Evening star., 1925-04-09
Twenty-Three Tell Central
Labor Union Grant of Raise
viii Not Affect Credit.
MERIT ALONE is BASIS,
FINANCIAL LEADERS SAY
Half of Letters, Already Answered,
Completely Refute Reports
of Threats.

Banks of Washington will continue
10 make loans to builders and con-
tractors on the basis of merit-as thew
have done in the past-and there has
been no agreement. nor is any consid-
cred. among them to cut down on
'loans to employers who grant in
cresses to union labor This was made
apparent today when the Central Labor
Union made public 23 replies to let
ters sent to banking institutions in
Washington asking their policy in
granting loans to builders or contrac-
tors allowing increases demanded by
union laborers.
OF the Al letters of inquiry sent to
banks in Washington by the Central
Labor Union. % answers so far have
been received. A large number OF
those replying made it clear that their
loans in all cases are based on merit"
while others, particularly the national
banks, declared they did not handle
the type of loan under discussion.
Bank Hits Alleged Threat
Some of the banks fatty denied there
was any consideration of a policy on
their part toward union labor, while
another. dealing extensively with the
deposits of the wage-earners. severely
condemned the Central Labor Union
for what it termed threats of black
listing" contained in its circular let
ter of inquiry. At the same time this
bank denied its intention of cutting
down on loans.
The following replies from banks
were made public by the Central
Labor Union today:
From the Union Trust Co-'Answer-
ing your circular letter, without date,
desire to say that the Union Trust
Co. Will continue along its established
lines of sound trust and banking
direction, uninfluenced by any inter
! ference or threat, from groups. class
or combination.
EDWARD sTELLwAGEN.
president"
Riggs National Bank of Washington
i-Rs plying to your letter, without
date, l beg to advise that we have
heard of no effort on the part of
| Washington banks to refuse loans on
account of any contemplated increase
| in wages.
! Merit Governs Loans.
/ so as far as the Riggs Bank is
concerned, it treats every application
| for loan, which comes before 1t for
consideration strictly its merits.
II, in our opinion. it is a sound loan
credit, we make it. If. on the other
hand in our opinion, it is not sound
loan. or the customer is not entitled
to credit, we do not make it.
MILTON L. AILES, President"
| This reply spoke also for the North
west Savings Bank, which has re-
/ Gently been taken over by the Riggs
Bank according to H. q. Hoskinson,
vice president of the Riggs Bank.
Second National Bank.
From the Second National Bank:
Yesterday / received your undated
| letter regarding articles which you
| stated had appeared in the public
| press in regard to financial institu-
! tions declining to make loans for
| building projects should the increase
| in wages sought by the building
| tradesmen be granted, and requesting
/ that we inform you of our attitude
! in this matter. In reply l beg to
state this is a national bank and
never has made loans for building
projects.
"AH business transacted by this in
stitution is predicated entirely on its
merits.
(Signed) VICTOR B. DEYBER,
President"
Liberty National Bank-"Replying
! to your undated letter received by
registered mail, will state that we
have had no discussion relative to the
| matter referred to by you, it being
the policy of this bank to treat each
! loan on its merits.
1T occurs to us that possibly the
statement appearing in the pubic
| press referred to institutions making
| building loans, which, of course, are
| not handled by us.
! Prejudice Denied.
National Bank of washington-"In
! replying to your recent communica-
| tion, we beg to advise that all loans
made by the National Bank of Wash
| ington are made without predjudice
| to any interests.
GEORGE STARKEY, President"
| Northeast Savings Bank-"In reply
! to your letter we wish to state that
we have never made any building
/ loans of any character, always con-
fning ourselves to loans on either
| rented or occupied property.
wv. REGINALD LEWIS, Cashier"
| Washington Mechanics Savings
i Bank-'I have not been approached
/ by any one on the question mentioned
in your letter, and / cannot conceive
| any banker making the statement
/ you referred TO.
| EZRA GOULD. President"
National Banks Diner.
! Franklin National Bank-"In reply
| to your letter of recent date, in
which you say that you have been
instructed to inquire If our bank
! Is party to any plan which has
| for it's purpose the refusal to loan
money for building enterprises based
! on amount of wages paid to me-
! chanics, we wish to say that II IS
against the policy of this and most
| national banks to make construction
| loans.
| wherever we have loaned on COM
pIeted properties 1t is on the basis
of so per cent of the market value
of the particular property.
I'VE know of no such plan as you
| refer to in your letter and there
| fore, of necessity, are a party to no
such plan. JOHN B. COCHRAN,
President"
Security Savings and Commercial
Bank-"1 I am in receipt of your un-
dated communication, received Mon
day, April 6. 1925, and beg to state
| in reply that the Security Savings
and Commercial Bank did not take
part and does not possess any infor-
nation relative to the conferences
! CONTINUED on Page ., Column A.