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FEDERA-L DEPOSIT INSURANCE CORPORATION
WASHINGTON

November 20,

Honorable Marriner S. Eccles, Chairman
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Marriner:
Supplementing our letter of October 23, I
thought you would be interested in the enclosed photostate copy of letter dated November 12 from our Supervising Examiner in New York to Mr. Vance L. Sailor,
Chief of our Division of Examination, and the exhibit
referred to therein. These enclosures are selfexplanatory.




Very truly yours,
(Signed)

Maple T. Earl.

Maple T. Harl,
Chairman.

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FEDERAL DEPOSIT INSURANCE CORPORATION
WASHINGTON
October 2 3 ,

Honorable Marriner S. Eccles, Chairman
Board of Governors of the Federal Reserve
System
Washington, D. C.
Dear Mr. Eccles:
I hand you herewith a photostated copy of a
l e t t e r dated October 11, 19U&, to Mr. Vance L. Sailor,
Chief, Division of Examination, Federal Deposit Insurance
Corporation, from our Supervising Examiner in New York
City, Mr. Neil G. Greensides. Said l e t t e r , together with
the photostated copy of the handbill mentioned therein is
self-explanatory.
Because of the suggestion made by Mr. Greensides,
I thought we should have a conference at an early date with
the Honorable John W. Snyder pertaining to this all-important
matter. Please advise me your wishes in same.
Cordially and sincerely,
(Signed)

Maple T. Harl

Maple T. Harl
Chai man
Enclosures




FEDERAL DEPOSIT INSURANCE CORPORATION

•UPKRVISINa tXAMINKN
SECOND FEDERAL DEPOSIT INSURANCE DISTRICT
14 WALL I ' « U T

October 11, 1946

NEW YORK 5 . N. Y.

Mr. Vance L. Sailor
Chief, Division of Examination
Federal Deposit Insurance Corporation
National Press Building
Washington 25, D. C.
Dear Mr. Sailor:
Starting in August the Bankers Trust local of UOPWA-CIO
has periodically distributed handbills to persons entering or passing
this building and designed to create sympathy for those few segments of
the employee group which are unionized. These bulletins have been phrased,
of course, in the provocative style which appears to be an integral part
of union tactics but nevertheless would not probably create unrest amongst
depositors at this time.
However the bank offices were picketed one day by a
double line of pickets covering the entire block, the pickets all having
been drawn we understand from other unions. Each marcher carried a placard
expressing sympathy and support for Bankers Trust employees. The line was
noisy and attracted a large crowd but did not interfere directly with people
entering the building. Considerable confusion was created of course and in
troublesome times an adverse effect upon the bank might have resulted.
Yesterday there were distributed handbills as per the
copy attached which refers to surplus and contingency reserves and makes
implications concerning officers which we believe might very well inflame
a public during a period less favorable than the present. We do not suhitt this copy with the thought thatwe^shoulj initiate measures regarding
su^Ji
^ynn^icj
ti/fte« but rather for consideration
as to whether our Law should not incorporate some provision designed to
restrain generalized assertions which ^BWflrrantftfl^y r e j e c t upon an insured
bank f ^n ajyfr^ ^potion of
may
f a time
i when such demonstrations or circulars
l
•ho t.hft banking gygtarja and our ftfflffMP1!Very truly yours,

Neil G. Greensides
Supervising Examiner

188-hment



The reports just issued by the banks for the third
q u a r t e r of 1946 shows "surpluses/' "undivided
profits" and "contingency reserves" running into
astronomical figures.

Are Our Salaries A "Contingency"?
Evidently not. The raises recently granted by some banks under the pressure of union organization are peanuts compered to our desperate n—du For whom do the benb set up "contingency reserves"? Apparently not to meet our

pfight.
TRUST is a blatant example of the way financial establishments are abusing their employees.
After coming through 1945 with a measly $110,000,000 in surplus and undivided profits, and in spite of the fact that
it added another $700,000 to this "extra" money in the third quarter of 1946, Bankers Trust is resisting Its employees' demand for an adequate raise. W e ' r e asking for 4 0 % .
A 4 0 % raise may sound very big to Mr. S. Sloan Colt, president of Bankers Trust and to the Board of Directors:
Philip Reed of General Bectric, John J . Reskob of DuPont, G. A. Sloan of U. S. Steel. James G. Harbord of R. C. A.
and enters*
A 40% iecrease on top of what these gentlemen earn would run into five figures. It would mean a fourth or fifth
Ewwwha, aa win yacht, another summer residence.
But to the bank worker earning $40 or $44 a week, it means $16 more—not for trimmings, but for rock-bottom
e new suit or dress, another pair of shoes for the kid, the next insurance premium.

Who's being unreasonable? Bankers Trust employees, or Hie men who already earn close to the
mark/ not counting bonuses and dividends, and who say "no—no raises!"

A l l THROUGH THE STREET IT'S THE SAME STORY . . .
Huge, unprecedented profih for the banks—sums that stagger the imagination. Nothing to stagger the employees
except the (madness o f their pay.
The great banks and brokerage firms won't pay their employees a decent living wage of their own
free will. They must bo compelled to do so.
Nothing is going to be handed to us. We shall have to fight for these things, and win them, through our unity and
the strength of 6.000,000 other organized Americans.
We can do it, and we will.

JOIN

TODAYI

Mail tt: UOPWA, 30129th St., N. Y. 16f N. Y.—Strictly Confidential
•

I would like to meet • union member to discus*
h further.
fh
this

O I approve of the drive by the United Office and Professional Workers of
America, C I O , for increased pay for financial employees. I hereby authorize
the UOPWA, C I O , to represent me for the purpose of securing a salary
increase and other improvements in working conditions.
Signature

NAMEfprirt)


EMPLOYER
http://fraser.stlouisfed.org/
*OM»>io
Federal Reserve Bank of St. Louis

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10/9/46

1933
FEDERAL DEPOSIT INSURANCE CORPORATION
WASHINGTON
OFFICE OF THE CHAIRMAN

October 25, 1946

Honorable Marriner S. Eecles, Chairman
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Mr, Eccles:
In compliance with the telephone request from
your office, we are enclosing two additional photostat
copies of letter of October 11 from Mr. Neil G. Greensides,
Supervising Examiner for the FDIC in New York City, together with the handbill mentioned therein.

Chai]

Enclosures




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October 3 1 , I9I46.

Honorable Maple T. l i a r l , Chairman,
Federal Deposit Insurance Corporation,
Washington, D. C.
Dear Mr, Harl:
This is to acknowledge your letter of October 23
enclosing a photostated copy of a letter dated October 11,
19U6, to Mr. Vance L. Sailor, Chief, Division of Examinations, Federal Deposit Insurance Corporation, from your
Supervising Examiner in New York City, Mr. Neil G. Greensides.

t

This question of organizing employees of private
banks and of invoking the pressure methods of strikes and
picketing raises such very important questions relating to
the public interest that I should welcome an opportunity
as promptly as possible to discuss the subject with Secretary Snyder and yourself, as you suggest. Meanwhile, I
have taken the matter up with our Counsel and staff in a
preliminary way.




Sincerely yours,

M. S. Eccles,
Chairman.

FEDERAL DEPOSIT INSURANCE CORPORATION

• UPCRVISINO EXAMINER
SECOND FEDERAL DEPOSIT INSURANCE DISTRICT
14 WAUL STOUT

November 12, 1946

NEW YORK 0 . N. Y.

Mr. Vance L. Sailor
Chief, Division of Examination
Federal Deposit Insurance Corporation
National Press Building
Washington 25, D. C.
Dear Mr. Sailor:
As you have perhaps noted in the press last week,
this City has the dubious distinction of having put on the first
bank employee strike. The incident occurred at the Merchants Bank
of New York and lasted for about two and one-half days. In celebration of the union victory the enclosed bulletin was passed out in
the financial district this morning for the purpose of encouraging
employees to join the union.
For the past several weeks a very persistent and
highly publicized drive has been under way in the financial district.
For several days on end a sound truck was parked either in front of
the Stock Exchange bull ding or J. P. Morgan & Co., and the people
in the street were harangued during the luncheon hour. Undoubtedly
some progress is being made, although it is believed that bank employees generally are reluctant to consider unionism as the answer
to their troubles.
Union membership presently is largely confined to
the guards, messengers and elevator operators, but as this segment
receives pay increases it throws the salaries paid to tellers, bookkeepers, secretaries, etc., out of line and creates dissatisfaction
which in some cases has not been dissolved through prompt adjustment
of their pay scales. However, within recent weeks there have been
announced revisions of the pay scales for several of the banks, and
when this movement has been completed throughout the City the agitation on the part of the unions will undoubtedly subside.
Very truly yours,

s.
Neil G. Greensides
Supervising Examiner

NQG:H
Enclosure



UNION WINS AT MERCHANTS
Merchants Bonk union members have won
a smashing victory.
The first bank strike in American history
lasted just 2'/2 days and brought employees
the following sensational gains:
Every employee will receive a raise, of not
less than $36 a month; some will receive os
much as $80 a month increase.
The starting salary for the least skilled job,
previously $23, is now $32.
Overtime after 7 hours a day.
Weekly pay days.
3 weeks' vacation after 5 years' service.
Employees elected grievonce and arbitration
procedure; correction of salary inequities.
Retention of all existing privileges.
Modified union shop.
f f
Hit caatracl at City Hall settling H M first bonk strikt in H M city's history art: stated,
from Itft to right, Mr. Howord Marktl, Presidtnr of Merchants Bank; Mr. Theodore Kheel,
Associate Piractat of H M Mayor's Labor Relations Committee, and Mr. Peter K. Hawley,
Executive Director of Local 96. Standing, Mr. Harold Dublirer, attorney for the bank, and
Mr. Lton W. Itraay, Vice-President of the United Office and Professional Workers of America.

Read All About It!

The strike was precipitated by stubborn refusal of management to give fair consideration to union members' proposals for increased
pay and security.
All strikers went back to work following
unanimous approval of the settlement; they go
back without prejudice and will receive full
pay for the time lost in the strike.

THE NfcW YOBK SUN, FRIDAY, NOVEMBER 8, IMS.

MERCHANTS BANK
STRIKE SETTLED
Settlement of a strike against
the Merchants Bank of New York
was announced today by the bank
and by the Financial Employees'
Guild, local 96, United Office and
Professional Workers of America,
C. I. O.
The strike, which began Wednesday morning at the bank's
main office, 434 Broadway, and a
branch at 93 Canal street, involved about 90 employees. The
City's Division of Labor Relations
arranged for joint conferences,
which ended at 11 A. M today in
a one-year agreement. Employees
returned to work immediately.
Salary increases ranging from
$36 to $80 a month were won and
the minimum pay was raised
from $23 to $32 a week, with payment weekly instead of semimonthly.
A modified union shop, grievance and arbitration machinery,
overtime provisions and full pay
for time lost as a result of the
strike were included in the agreement
Representing the bank were
Howard Markel, president, and
Harold Dublirer, attorney. Union
Representatives were Leon W.
Berney. vice-president of the National Union; Peter K. Hawley,
executive director of local 96, and
a committee of nine employees.

THE NEW YORK TIMES. SATURDAY* NOVEMBER 9, 1946.
FINANCIAL —BUSINESS
Employes won salary increases
ranging from $36 to $80 a month
and minimum pay was raised from
$23 to $32 a week. They will be
paid hencefoVth on a weekly instead of semi-monthly basis. The
agreement included a modified
union shop, grievance and arbitraThe strike of employes of Mer- bank's main office. 434 Broadway tion machinery, overtime provichants Bank of New York was and a branch at 93 Canal Street. sions and full pay for time lost as
settled yesterday with the em- Joint conferences arranged b\ a result of the strike.
ployes winning substantial salary New York City's Division of Labor The bank was represented by
Relations ended at 11 A. M. with Howard Markel, president, and
increases and improvement in unioi
officials and bank representworking conditions. The strike by atives signing a one-year agree- Harold Dublirer, attorney. Union
were Leon W. Berninety members of Local 96, Unit- ment. Employes returned to work representatives
ney. vice president of the CIO;
ed Office and Professional Work- immediately.
Peter K. Hawley, executive direcers, CIO, began Wednesday at the
tor of Local 96. and a committee
of nine employes.

Merchants Bank Employes End Strike;
Win Pay Rises and Modified Union Shop

Today a mighty, growing campaign is underway to organize the
75,000 employes in financial institutions throughout the city. The
drive is centered in Wall Street
where union sound trucks and
picket lines, once an unusual sight
in the heart of the world's biggest
financial center, have become a
common, everyday affair.
the end of the war, although, ac- The spark plug for the dri c is
cording to the same Federal agency, the Financial Employes Guild, Lothe price of food alone has jumped cal 96 of the United Office and
25 per cent.
Professional Workers of America,
Yet little was done to improve the CIO, which has thrown the full
plight of these workers until a few weight of the biggest white-collar
months ago.
union in the country into the job

Strike Spotlights
Drive To Boost Pay
Of All Bank Workers
By BEN YABLONKY

When employes of the Merchants
Bank of New York walked out Wednesday in the first strike of its kind
in labor history, the walkout
focused attention on a jgroiip of
white collar workers who have become the forgotten men and women
in the country.
Long the victims of an industry
which has been traditionally open
shop and paternalistic in its labor
practices, employes of banks and
other financial institutions including
brokerage- houses are among the
Nation's lowest paid white collar
workers.
According to the Bureau of Labor
Statistics, the pay for more thaji
two thirds of all bank workers
hasn't been increased one cent since

« » » l M yed by Finonciol Employees Guild, Local 9«, UOPWA, CIO—30 East 29th Street, N. Y. C.
Digitized350
for FRASER


MAIL TO: FINANCIAL EMPLOYEES GUILD, LOCAL 96
United Office and Professional Workers of America, CIO
30 East 29th Street, New York 16, N. Y., MU. 3-9081
I hereby authorize the United Office and Professional Workers of America, CIO, to represent me for the purpose of
securing a salary increase and other improvements in working conditions.
Signature

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NAME (print)
HOME ADDRESS

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DEPT.

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EMPLOYER
BUSINESS ADDRESS
Strictly Confidential:
utmost confidence.

All Information will be treated in the
11-12-46