CHAPTER X

THE PLACE OF TRADE UNIONISM IN THE STATE

[1890-1920]

In 1890 Trade Union organisation had already become a lawful

institution; its leading members had begun to be made members of Royal

Commissions and justices of the peace; they were, now and then, given

such Civil Service appointments as Factory Inspectors; and two or three

of them had won their way into the House of Commons. But these advances

were still exceptional and precarious. The next thirty years were to

see the legal position of Trade Unionism, actually in consequence of

renewed assaults, very firmly consolidated by statute, and the Trade

Union claim to participation in all public enquiries, and to nominate

members to all governmental commissions and committees, practically

admitted. Trade Union representatives have won an equal entrance to

local bodies, from Quarter Sessions and all the elected Councils down

to Pension and Food and Profiteering Act Committees; an influential

Labour Party has been established in Parliament; and most remarkable of

all, the Trade Union itself has been tacitly accepted as a part of the

administrative machinery of the State.

It is a characteristic feature of Trade Union history, at the end as

at the beginning of the record of the past hundred years, that we

have to trace the advance of the Movement through a series of attacks

upon Trade Unionism itself. It is in this light that we regard the

Royal Commission on Labour set up by the Conservative Government

of 1891. Its professed purpose was to enquire into the relations

between Capital and Labour, with a view to their improvement. But its

composition was significantly weighted against the wage-earners. It is

true that, in the large total membership, seven Trade Union officials

were included, among them being Mr. Tom Mann; but whilst the great

employers who sat on the Commission were supported by legislators,

lawyers, and economists of their own class, having substantially

their own assumptions and opinions, the Trade Unionist minority was

allowed no expert colleagues. From the start the Commission set

itself--probably quite without any consciousness of bias--to discredit

alike the economic basis of the workmen’s combinations, the methods

and devices of Trade Unionism, and the projects of social and economic

reform that were then making headway in the Trade Union world. In the

end, after two years’ exhaustive enquiry, which cost the nation nearly

£50,000, the majority of the Commissioners either found it impossible,

or deemed it inexpedient, to report anything in the nature of an

indictment against Trade Unionism in theory or practice; and could not

bring themselves to recommend any, even the slightest, reversal of

what had, up to the very date of the report, been conceded or enacted,

whether with regard to the recognition of Trade Unions, the collective

regulation of wages, the legal prescription of minimum conditions of

employment or the political activities of the workmen’s combinations.

The majority of the Commissioners--it is significant that they were

joined by three out of the seven Trade Unionists--contented themselves

with deprecating, and mildly arguing against, every one of the projects

of reform that were then in the air. What is interesting is the fact

that the most reactionary section of the Commission nearly persuaded

their colleagues of the majority to recommend putting Trade Unions

compulsorily into the strait-jacket of legal incorporation, involving

them in corporate liability for the acts of their officers or agents,

with the object of inducing the Unions to enter--not, as is usual

in Collective Bargaining, into treaties defining merely _minimum_

conditions--but into legally binding obligations with the employers, in

which the Unions would become liable in damages if any of their members

refused to work on the collectively prescribed terms. At the last

moment the majority of the Commissioners recoiled from this proposal,

which was left to be put forward as a separate report over the names of

seven Commissioners. The Labour Minority Report, signed by four[651]

out of the seven Trade Unionist Commissioners, whilst protesting

strongly against any interference with Trade Union freedom, took the

form of a long and detailed plea for a large number of immediately

practicable industrial, economic, and social reforms, envisaged as

step by step progress towards a complete transformation of the social

order.[652]

The Commission had no direct results in legislation or administration;

but the Board of Trade set up a Labour Department, appointed a number

of Trade Unionists as its officials or correspondents, and started the

admirably edited monthly _Labour Gazette_. The next move came in the

form of an assault on the legal position of Trade Unionism, which, in

one or other manifestation, held the stage for more than a decade.

For a quarter of a century the peculiar legal status which had been

conferred upon a Trade Union by the Acts of 1871-76 was not interfered

with by the lawyers. At the close of the nineteenth century, when

Trade Unionism had by its very success again become unpopular among the

propertied and professional classes, as well as in the business world,

a new assault was made upon it.

ACTIONS FOR DAMAGES

The attempt to suppress Trade Unionism by the criminal law was

practically abandoned.[653] But officers of Trade Unions found

themselves involved in civil actions, in which the employers sued them

for damages caused by Trade Union activity which the judges held to

be, although not criminal, nevertheless wrongful. What could no longer

be punished by imprisonment with hard labour might at any rate be

penalised by heavy damages and costs, for which the Trade Unionist’s

home could be sold up. The Trade Unions in 1875-80, though, as we have

described, warned by their friendly legal advisers, had not realised

the importance of insisting that the elastic and indeterminable law

of conspiracy should be put on a reasonable footing; and though they

were, by 1891, fairly safe from its use to reinforce the criminal

law, the lawyers found means, under the figment of “conspiracy to

injure,” to bring under the head of torts or actionable wrongs the

most ordinary and non-criminal acts of Trade Union officers which

would have been, if done by one person only, without conspiracy, no

ground for legal proceedings. After-ages will be amazed at the flagrant

unfairness with which the conception of a “conspiracy to injure”

was applied at the close of the nineteenth century. The greatest

possible injury to other people’s income or business, not involving

the violation of a recognised legal right, if committed by employers

for the augmentation of their profits (even in “restraint of trade,”

by means of the deliberate conspiracy of an association), was held

not to be actionable.[654] But it was held to be an actionable wrong

to the employer for a couple of men to wait in the street, in a town

many miles distant, for the purpose of quite quietly and peacefully

persuading a workman not to enter into a contract of service. The

most pacific “picketing” of an employer’s premises, though admittedly

no longer a criminal act, was, if done in concert, held to be an

actionable wrong. If a Trade Union Secretary published a perfectly

accurate list of firms which were “non-Union,” with the intention of

warning Trade Unionists not to take service with them, this gave each

of the “blacklisted” firms the right to sue him for damages. It was

held to be ground for damages for a Trade Union official merely to

request one firm not to supply goods to another; or to ask an employer

not to employ any particular person; or even to urge the members of

his own Union quite lawfully to come out on strike on the termination

of their engagement of service, if the object of the strike was

considered by the Court to be to put pressure on the will of some

other employer or some other workman. And whilst any solicitation or

persuasion to break a contract of service by a Trade Union official

was certainly actionable, it became doubtful whether he would not be

equally liable if he had carefully abstained from, and had really not

intended, any such suggestion, whenever the members of his Society

became so influenced by his action, or were thought by the Court to

have been so influenced, that they, spontaneously and against his

desires, impetuously came out on strike before their notices had

expired.[655] It was a further aggravation, of which less advantage

was actually taken by employers in this country than by those of the

United States, that where the Court was convinced that an actionable

wrong was threatened or intended, it was possible very summarily to

obtain an injunction against its commission, any breach of which was

punishable by imprisonment for contempt of Court. It became, therefore,

at least theoretically possible that almost any action by a Trade Union

by which an employer felt himself injured might be summarily prohibited

by peremptory injunction; and some things were thus prohibited, even in

this country.

THE TAFF VALE CASE

All this development of the Law of Conspiracy and the Law of

Torts, though it went far to render nugatory the intention of the

Legislature in 1871-76 to make lawful a deliberately concerted

strike, left unchallenged the position of the Trade Union itself

as immune from legal proceedings against its corporate funds, an

anomalous position which everybody understood to have been conceded

by the Acts of 1871-76. In 1901, after thirty years of unquestioned

immunity, the judges decided, to the almost universal surprise of the

legal profession as well as of the Trade Union world, that this had

not been enacted by Parliament. In 1900 a tumultuous and at first

unauthorised strike had broken out among the employees of the Taff

Vale Railway Company in South Wales, in the course of which there

had been a certain amount of tumultuous picketing, and other acts of

an unlawful character. In the teeth of the advice of the Company’s

lawyers, Beasley, the General Manager, insisted on the Company suing

for damages, not the workmen guilty of the unlawful acts, but the

Amalgamated Society of Railway Servants itself; and on fighting the

case through to the highest tribunal. After elaborate argument, the Law

Lords decided that the Trade Union, though admittedly not a corporate

body, could be sued in a corporate capacity for damages alleged to

have been caused by the action of its officers, and that an injunction

could be issued against it, restraining it and all its officers, not

merely from criminal acts, but also from unlawfully, though without

the slightest criminality, causing loss to other persons. Moreover, in

their elaborate reasons for their judgement, the Law Lords expressed

the view that not only an injunction but also a mandamus could be

issued against a Trade Union, requiring it to do anything that any

person could lawfully call upon it to do; that a registered Trade

Union could be sued in its registered name, just as if it were a

corporation; that even an unregistered Trade Union could be made

collectively liable for damages, and might be sued in the names of

its proper officers, the members of its executive committees and its

trustees; and that the damages and costs could be recovered from the

property of the Trade Union, whether this was in the hands of separate

trustees or not. The effect of this momentous judgement, in fact,

was, in flagrant disregard of the intention of the Government and of

Parliament in 1871-76, to impose upon a Trade Union, whether registered

or not, although it was still denied the advantages and privileges of

incorporation, complete corporate liability for any injury or damage

caused by any person who could be deemed to be acting as the agent

of the Union, not merely in respect of any criminal offence which he

might have committed, but also in respect of any act, not contravening

the criminal law, which the judges might hold to have been actionable.

The Amalgamated Society of Railway Servants, which had not authorised

the Taff Vale strike nor any wrongful acts that were committed by the

strikers, but which, after the strike had occurred, had done its best

to conduct it to a successful issue, and had paid Strike Benefit, was

compelled to pay £23,000 in damages, and incurred a total expense of

£42,000.[656] It has been estimated that, from first to last, the

damages and expenses in which the various Trade Unions were cast, owing

to this, and the other judgements against Trade Unions and Trade Union

officials personally, amounted to not less than £200,000.

The little world of Trade Union officials, already alarmed at

the prospect of being individually sued for damages, was thrown

into consternation by the Taff Vale judgement, which seemed to

destroy, at a blow, the status that had been, with so much effort,

acquired in 1871-76. The full extent of the danger was not at first

apprehended. Why, it was asked, should not the Trade Union rules,

and the instructions of Trade Union Executive Committees, expressly

forbid the commission by officials of any wrongful acts? It was only

gradually realised that, under the figment of “conspiracy to injure”

that the lawyers had elaborated, even the most innocent acts, which

an individual could quite lawfully commit, might be held wrongful and

actionable if they were committed by or on behalf of an association

to the pecuniary injury of any other person; and that there was no

assignable limit, as the cases had shown, either to what might be

held to be wrongful acts, or to the nature or amount of the damage

that the Courts might hold to have been caused by such acts in the

ordinary course of any extensive strike. Moreover, under the ordinary

law of agency, the most explicit prohibition of unlawful acts in the

rules of the association, coupled with the most scrupulous care in the

Executive Committee in framing its instructions to its officials, would

not prevent the Trade Union from being held liable for any pecuniary

injury that might be caused, even in defiance of instructions and in

disobedience to the rules, by any of its officers acting within the

scope of their employment; or, indeed, by any member, paid or unpaid,

whom the Courts might hold to be acting as the agent of the Union.

And as every stoppage of work, however lawful, necessarily involved

financial loss to the employers, it could be foreseen that even the

most carefully conducted strike might be made at least the occasion

for costly litigation, and probably the opportunity for getting the

Trade Union cast in swingeing damages. The immediate result was very

largely to paralyse the Executive Committees and responsible officials

of all Trade Unions, and greatly to cripple their action, either in

securing improvements in their members’ conditions of employment or

in resisting the employers’ demands for reductions. In particular,

the general advances for which the railway workers were asking were

delayed. The capitalists did not fail to use the opportunity to break

down the workmen’s defences. Trade Unionism had to a great extent lost

its sting.[657]

Though it took some time for the Trade Union world to realise the

peril, the effect on the Movement was profound. Up and down the country

every society, great and small, and practically every branch, rallied

in defence of its right to exist. The first result was to make the

newly-formed Labour Party, which will be hereafter described, and which

had hitherto hung fire, into an effective political force. The effect

of the Taff Vale judgement was, in 1902-3, to double, and by 1906-7 to

treble the number of adhering Trade Unions, and to raise the affiliated

membership of the Party to nearly a million. As the Dissolution of

Parliament approached, the Trade Unions organised a systematic canvass

of all prospective candidates, making it plain that none would receive

working-class support unless they pledged themselves to a Bill to

undo the Taff Vale judgement and put back Trade Unionism into the

legal position that Parliament had conferred upon it in 1871. When the

General Election at last took place, in January 1906, the Labour Party

(still known as the Labour Representation Committee) put no fewer than

fifty independent candidates in the field, of whom, to the astonishment

of the politicians, twenty-nine were at the head of the poll.[658]

THE TRADE DISPUTES ACT

The first claim of the Labour Party was for the statutory reversal of

the Taff Vale judgement, which every one now admitted to be necessary.

The question was what should be done. There were, substantially,

only two alternatives. One was that, in view of the difficulty of

effectually maintaining it against legal ingenuity, the Trade Unions

should forgo their position of being outside the law, and should

claim, instead, full rights, not only of citizenship, but actually

of being duly authorised constituent parts of the social structure,

lawfully fulfilling a recognised function in industrial organisation.

But for the Trade Union to become, not merely an instrument of defence,

but actually an organ of government in the industrial world, required

a great advance in public opinion. It assumed an explicit recognition

of the legitimate function of the Trade Union, as the basis of a

Vocational Democracy, exercising a definite share in the control and

administration of industry. It involved a complete transformation of

both the criminal and the civil law, so that workmen’s combinations

and strikes, together with peaceful picketing in its legitimate form,

should be unreservedly and explicitly legalised; the law of civil

conspiracy practically abrogated, so that nothing should be unlawful

when done in concert with others which would not be unlawful if done

by an individual alone; and reasonable limits set to liability for

the acts of agents and to the scope for injunctions, so that a Trade

Union Executive would be able both to know the law and to be ensured

against its perversion. The alternative was to make no claim for the

profound advance in Trade Union status that would be involved in such

a policy; to forgo any hope of satisfactory or complete amendment of

the law, and merely to re-enact the exceptional legislation of 1871,

this time specifically insisting that a Trade Union, whether registered

or not, should be put outside the law, and made expressly immune from

legal proceedings for anything, whether lawful or unlawful, done by

its officers or by itself. The outgoing Conservative Government had

appointed in 1903 a small Royal Commission to consider the state of the

law as to Trade Unionism, before which the Trade Unions had refused

to give evidence, because the Commission, which was made up almost

entirely of lawyers, included no Trade Unionist. This Commission, it

is believed, was told privately not to report until after the General

Election, in order that the Conservative Government might not be

embarrassed by the dilemma. Early in 1906 it reported in favour of the

Trade Union accepting full responsibility for its own actions, subject

to considerable, but far from adequate, amendments of the law.[659]

This proposal was definitely rejected by the Labour Party, which

introduced a Bill of its own, merely restoring the position of 1871.

When the Liberal Government brought in a Bill very much on the lines

of the Commission’s Report, there was a dramatic exhibition of the

electoral power that Trade Unionism, once it is roused, can exercise

in its own defence. Member after member rose from different parts of

the House to explain that they had pledged themselves to vote for the

complete immunity which Trade Unions were supposed to have been granted

in 1871. Nothing less than this would suffice; and the most powerful

Government hitherto known was constrained, in spite of the protests

of lawyers and employers, to pass into law the Trade Disputes Act of

1906.[660]

The Trade Disputes Act, which remains (1920) the main charter of Trade

Unionism, explicitly declares, without any qualification or exception,

that no civil action shall be entertained against a Trade Union in

respect of any wrongful act committed by or on behalf of the Union; an

extraordinary and unlimited immunity, however great may be the damage

caused, and however unwarranted the act, which most lawyers, as well

as all employers, regard as nothing less than monstrous.[661] At the

same time the Act, whilst not abrogating or even defining the law

as to civil conspiracy, gives three exceptional privileges to Trade

Union officials by declaring that, _when committed in contemplation

or furtherance of a trade dispute_, (1) an act done in concert shall

not be actionable if it would not have been actionable if done

without concert; (2) attendance solely in order to inform or persuade

peacefully shall be lawful; and (3) an act shall not be actionable

merely by reason of its inducing another person to break a contract

of employment, or of its being an interference with another person’s

business, or with his right to dispose of his capital or his labour as

he chooses. These exceptional statutory privileges for the protection

of Trade Union officials in the exercise of their lawful vocation, and

of “pickets” in the performance of their lawful function--in themselves

a triumph for Trade Unionism--have ever since excited great resentment

in most of those who are not wage-earners. Some friends of the Trade

Unions expressed at the time the doubt whether the policy thus forced

upon Parliament would prove, in the long run, entirely in the interest

of the Movement; and whether it would not have been better to have

chosen the bolder policy of insisting on a complete reform of the law,

to which, when properly reformed, Trade Unions should be subject in the

same way as any other associations. The lawyers, as it proved, were not

long in taking their revenge.

THE OSBORNE JUDGEMENT

This time the legal assault on Trade Unionism took a new form. The

result of the dramatic victory of the Trade Disputes Act, and of

the activity of the Labour members in the House of Commons, was

considerably to increase the influence of the Labour Party in the

country, where preparations were made for contesting any number of

constituencies irrespective of the convenience of the Liberal and

Conservative parties. The railway companies, in particular, found the

presence in Parliament of the secretary of the railwaymen’s principal

Trade Union very inconvenient. Within a couple of years of the passing

of the Trade Disputes Act, on July 22, 1908, one of the members of

the Amalgamated Society of Railway Servants took legal proceedings

to restrain it from spending any of its funds on political objects,

contending that this was beyond the powers of a Trade Union. Such a

contention found no support among eminent lawyers, several of whom

had formally advised that Trade Unions were undoubtedly entitled

to undertake political activities if their rules authorised such

action and a majority of their members desired it. W. V. Osborne, the

dissentient member of the Amalgamated Society of Railway Servants, took

a different view; and, liberally financed from capitalist sources,

carried his case right up to the highest tribunal. As a result, in

December 1909, as in 1825, 1867-71, and 1901-6, every Trade Union in

the land found its position and status once more gravely impugned.

In what became widely known as the Osborne Judgement, the House of

Lords, acting in its judicial capacity as the highest Court of Appeal,

practically tore up what had, since 1871, been universally understood

to be the legal constitution of a Trade Union.[662]

The decision of the judges in the Osborne case throws so much light,

not only on the status of Trade Unionism in English law, but also on

the animus and prejudice which the Trade Disputes Act and the Labour

Party had excited, that we think it worth treating at some length.

Formally this judgement decided only that W. V. Osborne, a member of

the Walthamstow Branch of the Amalgamated Society of Railway Servants,

was entitled to restrain that Trade Union from making a levy on its

members (and from using any of its funds) for the purpose of supporting

the Labour Party, or maintaining Members of Parliament. But in the

course of that decision a majority of the Law Lords, therein following

all three judges of the Court of Appeal, laid it down as law (and

thereby made it law until Parliament should otherwise determine), (_a_)

that although Parliament has always avoided any express incorporation

of Trade Unions, these were all now to be deemed to be corporate

bodies, formed under statute, and not unincorporated groups of

individual persons; (_b_) that it follows, by an undoubted principle

of English law, that a body corporate, created under statute, cannot

lawfully do anything outside the purposes for which the statute has

incorporated it; (_c_) that as the purposes for which Trade Unions are

incorporated have to be found somewhere authoritatively given, the

definition which Parliament incidentally enacted in the Trade Union Act

of 1876 must be taken to enumerate, accurately and exhaustively, all

the purposes which any group of persons falling within that definition

can, as a corporate body, lawfully pursue; and (_d_) that the payment

of the salaries and election expenses of Members of Parliament, and

indeed, any political action whatsoever, not being mentioned as one of

these purposes and not being considered by the judges incidental to

them, could not lawfully be undertaken by any Trade Union, even if it

was formed, from the outset, with this purpose duly expressed in its

original rules, and even if all its members agreed to it, and continued

to desire that their organisation should carry it out.

This momentous judgement destroyed, at a blow, the peculiar legal

status which Frederic Harrison had devised for Trade Unionism in

1868, and which Parliament thought that it had enacted in 1871-76.

The statutes of 1871 and 1876, which had always been supposed to

have enlarged the freedom of Trade Unions, were now held to have

deprived these bodies of powers that they had formerly enjoyed. It

was not, as will be seen, a question of protecting a dissentient

minority. Whether the members were unanimous, or whether they were

nearly evenly divided, did not affect the legal position. Trade Unions

found themselves suddenly forbidden to do anything, even if all their

members desired it, which could not be brought within the terms of a

clause in the Act of 1876, which Parliament (as Lord James of Hereford

emphatically declared) never meant to be taken in that sense. “What

is not within the ambit of that statute,” said Lord Halsbury, “is, I

think, _prohibited_ both to a corporation and a combination.” This was

the new limitation put on Trade Unions. All their educational work was

prohibited; all their participation in municipal administration was

forbidden; all their association for common purposes in Trades Councils

and the Trades Union Congress became illegal. The judges stopped the

most characteristic and, as was supposed, the most constitutional of

the three customary ways that (as we have shown in our _Industrial

Democracy_) Trade Unions pursued of enforcing their Common Rules,

namely, the Method of Legal Enactment; grave doubt was thrown on

the legality of some of the developments of their second way, the

Method of Mutual Insurance; whilst the way that the House of Lords

expressly prescribed was exactly that which used to give rise to so

much controversy, namely, the Method of Collective Bargaining, with its

concomitant of the Strike. So topsy-turvy a view of Trade Unionism, a

view which seems to have arisen from the judges’ ignorance of its two

centuries of history, could not have survived open discussion, and

therefore could hardly have been taken by even the most prejudiced

Parliament.

THE DEVELOPMENT OF ENGLISH LAW

What was the explanation of the view of the Trade Union constitution

that the judges took? The English Courts of Justice, it must be

remembered, have peculiar rules of their own for the construction of

statutes. When the plain man wants to know what a document means, he

seeks every available explanation of the intention of the author.

When the historian inquires the purpose and intention of an Act of

Parliament, he considers all the contemporary evidence as to the

minds of those concerned. The Courts of Law, for good and sufficient

reasons, debar themselves from going behind the face of the document,

and are therefore at the mercy of all the unstudied ineptitudes

of House of Commons phraseology. Along with this rigour as to the

intention of a statute, the English and American judges combine a

capacity for developments of doctrine in the form of legal principles

which is, we believe, unequalled in other judicial systems. Now, the

subject of corporations is one of those in which there had been,

among the past generations of English lawyers, a silent and almost

unselfconscious development of doctrine, of which, in Germany, Gierke

had been the great inspirer, and Maitland in this country the brilliant

exponent.[663] Our English law long rigidly refused to admit that

a corporate entity could arise of itself, without some formal and

legally authoritative act of outside power. How, it was asked, except

by some definite act of creation by a superior, could the _persona

ficta_ come into existence? How, otherwise (as Madox quaintly puts it),

could this mere “society of mortal men” become something “immortal,

invisible, and incorporeal”?[664] As a matter of fact, associations or

social entities of all sorts always did arise, without the intervention

of the lawyers, and nowadays they arise with amazing ease, without any

act of creation by a superior; and when the English lawyers refused

to recognise them as existing, it was they who were irrational, and

the common law itself that was at fault. Nowadays we live in a world

of social entities of all sorts, and of every degree of informality,

corporate entities that to the old-fashioned lawyers are still legally

non-existent as such--clubs and committees of every possible kind;

groups and circles, societies and associations for every conceivable

purpose; unions and combinations and trusts in every trade and

profession; schools and colleges and “University Extension Classes,”

often existing and spending and acting most energetically as entities,

having a common purse and a single will, in practice even perpetual

succession, and (if they desire such a futile luxury) a common seal,

without any sort of formal incorporation. Gradually English lawyers

(whom we need not suspect of reading Gierke, or even, for that matter,

Maitland) were unconsciously imbibing the legally heterodox view that

a corporate entity is anything which acts as such; and so far from

making it impossible for the _persona ficta_ to come into existence

without a formal act of creation, they had been, by little alterations

of procedure and imperceptible changes in legal principles, sometimes

by harmless little dodges and fictions of the Courts themselves,

coming near to the practical result of putting every association which

is, in fact, a social entity, however informal in its constitution,

and however “spontaneous” in its origin, in the same position of a

_persona ficta_, for the purpose of suing and of being sued, as if it

had been created by a formal instrument of incorporation, decorated

by many seals, and procured at vast expense from the post-Reformation

Pope himself; or as if it had been expressly incorporated by the Royal

Charter of a Protestant King or the private statute of a Victorian

Parliament.

Now this development of legal doctrine to fit the circumstances of

modern social life is, when one comes to think of it, only common

sense. If twenty old ladies in the workhouse club together to provide

themselves with a special pot of tea, and agree that one among them

shall be the treasurer of their painfully-hoarded pennies as a common

fund, they do, in fact, create a social entity just as real in its way

as the Governor and Company of the Bank of England. Why should not the

law, if it ever comes to hear of the action of the twenty old ladies

in the workhouse, deal with the situation as it really is, according

to their wishes and intentions, without inquiring by what formal act

of external power a _persona ficta_ has been created; and therefore

without demanding that the old ladies shall first procure a charter of

incorporation from the Pope, from the King, or from Parliament? And

considering that Trade Unions were now in fact social entities, often

having behind them more than a hundred years of “perpetual succession”;

counting sometimes over a hundred thousand members moving by a single

will; and occasionally accumulating in a common purse as much as half

a million of money, the Law Lords might well think it absurd and

irrational of Parliament to have decided in 1871-76, and again in

1906, to regard them as unincorporated groups of persons, having, in a

corporate capacity, no legally enforceable obligations and hardly any

legally enforceable rights. It may have been absurd and irrational, but

what right--so the Trade Unionists asked--had the judges to change the

law?

Whatever may be the justification for the momentous change in the

law which the Six Judges (namely, the three members of the Court

of Appeal, and three out of the five Law Lords, all of whom agreed

in the series of propositions that we have cited) suddenly, without

Parliamentary authority, of their own motion effected, it created an

intolerable situation. There was, in the first place, the application

of the doctrine of _ultra vires_ to corporate entities quite unaware

of its existence. It was all very well, in order to fit the law to the

facts, to throw over the old legal doctrine that the _persona ficta_

of a corporation could only come into existence by some formal act

of incorporation by an external authority. But then it plainly would

not do to retain, as the Six Judges quite calmly retained, the severe

limitations on the action of statutory corporate entities which is

involved in the doctrine of _ultra vires_, and which, as Lord Halsbury

put it, was to _prohibit_ them from doing what they liked. The argument

for that principle is that such a corporate entity owes its existence

entirely to the statutory authority by which it is created; that the

legislature has brought it into being for certain definite purposes;

that for those purposes and no others the exceptional powers of a

corporation have been conferred upon it; that as such it is, in a

sense, the agent whom the community has entrusted with the execution of

these functions, and who cannot therefore (even if all the constituent

members of its body so agree and desire) assume any other purposes or

functions. But any such doctrine of _ultra vires_ can have no rational

application to the corporate entity formed by the twenty old ladies in

the workhouse for their private pot of tea. If we are going, in effect,

to treat as corporate entities all sorts of spontaneously arising

associations, such as an unregistered Trade Union (and some of the

wealthiest and most powerful Trade Unions were still unregistered), or

such as an Employers’ Association (which was hardly ever a registered

body)--corporate entities which were, in fact, lawfully in existence

long before the Act of 1876--we must give up the fiction that the

purposes of these associations have been authoritatively fixed and

defined in advance by Parliament in such a way that the members

themselves, even when they are unanimous and when they are acting

in strict accord with their constitution and rules, cannot add to

or alter the objects or methods of their organisation. What was

logically required, in fact, was not the arbitrary identification

of spontaneously arising associative entities with legally created

corporations, but the formulation of a new conception as to the

functions and legal rights that such spontaneously arising associative

entities--to which the limitations of legally created corporations

could not be simply assumed to apply--should, as a class, be permitted

to exercise.

THE MISCARRIAGE OF JUSTICE

We come now to the second cardinal feature of the decision of the Six

Judges in 1909, in which they showed both prejudice and ignorance.

Having found that the Trade Unions were, in fact, corporate entities,

and that they had been, in various clumsy ways, dealt with by

Parliament very much as if they were legally corporate entities--though

Parliament had advisedly abstained from incorporating them, and had,

indeed, always referred to them as being what in fact they were, namely

already existing and spontaneously arising associations, not created

by its will--the Six Judges took the view that some authoritative

specification of the objects and purposes of a Trade Union had to

be discovered by hook or by crook. It seems to have been by them

inconceivable (though Lord James of Hereford, one of their own number,

who had personally taken part in all the legislation, expressly told

them it was in fact so) that no such specification should exist. They

accordingly found it in an enumeration which Parliament had given in

the Act of 1876 of all the various bodies which were to be entitled

to the privileges conferred by the Act--a definition introduced, so

a well-informed writer mentioned in 1878, for the special advantage

of Trade Unions[665]--principally to enable them to be registered by

the Chief Registrar of Friendly Societies. The Law Lords now held that

this definition must be deemed to be an exhaustive enumeration, not

merely of the kinds of societies to be eligible for registration, but

also of all the objects and purposes that Parliament intended any of

those bodies, whether registered or unregistered, to be free at any

time to pursue. The result was that all Trade Unions and Employers’

Associations, and, indeed, all informal groups of workmen or employers

falling within this definition, suddenly found themselves (to the

complete amazement of every one concerned, including the lawyers)

rigidly confined in their action, even if all their members otherwise

wished and agreed, to matters which were specified in an enumerating

clause of an Act of Parliament of a generation before, which had never

before been supposed to have that meaning, or to have any restrictive

effect at all. We ought to speak with proper respect of the judges,

though sometimes, by their curious ignorance of life outside the Law

Courts, and especially of “what everybody knows,” they try us hard.

But it is necessary to state plainly, with regard to this part of

the Osborne Judgement, that to the present writers, as to the whole

British working class and many other people, including lawyers, it

seemed an astounding aberration, amounting to a grave miscarriage of

justice. Again, let it be noted that Lord James of Hereford, who knew

what Parliament had intended, and what Trade Unions actually were,

expressly dissented from his colleagues on this point, saying that

the enumeration clause in the Act of 1876 was never intended to be “a

clause of limitation or exhaustive definition” of objects and purposes;

and arguing that it did not prevent a Trade Union from having other

purposes, or pursuing other methods, not in themselves unlawful, even

though these were not enumerated in the definition clause and were not

even incidental to the purposes therein enumerated. But what is the

history of this definition clause? As it stands in the Act of 1876 it

runs as follows:

The term “Trade Union” means any combination, whether

temporary or permanent, for regulating the relations between

workmen and masters, or between workmen and workmen, or

between masters and masters, or for imposing restrictive

conditions on the conduct of any trade or business, whether

such combination would or would not, if the principal Act

had not been passed, have been deemed to have been an

unlawful combination by reason of some one or more of its

purposes being in restraint of trade.

Now, to the lay mind, this extremely loose enumeration[666] of kinds

of societies seems plainly intended to bring within its net, and

therefore to admit to the advantages of the Act, a wide range of

existing or possible associations of different kinds. It was to include

all sorts of Employers’ Associations as well as Trade Unions. It was

to include bodies already in existence as well as those to be formed

in the future. It was to include bodies seeking to impose restrictive

conditions “in restraint of trade,” as well as those having no such

unlawful objects. It was to include, therefore, bodies already enjoying

a full measure of lawful existence and legal recognition, as well

as those for the first time fully legalised by the legislation of

1871-76. To the logician it will be clear that we have here a case

of classification by type, not by delimitation. “It is determined,”

says Whewell and J. S. Mill, “not by a boundary line without, but by a

central point within; not by what it strictly excludes, but by what it

eminently includes; by an example, not by a precept.”[667] Accordingly

the clause names specifically one by one the various attributes, any

one of which is to be typical of the class. It sufficed for the purpose

to name only one attribute belonging to each body which it was desired

to include. What its other attributes might be was irrelevant. It

does not occur to the ordinary reader, any more than to the logician,

that the effect of the clause is, not merely to include associations

of different kinds, but also to limit the legal freedom of all those

associations, with all their varied functions, exclusively to the

purposes specified in the definition, which were merely recited in

order to bring a number of heterogeneous bodies into one class. On the

construction put upon this clause by the Six Judges, the Act of 1876

was a measure which deprived Trade Unions and Employers’ Associations,

many of which had been for years lawfully in existence, without any

unlawful objects or methods, of a freedom that they had up to then

enjoyed; it was an Act rigidly confining their operations to a limited

field, and for ever prohibiting them (as Lord Halsbury expressly

declared) from doing anything not included in the list of functions

incidentally then and there given. It is safe to say that, to any

historical student who knows anything of the circumstances of the case,

such a supposition is preposterous. No Trade Union and no Employers’

Association was aware in 1876 that its freedom was being thus

restricted. Thomas Burt, M.P., and Lord James of Hereford (then Sir

Henry James, M.P.), who took part in passing the Act, certainly never

dreamed that they were doing anything of the sort. The Home Office

officials who prepared it, and Lord Cross (then Home Secretary) who

introduced it, quite plainly had not the remotest notion that they were

taking away from Trade Unions (which they were anxious to legalise)

any of the functions which these Unions were in fact exercising, and

which such Trade Unions as were lawful associations were already

_lawfully_ exercising; or that they were prohibiting these Trade Unions

from doing anything not specified in the incidental enumeration of

attributes that was then, merely for the purpose of including various

kinds of associations, statutorily enacted. As a matter of fact, the

definition clause in the Act of 1876 was enacted merely to correct in

one small particular the definition clause in the Act of 1871. That

clause had defined a Trade Union as meaning “such combination ... as

would, if this Act had not passed, been deemed to have been an unlawful

combination by reason of some one or more of the purposes being in

restraint of trade.” This was found in practice inconvenient, because

it had inadvertently excluded from registration and all the benefits

of the Act those Trade Unions and Employers’ Associations which were

already lawful associations, free from any unlawful purpose. A Trade

Union had to prove that it was (but for the Act) an unlawful body

before it could be admitted to the advantages of the Act. It was

also inexpedient, because it actually offered an inducement to Trade

Unions to have purposes or methods “in restraint of trade,” in order

to obtain these advantages. Now, supposing that the Act of 1876 had

not been passed, and that the definition clause had remained in the

terms of that of the Act of 1871, would the Six Judges have equally

construed it as offering a complete and exhaustive enumeration of the

permissible activities of a Trade Union, making it actually illegal

for the future for any association of workmen or employers to deal

with the conditions of employment, _except in ways that would (but for

the 1871 Act) have been unlawful_? And if the definition clause in

the 1871 Act cannot be construed as (to use Lord James of Hereford’s

words) “a clause of limitation or exhaustive definition” of Trade

Union activities, with what consistency can the definition clause of

the 1876 Act (which follows the same wording, and merely extends the

definition so as to take in lawful as well as unlawful societies) be

so construed? Successive Chief Registrars of Friendly Societies, like

every one else, had always understood the definition clause to be an

enabling clause, not a restricting one; and they had accordingly for

a whole generation willingly registered rules presented to them by

Trade Unions, including in their objects and purposes all sorts of

things not enumerated in the definition, and not even incidental to

any of the purposes therein enumerated. It was, in 1909, not at first

realised--certainly the Six Judges did not realise--how extensive and

how varied were the actually existing operations of Trade Unions that

they were rendering illegal. Not political action alone, not municipal

action alone, but any work of general education of their members or

others; the formation of a library; the establishment or management of

“University Extension” or “Workers’ Educational Association” classes;

the subscription to circulating book-boxes; the provision of public

lectures; the establishment of scholarships at Ruskin College, Oxford,

or any other College--all of which things were at the time actually

being done by Trade Unions--were all henceforth to be _ultra vires_

and illegal. The two hundred Trades Councils, local federations of

different Trade Unions for the purpose of dealing with matters of

general interest to workmen, which took no part in the collective

bargaining of any particular Trade Union, were probably thereby

equally made illegal; though they were in 1876 already a quarter of a

century old, and in 1909 numbered nearly a million members. The annual

Trade Union Congress itself, then in its fortieth year, and dealing

almost exclusively with Parliamentary projects, came under the same

ban. The active participation which Trade Unions had here and there

taken in technical education, and their co-operation with the Local

Education Authorities, which had sometimes been found so useful, were

certainly _ultra vires_. One would suppose, strictly speaking, that a

similar illegality was to attach to all the vast “friendly society”

side of Trade Unionism, with its sick and accident and out-of-work

benefits--not one of them being referred to in the definition which

the Six Judges declared to contain an exhaustive enumeration of the

purposes and objects that Parliament intended to permit Trade Unions

to pursue. But here the Six Judges saved themselves--though in a

way logically destructive of their claim that the definition clause

itself was one of “exhaustive” enumeration of permissible Trade Union

purposes--by holding that these friendly benefits, though not mentioned

in the definition clause, were referred to elsewhere in the Act, and

might be regarded as incidental to the purpose of regulating the

conditions of employment. This, indeed, so far as benefits paid to the

workman himself are concerned, was a plausible view. Strike Benefit, in

particular, is plainly incidental to striking, and sick benefit might

conceivably be held to protect the worker from industrial oppression

whilst sick. But the same cannot be said of the most widely spread of

all Trade Union benefits, the provision of funeral money on a member’s

death. In some cases the Trade Unions were actually paying for the

funerals of their deceased members’ widows and orphan children. This

was a mere act of humanity to the deceased member’s widow and orphans;

and it could not, by any stretch of imagination, be supposed to improve

the workers’ bargaining power, or to be in any way incidental to the

regulation or restriction of the conditions of employment. Yet Funeral

Benefit was in 1909 (as it was in 1876) the one among the so-called

“friendly” benefits most universally adopted by Trade Unions. More than

a million Trade Unionists were thus effecting through their societies a

humble life insurance. This extensive life insurance business of Trade

Unions could not be said to be in any way included in the definition

clause of the 1876 Act, even if the sick and unemployment benefits

were. If the judgements in the Osborne Case were correct, the whole of

this life insurance business of Trade Unions (as distinguished from

the sick and unemployment benefits), or at least the whole of that

relating to widows and orphans, must be held to have been inadvertently

prohibited by Parliament in 1871 and 1876, and to have been ever

since _ultra vires_ and illegal. It is impossible for the plain man

to avoid the conclusion, even though the six other authorities take

a contrary view, that Lord James of Hereford was right in declaring

that the definition in the Act of 1876 was not meant by Parliament

to be “a clause of limitation or exhaustive definition” of the

permissible purposes of a Trade Union; and, accordingly, that the Six

Judges had--presumably following quite accurately the narrow technical

rules of their profession--put upon the statute a construction which

Parliament had in no way intended.

What then did Parliament intend to fix and define as the permissible

objects and functions of a Trade Union? The answer of the historical

student is clear and unhesitating. Parliament quite certainly intended,

in 1871 and 1876, to fix and define nothing of the sort; but meant,

whether wisely or not, to leave Trade Unions as they then were--as

such of them, indeed, as had no unlawful purpose or method had long

_legally_ been--namely, as free as any other unincorporated groups of

persons to take whatever action they might choose, subject only to

their own contractual agreements, and to the general law of the land.

From this position we venture, as historians, to say that Parliament

did not, in 1871 or 1876, intentionally depart.

Finally, we have the argument of the Six Judges that, seeing that the

sole lawful purposes of a Trade Union are “regulating the relations

between workmen and masters, or between workmen and workmen, or

between masters and masters,” and “imposing restrictive conditions on

the conduct of any trade or business,” no action of a Parliamentary

or political kind is within the definition, or even incidental to

anything therein. This view, to put it bluntly, showed an ignorance

of Trade Unionism, British industrial history, and the circumstances

not only of 1871-76, but also of 1908-9, which was as remarkable as

it was deplorable. On the face of it, to take first the words of the

statute, the most usual and the most natural way of “regulating” the

relations between people, and the most obvious expedient for “imposing”

restrictive conditions on industry, is an Act of Parliament. It was

to Acts of Parliament, as we have abundantly shown in _Industrial

Democracy_, that the Trade Unions had for a century been looking,

and were in 1871-76, many of them, looking, for a very large part of

the “regulating” of industrial conditions, and of the “restrictive

conditions” that they existed to promote. What the judges apparently

forgot is that conditions of employment include not merely wages,

but also hours of labour, sanitary conditions, precautions against

accident, compensation for injuries, and what not. If the Six Judges

had remembered how, in fact, in Great Britain the great majority

of industrial relations were regulated, and how the great mass of

restrictive conditions were, in fact, imposed on industry; or if they

had had recalled to them the long and persistent struggle of the Trade

Unions to get adopted the Factory Acts, the Mines Regulation Acts,

the Truck Acts, the Shop Hours Acts, and so many more, they could

hardly have argued that such actions as engaging in Parliamentary

business, supporting or opposing Parliamentary candidates, and helping

members of Parliament favourable to “regulating,” and “imposing

restrictive conditions”--actions characteristic of Trade Unions

for generations--were not incidental to these legitimate purposes.

As a matter of fact, the getting and enforcing of legislation is,

historically, as much a part of Trade Union function as maintaining a

strike.[668] One Trade Union at least, which no one ever dreamt to be

illegal, the United Textile Factory Workers’ Association, has existed

exclusively for political action, and had no other functions.[669] This

kind of Trade Union action is even antecedent in date to any corporate

dealing with employers. During the whole two centuries of Trade Union

history, as in _Industrial Democracy_ we have described, the Unions

have had at their disposal, and have simultaneously adopted, three

different methods of imposing and enforcing the Common Rules which

they sought to get adopted in the conditions of employment. From 1700

downwards they have used the Method of Mutual Insurance; from the very

beginning of the eighteenth century down to the present day the records

show them to have been continuously employing the Method of Legal

Enactment; whilst only intermittently during the eighteenth century,

and not openly and avowedly until 1824, could they rely on the Method

of Collective Bargaining. The Miners’ Unions, and the Agricultural

Labourers’ Unions, in particular, had been particularly active in

support of the extension of the franchise between 1863 and 1884. Even

the expenditure of Trade Union funds on Parliamentary candidatures

was practised by Trade Unions at any rate as early as 1868, as soon,

in fact, as the town artisans were enfranchised; and the payment of

Trade Union Members of Parliament was begun as early as 1874, and

had lasted continuously from that date. Yet the Six Judges assumed,

apparently without adequate consideration, and certainly on inaccurate

information, that Parliament in 1876 intended to authorise Trade Unions

to pursue their first and third methods, but intended to prohibit them,

from that time forth, from using the Method of Legal Enactment, just

at the moment when this latter was being most effectively employed. It

is, indeed, almost comic to remember that the Bill which is supposed to

have effected this revolution in the Trade Union position was brought

in by Lord Cross, then Sir R. A. Cross, M.P., fresh from his election

by a constituency in which the Trade Unionists had been, politically,

the dominant factor; that it was debated in a House of Commons in which

the direct influence of the Trade Unions was at the highest point

that it had hitherto reached; that at the General Election of 1874,

from which the members had lately come, the Trade Unions, as we have

described in the present volume, had worked with might and main for

the rejection of candidates opposed to their political claims, and had

had a much larger share than political historians usually recognise

in the Gladstonian defeat; that two Trade Union members were actually

then sitting in the House, one, at least (Thomas Burt), being openly

maintained as a salaried representative of his Union, by a salary

avowedly fixed on a scale to enable him to sit in Parliament;[670] that

the Conservative Government promptly introduced the particular legal

enactments to obtain which the Trade Unions had spent their money,

namely, the Nine Hours Bill, the Employer and Workman Bill, and the

Trade Union Bill; and that the Six Judges ask us to believe that the

latter Bill, which the Trade Union members themselves helped to pass,

was designed and intended to prevent Thomas Burt from drawing a salary

from the Northumberland Miners’ Mutual Confident Society whilst sitting

in the House of Commons; to prohibit the Northumberland Miners’ Mutual

Confident Society, just because it was a Trade Union, from taking any

part in future elections in the Morpeth Division, and to make the

action of this and all other Trade Unions in paying for political work

and Parliamentary candidatures, even with the unanimous consent of

their members, from that time forth illegal.

We have thought it worth while to place on record this analysis of the

legally authoritative part of the Osborne Judgement, which, though

partly modified by a subsequent statute, has not been overruled, and is

still legally authoritative, because it is of historical importance. It

is significant as showing how far the Courts of Justice were, as lately

as 1909, still out of touch, so far as Trade Unionism is concerned,

either with Parliament or with the political economists. The case was,

however, of even greater import. The bias and prejudice, the animus and

partiality--doubtless unconscious to the judges themselves--which were

displayed by those who ought to have been free from such intellectual

influences; the undisguised glee with which this grave miscarriage of

justice was received by the governing class, and the prolonged delay of

a professedly Liberal and Radical Cabinet, and a professedly Liberal

and Radical House of Commons in remedying it, had a great effect on the

minds of the wage-earners, and contributed notably to the increasing

bitterness of feeling against the “governing class,” and against a

State organisation in which such a miscarriage of justice could take

place. We must, indeed, look behind the legal technicalities of the Six

Judges, and consider what was the animus behind their extraordinary

judgement. The “subservience” of Parliament to the Trade Unions

in passing the Trade Disputes Act of 1906 had excited the deepest

resentment of the lawyers. The progress of the Labour Party was causing

a quite exaggerated alarm among members of the governing class. What

lay behind the Osborne Judgement was a determination to exclude the

influence of the workmen’s combinations from the political field. This

is really what the Osborne Judgement prohibited. One irreverent legal

critic, indeed, went so far as to remark that the Law Lords were so

anxious to make it clear that Trade Unions were not to be entitled

to pay for Members of Parliament, that they failed to heed how much

law they were severally demolishing in the process! It is instructive

to examine the arguments adduced by the Law Lords and the judges on

this point, apart from their decision as to Trade Union status. These

opinions could hardly be deemed to be law, as they all differed one

from another, and none of them obtained the support of a majority

of the Law Lords. Such as they are, however, they seem not to have

been connected with Trade Unionism at all, but with the nature of the

House of Commons. One of the Law Lords (Lord James of Hereford) merely

objected to Trade Unions paying a Member of Parliament who was (as was

quite incorrectly assumed) bound by a rule of the paying body requiring

him to vote in a particular way, not on labour questions only, but on

all issues that might come before Parliament. Another Law Lord (Lord

Shaw), with whom Lord Justice Fletcher Moulton seemed to agree, held

that what was illegal was not the payment of Members of Parliament,

but their subjection, by whomsoever paid, to a “pledge-bound” party

organisation (as the Labour Party was alleged to be). Another judge

(Farwell, L.J.) took a different line, and held that it was illegal for

a corporate body to require its own members to subscribe collectively

towards the support of a Member of Parliament with whose views they

might individually not agree. What the historian and the student of

political science will say is that these were matters for legislation,

not for the sudden intervention of the judiciary. The House of Commons

is prompt enough to defend its own honour and its own “privilege”; and

the function of the judges will begin when any of the acts referred

to has been made an illegal practice. In 1909, as now, the practices

complained of, whether or not they were correctly described, and

however objectionable to these particular gentlemen they might be, were

all lawful; and the judges and Law Lords were abusing the privileges of

their office by importing them to prejudice the legal issue.

The Osborne Judgement received the support, not only of the great mass

of property owners and professional men, but also, though tacitly, of

the Liberal and Conservative Parties. A distinct challenge was thereby

thrown down to the Trade Union world. Not only were the activities of

their Unions to be crippled, not only was their freedom to combine for

whatever purposes they chose to be abrogated, they were to be expressly

forbidden to aspire to protect their interests or promote their objects

by Parliamentary representation, or in any way to engage in politics.

It was this challenge to Organised Labour that absorbed the whole

interest of the Trade Union world for the next three or four years.

The experienced Trade Union leaders did not forget that it might

well be a matter for Trade Union consideration how far it is wise

and prudent for a Trade Union to engage in general politics. We have

elsewhere pointed out[671] with some elaboration how dangerous it may

become to the strength and authority of a Trade Union if any large

section of the persons in the trade are driven out of its ranks, or

deterred from joining, because they find their convictions outraged

by part of its action. Nothing could be more unwise for a Trade Union

than to offend its Roman Catholic members by espousing the cause of

secular education.[672] But this is a point which each Trade Union must

decide for itself. It is not a matter in which outsiders can offer

more than counsel. It is clearly not a matter in which the discretion

of the Trade Union, any more than that of an individual employer, can

properly be limited by law. For no Trade Union can nowadays abstain

altogether from political action. Without co-operating with other

Trade Unions in taking Parliamentary action of a very energetic and

very watchful kind, it cannot (as long experience has demonstrated

to practically all Trade Unionists) protect the interests of its

members. Without taking a vigorous part in promoting, enforcing, and

resisting all sorts of legislation affecting education, sanitation,

the Poor Law, the whole range of the Factories, Mines, Railways, and

Merchant Shipping Acts, the Shop Hours, Truck, Industrial Arbitration

and Conciliation, and now even the Trade Boards’ Act, the Trade Union

cannot properly fulfil its function of looking after the regulation of

the conditions of employment. But this is not all. The interests of

its members require the most watchful scrutiny of the administration

of every public department. There is not a day passes but something in

Parliament demands its attention. On this point Trade Union opinion is

unanimous. We have never met any member of a Trade Union--and Osborne

himself is no exception--who has any contrary view. To suggest that

there is anything improper, or against public policy, for a Trade

Union to give an annual retaining fee to a Member of Parliament whom

its members trust, or to take the necessary steps to get that member

elected, in order to ensure that what the Trade Union conceives to

be its own interests shall be protected, was to take up a position

of extraordinary unfairness. When more than a quarter of the whole

House of Commons habitually consists, not merely of individual

employers, but actually of persons drawing salaries or stipends from

capitalist corporations of one kind or another--when, in fact, the

number of companies of shareholders in railways, banks, insurance

companies, breweries, ocean telegraphs, shipbuilding yards, shipping

companies, steamship lines, iron and steel works, coal mines, and

joint stock enterprises of all sorts actually represented in the

House of Commons by their own salaried chairmen, directors, trustees,

managers, secretaries, or solicitors is beyond all computation--the

claim that there is something improper, something inconsistent with

our electoral system, something at variance with the honourable nature

of the House of Commons, for the workmen’s organisations to retain

a few dozen of the Members whom the constituencies (knowing of this

payment) deliberately elect, or to help such Members to provide their

election expenses, is an argument so extraordinary in its unfairness

that it drives the active-minded workman frantic with rage. It is no

answer to say that these representatives of capitalist corporations

are not expressly paid to sit in Parliament. They are at any rate

desired by their employers to sit, and permitted by the law to receive

their salaries notwithstanding that they do sit. This was forbidden

to representatives of Trade Unions. That it should be illegal for the

salaried President or Secretary of the Amalgamated Society of Railway

Servants to sit in Parliament, when it is perfectly legal for the much

more generously salaried Chairman or Director of a Railway Company to

sit there, is an anomaly hard for any candid man to defend; and the

anomaly is all the greater in that the interests of the railway company

come, almost every year, into conflict with those of the community at

large, and the railway chairman is, on these occasions, quite frankly

there to promote his own company’s Bill, and to defend the interests

of the shareholders by whom he is paid. To say that the workmen’s

organisations shall not pay their representatives in the way that

suits working-class conditions, whilst railway shareholders may pay

their representatives in the way that suits capitalist conditions--to

assume a great concern for the wounded conscience of a Liberal or

Conservative Trade Unionist who finds his Union paying its Secretary or

its President to sit as a Radical or Labour Member of Parliament, and

no concern at all for the Socialist or Radical shareholder in a railway

company who finds his company paying its Conservative Chairman M.P.--is

to be guilty of an amazing degree of class bias, if not of hypocrisy.

After all, it is not the Trade Union but the constituency that elects

the Member of Parliament. The Trade Union payment only enables him to

stand. Whatever may be thought of the policy of the Labour Party, or

the particular form of its organisation, if we regard the Trade Union

payment as a retaining fee for looking after what the Trade Union

members as a whole conceive to be their own interest; if the Trade

Union members have the opportunity of choosing, by a majority, which

among competing persons (or, for that matter, which among competing

groups of persons) they will entrust with this Trade Union task; if the

Trade Union assumes no responsibility for and exercises no coercion

upon its Parliamentary representative with regard to issues on which

it has not voted, no Trade Unionist’s political conscience need be

wounded by the fact that, outside the range of the task that the

Trade Union has confided to him, the Union’s Parliamentary agent (who

must have views of one sort or another) expresses opinions in accord

with those of the constituency that elected him, or joins together

with other members of like opinions to form a political party. When,

three-quarters of a century ago, J. A. Roebuck was the salaried agent

in the House of Commons for the Legislative Assembly of Lower Canada,

no one complained that it was against the dignity of Parliament for him

to be thus retained and paid; and so long as he attended faithfully to

Canadian business it was never contended that the tender conscience of

any Canadian Conservative was offended by the ultra-Radical utterances

or extremely independent political alliances of the Member for Bath.

THE TRADE UNION ACT OF 1913

It is an instance of the failure of both the governing class and

the party politicians to appreciate the workman’s standpoint, or to

understand the temper of the Trade Union world, that this crippling

judgement remained for nearly four years unreversed. The Liberal and

Conservative Parties were, during 1910 and 1911, quarrelling about the

Budget and the exact powers to be exercised by the House of Lords;

and two successive General Elections were fought without bringing

the Trade Unions any redress. Meanwhile, up and down the country

discontented or venal Trade Unionists were sought out by solicitors and

others acting for the employers; and were induced to lend their names

to proceedings for injunctions against their own Unions, prohibiting

them from subscribing to the Labour Party, from contributing towards

the election expenses of candidates, from taking action in municipal

elections, from subscribing to educational classes, and from taking

shares in a “Labour” newspaper. It may have seemed a skilful political

dodge, during the elections of 1910, to hamstring in this way the

growing Labour Party; but the resentment caused by such behaviour

makes it doubtful whether action of this kind is, in the long run,

politically advantageous. In the first place, the House of Commons,

in 1911, felt itself compelled, as an alternative to restoring Trade

Union liberties, to concede the payment of £400 a year to all Members

of Parliament. Finally, in 1913, the Cabinet, after a severe internal

struggle, brought itself to introduce a Bill giving power generally

to any Trade Union to include in its constitution any lawful purpose

whatever, so long as its principal objects were those of a Trade

Union as defined in the 1876 Act; and to spend money on any purpose

thus authorised. It was, indeed, provided that before the financing of

certain specified political objects could be undertaken, including the

support of Parliamentary or Municipal candidates or members, or the

publication or distribution of political documents,[673] a ballot of

the members was to be held in a prescribed form, and a simple majority

of those voting secured; the payments were to be made out of a special

political fund, and any member was to be entitled to claim to be exempt

from the special subscription to that political fund. These restrictive

provisions were opposed by the Labour Members in the House of Commons;

but with slight amendment the measure was passed into law as the Trade

Union Act of 1913.[674]

It is not easy to sum up the whole effect of the legal assaults upon

Trade Unionism between 1901 and 1913. Politically, the result was to

exasperate the active-minded workmen, and greatly to promote, though

with some delay, the growth of an independent Labour Party in the

House of Commons. On the other hand, it must not be overlooked that

the temporary crippling of Trade Unionism seemed to be of financial

advantage to that generation of employers. It was, perhaps, not

altogether an accident that the brunt of the attack had to be borne by

the Amalgamated Society of Railway Servants, a Union then struggling

for “recognition” in such a position as to make effective its claims

to better remuneration and shorter hours of labour for the whole body

of railwaymen. It may fairly be reckoned that the railwaymen were, by

means of the two great pieces of litigation to which their Union was

subjected, held at bay for something like a decade, during which the

improvement in their conditions, in spite of a slowly-increasing cost

of living, was (mainly through the evasions of the railway companies

by their silent “regrading” of their staffs) extremely small.[675] A

rise of wages to the extent of only a penny per hour for the whole body

of railwaymen would have cost the railway companies, in the aggregate,

something like five or six million pounds a year. If any such advance

was, by means of the Taff Vale Case and the Osborne Judgement, staved

off for ten years, the gain to the whole body of railway shareholders

of that generation might be put as high as fifty or sixty millions

sterling--a sum worth taking a little trouble about and spending a

little money upon, in items not revealed in the published accounts.

But the crippling effect of the litigation was not confined to the

Amalgamated Society of Railway Servants, which spent, altogether,

nearly £50,000 in law costs in defending the pass for the whole Trade

Union Movement. If, in the temporary set-back to trade in 1903-5,

and in the revival that immediately followed it; or in the recurring

set-back of 1908-9, and the great improvement of the ensuing years, the

whole body of wage-earners in the kingdom lost only a penny per hour

from their wages, or gained less than they might otherwise have done to

the extent of no more than a penny per hour, their financial loss, in

one year alone, would have amounted to something like a hundred million

pounds. And whatever they forwent in this way, they lost not during

one year only, but during at least several years, and many of them

for a whole decade. There is no doubt that the capitalist employers,

thinking only of their profits for the time being, regarded even a

temporary crippling of the Trade Union Movement as well worth all that

it might cost them. The historian, thinking more of the secular effort

upon social institutions, will not find the balance-sheet so easy to

construct. The final result of the successive attempts between 1901 and

1913 to cripple Trade Unionism by legal proceedings was to give it the

firmest possible basis in statute law. The right of workmen to combine

for any purpose not in itself unlawful was definitely established.

The strike, with its “restraint of trade,” and its interference with

profits and business; peaceful picketing even on an extensive scale;

the persuasion of workmen to withdraw from employment even in breach

of contract, and the other frequent incidents of an industrial dispute

were specifically declared to be, not only not criminal, but actually

lawful. The right of Trade Unions to undertake whatever political and

other activities their members might desire was expressly conceded.

Finally, a complete immunity of Trade Unions in their corporate

capacity from being sued or made answerable in damages, for any act

whatsoever, however great might be the damage thereby caused to other

parties, was established by statute in the most absolute form.[676]

The Trade Unions, it must be remembered, had not asked for these

sweeping changes in their position. They had been, in 1900, content

with the legislation of 1871-76. It was the successive assaults made

upon them by the legal proceedings of 1901-13 that eventually drove

the Government and Parliament, rather than formally concede to Trade

Unionism its proper position in the government of industry, and effect

the necessary fundamental amendment of the law, once more to create for

the workmen’s organisations an anomalous status.

THE RISE IN STATUS OF TRADE UNIONISM

So far we have described only the changes in the legal status of the

Trade Unions and the consequent increase in their freedom of action

and in their influence, alike in the industrial and political sphere.

This advance in legal status has been accompanied by a still more

revolutionary transformation of the social and political standing of

the official representatives of the Trade Union world--a transformation

which has been immensely accelerated by the Great War. We may, in fact,

not unfairly say that Trade Unionism has, in 1920, won its recognition

by Parliament and the Government, by law and by custom, as a separate

element in the community, entitled to distinct recognition as part of

the social machinery of the State, its members being thus allowed to

give--like the clergy in Convocation--not only their votes as citizens,

but also their concurrence as an order or estate.

Like all revolutionary changes in the British constitution, the

recognition of the Trade Union Movement as part of the governmental

structure of the nation began in an almost imperceptible way. Though

Trade Union leaders had been, since 1869, appointed occasionally and

sparsely on Royal Commissions and Departmental Committees, it was

possible, as recently as 1903, for a Government to set up a Royal

Commission on Trade Disputes and Trade Combinations without a single

Trade Unionist member. Such a thing has not been repeated. It is

now taken for granted that Trade Unionism must be distinctively and

effectually represented, usually by men or women of its own informal

nomination, on all Royal Commissions and Departmental Committees,

whether or not these inquiries are concerned specifically with “Labour

Questions”--excepting only such as are so exclusively financial or

professional that the representatives of Labour do not seek or desire

representation upon them.

In 1885-86, and again in 1892-95, Liberal Prime Ministers had appointed

leading Trade Unionists (who were, it must be noted, also Liberal

M.P.’s) to subordinate Ministerial positions, where they were permitted

practically no influence.[677] In 1905 Sir Henry Campbell-Bannerman

startled some of his Whig associates by asking Mr. John Burns--who

had presided over the Trades Union Congress as a representative of

the Amalgamated Society of Engineers, but who had sat in Parliament

since 1892 as a Liberal supporter--to join his Cabinet as President

of the Local Government Board. This recognition of Labour in the

inner councils of the Government was quickly followed by an explicit

recognition of the Trade Unions as part of the machinery of State

administration. In 1911, when the vast scheme of National Insurance

was brought forward by Mr. Asquith’s Government, and Parliament

sanctioned the raising and expenditure of more than twenty million

pounds a year for the relief of sickness and unemployment, the Trade

Unions, equally with the universally praised Friendly Societies, were

made the agents for the administration of the sickness, invalidity,

and maternity benefits, and, parallel with the Government’s own local

organisation, and to the exclusion of the Friendly Societies, also

for the administration of the State Unemployment Benefit to their

own members. But it was during the Great War that we watch the most

extensive advance in the status, alike of the official representatives

of the Trade Unions and of the Trade Unions themselves, as organs

of representation and government. It is needless to say that this

recognition was not accorded to the Trade Union world without a _quid

pro quo_ from the Trade Union Movement to the Government. Hence the

part played by the Trade Unions in the national effort, and its effect

on their influence and status, demands explicit notice.

BRITISH TRADE UNIONISM AND THE WAR

Though theoretically internationalist in sympathy, and predominantly

opposed to “militarism” at home as well as abroad, British Trade

Unionism, when war was declared, took a decided line.[678] From

first to last the whole strength of the Movement--in spite of the

pacifist faith of a relatively small minority, which included the

most fervent and eloquent of the Labour members and was supported by

the energetic propaganda of the fraction of the Trade Unionists who

were also members of the Socialist Society known as the I.L.P.--was

thrown on the side of the nation’s effort. From every industry workmen

flocked to the colours, with the utmost encouragement and assistance

from their Trade Unions; until the miners, the railwaymen, and the

engineers, in particular, had to be refused as recruits, exempted

from conscription, and even returned from the army, in order that the

indispensable industrial services might be maintained. The number of

workers in engineering and the manufacture of munitions of war had,

indeed, to be largely increased; and the Government found itself,

within a year, under the necessity of asking the Trade Unions for the

unprecedented sacrifice of the relinquishment, for the duration of the

war, of the entire network of “Trade Union Conditions” which had been

slowly built up by generations of effort for the protection of the

workmen’s Standard of Life. This enormous draft on the patriotism of

the rank and file could only be secured by enlisting the support of

the official representatives of the Trade Union world--by according to

them a unique and unprecedented place as the diplomatic representatives

of the wage-earning class. In the famous Treasury Conference of

February 1915 the capitalist employers were ignored, and the principal

Ministers of the Crown negotiated directly with the authorised

representatives of the whole Trade Union world, not only in respect of

the terms of service of Government employees, but also with regard to

the conditions of employment of all persons, men and women, skilled

and unskilled, unionists and non-unionists, engaged on any work needed

for the conduct of the war--a phrase which was afterwards stretched to

include four-fifths of the entire manual-working class. The Trade Union

Executives agreed, at this Conference or subsequently, to suspend,

for the duration of the war, all their rules and customary practices

restrictive of the output of anything required by the Government for

the conduct of the war; all limitation of employment to apprenticed

men, to Trade Unionists, to men of proved technical skill, to adults

and even to the male sex; all reservation of particular jobs or

particular machines to workers of particular trades; all definition

of a Normal Day, and all objection to overtime, night-work, or Sunday

duty; and even many of the Factory Act prohibitions by which the health

and even the safety of the operatives had been protected. In order that

the utmost possible output of munitions of every kind might be secured,

elaborate schemes of “dilution” were assented to, under which the

various tasks were subdivided and rearranged, a very large amount of

automatic machinery was introduced, and successive drafts of “dilutees”

were brought into the factories and workshops--men and boys from other

occupations, sometimes even non-manual workers, as well as women and

girls--and put to work under the tuition and direction of the minority

of skilled craftsmen at top speed, at time wages differing entirely

from the Trade Union rates, or at piecework prices unsafeguarded by

Collective Bargaining, for hours of labour indefinitely lengthened,

sometimes under conditions such as no Trade Union would have permitted.

It must be recorded to the credit of the Trade Unions that not one

of the societies refused this sacrifice, which was made without any

demand for compensatory increase of pay, merely upon the condition--to

which not only the Ministry, but also the Opposition Leaders and

the House of Commons as a whole, elaborately and repeatedly pledged

themselves--that the abandonment of the “Trade Union Conditions” was

only to be for the duration of the war, and exclusively for the service

of the Government, not to the profit of any private employer; and that

everything that was abrogated was to be reinstated when peace came.

Under stress of the national emergency, the Government made ever

greater demands on the patriotism of the Trade Unions, which accepted

successively, so far as war-work was concerned, a legal abrogation

of the employers’ competition for their members’ services by the

prohibition of advertisement for employees, and of the engagement

of men from other districts--an unprecedented interference with the

“Law of Supply and Demand”--the suspension of the right to strike

for better terms; the submission of all disputes to the decision of

a Government Department of arbitration, the awards of which, with

the abrogation of the right to strike, or even freely to relinquish

employment, became virtually compulsory; the legal enforcement

under penalties of the employer’s workshop rules; and even legally

enforced continuance, not only in munition work, but actually in the

service of a particular employer, under the penal jurisdiction of

the ubiquitous Munitions Tribunals. The Munitions of War Acts, 1915,

1916 and 1917, by which all this industrial coercion was statutorily

imposed, were accepted by overwhelming majorities at successive Trade

Union and Labour Party Conferences. It was a serious aggravation of

this “involuntary servitude” that the rigid enforcement of compulsory

military service--extended successively from single men to fathers of

families, from 18 years of age to 51--had the incidental effect of

enforcing what was virtually “industrial conscription” on those who

were left for the indispensable civilian employment; and the individual

workman realised that the penalty for any failure of implicit obedience

to the foreman might be instant relegation to the trenches. Although

this inevitable result of Compulsory Military Service was foreseen

and deplored,[679] the successive Military Service Acts were--in view

of the nation’s needs--ratified, in effect, by great majorities at

the workmen’s National Congresses. The strongest protests were made,

but as each measure was passed it was accepted without resistance,

and proposals to resist were always rejected by large majorities. It

speaks volumes, both for the patriotism of the Trade Unionists and for

the strength of Trade Union loyalty and Trade Union organisation, that

under such repressive circumstances the Trade Union leaders were able,

on the whole, to prevent their members from hindering production by

industrial revolts. A certain amount of friction was, of course, not to

be avoided. Strikes, though greatly reduced in number, were not wholly

prevented; and the South Wales coal-miners and the engineering workmen

on the Clyde--largely through arbitrary and repressive action by their

respective employers--broke into open rebellion; which led, in the one

industry, to the Government overriding the recalcitrant South Wales

employers and assuming the direction and the financial responsibility

of all the coal mines throughout the kingdom; and, in the other, to

the arbitrary arrest and deportation of the leaders of the unofficial

organisation of revolt styled the “Clyde Workers’ Committee.” The Trade

Union Executives and officials, whilst restraining their members and

deprecating all stoppages of production, were able to put up a good

fight against the unnecessary and unreasonable demands which, with a

view to “after the war” conditions, employers were not unwilling to

use the national emergency to put forward. These Trade Union spokesmen

had to obtain for their members the successive rises in money wages

which the steadily rising cost of living made necessary, and they had

constantly to stand their ground in the innumerable mixed committees

and arbitration proceedings into which the Government was always

inveigling them. On the whole, whilst co-operating in every way in

meeting the national emergency, the Trade Union organisation during

the four and a-quarter years of war remained intact; and Trade Union

membership--allowing for the millions absent with the colours--steadily

increased. Nor did the Trade Union Movement make any serious revolt

when the Government found itself unable to fulfil, with any literal

exactness, the specific pledges which it had given to Organised Labour.

The complications and difficulties of the Government were, in fact, so

great that the pledges were not kept. The first promise to be broken

was that the abrogation of Trade Union Conditions and the removal of

everything restrictive of output should not be allowed to increase the

profits of the employers. The so-called “Munitions Levy” was imposed

in 1916 on “controlled establishments,” in fulfilment of this pledge,

in order to confiscate for the Exchequer the whole of their excess

profit, over and above a permitted addition of 20 per cent and very

liberal allowances for increased capital and extra exertion by the

employers themselves. It will hardly be believed that, in flagrant

disregard of the specific pledge, within a year this Munitions Levy

was abolished; and the firms especially benefiting by the workmen’s

sacrifices were made merely subject, in common with all other trades

where there had been no such abrogation of Trade Union Conditions, to

the 80 per cent Excess Profits Duty, with the result of increasing

the net income left to those employers whose profits had doubled,

and of doing, with regard to all the employers, the very thing that

the Trade Unions had stipulated should not be done, namely, giving

the employers themselves a financial interest in “dilution.”[680] As

the war dragged on, and prices rose, the successive war-bonuses and

additions to wages--especially those of the miners and the bulk of

the women workers--in many cases fell steadily behind the rise in the

cost of living; and in 1917 the War Cabinet was actually guilty of a

formal instruction to the presumedly impartial central arbitration

tribunal that no further increase of wages was to be awarded--an

instruction which, on its public disclosure, had to be apologised for

and virtually withdrawn. Even the pledge as to wages in the solemn

“Treasury Agreement” of 1915, at which the “Trade Union Conditions”

were surrendered, was not fulfilled, at any rate as regards the women

workers; and had to be made the subject of a subsequent serious

investigation by the War Cabinet Committee on Women in Industry, in

which all the “white-washing” of a Government majority failed to

convince the Trade Unionists, any more than it did the only unpaid

member of the Committee, that the Government officials had not

betrayed them.[681] The solemnly promised “Restoration of Trade Union

Conditions” was only imperfectly carried out. What the Government did,

and that only after long delay, was not what it had promised, namely,

actually to see the pre-war conditions and practices reinstated, but

to enact a statute enabling the workmen to proceed in the law courts

against employers who failed to restore them; continuance of any such

restoration to be obligatory only for one year.[682]

The Trade Unionists, in fact, who had at the outset of the war

patriotically refrained from bargaining as to the price of their

aid, were, on the whole, “done” at its close. Though here and there

particular sections had received exceptionally high earnings in the

time of stress, the rates of wages, taking industry as a whole, did

not, as the Government returns prove, rise either so quickly or so high

as the cost of living; so that, whilst many persons suffered great

hardship, the great majority of wage-earners found the product in

commodities of their rates of pay in 1919 less rather than more than

it was in 1913. During the war, indeed, many thousands of households

got in the aggregate more, and both earned and needed more; because

the young and the aged were at work and costing more than when not

at work, whilst overtime and night-work increased the strain and the

requirements of all. When peace came, it was found that the Government,

for all its promises, had made no arrangements whatever to prevent

unemployment; and none to relieve the unemployed beyond an entirely

improvised and dwindling weekly dole, which (so far as civilians were

concerned) was suddenly brought to an end on November 20, 1919, without

any alternative provision being immediately made.

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