Evening star., 1933-07-04
UNION HEAD CALLED
PAY CUT ADVOCATE.
Letter Written by President
of Closed | labor Bank in
1881 Presented.
BY the Associated Press.

BY the Associated Press.
CLEVELAND, July "A letter writ
ten on December IT, 1881, by @. Stirling
Smith, president of the closed Standard
Trust Bank. and asserting that Alvaney
Johnston, grand chief engineer of the
Brotherhood of Locomotive Engineers,
"is doing everything he possibly can to
bring about the necessary reduction"
In the wages of railroad labor came to
light today
Accompanied by Johnston's denial OF
any responsibility for the letter and
Smiths affidavit that it. was not shown
to Mr. Johnston before or after 1t was
written" the letter was presented to
the brotherhood convention in a re-
port of special committee that in
vestigated the Standard Trust closing.
The failure of that bank forms the
basis of the fight Of progressive"
group to oust Johnston as the head
of the Brotherhood Of Locomotive
Engineers.
Letter Written to Bank Official.
Johnston was a director of the
Standard Trust Bank in which the
brotherhood was the largest depositor
and large stockholder He and Smith
as well as other officials of the bank
have been indicted for misapplication
of funds by county grand jury In
vestigating the bank closing.
Smiths letter was written to Harold
L. Van Kleeck, vice president Of the
Chase National Bank Of New York. at
the time the Chase bank was seeking
payment of a $40, 900 loan. A 10 per
cent wage cut for railroad employees
was placed in effect early in 1882.
In expressing my opinion regarding
the voluntary wage cut" Smith said in
his affidavit. this angle was never
discussed with Mr.. Johnston in any
way. and was merely giving the bank
in New York City my own impression.
and it should not and could not be
construed that this was Mr.. Johnston's
feeling or idea on the matter
The brotherhood's off1cial press
committee said the convention voted
confidence in Johnston insofar Is the
actual writing of the letter was con-
cerned when Smiths afidaHt was
presented to the delegates.
knowledge Of Letter Denied.
Johnston, in denying any knowledge
of the letter, said the wage agreement
In 1882 was negotiated along the regu-
lar lawful lines of the brotherhood and
the settlement was made by the Chair
mems Association. which Is composed
of the general chairmen Of the railroad
properties in the United States and
Canada"
Smiths letter to Van Kleeck said:
Il have been spending a great deal
OF time with Mr.. Johnston on the vol
untary wage cut which he Is endeavor-
ing to put through. but he is meeting
with so much opposition from the other
brotherhoods that 1t Is going to take
an awful lot OF effort on his part to put
it over
He is, however being supported 100
per cent by the conductors organiza-
tion, and the engineers and conductors
have almost finally decided that they
are going to put through q voluntary
cut whether the others 60 along or not.
Payment Declared Impossible.
r-."Mr. Johnston - fully appreciates
what it means to the country and par
ticularly the holders Of the railroad
bonds. and with this in view he Is doing
everything he possibly can to bring
about the necessary reduction"
The letter. which goes on to say "it
VIII be absolutely impossible" to paw of
the $4,000 loan the next day. adds:
Il can hardly believe the Chase
would want to ruin the Engineers Bank
predecessor of the Standard Trust
when they are trying to do 50 much to
bring about more satisfactory conditions
and increase the value of railroad Sc
curititS.