Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-01-13
BUY Up DEBTS
PULL OUT CASH
IN FOE BANK
Machinists' Unio n
Brings Bankers and
Open Shop to Time.
Workers Purchase $4O,-
900 Mortgages, Loan
Firm Money.

Washington, Jan. 12.-(By
The Associated Press LA
bor' $ answer to recent legal and
legislative setbacks may be to
fight capital with capital itself.
Al experiment. now called "the Nor
folk idea, conducted BY the Interna-
honal Association of Machinists is
being much discussed and. it il said
is about TO be repeated on the Pacific
coast. In brief, the Norfolk idea il the
use OF capital assets and credit of or
ganlzed labor in the fight to force en-
ployers to meet its demands.
Explains Union Strategy.
As explained by i. C. Davidson, sec
retary of the machinists, there was q
strike in the Crescent Iron works at
Norfolk, Va, late Id 1920 The labor
union strategy was simple: The out
standing obligations of the Crescent
Iron works were bought up ard con-
troll thus having been gained, support
was furnished. through extension Of
credit and active cooperation Of affil-
late branches of organized labor.
MIR. Dawson. who was one Of the
originators Of the idea, estnated his
ASSOCIATION saved more than 5000, 900
cash III that contest, while the savings
70 ~ members was probably double
that amount.
Bought Up Mortgage.
When the Iron Masters association
declared for an open shop iii the sum
mer Of 1920. investigation disclosed
there was an outstanding mortgage Of
$4,000 on the Crescent works Il few
days overdue. MIR. DAWSON acting for
tie union, attempted to buy up the
mortgage. but the bank holding ii re-
fused TO sell. Further inquiry disclos-
ing that many Of the bank dcpositors
were members Of unions steps were
taken which resulted an sudden de-
crease Of the institutions deposits on
hand. The offer to purchase the mort +
gage being then renewed. the bank !.
to the sale, Mr.. Dawson ex-
planned
a show down" with the manage
mcnt Of the Crescent Iron works fol I
lowed Immediately, Mr.. Dawson said /
the outcome being the reopening Of !
that plant as strictly union shop.
Bankers Refuse Credit.
Soon, however, according to Mr.. !
Dawson, Norfolk bankers refused to !
advance credit for current transactions 4
to the Crescent works aud iobbers. he (
said, refused to sell it equipment The
machinists' union at once deposited .
with q Norfolk bank sufficient cash
to cover immediate needs and met the
problem by arranging with
out Of town firms for the articles need
ed to complete the work ut hand.
Influence If the union also was
utilized to obtain orders for the plant,
which it now controlled.
The union extended it's operations
" moving to the assistance Of two
smaller shops which were in financial
difficulties Learning that c0nsid-
,rablc sum was due for tho work on
;essels of the United States shipping
BOARD an arrangement was made
whereby the Mount Vernon Savings
,anI; Of Washington, -. g., which il
outright by the International
Association Of MachiniBts, purchased
hose accounts and negotiated their
cttlcment direct with the shipping
'oard headquarters here.
Machinists Bank Assists.
Assistance of the Washington bank to
he Norfolk firms was conditioned
rankly on their continuing operations
3 union shops, it was admitted as
gerc other transactions through which
he bank deposited with Norfolk III
titutions sums equal to loans they
ad made to shops in the vicinity
'hcse deposits could be alIowcal~go re-
lain only SO long as the Virginia
anks continued to carry the paper of
he plants with which the union was :,
Officials Of the machin- !
sts' association said Wednesday they
ad received thousands Of letters from
rganizations throughout the United
tatcs asking for details Of the new
Ian and for advice as to its adapta-
ility of local conditions.