The daily worker., 1933-07-05
OF
B. OF [. E. GETS
BANKER LETTER
Delegates Whitewash
Johnston To Cover
Own Betrayals

Gle NELANU, u, july A.
The triennial convention of ths
Brotherhood Of LOCOMOTIVES
Engineers heard charges from
its banking committee that
Grand Chief Alvanley Johnston
carried through a 10 per cent
wage cut involving million
workers in order to bolster up
stock of the railroad compa~
nies. The wage cut which the
railroad workers suffer for the
second year saves the COM
panies 25,000,000 each year.
These negotiations we're conducted
between the Standard Trust Bank,
connected with the union, and the
Chase National Bank of New York.
Johnston was desirous that the
Chase Bank should not call a loan
of $500, 900 of the brotherhood Or
ganizations and in turn promised
the wage cut, SO as TO assure more
for railroad securities and protec-
ton of their dividends.
The charges involve also the Order
of Railroad Conductors and no doubt
affects the leaders of al railroad
Smiths Letter
This was disclosed in a letter from
C. Stirling Smith. president of the
Standard Trust Bank, to Harold L.
Van Kleeck, vice president Of the
Chase National Bank.
Z have been spending great
deal of time with Mr.. Johnston on
the voluntary wage cut which he
is endeavoring to put through" Mr..
Smith wrote, ''but he is meeting
with so much opposition from the
other brotherhoods that it 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 or
ganization and the engineers and
conductors have almost finally de-
cided that they are going to put
through voluntary cut whether the
others go along or not
To assure the bankers OF their
interest in the railroad bosses the
letter continues:
Mr.. Johnson carries a lot of in
fiuence with the other organizations,
so they will probably fall in with
him in the end. He fully appre-
eiates what it means to the country
and particularly to the holders Of
railroad bonds and with this in view
he is doing everything he possibly
can TO bring about the necessary
reduction"
Further on Smith writes:
"I can hardly believe that the
Chase would want to ruin the Engi-
neers' Bank when they are trying TO
do so much to bring about more sat-
isfactory conditions and increase the
value of railroad securities"
Called by President
Evidently Johnston was called By
the President to give his advice on
national wage cuts in other indus
tries, as the letter to the Chase
Bank states: Mr.. Johnston was
forced to leave for Washington last
night at the call Of the President
but will return not later than Fri
day, and he and 1 will leave fos
New York on Sunday night to dis
cuss the matter with you and II
absolutely necessary make some fur
ther arrangements to have the loan
taken over.''
The letter was like q bombshel
thrown into the convention. Aftef
the letter was read, Johnston spoke
to the delegates saying, Il never in
my life knew or heard tell Of that
letter that Mr.. Smith wrote about
the wage movement. I never knew
a thing about it." Johnston contra
diets himself, as he was surely aware
of the point in the letter which
states, Mr.. Johnston was forced to
leave for Washington :. and he
and will leave for New York on
Sunday night to discuss the matter
with you :. :" in negotiating the
loan.
The delegates themselves involved
in the betrayal of the railroad work.
ers voted confidence in their grand
chief.
The action of the Brotherhood Of
Locomotive Engineers is similar to
that OF the American Federation Of
Labor leaders. Recently, Thomas
Mcmahon, head OF the United Tex
tile Workers Union, affiliated with
the A. F. of L., cooperated with
,x,sr
duce wages of textile workers accord
ing to the textile code. 1t is THU
gang working in coilusion with the
bosses and government who want Ia
negotiate all agreements on condi.
tions and wages undes The lnAy
It1& AaecfesE ~