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The labor journal. (Everett, Wash.) 1909-1976, May 27, 1921, Image 1

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OFFICIAL PAPER
EVERETT CENTRAL
LABOR COUNCIL
VOL. XXX.
HE OFFICIAL BULLETIN OF THE
WN. STATE FEDERATION OF LABOR
MINERS' CONVENTION AGREES TO COMMISSION
The state convention of the miners' union, which was in session at
Seattle, Friday, Saturday and Sunday of last week, unanimously accepted
the proposition of State Director of Labor and Industry Clifford for the
creation of a Commission to investigate the present strike controversy,
frhe Commission will he similar to that formerly created by the National
[Bituminous Coal Commission and will be composed of two coal operators,
two representatives of the miners and a mining engineer.
I The Commission will make a thoro investigation of mining conditions
in the state and the cost of both production and distribution and submit
its findings, with such recommendations as it cares to make, to both
(sides, subject to their ratification. A joint conference of miners and
operators will be called to hear the report of the Commission when it
conclude* its work. It is distinctly understood that the award of the
r mnmission will not be binding on either side and must be mutally accepted
by both sides.
The miners convention unanimously chose Robert H. Harhn, former
president of the district, and Earnest Newsham, present secretary, as theft
representatives on the commission. The coal operators have selected
N. D. Moore, of the Pacific Coast Coal Co., and Daniel J. Buckingham,
of the Roslyn Fuel Co., as their representatives. All four men served on
the former commission that effected a settlement of a similar controversy
ever a year ago. James H. Alport, a nationally known mining engineer,
of Pennsylvania, who also served on the former commission as the fifth
member, has again agreed to serve in the same capacity. The commis
sion will start its functions only on the arrival of Mr. Alport from the
east. It is expected that a month or six weeks time will be occupied
by the commission before any recommendations are made.
The miners convention formulated a definite policy for the equitable
distribution of relief, and disposed of all other business that came
before it by unanimous vote, including the adoption of the recommenda
tion for the commission.
The commission will not conduct any investigation at mines where
no controversy now exists, but will confine its activities to the mines
now closed down.
A new local of Asbestos Workers has been organized at Spokane,
by J N Northway, and has affiliated with the State Federation. The
Seattle Auto Mechanics local also affiliated with the Federation during
the past week.
Arrangements are being made for the Twentieth Annual Convention
of the State Federation of Labor, which will be held at Vancouver, Wash
ington commencing July 11th. Within a few days a circular letter will
be addressed to all affiliated unions in the state giving detailed informa
tion regarding hotel rates, et cetera, so that hotel accommodations can
be arranged for in advance.
Health Must Be Taught
Washington, May 21. — Health
must be taught to children, that
they may avoid the prejudices and
superstitions of adults, says Dr. L.
Kmmett Holt, in a pamphlet issued
by the United States bureau of edu
cation.
"A knowledge of the laws of
health is not instinctive," it is stat
ed. "Health is a vital subject which
must be taught. About the laws of
life and health we know only what
we have learned either from our
own experience or from that of
others. Some of this health knowl
edge represents family practices or
racial customs. Much of it is based
on prejudice or even superstition,
or upon ideals long proven by mod
ern science to be entirely erroneous.
"The economic value of health to
an individual or a nation we have
been slow to grasp. Not only is
there a premature and an unneces
sary sacrifice of life, but there is a
very short period of full physical
efficiency in the life of the average
individual. This has been estimat
ed by an authority on life insurance
to be only 10 years."
Canned Interviews
Used By Employers
Indianapolis, May 21.—As part of !
a campaign against the 44-hour |
* week now being enforced by the |
printing trades unions, employers
have organized the National Forty
eight-Hour League, and are issuing
"canned interviews" to their mem
bers with instructions to insert the
name of some prominent business
man and hand to newspapers.
This publicity method has been
worn thread bare by press agents
for prize fighters, razor blades, barb
wiic fencing and patent medicines.
The Typographical Journal prints
ihe first "canned interview," which
is the usual argument against bet
tering conditions that is so well
known to organized workers.
Accompanying the "canned inter
view" are these instructions to all
leaf ue affiliates:
"We are sending herewith copy
of a strong interview for your local
newspapers.
"In order to give it a local news
\alue, you will please arrange to
have a prominent man in your
membership agree to give this in
terview to the press.
"Have the manuscript re-copied,
inserting his name and the name of
his firm. Then call in the report
era, hand each one an original copy
(not a carbon copy) of the talk, and
good publicity will result.
"It would be advantageous to
have this interview appear on a
day when you are not running a
paid display advertisement.
' Attend to this at once. Other
interviews, which are to be handled
in the same way, will come along
later. But lose no time in arrang
ing for the publication of this mat
ter.
"Every line of publicity obtained
now is most valuable in that it will
influence public opinion now —when
such effect will have the most
good."
Cut Freight Rates
On Certain Things
CHICAGO, May 24.—Reduction
of freight rutes on certain com
modities approximating 20 per ecnt
has been decided on by all trans
continental railroads west of Chi
cago, it was announced today by
C. W. White, freight traffic mana
ger of the Southern Pacific rail
way.
The public would like to know
what these commodities are and
why the railroads made the cut.
A. H. Montgomery of Seattle has
purchased the "Jack O'Lantern"
Cafe from receiver James M. Ver
non and will open to the public in
ten days.
Smoke OLYMPIC CLUB 10c cigar.
RRIEF NOTES
Commissioners Are
Doing Right Thing
The County Commissioners re
jected all bids for building two
bridges as being too high and will
do the job themselves.
The county will construct two
bridges by day labor, it was an
nounced Tuesday. One of them
will be on the Dubuque-Lake Roesi
ger road, and the other on the Mon
roe-Sultan road. Bids for the con
struction of these structures were
rejected by the commissioners on
Monday as being too high.
The commissioners awarded Sam
uel K. Sorenson of Mukilteo con
tract for the replacing of bridge
No. 117-B, on the Everett-Mukilteo
road with a fill. His bid was
$2,700. Six bids for the construc
tion of a bridge and seven for the
placing of a fill were entertained
by the commission.
"Speed-Up" System
Rejected By House
Washington, May 21.—The house
refused to legalize the Taylor
"speed-up" systems while discussing
the army appropriation bill. The
defenders of the system were Con
gressmen Underhill (Mass.) and
Blanton (Texas). The former sells
hardware and recently received a
little cheap notoriety by an attack
ion President Gompers and the trade
union movement. He exhibited the
same intelligence in discussing thfj
"speed-up" system when he ac
knowledged he knew nothing about
It. Congressman Blanton made his
stereotyped speech, when matters
concerning labor are being consid
ered.
Congressman Nolan, member of
the Iron Holders' union, challenged
any colleague to read the commit
tee hearings on this proposition and
then defend it on the floor of the
house.
"You can not apply this sort of
a system to human beings," said the
trade unionist. "You can not time
them as you time a horse or a dog
on a coursing park or the athlete
on the cinder paUi, who trains for
a particular race or game. You
have got to give some consideration
io the human element involved in
industry."
Congressman Hull called atten
tion to a letter written by the pres
ent president of the American En
gineering society, who originated
the Taylor system, and who has
since repudiated it.
Opponents 'of the system said
there was not a manufacturer in the
country who was using it, and that
it has been completely discredited
except by those who want a job
holding a stop wntch.
"Are you going to measure effi
ciency by a stop-watch system?"
asked Congressman Tague (Mass.)
"There is not a man who has ever
I hai! men in his employ in great
number who has ever applied the
stop watch system without finding
out that it not only broke down the
efficiency of his men, but it also
broke down the morale of his men.
"The gentleman from Texas (Mr.
Blanton) says it ought to go into
effect He does not tell you why.
He can not tell you why."
Denver officialdom and corpor
ationdom has given the cold should
er to the entertainment of the Am
erican Federation of Labor Conven
tion which will meet in that city
on the 13th of June. This is good.
No labor convention can afford to
receive the hospitality of the class
of men who aided in the brutal
treatment of the street car strikers
in that city recently. The conven
tion will be held and the delegates
will be recipients of whatever hos
pitality the good citirens may ex
tend.
The guy at the listening post i*
preparing a report on an earful of
stuff he heard, it is said. If h«
knows anything he saw or heard
about the sheriff's office, will he
or won't he spit it out for public
good? The guy surely has a
mouthful of it.
3Tlt£ SJabor Journal
COURT HEARS
MOONEY AGAIN
Is Allowed to Address Court
In Own Rehalf.
SAN FRANCISCO, May 24.—
Arguments in the legal proceed
ings for a writ of audita querela,
through which freedom and a new
trial are sought for Thomas
Mooney, under life sentence at San
Quentin for the preparedness day
bombing in 191G here were con
cluded today before Superior Judge
Harold Louderback without the
presence of Mooney.
The former labor leader was re
turned to San Quentin last night,
but not before he had made a dra
matic personal appeal in his own
behalf.
Rising to his feet just after a
brief recess late yesterday, and be
fore atorneys for either side of the
proceedings were aware what was
happening, Mooney requested per
mission from the court to make a
statement.
Judge Louderback grarTted him
permission and Mooney forcefully
plead that Earl Hatcher be per
mitted to take the stand in order
to prove "not that perjury had been
committed, but that a criminal con
spiracy existed to send me to
prison."
Hacher was not permitted to
testify in the writ proceedings, but
last night he went before the grand
jury and told his story. As a re
sult, it was reported today that
Frank C. Oxman, Oregon cattle
man, may be re-indicted for per
jury. Hatcher is declared to have
testified that Oxman, one of the
star witnesses against Mooney, was
not in San Francisco at the time of
the bomb explosion, arriving there
three hours after it had occurred.
He is understood to have declared
that Oxman was in Woodland, Cal.,
and at Hatcher's home up until 2
p. m. of the day of the explosion.
It is understood that District At
torney Matthew Brady had uncov
ered corroborative evidence of
Hatcher's statement.
No decision in the proceeding
for a writ in audita querela will be
handed down for several days,
Judge Louderback indicated today.
Printing Trades
44-Hour Bulletin
NUMBER FOUR
Indianapolis, May 1(1. —We con
tinue to receive encouraging reports
on introduction of forty-four-hour
week.
Representative Stoney wires: "Set
tled strike in Victoria today. Men
return to work; forty-four week
with forty-seven hours' pay."
Dcs Moines, lowa, signed up in
full.
Representative Ryan reports Re
gina, Sask., signed up in complete
victory.
Various unions report signing of
individual offices.
The open-shopners who expected
to defeat the I. T. U. and establish
fifty-hour week in printing indus
try are meeting defeat.
Watch for further bulletins from
this office.
By order Executive Council Inter
national Typographical Union.
J. W. HAYS,
Secretary-Treasurer.
NUMBER FIVE
May 19, 1921.—G00d reports still
coming in from all directions.
Following cities signed up in full
since last Bulletin was issued:
Lafayette. Ind.
Warren, Pa.
New Britain, Conn.
Woodland, Cal.
Newport, R. I.
Bakersfield, Cal.
Port Huron, Mich.
Ponca City, Okla.
White Plains, N. Y.
Petersboro, Ont.
Marion, 111.
Sydney, N. S.
Moncton, N. B.
Marion, Ind. (except one shop;
one man).
Nashviile signed up office of nine
men.
Florence, Ala., practically all
signed up.
Coshocton, Ohio, signed two good
offices.
In letter from Secretary Williams
of Stillwater (Minn.) Union No.
432, the following appears:
"We have adopted the forty-four
hour week in our shop, the Wash
ington County Post. It makes life
a little bit sweeter. Thanks to the
good work of the I. T. U."
Following is the condition of the
strike today:
Number of unions where strikes
are in effect 214
Married men (typographical)
on strike roll 4,022
Single men typographical) on
strike roll 1,933
Apprentices on strike roll 653
Total drawing benefits 7,422
Many employers are evidently
making special efforts to continue
struggle to June 1 in order to de
tertaine value of strike insurance.
By order Executive Council Inter
national Typographical Union.
J. W. HAYS,
Secretary-Treasurer.
Private Soldiers
and Sailors Dance
and Entertainment
An entertainment and dance will
lie given in Normana Hall, tomor
row Saturday evening, May 28.
There will be short speecehes.
literary and musical numbers, danc
ing and refreshments, the latter
served by the Women's Comfort
Club.
An all 'round good time is ex
pected at this entertainment and all
who attend will surely enjoy it.
An admission of 55c will be
charged and the ladies will be
asked to bring a nickel for war
tax.
EVERETT, WASHINGTON, FRIDAY, MAY 27, 1921
TAKE PROFITS
OUT OF WAR AND
WARS WILL END
Washington, May 21.—Take the
profit out of war and conscript
wealth as well as men and this will
be a more effective peace move
ment than all the Hague arbitra
tion courts combined, said Congress
man Knight of Ohio, in discussing
the army appropriation bill.
In urging his amendment to the
hill that would authorize the gov
ernment to manufacture its war ar
mament, the law maker made this
reply to a colleague who favored
peace, but not the amendment:
"When this country goes to real
universal conscription and conscripts
labor along with the youth of this
country, and conscripts wealth along
with the fighting forces of the'
country, nnd when you shall call to
the colors first those between 30 j
and 50, and when you shall make
it impossible that 18,01)0 millionaires I
shall arise out of the hell of war,
as have arisen out of this conflict, I
then I say to you, sir, that the day
y_ou mention will have arrived.
"It is to strike at the profit of
war, not at the means of defense,
that I offer this amendment; and I
say to you gentlemen that until
this country begins its fight against
war all along the line, all the
dreams of Hague conventions and j
international assemblages will be
but vain whisperings of the air, and :
we will continue ot hear voices and j
to speak language which munition
makers can understand.
"But the day you show to men
that they cannot profited- and coin
money out of the blood of this
country, and grow rich and fat and
prosperous in the hours of its ad
versity, I say until that day ar
rives you will have the conditions
that you have today. It is to strike
at these conditions, rather than in
any hope that this amendment will
be adopted, that I offer it."
Congressman Knight's prediction
that his amendment would be de
feated was verified by a vote of 57
to 72.
FOR WORKMEN'S
COMPENSATION
DIST. COLUMBIA
Hearings now in progress on the
Fitzgerald-Jones Workmen's Com
pensation bill have developed an
acute line-up of insurance com
panies and attorneys against the
measure, with civic and labor or
ganizations as the advocates. This
particular bill is being contested
especially because, since it applies to
the 100,000 working men and wo
men in private employ in the Dis
trict of Columbia, and is therefore
a subject of Congressional instead
of state action, it is regarded both
by proponents and opponents as
nation-wide in influence and signi
ficance. The bill is modeled on the
Ohio State law for workmen's com
pensation which requires employers
to pay their insurance premiums into
a state fund. Compensation is pro
vided at the rate of 2-3 of the week
ly wages, with a maximum of $25
a week, and a waiting period of
three days.
The hearings are being conducted
by a subcommittee of the Commit
tee on the District of Columbia,
with Representative R. G. Fitzgerald
of Ohio, sponsor of the bill, chair
man of the subcommittee, Represen
tative Charles L. Underhill of Mass
achusetts, and Representative Charles
F. 0. O'Brien of New Jersey mem
bers. In advocacy of the bill the
committee has heard representatives
,of the American Association for La
bor Legislation, various organized
trades, the National Catholic Wel
fare Council, the National Women's
Trade Union League, and T. J.
Duffy, chairman of the Ohio State
Compensation Commission. Among
the opponents of the measure are
F. Robertson Jones in charge of
the "Workmen's compensation pub
licity bureau" of the casualty in-1
surance companies of the United
States, Elliot H. Goodwin, vice-pres
ident of the United States Cham
ber of Commerce, insurance men
and attorneys connected with the
fraternal insurance societies, the
Washington Board of Trade, Cham- j
her of Commerce and the Merchants '
and Manufacturers Association.
The opposition contends that the
state fund insurance feature of the
bill is "socialistic, communistic and
bolshevistic" and is objected to be
cause it would prevent the insur
ance companies from writing the
kind of insurance which this law
creates. Advocates of the bill con
tend that the exclusive state fund
plan is necessnry for the protection
of the injured worker against the
superior resources of the insurance
companies who would otherwise
have a financial interest in disput
ing his claim.
Of the 100,000 wage workers in
the District of Columbia who would
be affected by the bill, about a
fifth are women. The District of
Columbia has thus far had no form
of workmen's compensation and not
even an accident reporting law.
Jumped Their Board
| Four men, Joe James and J. B.
White, under life sentence in the
I penitentiary, and Joe Dunn and R.
J. Ward, charged with attempted
robbery and burglary respectively,
escaped from the county jail iast
Sunday night nnd made their get
-1 away. Extra precautions have been
taken to prevent further escapes.
That's closing the cage after the
; birds have flown.

Charley Goldthorpe and George
Downey are making the Thrifteria's
new front look fresh and green.
Til CENTRAL
LABOR COUNCIL
Wednesday, May 25, 1921.
Council called to order by Presi
dent Michel at 8 p. m.
Committee Reports
The Private Soldiers and Sailors
Legion Committee had nothing to
report. Bro. Paid Ingold, secretary
of the Legion, made an announce-
ment of the entertainment to be
given at Normana Hall, Saturday
night, May 28. He said he hoped
many members of organized labor
would be present. The Women's
Comfort Club will serve ice cream
and other refreshments.
The committee appointed to in
terview the Star Amusement Com
pany reported progress and was
given further time.
Reports of I n ions
The Butchers had a good meet-
I ing. They sent a committee to Se
iat tie to visit with Local No. 85, of
i which the Everett local is a branch.
| The Cooks and Waiters elected
j two delegates to the State Federa-
tion Convention and two to the
Culinary Alliance. Manning's Cof
fee House, they wished it under
stood, was still on the unfair list.
The Lathers had a good meeting.
The Stage Employees voted for
State Federation officers and
against holding a district confer
ence this year. They now meet
only once a month, the first Satur-
day.
The Printers reported good news
from the 44-hour strike. They have
ample funds to take care of all
members on strike.
The Sheet Metal Workers report*
ed a warm meeting.
Bro. Paul Ingold stated that the
, Private Soldiers and Sailors' Legion
; had passed a motion inviting all
| members of organised labor to
visit the Legion meetings.
• Freedom Impossible
In Anti-Union Shop
New York, May 21.—1n a pamph
let on "The Open Shop, the Ameri
can Plan of Employment," the
Methodist Federation for Social
Service says:
"You think it means freedom for
the non-union man.
"Does it? In many places it
means that he must sign a contract
never to join a union; it means
that he is continually watched by
spies to see that he never becomes
a union man; in the Alabama coal
mines it means that he must live
behind a stockade and get a pass
every time a member of his family
goes out. In West Virginia it means
that he must be 'protected' from
talking to union organizers by gun
men and machine guns; it means
that he must sign a lease, giving
the company the right to come into
his house at any time and throw
out any guest, lest union men
should come in.
"Is this the kind of freedom the
American flag stands for?
"You think we are talking about
the open shop at its worst! Well,
take it at its best.
"It means the absolute right of
the employer to hire and fire. No
discrimination! He is to run his
busyjess without dictation. This is
'individual bargaining." In pioneer
days it worked, but the employers
are now almost entirely organized
to bargain collectively.
"We can't go back to the old
days. Some one is trying to fool
you! Today hiring men as individ
uals in the big industries means
hiring them on the terms the big
corporations offer."
FARMER-LABOR
PICNIC JUNE 12
There will be a big picnic at
Davis Grounds, Lake Stevens, under
the auspices of the Farmer-Labor
Party, on • Sunday, June 12, to
which everybody and his wife are
invited. %
This will be a get-together, get
acquainted affair, and every effort
will be made to make it enjoyable
for everybody.
There will be a few good speech
es, all kinds of sports, swimming
and dancing.
Bring your lune% or buy on the
grounds; there will be plenty to eat
and drink.
Keep the date in mind and be
there.
DISC RUMINATING
AGAINST YANKS
In its petition for an injunction
against picketing by the Associa
two of Masters and Mates, Marine
Cooks and Stewards, Mates and
Pilot! of the Pacific, Marine Engi
neers and Sailors' Union of the j
Pacific, brought before the United
Statea District Court in Seattle on I
the 17th, the government alleges 1
that the sailors, through their "list (
system," , give preference to aliens
and naturalized Americans over'
native born seeking era
-1 loyment. It is hard to believe this.
Btlt if it be true, something should
be done to change this rule or hab
it. There has often been complaint
that where aliens are in the ma
jority, it is hard for an American
to get a job when jobs are scarce.
If this is found to be true and gen-.
oral, it is good cause for putting
up the bars against immigration, j
Sign referendum petitions Nos. 14
and 15. If you don't you will waste
wind and energy in kicking because
the vicious primary law amendments
h:ive robbed you of your political
rights.
Leave the railroads in the hands
of "private" owners another six
monthl and the watered stock
won't look at good at 30 cents.
Smoke BLUE RIBBON 5f Cigar.
RAIL EXECUTIVES ASK ENSLAVING
OF PUBLIC THAT ROADS MAY LIVE
Kruttschnitt Says Roads Are Threatened With
Bankruptcy, But Some of Them May He
Able to "Hang On"
END OF RAILROAD GRAFT IS NEAR
"We are in the throes of death," Mr. .Julius Krutt
schnitt. spokesmen for the Association of Railway Execu
tives told the Senate Committee on Interstate Commerce.
"A few of the roads may pull through, but I fear that
many will be unable to solve their problems. That means
insolvency and receiverships—and a very grave situation
for the business of the nation."
"Unless you can bridge the jjap between your ex
penses and your incomes." Senator Cummins, joint author
of the iniquitous transportation act, sadly replied, "you
cannot continue for another year. That is plain, isn't
it?"
"Perfectly plain." admitted Julius Kruttschnitt.
chairman of the hoard of the Southern Pacific.
(By Charles M. Kelley)
Declaring positvely that the rail
roads of the country are in the
"throes of death," and that only a
few will be able to "hang on," the
Association of Railway Executives,
through its spokesman, Julius
Kruttschnitt, chairman of the
Southern Pacific board, presented
new and amazing demands to the
Senate Committee on Interstate
Commerce, which is overhauling the
entire railroad situation.
These demands, called the "rail
road's five points," are:
1. Lay tolls on the Panama
Canal that will discourage traf
fic and practically limit a
government investment of
$450,000,000 to war purposes.
2. Lay tolls on automobiles
and trucks operated for prof
it that will drive them off the
highways built by the public
at a cost of many hundred mil
lions of dollars.
3. Discourage water trans
portation by laying prohibitive
tolls on its commerce.
4. Restore the old short
and-long-haul practice, with its
destructive discrimination.
5. Reduce wages of railroad
workers.
Faling to comply with these
stipulations. Congress will he ex
pected to provide these alternative
remedies:
Subsidy Is Alternative
1. Appropriate out of the public
Treasury subsidies that will yield
the railroads .the p*r cent guar
anty of the Cummins-Esch Act.
2. The retention of existing
freight and passenger rates and such
increases as may be necessary to
provide adequate operating costs.
3. Freedom from regulations that
interfere with the "initiative" of
railroad managers.
It is putting it mildly to state
that members of the Senate Com
mittee, including Senator Cummins,
joint author of the transportation
act, where stunned by the audacity
of the railroads* suggested solution
of their problems. It was anticipat
ed that the managers would appeal
for continued government support,
and some members of the commit
tee were prepared to support legis
lation appropriating funds for this
purpose, but the) were not read)
for anything so drastic and revolu
tionary as is implied in the sug
gestions that the public be driven
from the highways and that the
Panama Canal and other waterways
be reduced to junk.
After several days of close exam
ination of Kruttschnitt, in which he
answered clearly the questions he
wanted to answer. Senator Cum
mins admitted that he was worried.
Private Control Challenged
The situation as it was outlined
by the authorized representatives j
of the railroads, he said, challenged
the permanency of private owner
ship. He was frank enough to
say that unless some way is found
to increase revenues and reduce ex
penses the railroad deficit "will nave
to be met from the national treas
ury."
The testimony presented by the
railroads convinced him and
other memlM'rs of the commit
tee that the railroads will not
be able to survive under ex
isting conditions even if wages
of employes are cut below a
starvation level.
Kruttschnitt declared sorrowfully
that after expenses are reduced the
roads will still be short. "The out
look is anything but encouraging
extremely bail," he testified. "Some
of the roads may be able to hang
on. I am afraid, however, that
many will lose their grip and go
into bankruptcy."
Nearly everything that can be done
in the way of economies has already
been done, he said. The big sav
ings have been effected, and only
a few odds and ends remain to be
tackled. "The molasses is all out
of the jug, and we admittedly are
in a bad way," he confessed, and he
couldn't "for the life of him" see
how freight and passenger rates
could be reduced, unless—and he
emphasized this point—"the govern
ment is prepared to make up what
the roads will need to operate and
pay an adequate return to capital."
Railroad Head "Outraged"
| Kruttschnitt regarded it as "out
rageous" that the government should
be in competition with the rali
roads. The Panama Canal last year
took $50,000,000 in freight rates
that would have gone to the rail
retdl had traffic through it been
! checked. Millions of dollars have
| been expended in highway improve
' ments, thus encouraging transpor
tation by motor trucks. and he
thought this should be stopped.
"It provokes me when a ten-ton
I truck forces my automobile into
the ditch, because it has freight that
PUBLISHED IN
THE INTEREST OF
ORGANIZED LABOR
should be carried by the railroads,"
he said.
Water transportation is dead
ly competition and the govern
ment should protect the rail
roads from it. He wouldn't say
that the improvement of water
courses should he abandoned as
a national policy, but he con
tended that tolls should be lev
ied ag-iinst boats that would
make it impossible for them to
compete foi traffic.
Business .Men An Assailed
Business men came in for some
severe denunciation by Kruttschnitt
lie charged them with having
launched a propaganda to force
down freight rates, that "their prof
its might be increased." They tire
the real profiteers, he declared, the
retailer being particularly named
as chief offender. While wholesale
j prices have declined substantially,
j there has been but little change in
j retail prices. This is just the re-
verse of claims made before the
Labor Board in urging wage cuts.
It was brought out by Senator
Cummins that during 1920 the rail
roads had secured in revenues more
than a billion dollars in excess of the
1919 revenues, and he warned
Kruttschnitt to tell the committee
what had been done with this money.
The latter made a great deal of
conversation, hut did not supply
the information. Charts prepared
by the Association of Railway Ex
ecutives had. carefully avoided any
reference to what Senator Cummins
said was "the largest revenue in
all the history of the United States."
It was developed that the rail
roads have filed or will file claims
for undermaintenance during the
period of Federal control that will
if they are sustained bring total
payments up to $2,500,000,000. Sen
ator Cummins gave his own esti
[ mate of the final cost as $1,800,000,
--| 000, and followed it with the state
ment that the situation was so se
rious that private ownership seem
ed to be in peril.
Private Control Short Lived
j liability of Kruttschnitt to give
enlightenment on various questions
I that held the interest of the com
j mittee seemed to exasperate Sena
tor Cummins, who declared time
and again the witness was not giv
ing information sought for the pur
nose of enabling Congress to de
termine whether it is possible t.i
save private ownership of transpor
tation.
Unless the railroads are in a po
sition to materially reduce costs of
operation in ways other than at
tacking wages of workers, or to
increase income, which does not
seem to be possible, they will, Sen
ator Cummins declared, be unable
to continue as they are now going.
"If you can't do any better this
year than you did last." he said,
"you can't last very long. That is
very plain, isn't, it?"
"Quite plain," responds Krutt
schnitt.
There was evidence of dejection
in the attitude of railroad repre
sentatives, who ate attending the
hearing in large numbers, when
this admission was made.
Cant Tell Where Money Goes
The committee, Senator Cummins
leading, made several efforts to se
cure information as to the disposi
tion of the 11369,000,000 increased
operating revenue enjoyed by the
railroads during 1920. Kruttschnitt
and his advisers had many charts
and graphs purporting to give full
and complete data on every phase
of railroad management, but they
were significantly silent on material
matters that were regarded as Im
portant by the investigators.
Kruttschnitt promised to get
statistics bearing on the expenditure
of the increased income and return
ed with a statement that labor and
material had consumed 1872,400,000
and increased service 1469,600,000,
Senator Pomerene unsuccessfully
tried to induce Kruttschnitt to say
what proportion had gone to labor
and how much to materials, and
Senator Cummins got no better re
sults when he requested the wit
ness to explain what was meant by
"increased service" to the public.
Some trains had been added, he
said, but later admitted that fewer
were operated than during previous
yea. s.
The thought uppermost in the
minds of the investigating Sena
tors, as frequently disclosed by
their queries, is how the railroads
are going to make ends meet and
preserve the fiction of private op
eration of transportation.
The U. S. Senate and House Com
mittees on Civil Service have be-
gun hearings on the reclassifica
tion of the civil service in all de
partments of the government ex
cept the post office department,
which was reclassified last year.
Smoke CHALLENGE lltr Cigar.
Number i.

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