The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-11-04
LABOR FEDERATION
DOMINATED BY RING
President Gompers Named
in Affidavit Printed in
New York Paper.
AID" COMMISSIONS CRITICISED
Matter to Come Before Convention at
Norfolk Next Week-Gompers
is Accused of Taking Graft.

New York Nov 4-Wholesale graft |
ing in the American Federation OF La
Dor is directly charged by local pa
per, and President Samuel Gompers is
named IS one of an alleged ring which
dominates the body
The accusations are made by "Ameri-
can Industries" a paper devoted to
the interests of capital and labor" The
paper intimates that about $3.50. 900 has
been misappropriated and that the
ring" is profting by the system OF
graft. 1t asserts that the whole affair
viii be placed before the annual con-
vention of the federation at Norfolk
Va
It charges that the cash accounts
of the organization are juggled and
calls attention to vast advertising
commissions to agents, averaging sc
cents.
The paper prints a series of afhdavits
and also reports of expert accountants
to substantiate its charges.
Says GOmpers Took Graft.
Henry Rice, a printer, of 212 East
! Twentieth street, has made affidavit
that in 1889, at a convention of the
American Federation of Labor in Bos-
ton, he was awarded by Samuel Comp
ers, the president, a contract for the
production of a souvenir publication
and paid Gompers $50. Rice realized
about $4,000.
lie further declares that in 1890 he
paid $500 to Gompers for a similar
privilege, and in 1891 $1,000, and that
this payment was witnessed by P. J,
Reynolds of New York city, and that
there is no record of any accounting
of said payment among the records of
the American Federation of Labor, and
no resolution was passed at the said
convention (held in Birmingham, AIa.)
authorizing the said Samuel Gompers
to award said contract"
Says Committee "WhItewashed."
Rice recites in his affidavit subse-
quent payments to Gompers at the con-
vention in 1892, at Philadelphia. and
at the convention in 1898 in Chicago,
when Gompers was asked by the CON
vention to account for $1,000 he had
received.
"A committee Of investigation was
appointed" swears Rice, "and the said
committee was composed of men favor
able to Samuel Gompers. and in order
to avoid public scandal whitewashed
the accusation"
Accountants Make Report.
Cornelius S. Loder and associates,
public accountants of this city, have
been employed by American Industries
to examine and analyze the monthly
reports of the American Federation,
the organ of the federation, and have
made some remarkable discoveries.
From December. 1899, to August.
1907, the receipts from advertising are
given as s149,O75.48 and for subscrip-
lions $12,052.55, making a total of $161.-
l12S.O3. The largest receipts were in
1908, when s25, 999,O5 was received, but
in that year there was a deficit Of
$4,000.
Big Commission Paid.
The disbursements in the same per
iod were what interested the expert &C
countants most. It cost $66,15967 TO
print the magazine; editorial talent
cost s6,S94.99; salaries for other ser
vices in three of the eight years, Sc,
59447, and postage. $3,077.47. The big
item of expense, however. was the COM
mission account, the reports showing
that $S4,27752 was paid in commits
sions This was an average of sos pei
f cent for eight years. and higher thar
that paid by any publication in the
world.
; The exposure is based on the pro
posed action of the convention OF the
/ federation at Norfolk, Va, beginning
: Nov. II, when a resolution is to be in.
: troduced to the effect that all of the
affiliated organizations be urged Il
e levy an assessment of 1 per cent pc
s month per member for one year-whicl
s will amount to $3.50, ooo-to' carry on
labor fight at Los Angeles.