Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-30
BANKRUPTCY FATE
OF LABOR'S IDEAL
Crescent Iron Works, Inc,
Machinists' Model, Bid In
at Public Auction.
BY the Associated Press.


NORFOLK. Va, January 2s.-The
Crescent Iron Works, Inc, the in
strument which the International As
ISOLATION of Machinists used 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 q in per-
hitting the Virginia National Bank
to obtain judgment through legal
proceedings. 1t was under this judg-
ment that the property was sold. The
petitioners in the bankruptcy pro-
ceedings are Eagleston Parke. Inc,
$40; Colonna Marine Railway Cor
poration. $500. and Craig Brothers,
500. Other attachments have been
taken out and material advertised
for sale next week.
Its property. machinery and fix
lures were bid in at public auction
by international officers. through
their bank, the Mount Vernon Saw
ings Bank of Washington, for $500
to satisfy a deed of trust for 100000.
Would Dictate Policy.
The Norfolk idea" as outlined by
f. c. Davidson, the international sec
rotary, is for labor to quietly get
hold of outstanding obligations of
business enterprises and thus get
into position to dictate it's policies.
The opportunity to make the expert
ment came last July. during a gem
eral strike here, when the Iron Mas
ters Association declared for the
open shop.
A strike occurred at the same time
in the Crescent Machine Works. and
labor proceeded along strategic lines
to work out it's experiment.
The outstanding obligations of the
MOI Iyo ~
up with capital furnished by the
Machinists' International. coming
through the Mount Vernon Savings
Bank. Washington, which is con-
trolled by the machinists. Control of
the company having thus been gain
ed. support was furnished through
extension of credit and active CO.
operation of affiliated branches of or
ganized labor. In explaining the plan
at the time, Mr.. Dawson said: In
stead of long struggle in which our
members each drew So per week in
ing them all employed at top 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"
Showdown Followed.
According to Mr.. Dawson, SHOW
down" with the management of the
Crescent Works followed immedi-
ately when 1t became known that the
unions had control, and the plant was
Ieopened as a strictly union plant
Soon, however, according to Mr..
Dawson, Norfolk bankers refused to
advance credit for current trans
actions, and jobbers. he said. refused
to sell them equipment, The ma
with Norfolk bank sufficient cash
to cover immediate needs and met
the remaining problem by arranging
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 pay
ment Of stipulated sum. all col
lateral of the Crescent works held
owners. the bank continuing a loan
already on it's books unprotected b.
security. The bank was willing to
take this loss, it is said. in order to
collect approximately so Per cent of
the amount.
Deed of Trust offered.
August 28 a deed of trust was given
on the Crescent works property,
which property was offered for sale
IOudy, dI puDtiC dQCLlOii, ny tue lol-
lowing named trustees: William H.
Johnston, president International AS
ISOLATION Of Maohinists; f. c. Dawson.
international secretary and treasurer.
and Harry j. Carr. cashier of the
Mount Vernon Savings Bank.
w. J.. Fielder, president of the
Crescent Machine Works, declares
that his company has always been
friendly to the labor unions and that
organized labor did not force them
into the arrangement which became
known as the Norfolk idea" He
said that the union merely came to
the assistance of the company in the
matter Of finances. and has never as
sumed control Of the management of
ths. affairs Of the concern.
While other shops were closed to
union men, during the strike period
since last July. the Crescent shoos