New-York tribune., 1920-11-21

Al any Junction III INC PEeScnS cC'>
nomic system belongs to capital rather
than to labor, 1t seems safe to assume
that 1t is owning and operating bank.
A banking institution deals with cap
ital In fluid form; it gathers funds
from hundreds Of contributing streams
into a great reservoir out OF which
industry drinks credit, on which its
very life perpetually depends. The
Brotherhood of Locomotive Engineers,
one Of the four great railroad labor
organizations, has entered the bank
ing business and the Brotherhood of
Locomotive Engineers Cooperative
Bank in Cleveland is now in the first
month Of its existence.
A Practical Move
Curously enough, the impulse for the
departure in the labor movement orig
mated from no romantic aspirations
toward new adventure, but from rea-
sons that are known to sway the de-
cisions of business men. The efforts
OF this organization in the field of
banking illustrate the looseness with
which terminology relating to capital
and to labor is commonly used.
Warren S. Stone, grand chief Of the
Brotherhood of Locomotive Engineers
"a segment of the so-called aristoc-
racy of labor-outlined the objects of
the new venture in an interview
through correspondence with the
Tribune.
~ think" said Mr.. Stone. "this is
the first time that labor union has
built It's own institution for the trans
action Of banking-that is, in this coun-
try, although l believe similar things
have been done in Europe. This as
sociation was not created as protest
against banking conditions, but is q
business venture on the part Of the
brotherhood along advanced lines con-
sonant with the ideals of that organi
zation, and if it is a success it will
contribute materially to strengthening
the financial position Of the Brother
hood of Locomotive Engineers and con-
soldating the resources of its men,
bership. I might add that If this re-
fects the brotherhood I would consider
it opportune for other organizations,
labor and otherwise, to attempt the
same thing"
Joins Reserve System
Being a national bank and ipso facto
member Of the Federal Reserve sys-
tenn, this new Cleveland institution oc-
cupies a unique place in the United
States, although there are several other
experiments of unions in finance. The
Nonpartisan League efforts may be
disregarded in this connection, for
they are broader than those simply Of
union. But approaches have been
made by the Machinists' Union of
Washington, D. c., which operates a
savings bank at Mount Vernon, Va,
and the Clothing Cutters Union of
New York, affiliated with the Amalga
mated Clothing Workers, conducts on
a modest scale credit union to &C
commodate it sown members only.
Mr. Stone was akcd whether the
employers of labor, and, if 80, whether
they would have to pay higher, rate
of interest than workingmen.
''No preferentials," the president of
the labor bank replied, "are proposed
as between workers, farmers and other
citizens or persons desiring to use the
services of the bank, which means that
business men will be dealt with. 1t is
not anticipated that distinction will
be made between customers on the
basis of their belief in political princi-
pies Oh various SOIlS, OF OlNcTWlSe
The bank will be conducted by .he
best banking help obtainable, recruit
cd from persons who have had the de-
sired experience, whether employed in
that capacity at the time they are
needed or not, regardless of who their
employer may be, but dependent on
individual record as to character, eff
fciency, etc.
No Distinction Planned
"With regard to your question about
The possibility of ditferentials being es
tabished between essential and less es-
sential enterprises, it is possible that
| this may be done. You remember the
action of the authorities in Washington
when they caused credit to be denied
to food spectators, thus creating such
ditferentials as you mention. 1t is Ike
ly that some such consideration may in
the future determine momentarliy the
policy of this institution, but at the
present time it is not on the cards
that such distinction be made now or
in the immediate future.
1.-THE Brotherhood has long enjoyed
friendly relations with various inSti-