The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-10-20
Agitators' and
Propagandists'
Column
Wage Cuts for Workers and
Dividends for Bank
Stockholders

IN spite OF financial crisis SO serious that capt.
talist leaders try to create an emergency pool
to pump artificial credit into coapsng banks
the biggest banks in the United States can still
report huge profits All banking profits have
shrunk with the long industrial stagnation, but
the leading giants and some of the well-placed
smaller banks have continued to pay large divi-
dends to their stockholders.
Here are few of the banks which have not
reduced their dividend rates. First are five New
York banks in which the House of Morgan and
their closest allies dominate policies:
Guaranty Trust Co. is paying without reduc
ton dividends of $40 a share or total of $18,-
100000 year to its stockholders.
Bankers Trust Co. is still paying 80 per cent
dividends on its s25 OOo 900 par value stock, or
total of $7,5o0OOO year.
First National Bank New York; pays what
amounts to 100 per cent yearly dividend. Part
of this comes from the. stock of the banks in
vestment twin, the First Security Company, but
this stock was created as gift from the banks
surplus to its stockholders, and ownership in the
First Security Company is inseparable from own
ershp in the First National Bank The par value
of the banks stock is $1O,OOoooo and it's stock
holders receive yearly combined total of $10,-
100000 in dividends.
New York Trust Co. continues to pay 20 per
cent dividends on its $125oO00O par value of
stock, or a total of $2,500000 year.
United States Trust Co., small but powerful
financial fortress quite unrelated to the defunct
Bank of United States, pays 70 per csnt dividends
on its 100000 of stock, or 81 40ocoO year to
it's stockholders.
So when U. S. Steel Corp. cuts its dividends
down from 81 to 81 share Cor really only to
$500 for old stockholders, thanks TO the 40 per
cent stock dividend of 1929 the inner circle OF
Morgan-Baker stockholders can turn cheerfully
to their bank dividends for consolation while
the steel workers who had lost over so per cent
in weekly earnings through part-tme employ
ment and now have 10 per cent cut in wage
rates besides, are expected to find consolation in
the fine phrases of Walter s. Clifford and will
be faced with cops and machine guns when they
strike to demand something more than starva-
tom
Chase National Bank, the largest bank in the
United States represents several financial groups
dncludng Morgan) bit here the Rockefeller in
terests make up the strongest group. Chase
National pays its stockholders 276oO00O year.
One-f fourth of this comes from the Chase Securi-
ties Corp. an investment twin like the First
Security Co. of the First National Bank. Chase
Securities Corp. was created by stock dividend
presented to the shareholders of the bank; every
capitalist who owns shares in the bank owns the
same number of shares in the twin company.
The bank stock has no stated par value but it is
carried on the banks balance sheet at $148, 0OO,-
600. The combined dividend totaling 900
is practically equivalent to 20 per cent
National City Bank of New York, the second
largest in the United States, has a more compE-
Gated system of subsidiaries. The par value OF
the National City Bank stock is $110,O000oo. Its
stockholders receive combined dividends from the
bank, the National City Company and the City
Bank Farmers Trust Company otang $4,000
900 or 20 per cent year.
Continental Illinois Bank and Trust Co is the
largest bank in Chicago. 1t pays only 16 per
cent dividends, but with S7500O00O of stock this
mounts up to g tidy s12,000000 year for its
stockholders
The most profitable bank in the country is
Melons central concern, the Union Trust Co. of
Pittsburgh which controls the Mellon National
Bank and other subsidiaries. 1t pays on its own
s15o0,OO0 stock the highest rate of dividend FOG
per cent a year or 100000 yearly.