New-York tribune., 1920-11-21

tutions taking care Of It's funds, and
it is not the intention to uproot these
ties nor to upset or change in so far
as it might be able the present bank
ing conditions of the City of Cleve-
land or any other place that might be
affected. The question of lending
funds to other labor organizations has
not been considered, and, if such loans
were made, would undoubtedly be based
on security acceptable ordinarily to all
banks alike"
Initial Results Satisfactory
Although Mr.. Stone reports that re-
suits attained since the beginning of
the month are in excess Of expecta-
tions, it is too early t. judge whether
the attempt of locomotive engineers to
become bankers will succeed. Money
changing is a rather hardheaded form
of activity, and the success of the in
stitution will depend perhaps to large
measure on the fullness with which it
adheres to Mr.. Stones dictum that if
loans are made to labor unions and
other persona grata such operations
Will be biased on security acceptable
ordinarily to all banks alike" A part
ner of one of the great international
banking firms in Wall Street once re-
marked pigrammatically in conversa-
tlon something that is relevant to this
test He was asked what sentiment
played in successful finance, and re-
torted: "When two propositions of
equal merit are submitted sentiment is
the determining factor; otherwise SEN
tlment is likely to be Ineffective"
Regarding plans for other banks in
strategic centers throughout the coun-
try, Mr.. Stone answered.: Before con-
! sideration is given to the establish
ment of other banks by the Brother
hood of Locomotive Engineers it will
frst be necessary to get this institu-
ton firmly on it's feet. Then, again, at
the time consideration might be given
to the possibility of operating other
be found for the funds and other prof
ects initiated. You will see that it is
not possible to say anything definite
along this line"
NO authoritative statement has ever
been made public regarding the finan-
clal resource of the brotherhood. But
the bank has been created with a CAPT.
tai stock of 100000 and $1,000 sur
plus, and will be operated with the
funds so placed at its disposal and
what might accrue from it's business.
Fifty-one per cent of the stock be-
longs to the brotherhood, and the rest
the officers and directors of the bank
are members of the brotherhood, with
the exception Of W. F. McCaleb, q vice
president and manager, and Joseph
Hobert jr., director.
The officials of the bank are as fol-
lows: President, Warren S. Stone:
vicc-president and cashier. William
B. Prenter; vice president and man
ager, w. F. McCaleb. Directors: w. S.
Stone, H. E. Wills, F. A. Burgess, E.
Corrigan, L. G. Grifing, NJ. E. Mont
gomery, H P. paugherty, A. Johnston,
W. B. Premier, c. H. Salmons, w. E.
E. Dunnigan, A. C Steinmetz, E. H.
Kruse, W. F. McCaleb, Joseph Hobert
IT,, and Oscar Horn.
Profits Limited
"The unique difference" said Mr.
Stone, that exists between this bank
and others is the recognition that has
been accorded depositors by the limi-
tation of dividends not to exceed 10
ducting expenses, surplus require
mcnts, educational propaganda, etc. to
be divided among them. Undoubtedly
this will have much effect in attract
ing depositors to our institution and
may modify to degree existing bank
ing practice"
An accompanying formal announce
ment explains that profit sharing will
be distributed among savings deposi-
tors. This cannot be regarded as a
revolutionary step, as various states,
such as New York, have mutual saw
ings banks, which are owned by the
depositors, among whom assets would
be divided in case of liquidation.
The brotherhood bank operates a
savings department, commercial de-
partment, fduciary department, and
will perform all the acts OF any other
national bank in the state. Deposits
from comm ercial, as we'll as savings,
customers will be accepted in any
sum from 81 up.
Being a national bank, the n.w in
stitution will be one of the charges
of John Shelton Williams, Comptroller
of the Currency and a stern guardian
The Cleveland experiment will be
watched from many parts of the world
and if it succeeds existing distinctions
between the terms capital and labor
J will become still more unscientific.