The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-02-16
News und Views
BY ALEXANDER s. LIPSETT. Gan ILNS Feature)

BY ALEXANDER
Labor's Partnership in Industrial
Enterprise is the title of survey
published last week in New York.
It's appearance has been accompan-
led by a storm of comment which
vividly attests to the public inter-
est in all matters pertaining to or
ganized labor.
Newspapers and radio have call
ed the survey dynamite, a scholarly
study, and much else-depending
on the commentators knowledge
and mood; yet all seemed agreed
that its findings would have a
strong impact on economic think
ing among business and labor and
point a way toward new union fin
ancial policies. Victor Riesel, con-
ductor of the widely syndicated
daily column "Inside Labor" nam
ed it "the first comprehensive esti-
mate of American labor's wealth" ,"
proving that "unless huge chunks
of this money are reinvested in
safe ways, much of our economy
will be frozen"
The authorship of the survey is
no secret. His name appears on the
masthead of this, | hope, widely
read column. | feel | therefore owe
my readers and many labor friends
an account of my findings. Here
then is a summary of the finances
of the American labor movement,
together with such comment as |
believe speaks for itself:
"a net wealth of three to four
billion dollars.
Large and almost exclusive in
vestments in government securities
and bonds.
"Virtually no investments in
corporate industrial enterprise.
"An influx of billions of dollars
annually from pension levies, the
main burden of which is borne by
industry and in the final analysis
by the public.
"The funds must be put to work
an investment of no mean size.
"This plethora of money threat
ems grave dangers to the national
economy, as we'll as to labor itself.
Upon the wise employment of
union assets depends whether or
ganized labor is to become a cor
nerstone of industrial financing or
to remain welded to outworn in
veStment concepts and the uncer-
tainties of tomorrow"
What is the answer to the prob
lens posed by the growing finan-
cial power of labor? 1t lies, the re-
port points out, "in an intelligent
union approach to modern invest
ment methods and am extensive
I educational campaign among the
wage earners of the nation and
their organizations. The more
unions can be induced to provide
new blood and sinews for the indus
trial body and to assume the OBJ
/ legations inherent in the strength
of labor, the better for the future
of America and its workers."
Naturally, the report did not rest
content with merely stating the
problem and the need for a remedy.
After careful investigation of avail
able investment media | have
reached the conclusion that socall-
ed Mutual Funds provide the best
opportunity for organized labor to
share profitably and with great de-
gree of safety in American indus
trial enterprise and prosperity.
!. \ !.
| The manner in which union
money can be made available to
industry through Mutual Fund in
vestments needs to be explored and
worked out in detail, the report
stated. "But, generally speaking,
there is little question that Mutual
Funds are tailor-made for labor
treasures faced with the problem
of investing their growing re-
sources at substantial returns while
safeguarding the interests of the
membership. They are particularly
desirable for the investment of
union money because of their inde-
pendence in choosing appropriate
investments and their freedom from
any obligation to industrial man.
agement. j.. By making union cap
ital increasingly available to in
dustry America can be made a ma
tion of investors and small capital
lists. American business can be
'everybody's business if the labor
unions will it,"
Well, what shall it be? Shall