The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-01-30
UNIONS OWN SHOP
Is In BANKRUPTCY
Creditors Start Proceedings Against
Crescent Iron Works, Inc.

NORFOLK, Va, Jan. 29-The Cres-
cent Iron Works. Inc, the instrument
which the International Association of
Machinists usde as it's working model
for The Norfolk Idea" was thrown into
Involuntary bankruptcy here today by
three creditors.
Petitioners in the bankruptcy pro-
ceedings allege the Crescent Iron Works,
inc. committed an act of bankruptcy on
January 81 in permitting the Virginia
National bank to obtain judgment
through legal proceedings. The petit
toners in the bankruptcy proceedings
are Eagleston Parke, inc, $40; Colonna
Marine Corporation, $500, and Craig
Brothers, 500. other attachments have
been taken out and material advertised
for sale next week.
The concerns property, machinery and
hXtures were bid in at public auction
by international officers. through their
bank, the Mount Vernon Savings bank.
for $500 to satisfy deed of trust for
$40, 200.
The Norfolk idea," as outlined by e.
c. Dawson, the international secretary,
is for labor to quietly get hold of out
standing obligations of business enter
prise and thus get into a position to die
aate its policies. The opportunity to
make the experiment came last July
during general strike here, when the
IRON Masters association declared for
the open shop.
A strike occurred at the same time IN
the Crescent Machine Works, and la
Dor proceeded along strategic lines to
work out it's experiment The out
standing obligations of the Crescent
Machine Works were brought UP with
capital furnished by the Machinists'
International coming through the Mount
Vernon Savings bank at Washington,
which is controlled by the machinists
Control of the company having thus
been gained. support was furnished
through extension of credit and active
cooperation of affiliated branches OF
organized labor. In explaining the plan
at the time, Mr.. Dawson said:
Instead of a long struggle in which
our members each drew S. per week in
strike benefits. we succeeded in keeping
them all employed at moderate wages
The industry in Norfolk was saved an
expensive period of inactivity. and the
city was saved the loss in trade which
would have resulted"
According to Mr.. Dawson a "show
down" with the management of the
Crescent Works followed Immediately
when it became known that the unions
had control, and the plant was reopened
as strictly union plant.
son, Norfolk bankers refused to adj
vance cerdit for current transactions.
and jobhers, he said, refused to sell them
equipment The machinists' unoin i'm
mediately deposited with a Norfolk bank
sufficient cash to cover immediate needs
and met the remaining problem by ar
ranging with out OF town firms for the
articles needed to complete the work at
hand.
One Norfolk bank, however, which had
advanced money to the Crescent works
under the new regime, had reached a
point where It could not advance further
funds. For the payment OF a stipulat-
ed sum, all collateral of the Crescent
Works held by this bank was turned
back to the owners, the bank continuing
loan already on it's books unpaid by
security. The bank was willing to
take this loss, it is said. in order to col
iect approximately so percent OF the
amount.
August IS deed OF trust was given
on the Crescent works property. which
property was offered for sale January