The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1944-02-08
BY WEsTBROOK PEGLER

NEW HORk,-The Associated Press reports
from Kansas City, Kansas, the home of the
International Boilermakers and Shipbuilders'
Union of the American Federation of Labor,
that J. A. Franklin, IS years old, the union S
president for 36 years. has been retired to
the honorary post of president emeritus at
his present salary of $500 year for life.
Thus another venerable racketeer and par
aste On the body Of American labor is re.
warded for shameless and defiant exploitation
of the worker.
No law can reverse this action of the pro-
fesslonal unioneers who run the union and
run the convention No court can intervene.
No honestly indignant toiler in the shipyards
which. now employ hundreds of thousands Of
captive members can refuse to contribute his
mite toward this pension though it has been
shown that Franklin and his son, Harold, also
of Kansas City, Kansas. connived to provide
the son with vast income which I estimate
at about 100000 year in commissions on the
insurance which the members are compelled
to buy in the Occidental Life Insurance Co.
of California. In addition to this white graft
the son gets about 1000 in commissions on
voluntary insurance which the union thrusts
upon the members and their relatives.
Young F'ranklins racket has been going on
about 20 years and rising all the time. In
1929, by vote of seven to three the
executive council tried to throw the old man
out for secretly arranging a dea' with the
Chicago National Life Insurance Co. which
used to handle the business whereby his mem
bers bought insurance and his son got the
rakeoff. The Franklin political organization
within the union repudiated the councils ver-
dict and six of those who signed it were voted
out of office and out of their jobs
At one point in the councils report to the
membership it was recalled that the old man
took part in the negotiations between the
council and the Chicago firm and advocated
the contract for group insurance but con-
c. led the fact that his son had an agree
ment with the company whereby he was to
profit by the deal. The councils report also
charged that when young Franklin appeared
to answer questions he stated in effect that
he had given no service to either the company
or the union for the money. In court pro-
ceeding afterward, judge also ridiculed the
notion that young Franklin had performed
services commensurate with his rakeoff
1--WE desire to inform our membership that
we will emphatically not place our stamp of
approval on any officer who may be con-
nected with the commercalizng of our organ
ization to the detriment of its members" the
report said. And it said further that the
company was $4,000 in arrears in its pay
ments of insurance claims to members and
that the presidents son was getting such a
large part of the revenue. His commission
was 10 per cent some policies and Is per
cent on theirs Under present contract with
Occidental young Franklin received four per
cent during the first year and is receiving
two per cent for the remaining nine years
Of the undertaking.
Membership in the boi1ermakers has in
creased enormously thanks to the national
governments shipbuilding program and
the labor policy of the Roosevelt government
which compels the workers to join and to buy
young F'ranklin's insurance. If they don't pay
tribute to Franklin they can't build ships for
their country. The Occidental, which is pow
erful in west coast politics, also receives a
huge profit and another large aggregate slice
OF the workers money goes into the treasury
of union of which they are only temporary
members This latter amount should, of
course, according to accepted practice in the
insurance business. be returned to the policy
holders in the form of dividends or through
the reduction Of premium rates which are
very high.
When the war is over or when the yards
quit building ships for the war the members
naturally will drift away and their money
will rem ain with young Franklin Occidental
and the bullying treasury of the union in Kan
sas City. Young Franklin's present huge in
come is derived very largely from the war
emergency and ultimately from the taxpay-
ers Unlike the Browne-Bioff and Scaise rack
cts Franklin's rakeoff appears to be perfectly
legal and is of course consistent with the
ethics and policies of the new deal and the
American Federation of Labor.
-V-
The Russians are removing some of the
worst stains from the face of this earth by
stringing up the ringleaders of hate.-Treas-
ury Secretary Henry Morgenthau, Jr.