Evening star., 1936-08-10
A. A.E.L.FACESLOSS
OF NEEDED FUNDS
Expulsion of 10 Insurgent
Unions Would Seriously
Reduce Revenue.

Expulsion by the American Fed
GRAFTON OF Labor Convention in No
venber of the 10 insurgent unions
suspended by It's Executive Council
last week would strike the A. F. OF L.
in q vital spot-the pocketbook.
Analysis OF the financial statement
Of the federation from the last re-
port available. that Of August 81,
1885. indicates. surprisingly that the
insurgents might well expect to find
themselves better Of financially than
their opponents.
A combination Of increased organi-
rational activity and falling revenue
made it necessary during the past
year for the Executive Council to
tap a resource heretofore always held
inviolate in trade union practice ex-
cept in event of extreme emergency
the defense fund of the local and
federal unions directly affiliated with
the federation.
To carry on It's regular functions,
the Executive Council shortly after
the Atlantic City convention last Fall
transferred 100000 from the defense
fund OF the local and Federal unions,
ordinarily used only for strike bene-
fits. into the federation's general fund
for current expenses.
Transfer to Be Reported.
President William Green has re-
vealed that the transfer would be
reported to the November convention
in the regular course OF business. to-
gether with the reasons therefor.
and that the federation constitution
gives ample authority to the council
to perform the transactidl.
The balance in the defense fund as
Of August 81. 1885, the convention re-
port shows. was s587.578 In addition
to the 100000 transferred to the
general fund for current expenses.
Green said. another $3.50 900 has been
paid out during the past few months
in benefits to striking employees of the
Remington-Rand plants, reducing 1t
to about $4,000.
The defense fund will be increased
by receipt of portion of the local
and federal union per capita tax, 1915
cents per member a month, but by
only a fraction of the receipts from
that source during the previous year,
S167,186 The total membership in
the local and federal unions last Au-
gust was about s111,O Since then,
two international unions have been
formed from the federal unions, the
International Rubber Workers and
the International Automobile Workers
Of America. comprising probably two
thirds Of the total.
Importance Is Cited.
The importance of the local and
Federal unions in the financial scheme
of things in the federation can be
realized when it is seen that their
membership pays in more in per
capita taxes to the federation treasury
than all the other members of the
federation combined. total Of s2,-
$4,000.
The reason for this is that men,
bers of local and Federal unions pay
per capita tax of $4.20 a year at
the rate of IS cents a member a
month. q total of approximately $780,
900. The other federation members.
all of whom belong to one of the craft
or industrial unions, pay only IL cents
a year, or cent month, per capita
tax, total of s352,000.
The difference in tax rate can be
explained by the greater need for
organizers and other expenses Incl
dent to building up unions afiliated
directly with the federation because
the local or Federal unions are not
yet large enough to be organized into
national or international union.
Nevertheless, the need for organizers
and general overhead" expenses, so
far as the A. F. Of L. Is concerned,
goes on regardless of the number en-
rolled in local or Federal unions, and
will probably increase If the insurgent
unions are expelled.
AS matter of fact, this source of
revenue already has diminished be-
cause of the suspension. One of the
rights and privileges which the sus-
pension will deny the 10 unions in
question is that Of paying per capita
dues. Furthermore, in anticipation
Of the suspension. several unions have
withheld payment of per capita dues
for several months. paying only enough
to keep in good standing, which is not
more than three months in arrears.
Revenues Curtailsd.
While Green foresees no difficulty
in eventually returning the 100000
to the defense fund of the local and
Federal unions, built up over a period
Of several years. 1t is plain that fed
Grafton revenues have been consider
ably curtailed, first by the formation
of the two new international unions,
which will reduce, according to esti-
mates, the revenue from the local and
Federal unions from about s466 900 an
nually to about sl55,000, and, second.
by suspension of the 10 insurgents.
which will bring down per capita
taxes from all other unions from about
sS52,000 annually to about $3.50, 900.
The federation's total receipts for the
year ending last August were s1,o32,-
ATS, Of which the per capita taxes were
the largest single item, more than
Sa.o,vS0.
With the 10 inSurgent unions-all
meE.sers Of the Committee for Indus
trial Organization-suspended, how
ever, two others which. it is conceded.
would follow the lead of those with
kAt tnta Ill