68 ASSOCIATION OF IRON, STEEL AND TIN WORKERS [200 



In order to safeguard the national funds, a board of 

 trustees is elected to exercise super\'ision. The board holds 

 the bonds of the officers; the amount of the security has 

 been increased as the funds of the organization became 

 larger. The trustees audit the accounts of the national 

 union every three months, and a copy of their report is 

 sent to each local union. They deposit with the president 

 a bond, $5000 in the case of the resident trustee and $1000 

 for each non-resident trustee. The officials are authorized 

 to secure these bonds from a reputable security company. 

 The funds of the Association are deposited at interest in 

 banking institutions from which withdrawals can be made 

 on short notice, and are distributed in several banks so as 

 to reduce risk.^^ 



The national association exercises very little control over 

 the local unions in matters of financial administration.^' 

 Local officers are selected by the local membership. If they 

 are remiss, the only expedient which the national union can 

 employ is the suspension of the local union from the rights 

 and privileges of the national organization — a step entailing 

 numerical and financial loss, and generally causing discord. 



The gravest problem in the fiscal administration of the 

 Association has been the inefficient collection of national 

 revenue. Through the gradual development of a card sys- 

 tem, the national union was able to enforce the regular pay- 

 ment of dues, since the cards of a local union that was in 

 arrears to the national organization were not to be accepted 

 by other local unions. A local union, in debt to the national 

 association^* (unless exempted because its members were 

 unemployed), received no support from the national union 

 in case of trouble, and was not entitled to representation in 

 the national convention." If a local union in arrears sent 



" Proceedings, 1891. p. 3501. 



** The only rules of tlie national union concerning local finances 

 are provisions relative to the safeguarding of local funds: the treas- 

 urer is required to give bond ; the local funds may not be divided, etc 



2* The charter of a local union failing to send a delegate or to 

 report for two successive sessions was rescinded (Constitution, 

 1874. p. 9). 



25 Vulcan Record, 1874, no. 14. p. 38. 



