dropped dead, his
head blasted almost entirely from
his body" Buffers story contains
one of the more horrible pictures of
intimidation Of Negroes that has yet
been uncovered. The entire cam
paign is part of the drive to expall
Negro rail workers from their jobs.