Denver labor bulletin., 1916-04-22
S95,l3l CASH DUE
MINERSFROM BANK
Unusual Proceedings Before
State Examiner DraCh
Money Deposited in Louisville Bank
During Northern Coal Strike in
1912, and Concern Fails

Ownership OF S95,l3l in cash claimed
by the United Mine Workers of America
is involved in preliminary hearing This
week before Z. Z. Drach, Colorado state
bank examiner, in the law offices OF
Everett Owens, special deputy bank COM
missioner. The claim grows jointly out
of the coal strike in northern Colorado
and the failure of the Louisvillee bank
and the action is said to be exceptional
in legal and banking proceedings.
According to the declaration of the
head officers of the United Mine Work
ers. all of whom. with the exception OF
President John p White, are attending
the hearing, the organization deposited
SlS0,000 with a chain OF northern coal
belt banks as an inducement for the
American Fuel company to sign a union
contract. This was in March, 1912, dur
ing the four-year period the union min
ers We're on strike in that district.
Claim Miners Financed Company.
At that time the United Mine Workers
were putting forth every effort to COM
pei the mine operators in that district to
recognize and employ union men. ID. Z.
Evans, president of the American Fuel
company, and James Miller, treasurer of
that company and cashier Of the Louis
vile bank. later consolidated with the
Lafayette Bank and Trust company. both
in Boulder county, needed 5000. 600. ac-
coriing to the testimony at the present
hearing, to finance the coal company.
They proposed to sign contract with
the United Mine Workers, Miller testi-
fled. if the organization would loan the
company S200.OOO of the amount named,
pending bond issue.
The union officers said this could not
be done unless the national convention
authorized it, but after extended negotia-
tions it was determined, Miller declared
before Commissioner Drach, that the
Mine Workers would deposit 500. 600
with the banks in which he was inter
ested. the banks then to loan money to
the coal company.
Company and Bank Fail.
In return for this indirect financing of
the company. said Miller. the American
Fuel company signed union contract
which gave employment to about 1900
striking miners
The coal company failed, and later the
Louisville bank, of which Miller was the
cashier. failed The United Mine Work
ers, thru their head officers, held certifi,
Gates of deposit against the bank for
more than $4,000, drawing interest at :
per cent, which principal and interest
now amounts to sol .lSl. just before the
banking house closed its doors an in
junction was taken out against the labor
organization to prevent an attempted
withdrawal of its funds. This injunction
extended to about SS5. 900 deposited with
the Interstate Trust company of Denver.
Miller said, that bank being interested
in the deal.
Miners Hold Deposit Certificates
Commissioner Drach and his deputy,
Mr.. Owens, took charge of the Louis
bank, and the present preliminary action
Is to determine the validity of Miller's
claims that the money deposited in his
banks thru him was an indirect loan TO
the American Fuel company, Ii is the
direct claim of the United Mine Workers
that the money was deposited in the or
binary course of business for the pur-
pose of "hoosting" Miller's banks, in re-
turn for which Miller, as treasurer of the