CHAPTER VIII

INDUSTRIAL DIPLOMACY

Trade unions and federated unions--Formation of the National Civic

Federation--Notable industrial disputes are settled--Andrew

Carnegie dines with fighting labor leaders--Marcus Hanna, general

of industry--My chairmanship of the Board of Railway Labor

Arbitration--Our findings and recommendations--My chairmanship of

the New York Public Service Commission--Military necessities

impinge upon industrial relations--The President's Industrial

Conference of 1919-20.

When our industries were small, a strong human tie bound together

employer and worker. Following the expansion which began after the Civil

War, our industries resolved themselves into vast organizations and

corporations, and the relations between employer and worker became more

and more impersonal. The workers first organized into trade unions,

which presently expanded into federated unions similar to those which a

generation before had begun to be formed in Great Britain.

The rapid growth of our industries and the impersonal relations between

employer and employed made it apparent that social justice required that

reciprocal rights be recognized in order to bring about a better

understanding of a relationship which had already become increasingly

strained and often embittered, resulting in serious strikes and

lock-outs. One of the first organizations to meet this need was formed

in Chicago in 1894, following the Pullman strike. It was called the

Civic Federation of Chicago and was under the leadership of a number of

prominent men of that city, directed by Ralph M. Easley.

Six years later the scope of this organization was enlarged, and in the

name of the National Civic Federation a conference was called in

Chicago, in December, 1900, and the debate centered round the

proposition that in American industries voluntary conciliation was

preferable to compulsory arbitration. At that conference a committee was

selected whose duty it was to collect information at home and abroad

regarding measures of arbitration, and to advise with employers and

workmen in this country whenever and wherever possible.

In the following December, 1901, the National Civic Federation held a

conference in New York in the rooms of the New York Board of Trade and

Transportation. I was then president of that Board and was asked to

preside at the conference. After adjourning the sessions, we organized

the industrial department of the Federation, with a committee of twelve

men representing the public, twelve men representing employers, and

twelve men representing wage-earners. These three groups were headed,

respectively, by Grover Cleveland, Marcus A. Hanna, and Samuel Gompers.

All of their colleagues were men of national distinction and were

recognized leaders in their fields. From this larger committee of

thirty-six, an executive committee of five was selected, whose members

were as follows: Marcus A. Hanna, chairman; Samuel Gompers, first

vice-president; I, second vice-president; Charles A. Moore, treasurer;

and Ralph M. Easley, secretary.

The scope and plan of the industrial department was to promote

industrial peace in whatever way might seem best. We planned for a large

meeting in May, when two public sessions were to be held, one at Cooper

Union and one in the rooms of the New York Chamber of Commerce. We

issued a statement of our plan and scope and inaugurated a broad

educational campaign.

Meanwhile our department proved itself most practical. It actively

helped settle several disputes, notably the Albany street-car strike,

the disagreement between the National Metal Trades Association and the

International Association of Machinists, and the United States steel

strike. And it was instrumental in averting the threatened anthracite

coal strike.

The identical ideal that I held up in my opening address at the meeting

in January, 1901, I should hold up to-day: namely, that industrial

peace, to be permanent, cannot rest upon force, but must rest upon

justice, and in essential industries especially, upon a high sense of

responsibility to the public by both employer and employed. In no other

country are conditions, by nature and by principles of government,

better adapted to the equitable adjustment of the reciprocal rights,

duties, and privileges of labor and capital than in our own, because we

are a democratic people with no fixed class distinctions to separate us.

The laborer of to-day may be the capitalist of to-morrow, and vice

versa. Capital and labor are interdependent, not opponents; and it is on

the basis of that dependency that adjustments in the relationship

between them must be made. This ideal is, happily, more widely

recognized to-day than it was when the National Civic Federation was

organized.

I gave considerable attention to the work of the Federation for a number

of years. As the offices were in New York and the president and first

vice-president were both resident in other cities, the direction of the

organization between conferences largely fell upon me as second

vice-president, with the important assistance of the secretary, Mr.

Easley.

The Federation afforded a neutral forum where, under the chairmanship of

one of its officers, the disputants could discuss their grievances and

arrive at an understanding. Many times the growing bitterness between

them was checked and a strike or lock-out averted. The fact was often

borne in upon me how many of these industrial disputes grew out of

misunderstandings which were cleared away when men assembled around a

table and frankly discussed their differences.

To further the work and interests of the Federation I brought together

in social relationship, at several dinners at my home, the

representatives of all three groups; namely, the public, the

wage-earner, and the employer. One day Andrew Carnegie expressed the

desire to meet the labor leaders who had instigated the strike in the

Carnegie works which resulted in the Homestead riots. Accordingly I

arranged a dinner, to which I invited a number of the men of the labor

wing of the Federation, as well as some others of the committee,

together with Messrs. Wighe and Schaeffer, of Pittsburgh, officers of

the Amalgamated Union, who had led the Homestead strike.

Carnegie knew these leaders well, and they knew him. He called them by

their Christian names and they called him "Andy." They said that night

that they and their colleagues in the union had always believed that

that strike and riot would never have taken place had "Andy" been

present. As a matter of fact, Carnegie's relations with his men had

always been very friendly. He was unjustly accused of the responsibility

for the Homestead riots, which might not have occurred had he, instead

of Mr. Frick, been in charge of the employers' side. Mr. Carnegie at the

time was in Scotland.

Only a short while before this Carnegie dinner, Marcus Hanna had died,

and our executive committee offered to Mr. Carnegie the presidency of

the Federation, to succeed Mr. Hanna. Mr. Carnegie was gratified and

very much touched, especially by the implied confidence on the part of

the twelve labor men of the Federation; but on account of his advanced

years he felt that he could not give the position the attention it

deserved. He was, however, glad to become a member of the executive

committee, and as such revealed himself in a most favorable light.

Beneath his Scotch nimbleness of mind there was a broad, tolerant, and

lovable heart. He met the laboring men, not as their superior, but as

one having a genuine brotherly interest in their welfare. It became very

evident to us all why he was so highly regarded by his workmen, and why

he had so much influence with them: they trusted to his fairness and had

a real affection for him personally. In his Autobiography he makes

feeling reference to his connection with the Federation.

Marcus Hanna, who was known to the country chiefly through his political

activities, was looked upon as the leader of a group of rich men who had

won political power by commercializing our political system; and was

regarded by many as an evil influence. But in connection with the great

industrial interests that he had built up in Ohio and elsewhere--coal

mines, iron works, shipping, street railways--little was known of him.

He had shown great capacity as an industrial general in the management

of his men, winning their good-will by fair and equitable treatment; and

it is said he never had a strike in the industries he administered. He

was highly regarded by the labor leaders, who had confidence in his

fairness to the wage-earners. He did not oppose, as did so many of the

employers of his time, the organization of labor unions. On the

contrary, he believed that such organizations were necessary adequately

to protect the rights of the workers.

As chairman of the executive committee of the Civic Federation, Hanna

displayed this better side of his character and his great ability as an

organizer and a leader. Here he was not the cunning politician, but the

genial head of an industry who recognized the just demands of the

wage-earners and was always generous with them in regard to compensation

and labor conditions.

The work we did and the experiences we encountered as officers of the

Federation, each group coming into close contact with the others and

adjusting with them industrial differences, had a decided educational

value for us all. For myself, the study I gave during these years to the

relations between capital and labor, and my active part in the

conciliation and arbitration of labor disputes, provided me with an

intensely practical background and preparation for the secretaryship of

the Department of Commerce and Labor, which later fell to my lot. It was

this experience and my personal acquaintance with the representatives of

capital and labor all over the country that induced me, as head of that

Department, to organize the Council of Commerce and to plan the Council

of Labor, to both of which I shall refer more specifically later.

The Board of Railway Labor Arbitration of 1912 was perhaps the most

important labor arbitration body brought into existence up to that time.

Its decisions affected the whole Eastern district: that is, that section

of our country lying east of Chicago and East St. Louis, and north of

the Ohio River to Parkersburg, West Virginia, and of the Potomac River

to its mouth. Fifty-two railroad lines and over thirty-one thousand

engineers were involved. The latter negotiated through the Brotherhood

of Locomotive Engineers.

The representatives of the Brotherhood and the members of the Conference

Committee of Managers of the railroads held several conferences in

March, 1912, at which the Brotherhood made certain requests. The

conferences ended with the refusal of the roads to grant these requests

or any part of them, whereupon ninety-three per cent of the members

voted for a strike. Charles P. Neill, United States Commissioner of

Labor, and Judge Martin A. Knapp, of the United States Commerce Court,

tendered their friendly offices under the Erdman Act, but were unable to

mediate, and the contending parties would not agree to arbitrate under

the provisions of the Erdman Act. It was then decided to submit the

dispute to a board of arbitration composed of seven members, one to be

chosen by each side, and those two to agree on the other five within

fifteen days of their own appointment.

The roads chose Daniel Willard, president of the Baltimore and Ohio

Railroad, and the Brotherhood chose P. H. Morrissey, former grand master

of the Brotherhood of Railroad Trainmen. At the end of fifteen days,

these two had not succeeded in agreeing upon the other five members of

the board, though they had agreed upon a list from which the five might

be chosen. A committee consisting of Mr. Neill, Judge Knapp, and Chief

Justice White, of the Supreme Court of the United States, then chose

five names from that list, and the final personnel of the board was as

follows: Dr. Charles R. Van Hise, of Madison, Wisconsin; Frederick N.

Judson, of St. Louis; Dr. Albert Shaw, Otto M. Eidlitz, and myself, of

New York, in addition to Mr. Morrissey and Mr. Willard.

[Illustration: _Copyright by American Press Association_

MEMBERS OF THE RAILWAY BOARD OF ARBITRATION

From left to right: Standing: Daniel Willard, Otto M. Eidlitz, Albert

Shaw, P.H. Morrissey Sitting: Charles R. Van Hise, Oscar S. Straus,

Frederick N. Judson]

On July 12th the board met and organized, electing me as chairman. The

decisions of the board were to be binding for one year and thereafter

could be terminated by either side upon a thirty days' notice. For two

weeks we held hearings, morning and afternoon, at the Oriental Hotel,

Manhattan Beach, New York. When the hearings were over, the board

adjourned until early September, when the work of making the awards was

begun. Because of my nomination for Governor by the Progressive Party at

the time, I found it advisable to relinquish the chairmanship of the

board to Dr. Van Hise, although I continued my membership and active

interest to the end.

The hearings were reported and consisted of 1250 pages of testimony. The

questions that confronted the board were not alone whether or not the

wages in a given case should be raised, but, if it was found that the

rate was inadequate, by what margin should it be increased? It was

fairly difficult to arrive at principles of standardization applicable

to so many roads, and to fix a basis of differentiation for the many and

complicated branches of employment. The whole subject, however, had our

most careful and painstaking consideration. We took up the whole

intricate problem of the running of railroads, with relation to the

several kinds of work performed by the engineers, in passenger service,

freight service, in switching, and in yard work, bearing in mind always

that railways were public utilities and that the necessities and comfort

of the whole people depended upon their functioning; and that therefore

the necessity for uninterrupted service far transcended the interests of

either the roads on the one side or the employees on the other.

Our decisions as finally printed made a book of one hundred and

twenty-three pages. One of our chief recommendations was that National

and State wage commissions be created which should function in relation

to labor engaged in public utilities as the public service commissions

functioned toward capital. I quote from the report:

Especially for the public utilities is it important that labor

should have a just wage, and if the existing wages are not

adequate, they should be increased. If a just increase in wages

places the public utilities in a position that does not enable them

to secure a fair return upon capital invested and maintain a proper

reserve, they should be allowed to increase their rates until they

are in that position.

Another point upon which we laid stress was the limitation of the right

to strike:

While it is clear from the public point of view that a concerted

strike of railway employees for a great region would be as

intolerable as a strike of the postal clerks; on the other hand,

the position of the employees is a very natural one. They feel

under existing conditions that the power to strike is their only

weapon of defense against employers and the only means by which

they can enforce a betterment of their conditions of service. They

realize, too, that the principle of concerted action, for all the

railroads in a great section of the country, gives them a most

effective weapon, and they are naturally loath to relinquish or

impair it.

While this is the situation under the present conditions, and the

railway employees feel that they cannot surrender their right to

strike, the necessity would no longer exist for the exercise of

this power, if there were a wage commission which would secure them

just wages.

Finally, it is the belief of the Board that in the last analysis

the only solution--unless we are to rely solely upon the

restraining power of public opinion--is to qualify the principle of

free contract in the railroad service. A strike in the army or navy

is mutiny and universally punished as such. The same principle is

applied to seamen because of the public necessity involved. A

strike among postal clerks, as among the teachers of our public

schools, would be unthinkable. In all these cases, the employment,

to borrow a legal phrase, is affected with a public use; and this

of necessity qualifies the right of free concerted action which

exists in private employments.

However, if the principle be accepted that there are certain

classes of service thus affected with a public interest and men who

enter them are not free concertedly to quit the service, then these

men must be guarded in the matter of wages and conditions by public

protection; and this it is believed can best be done through an

interstate wage commission.

The report was signed by six members of the board, Mr. Willard adding an

explanatory statement. Mr. Morrissey wrote a dissenting opinion. For a

number of years the findings of this board, with slight alterations,

continued to be effective in adjusting wages for the different kinds of

service among the engineers, and in governing conditions and number of

working hours of the employees.

* * * * *

The President's Industrial Conference of 1919-20, of which I was a

member, was of value chiefly in that it correlated the best ideas in

practice throughout the country with regard to the prevention and relief

of industrial unrest and the betterment in general of the relationship

between employer and employee, and that it published suggestions based

on these ideas, of which the main points were the following:

1. The parties to the dispute may voluntarily submit their

differences for settlement to a board, known as a Regional

Adjustment Conference. This board consists of four representatives

selected by the parties, and four others in their industry chosen

by them and familiar with their problems. The board is presided

over by a trained government official, the regional chairman, who

acts as a conciliator. If a unanimous agreement is reached, it

results in a collective bargain having the same effect as if

reached by joint organization in the shop.

2. If the Regional Conference fails to agree unanimously, the

matter, with certain restrictions, goes, under the agreement of

submission, to the National Industrial Board, unless the parties

prefer the decision of an umpire selected by them.

3. The voluntary submission to a Regional Adjustment Conference

carries with it an agreement by both parties that there shall be no

interference with production pending the processes of adjustment.

4. If the parties, or either of them, refuse voluntarily to submit

the dispute to the processes of the plan of adjustment, a Regional

Board of Inquiry is formed by the regional chairman, of two

employers and two employees from the industry, and not parties to

the dispute. This Board has the right, under proper safeguards, to

subpoena witnesses and records, and the duty to publish its

findings as a guide to public opinion.

5. The National Industrial Board in Washington has general

oversight of the working of the plan.

6. The plan is applicable also to public utilities, but in such

cases, the government agency, having power to regulate the service,

has two representatives in the Adjustment Conference. Provision is

made for prompt report of its findings to the rate regulating body.

The Conference makes no recommendation of a plan to cover steam

railroads and other carriers, for which legislation has recently

been enacted by Congress. (Esch-Cummins Bill.)

7. The plan provides machinery for prompt and fair adjustment of

wages and working conditions of government employees. It is

especially necessary for this class of employees, who should not be

permitted to strike.

8. The plan involves no penalties other than those imposed by

public opinion. It does not impose compulsory arbitration. It does

not deny the right to strike. It does not submit to arbitration the

policy of the "closed" or "open" shop.

9. The plan is national in scope and operation, yet it is

decentralized. It is different from anything in operation

elsewhere. It is based upon American experience and is designed to

meet American conditions. It employs no legal authority except the

right of inquiry. Its basic idea is stimulation to settlement of

differences by the parties in conflict, and the enlistment of

public opinion toward enforcing that method of settlement.

Unfortunately nothing came of the painstaking work of this conference

beyond the publishing of its final report of March 6, 1920.

* * * * *

The chairmanship of the New York Public Service Commission did not at

all appeal to me when first Governor Whitman offered it to me. The

commission as it then existed had unfortunately lost public confidence

to a large extent, and I felt that it was not the kind of service for

which I was especially qualified. However, it was pointed out to me that

there was constant danger of strikes on the part of the thousands of

workmen engaged in the construction of subway and elevated extensions,

and an added appeal was made to me in view of the considerable

experience I had had in adjusting labor difficulties. And so, after

declining, I was finally prevailed upon by the Governor and the late

George W. Perkins, in December, 1915, to accept this arduous duty.

As soon as it became known that I had accepted the chairmanship, the

Governor received a communication from William Henry Hodge, the

distinguished engineer, announcing his willingness to serve on the

commission, although before my selection he had refused such

appointment. The other members of the commission were: Charles E.

Hervey, William Hayward, and Traverse H. Whitney. Messrs. Hayward and

Hodge left the commission, when we entered the war, to join the army.

Mr. Hayward was commissioned Colonel, having organized the 15th New

York, afterward the 369th United States Infantry, a regiment of colored

men who performed gallant service in France. Mr. Hodge was commissioned

Major and was promoted to Lieutenant-Colonel, and gave his splendid

talents to the services of his country in building roads to the battle

fronts of France. Due to his strenuous labors over there, this gifted

engineer and exemplary patriot died shortly after the armistice.

The commission had charge of the building of the subways and elevated

lines then in process, as well as the regulation of traffic and all

public utilities. As the war progressed, it became clearer that our

country would inevitably be drawn in, and therefore increasingly

important that nothing should prevent the functioning of our public

utilities. And accordingly it was not long before my services as

adjuster and arbitrator of labor difficulties were needed. The cost of

living was rapidly rising, and there was great unrest among laborers;

and the demand for skilled and unskilled labor grew day by day. When our

country entered the war, it was highly important for the moral effect

upon our own people, as well as to avoid giving encouragement to our

enemies, that the transportation system of our greatest metropolis

should operate without interruption. During the following year and a

half I was able to adjust a dozen or more important labor disputes and

to prevent a number of strikes. The situation was complicated by the

fact that the laborers were not employees of the commission, but of the

several contractors to whom contracts had been awarded under conditions

of fierce competition, so that every increase in wages materially

affected their profits and in the end caused many of them to suffer

considerable loss. I had to appeal to the patriotism of both sides, and

it is a pleasure to be able to state that in every instance the response

was most gratifying.

Under Four Administrations, from Cleveland to Taft Recollections of Oscar S. Straus ... · 第 8 / 17 章