The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-07-16

antl-Strlke bill.
Behind the scenes, a lot Of
political cooperation is being
planned for the autumn of
1914.
Both big labor groups are boil
ing mad over the anti-strike bill
and determined to get revenge on
every Congressman who voted
for for it. Under the bill, they
cannot contribute to the cam
paign fund of a political party
but this does not prevent thel.,
from organizing their own poll
tical workers and waging their
own campaign for any candidate
Already plans are being laid
to do this very thing. First
campaign will be to register
every labor voter, especially
those who have moved to new
areas.
Second move will be to set up
headquarters for Or against pro-
labor and anti-labor Congress
men. The last election saw la
Dor generally apathetic. That
has now disappeared. The plans
are to get out and ring door
bells, distribute literatur set up
poll-watchers, carry voters to the
polls and buy radio time and
newspaper advertising for and
against congressman according to
their labor record.
Nothing can prevent any citi-
zen from buying advertising
space, or making a speech, or
candidate. And the AFL and
contributing his services to a
CLIO plan to pool their efforts
in each community in the big
gest burst of political activity
the nation has seen.
NOTE: That is what is be-
the big CLIO meeting in Phila-
delphia on Saturday.
MONEY CHANGERS
The ingratiating public relations
expert of the Pennsylvania Rail
road slid smoothly among newsmen
during the recent ICC hearing
which delivered the railroads right
to issue bonds through Kuhn,
Loeb without competitive bidding.
Perhaps this was why a Ger
tain salient fact brought out at
the hearing failed to reach the
public.
This was: the strange circum-
stances by which nine directors of
the Pennsylvania were in a posi-
ton where their own investment
companies would profit from pur-
chase of the bonds.
In other words, the railroa,
voted to issue $28,483,0 900 of bonds
through Kuhn, Loeb, despite the
fact that Halsey, Stuart of Chi
cago and Otis and Co., of Cleve-
land were ready to buy the bonds
at part, which, they declared,
would save the railroad about
$4,000.
However, the Pennsylvania di-
rectors voted to get less less money
for the bonds. If the railroad
got less money, the financial
houses who bought the bonds
would have to pay less. 1t was
a better buy for them. And nine
Pennsylvania directors - maj
ority-serve as directors or execu-
tives of investment houses or
other concerns which are inter-
ested in purchasing bargain
bonds.
Here is the lineup
L. The Penn Mutual Life In
surance Co., was scheduled to buy
$1,OOO,000 of bonds through Kuhn,
Loeb. 1t has six of it's direc-
tors on the board of the Penn
sylvania Railroad: Thomas New
hall, James E. Gowan, T. s. Gates,
L. T. Beale, M. w. Clement (who
is president of the railroad) and
r. T. McCracken.
2. The Mellon Securities Corp.
was scheduled to buy $l,700,000 of
the new bond issue. r. K. Mel
Ion, nephew of the late Secretary
of the Treasury, is a director OF
the Pennsylvania and also so per-
cent owned of the Mellon securi-
ties.
3. The Girard Trust Company
is scheduled to take $305,000 o.
the bond issue, and four of it;
officials also are directors Of the
Pennsylvania: James E. Gowan
president of Girard; M. w. Gle
ment, c. J. Ingersoll, and w. 6
Franklin.
4. The Prudential Insurance {
is scheduled to take 1896, 900 o
the new issue. It's president
Franklin D'Olier. is also direc-
Tor OF the Pennsylvania.
These interested directors &C
copied the Kuhn bid propose,
without competitive bidding and