The Washington times., 1923-03-22
LABOR UNIONS
own MANY
BANKS
Washington Institutions Are
Controlled by Machinists,
Among Others.
BY MERRYLE s. RUIlEYSER.
(Copyright, 1928. by Cosmopolitan
News Service.l

\ (COpyE1ghf, 1928, by Cosmopolitan
News Service.1
NEW YORK, March 22.-The
!, banker in oVeralls is becoming q
figure Of growing importance in
American finance.
Labor unions are now in control
! of ten State and National banks
throughout the country. and are
organizing as many more. Besides,
they operate scores of more in4
formal credit unions.
The largest and best knOWn of
labor's reservoirs Of credit Is the
brotherhood OF Locomotive Engt-
neers' Cooperative National Bank.
OF Cleveland, which was established
late in 1920. Warren s. Stone.
grand chief or the. brotherhood and
president Of the bank. recently re-
marked: by entering the field Of
economics through banking, the
brotherhood feels II will be enabled
to exert an influence that will
furthc: those principles which un-
derlie all our endeavors." The
brotherhood, early this year. bought
substantial block Of stock in the
Empire Trust company OF this
city and has applied to the State
BaniSiug Department. for. a. charter
for now State LaTlk to be operated
IN New York. City.
Owns Fine Properties.
In Its ec0nomic expansion, the
brotherhood reflects the personality
of Stone, who has in his soul some
thing of the spirit OF captain Of
industry. The brotherhood owns
q model slSyscraper in Cleveland
which it could sell at a handsome
profit. and one of its tenants is
the New York Central Railroad.
The labor organization recently in
vested $4,000, 900 in coal mining
property.
The brotherhood has branch
bank known as the Nottingham
Savings and Banking Company, in
Nottingham. suburb of Cleveland.
The men who got their training at
the throttles OF locomotives also
have their hand on credit cor-
trollers in Hammond, Ind. where
they established the Peoples CO.
operative State Bank. in 1921 The
brotherhood is also interested in q
bank in Minneapolis, and, in CO.
operation with the State Fedora
ton Of Labor, recently opened the
Federated Bank and Trust Com
pany. at birmingham. Ala. Next
month the brotherhood Cooperative
National Bank, Of Spokane, Wash,
viii begin business.
The Cleveland bank has the
propaganda spirit and is ready to
help other labor banks get under
way.
OTHERS ENTERING FIELD.
Other labor organizations are also
going into that most capitalistic Of
Notwithstanding. The Order Of
Railway ,TeIegraphers. Railroad Con-
ductors and the Brotherhood OF
Railroad Trainmen have voted in
favor Of participating in the ex.
pertinent.
I The Amalgamated Clothing Work
ers of America. which established
the Amalgamated Trust and Saw
ings Bank. in Chicago last July, il
planning TO open second bank in
New York in the Union Square
district in the near future. More
over. the Central Trades and Labor
Council are engaged in organizing
the Federation Trust Company in
this city.
The International Machinists
were also pioneers in the field.
They began to make history in
May, 1920, by buying an interest
in the Commercial National Bank
at Washington. Of which they later
gained control.
The new adventure in banking
reflects labor's recognition Of its
coming of age in an economic
sense. 81
High effective wages create a
margin beyond what it costs to
keep body and soul. together, and
out of the surplus cooperative
workingmen's organizations have
been fabricating insurance funds,
banks. real estate projects. and
other embodiments of business en-
-terprise. Some are still - talking
glibly of capital vs.. labor, despite
the fact that we have reached a
stage Of economic development in
which men with calloused hands
and union cards are in possession
of large gobs OF capital.
HIRE SKILLED MANAGERS.
s One cause of the present move
desire to find an outlet for accll-
mulated funds and labor-con-
troIled system for administering
them.
Moreover, the more astute labor
unions recognize the extreme i'm.
portance of bank credit in modern
industrial life. They feel that the
man who decides on loans rules
the. business world.
Thus far the bankers in overalls
have been shrewd enough to en-
gage skilled and experienced man.
agement, and as long as they con-
tinue to do that their potentialities
for growth are exceedingly large.