New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-25
Opposition at Copital

we are at this moment prepared to
open cooperative national banks in
dozen to fifteen other places, but the
task of getting charters from the pres
ent Comptroller of the Currency is
hopeless. Within the last sixty days
efforts were made unsuccessfully to
get two new national bank charters.
One was sought by labor group, con,
slsting of the railroad shop crafts and
central trades, in Sandusky, Ohio, and
the other by q labor group in San
Bernandino. Calf. Under the present
law there is no appeal from the de-
cision of the Comptroller. The pres
ent incumbent feels that what is
needed is fewer. and larger banks in
stead of more banks. He is opposed
to the idea of cooperative banks"
In reply to the attitude of Cleveland
bankers regarding the brotherhood
bank, Mr.. Stone said that it had been
treated we'll in the city, although there
were some signs of resentment out
side. Being a national bank the
brotherhood institution is automati
cally member of the Federal Reserve
system.
The bank is a by-product IF the
brotherhood, which dominates it fnan-
claly But the national banking laws
admit of little deviation from the gen
eral scheme. Walter F. McCaleb, who
has long been identified with the theo-
retical aspects of cooperative banking,
was brought in to become general man
ager and vice president. Mr. McCaleb
was previously vice-chairman OF the
Federal Reserve Bank of Dallas The
other ''practical men" in the bank, how
ever, were not borrowed from banking,
but are Mr.. Stone and the othev men
who for years had been directing the
finances of the brotherhood, which col
lects half a million dollars year in
dues alone. Thus far. so far as could
be learned, the bank has not yet mad 2
its one significant blunder, which skep-
tics CO freely predict
This little bank of 81 100000 capital
and 100000 surplus, which in addition
to paying 4 per cent interest com
pounded quarterly to savings deposit
tors, promises to share profits with
them. limiting the dividends on shares
of stock to 10 per cent. Mr.. Stone is
confident that at least 6 per cent Givi-
dend on the stock will be earned and
paid in the first year of its existence.
What Experiment Can DO
Thus far the contribution of the bank
to financial theory has been limited,
but perhaps it will serve a real func-
ton by bringing home to toilers in
warmly human way the desirahillty
of thrift. Workers arc likely to trust
their own bank more And if they do
it will be a good thing nationally to
have funds deposited instead Of hide
under mattresses and in stockings.
The bank building is unimposing,
but Mr.. Stone hopes in two years to
erect on its site opposite the Brother
hood of Locomotive Engineers Bald
=
story bank building. The plans have
building was formerly occupied by a
saloon, and the cooperative bank is
another answer to the eternal query as
to what were drinking places trans
formed into after prohibition. The
present facilities are small, but are
being steadily expanded. The brother
hood owns the building and adjoining
structures.
The brotherhood's Office building was
built in, and, according to Mr.. Stone, in
little more than ten years rents re-
ceved paid for the entire cost. Among
the tenants Of the brotherho God are the
New York Central Railroad and five
hundred lawyers.
Stone. the Man
Mr.. Stone is perhaps more respected
I by Cleveland business men than by
those of other cities, who are inclined
in varying degrees TO look upon him
merely as an agitator. In the matter
of doing the things that capitalists do
Mr.. Stone has accomplished unprece
dcuted tasks for his organization.
Since 1908 he has been grand chief.
he was born in Ainsworth Iowa on
February /, 1860 The call to lead
ership came to him when he was
blowing the fields at his nome IN e.
ton, Iowa, q town of 1000 popula-
ton. The old chief died suddenly.
the man next in line was dying, and
the next mos logical successor was
old and tinid These close to the
chic who had passed away remem-
bered that he had spoken of young
| Stone, OF the Rock Island. as a likely
successor The call went to him to fill
the 'nexpired term of eight months
and Mr Stone. burning the bridges be-
hind him. losing his seniority rights
with the railroad, came to Cleveland to
reside in large city for the first time
Whatever one may think Of Mr.. Stone
as {; labor leader, as q thinker or as a
social force, his record as an executive
and a practical man IS clear He has
done things which no other labor
leader dreamed OF doing. He intends to
go forward. The head of an organiza
ton that owns huge skvscraper and 4
national bank is not likely to be igrs-