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THESIS FORM,S. DEGREE

INDUSTRIAL WORLD

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For M,. S. Degree

STRIKES AND LOCKOUTS OF THE INDUSTRIAL WORLD,
CAN ARBITRATION AND CONCILIATION BE AP-

PLIED SUCCESSFULLY AS A REMEDY?

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C.J FOREMAN,

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Agricultural College, Mich,

August, 1896,
VHESIS
STRIKES AND LOCKOUTS OF THE INDUSTRIAL WORLD,
CAN ARBITRATION AND CONCILIATION BE AP+

PLIED SUCCESSFULLY AS A REMEDY?

The youth of the American Republic is over, Maturity,
with its burdens, its difficulties, and its anxieties has
come, The era of expansion that seemed boundless, of care
less expenditure, of lavish draughts upon an inexhaustible
future, and of the social and political security that bo-
longed to this material condition, has at last closed,

Want has shown its face in the land of plenty, and has
prought with it the necessity of carefully studying politi-
cal and social problems analagous to those which tax the
statesmanship of the Old World,

The terrible industrial upheavals which have forced
themselves upon our notice during the last few years, have
led to an investigation of their causes, having for its obe
ject the determination of some permanent, honorable, and
reasonable solution of this and other phases of that most
important of all human problems, the labor question;

Differences between Capital and Labor are constantly
arising, They are here now, It is for our employers and
our worknen to determine how these differences shall be set-
tled, whether by reason or by brute force, for decide

they must and that right soon,

96313
I do not consider the methods of strikes and lockouts,
they are neither rational nor civilized, Victory for either

side does not determine what was just or unjust in the cause

 

of the strike; but it is just to infer that a decision by

a proper board of arbitration, after due consideration,
would be as near right as human Judg¢ment is capable of de=-
termining, A decision from such a sourse would not be re-
garded as a victory by one side or as a defeat by the other,
There would be no exultation over victory, no smart over
defeat, nor a determination to wait for a convenient season
ak revenge.

I shall endeavor in the following pages to show the feas-
ibility of adopting some method of arbitration and concilia-
tion in our American labor troubles, that the burning ques-
tions which are agitating industrial circles today may be
settled in a friendly manner and with justice to all,

There are three objects sought, in the formation of
boards of arbitration and conciliation, The first is to
present differences between employers and employed from be-
coming strikes and lockouts, The second object is to settle
disputes that have arisen, and to put an end to strikes and
lockouts should they occur, The third object is to promote
mitual confidence and respect between these two classes,

Just here at the entrance to our subject, let us dis-
tinguish definitely the difference between arbitration and
conciliation; Arbitration deals with the larger questions

of trade; conciliation with the smaller, Arbitration with
the whole trade, conciliation more often with individuals,
Conciliation is not formal; it does not attempt to pass
judgément, or to decide in a given case what is exactly right
or what is wrong; but its efforts are to adjust in a friend-
ly spirit the differences by influencing the parties to comp
to some agreement, It removes causes of dissension, and
prevents differences from becoming disputes, It precedes
arbitration, and deals more with the details of industrial
life. It is preventative rather than a remedy, and has value
beyond estimation, Its aim is to remove all feeling of bit=-
terness between the parties, to inspire respect for each
other, to inculcate a spirit of independence and to com-
pel a recognition of the dignity and worth of labor, and the
necessity of capital,

However, the time comes in the settlement of certain
questions, when no persuasian is sufficient to enable Cap-
ital and Labor to agree, There must be a power to determine
as well as to hear, That is, Arbitration must interfere
and accomplish what Conciliation is unable to bring about,
Arbitration is formal, A board sits in judgdment, and efter

hearing the evidence of both sides, renders a verdict which
is final and binding on both parties, Boards of Arbitration
may be voluntary or they may be appointed by the state, They
are voluntary when the boards are composed of representatives
elected by each of the two parties to the dispute.

Industrial Arbitration is both the nae of a principle,
and the specific application of that principle. As a prin-
ciple, it is a metnod of settling differences »vetween employ-
ers and employed. An application of this rrinciple to a spec-
ific case would be called arvitration also. There is a 6us-
tom aiong the labor organizations of the United States to
choose a committee composed entirely of meibers of the organ-
ization that is called an arbitration comsittee. In some
cases the employer is allowed to appear pefore the committee
to state his case, but he seldom has a voice in the matter,
Whatever such a method is, it is not arvitration., It is as
impossible for one party to arbitrate a question as it is for
one ian to fight a duel.

Should both rarties not agree to anvide by the decisio.s of

a poard, that board can do nothing in the way of arbitration
but can act only as a board of conciliation, and in fact, tie
most of our labor disputes are decided by these boards.

Boards of Arbitration and Conciliation rave acco:rplisnec
good results in France, Belgium, and England, and perhaps,

if we sxetch briefly their workings in txese countries, we
shall be able, the better to decide its probable result in
our own country.

Industrial Arbitration and Conciliation had their origin
in France carly in the present century. They were introduced
by Napoleon,the First, in 1806 at the request of the working
men at Lyons. These boards with some slight modifications
have continued to the present time under the title of ''Con-
seils des Prud'hommes''’, They are composed of an equal number
of members elected from each class with a president and a vice
president named by the government.

The authority of these councils extends to every conceiv=-
able question that can arise in the workshop, but they cannot
determine the rate of future wages, except when requested to
do so by both sides. Arbitration is compulsory upon the ap-
plication of either side, and these decisions are binding like
decrees of other courts, and may be enforced in a similar man-
ner,

The'Conseils des Prudhomies’ are divided into two bureaus
the Bureau Ge'ne'ral and the Bureau Particulier, The former
consists of five mexbers who meet once a week; the latter con-
sists of only two members- one an employer, the other a work-
ingman- meets every day,

The'Bureau Particulier!'! attempts to settle differences

by conciliation, but failing in this, the case goes before the
the "Bureau General' for an authorative decision by @ more
formal process,wWhicn is strictly Arbitration. The workings
of these courts have been beneficial to French industries,
especially in conciliation, by which more than ninety per
cent, of alli the cases brougnt before the tribunals have
been settled,

The viost remarkable strike in France of recent years,
that of the Carmaux miners in 1892, was settled by the arbi-
tration of the Prime Minister, M, Loubet, In this strike the
nowinee of the Minister of Commerce, who was a state mining
engineer, served as wipire. Before the passage of the new
law of Dec, 27th,.,1892, state officers were often asked to
act in settling disputes, but the new law carefully guards
against state interference, and limits the duties of even
the justices of the peace, so that they cannot assist in the
deliberations. During the year 1895, there were twenty nine
strikes settled by arbitration.

These boards then, have been a success in France, and it
is well to notice that the ‘Bureau Particulier'- the board of
conciliation- has been called upon to do the greater part of
the work in settling disputes.

In 1887,Belgium established 'Districts Councils’ of in-
dustry and labor, These were created by royal decree, but

usually at the request of the employers and laborers. Eacn
local industry is alloted to a section and is represented
therein by six to twelve employers and workmen. At least one
meeting must be held annually, but one may be convened at

any tine by royal decree. They are often asked to deliberate
upon tho regulation of labor for women ane children. In 1891
all the councils Were called upon to give advice'to the gov-
ernment in reference to the probable effect of rébinding cer-
tain conmercial treaties. From fifty to sixty of these insti-
tutions are in existence at the present time, and the above
instance snows the high standing in which they are held by
the government.

In 1875 and in 1876 a strike in the collieries of Marle-
mont and Bascoup was a surprise to all, as the workmen were
thought to be well satisfied, and were distinguished from the
working people of the neighboring mines by their moral and
physical well-being. It was at this time that Mr, Weilor
who had been at the head of the mines for several years, Was
asked to make an investigation. He says:''I was surprised at
the great danger arising from the more and more complete sep-
aration in the sreat industries of the employers and their
worknien, there being seldom any mutual intercourse except
through representatives who are often interested in keeping

up the abuses complained of}'

wiles ~
I organized in a part of the service regular meetings
between the workmen and the officers of the company,where
ali incidents occuring in the shops were discussed in common.
The beginning was not encouraging. I received only express-
lons of distrust from the workmen. They seemed to think it
a device to bring about a decrease of wages. The meetings
were not informal enough, the workmen did not feel at ease,

I had to contend with the snyness of the men and so modified
the plan, At last the least distrustful decided to make a
Clean breast of it, ond I learned of a quantity of grievances
Which I had Known nothing of before, The workmen believe that
''we seek their injury because it is our profit’'', Almost
all these grievances have since been rewoved, much to the
interests of the collieries and the well-being of the work-
Lien, They subscribe to our public lectures; they have helped
to found libraries, and attend the courses in industrial ec-
onomy which have been estavlishea especially for them,;''

The greatest ovstacle With which Mr, Weiler met, was the
Want of organization among the workinguen, The manufacturers
opposed Trades-Unions.

The report of the board of conciliation for the collicry
of Bascoup for the years 1890 and 1891 is as follows, In

1890 there were 39 general questions; 15 special questions;

and 3 individual questions. In 18°01 there were 35 general
Questions; lz special questions, and 2 individual questions.
These questions had to be first suomitted to the ''Chambers
ad'Explications'' and to fail of adjustment there before being
presented to the Board of Conciliation and Adjustment,

The iwinutes of the board for June Ilst,,1891, have the
following; 'The President wishes to thank the men for their
conduct during the political strike which has taken place
without the suspension of work in the mines,''

Mr. Weiler writes in a private letter dated, Jan,lst.,.
1895. ‘'' I am happy to say that our working people continue
to show the uost. admirable spirit, although they are subject
to the severest trials, Wages have fallen trenty five per
cent., and as the men were laid off one day in each week,
their income was reduced tnirty seven per cent, This shows
the patience of the poor miners who are sometimes accused of
making unlinited demands,''

In our study of Arbitration and Conciliation in Belgiun,
it is evident that,(a) we must have some form of conciliation
in which the workmen will feel unembarassed, the proceedings
must be informal, and eacn side must be on an equal footing
with the other; (b) it is easier to treat with organized
labor than with individuals in settling disputes,

In Geruany, industrial courts were organized in 1890,

Each court is composed of a president appointed by the sfov-
-l10—

ernment, and at least two assessors who represent labor and
capital, There are 420 assessors in Berlin alone. by this
means every trade finds practical representation. Decisions
formally reached are binding on all concerned, Two nundred
seventeen industrial courts were established in Germany be-
tween 18°90 and 1895, While during the year 1893,34,647 cases
were successfully dealt with.

In Austria, similar methods of arbitration Nave been a-
dopted as those of Germany. In Sweden,industrial disputes
are settled in a police court, while Denmark has arbitration
boards consisting of not less than four members, with a
president chosen by them. These boards are permanent and no
voluntary boards of any prominence are found in either of
these two countries,

In Switzerland, twenty five trades-unions have boards
of conciliation and arbitration, while the state officials
often assist in the deliberations, In some of the cantons,
boards have been established by the governments; the last
One was organized at Lucerne in October 1894 .

In Spain and Portugal, the disputes are settled mostly
by the civil authorities, Portugal began establishing in-
dustrial courts in 1889, and Spain has a few,

In all the above cases, I believe the success of arbi-

tration at the instigation of the government to be due to
-ll1=

the fact that the people of these countries look upon gov-
ernmnental interference with less antagonism than we do in
the United States,

Arbitration and Conciliation in England,

Now let us turn our attention to England, The relations
of capital and labor before 1860 were about as bad as can be
imagined, A terrible list of riots, murders, and machine
breaking is recorded, which grew out of the industrial troub-
les, Parliament passed en acct early in the century, punish-
ing machine breaking with death and six persons suffered the
penalty, At last, in 1860, when 2 universal strike was: a~
pout to be declaredat Nottingham, there appeared a man who
Was egual to the emergency, This was Mr. Mundella, who may
well be called the father of Arbitration cnd Conciliation in
England, With less prejudice and nore foresight than the
other manufacturers, he saw that by adopting a conciliatory
method towards the workingmen, a great industrial war could
be averted, He was right, The board established by him was
a success and has stood with little change to this day,

It was simple; it consisted of twenty two members- the
working men elected half the members, and the manufacturers
the other half, The chairman was an employer and had the
casting vote in case of a tie. This was the weak point of

the board, but has since been changed; an outsider is now
-l|2=

called in to act as wupire if the twenty two members cannot
agree, These delegates have full power and the decisions

are bindings on poth parties, Below this board of arbitration
are numerous boards of conciliation, called boards of inquiry
before wnich all disputes imist come before they can reach the
board of arbitration.

Now, we see that this system is similar to that of France
The board of arbitration corresponds to the 'Bureau General’,
and the Boards of Inquiry to the ‘Bureau Particular', In
England the disputants elect an umpire, in France, the chief
officer is appointed by the government, Both boards meet
regularly. The decisions in France are enforced by law,
While in England they are not,

Wolverhampton Systen.

In 1864, another board of arbitration was established
called the Wolverhampton system, It did not diffcr matericl-
ly from that of Nottingham, except that its wipire or ref-
eree was elected as a permanent figure of the board, Another
conmendable difference is that a copy of the rules was embod-
ied in the contract whenever a workman was hired, and by this
system an award is easily made; while under the Nottingham
system an award cannot be compulsory unless enforced by law,

Conciliation in Northumberland and Durham,

In the most important industries of Northumberland and
-13-

Durham the way to avoid industrial war has heen found and
followed with remarkable success, In the coal trade of both
of these countries and in the manufactured iron trade of the
North of England, the cnosen representatives of employers and
eniployed have met together at stated intervals and settled
innumerable disputes, established sliding scales.to regulate
wages, and in a case of a general disagreement, they have
referred their decision to one or more independent persons
nutually agreed upon, This system has lasted to the present
tine, and has continuca to work through good and bad times
alike, and though occasionally undcr circumstances of pecul=
larly trying nature, the decisions which have been made have
been loyally accepted,

All this nas been accomplished voluntarily by the saut-
ual agreement of employers and employed, and without appeal
to any law but that of honor,

We find that in all these trades, that the great majority
of questions which arise are settled by conciliation, and but
very few by arbitration, In a single year 629 disputes were
settled in the Durham coal trade, and more than 35000 have
been peaceably disposed of in the Northumberland coal trade
in an existence of about twenty years, while the committee
of the Finished Iron Trade of the North of England has, in

the same length of time,met 318 times and settlod 900 ques-
=-l[4—

tions by conciliation and only 18 by arbitration. This, then
is the history of a board of Conciliation which has worked
successfully for twenty years in constant practice for in-
dustrial peace,

But, you may ask, if this is true, and we can point to
many sliuiilar boards in other industries, practicing the same
method of settling disputes, with as great a success,why have
not boards of Conciliation and Arbitration been publicly her-
alded through ths land as a panacea for labor troubles in
every industry? The answer is just this, Arbitration has
been accepted and forced upon the people but with out success
as a state measure, But, Arbitration is only one dorartnont
industrial peace, and the least important. It is the depart —
ment of Conciliation which is the more valuable, and it is
this department which has made so little progress, because
the spirit of conciliation must originate and grow up between
employer and employed, Conciliation must go before and pre=
pare the way for Arbitration,

The Coal Strike of 1893 in the iiidland Counties,

The effect of the sixteen wecks'coal strike in the Mid-
land counties of England in the autum of 1893, was so far
reaching and so hurtful to the interests of that country,
that a history of the strike and its results forms a very

interesting field of study.
Near the close of 1888, a general improvement in the coal
trade caused a gradual advance in the selling price of coal
until in June 1890,when wages were forty per cent. higher
than they were in 1888. This advance in wages had been made
at numerous meetings between the representatives of employers
and workmen, and had been demanded by the laborers on the
ground that the improvement in the selling price of coal jus-
tified it.

However, the selling price of coal began to fall in the
latter part of the year 1890, and the coal-owners in the Mid-
land districts felt justified in asking for a reduction of
wages, but they knew that the Miners' Federation would be
strongly opposed to a reduction, and that a severe struggle
would likcly take place,

The owners realized fully the serious consequences of a
prolonged strike, and resolved if possible to avert such a
calamity. At last, when the meetings took place in July,
1893, the owners proposed that twenty five per cent. of the
‘forty per cent, given to the men between 1888 and 1890 should
be conceded by the workmen on the ground that the price which
had risen during that time had now fallen sufficiently to
warrant the reduction, The owners offered to submit the
question to Arbitration as they were willing to prove by the

books that the reduction asked for was fair, reasonable and
-16—

necessary.

The workuen refused the offer and a strike ensued, After
it had continued several weeks, the mayors of several towns
offered their services to bring about a settlement, They
met and without collecting evidence from either side, sub-
mitted a proposition which was rejected by both sides. Other
conferences were held, and finally, on Nov, 4th,., 1893,
under the chairmanship of Lord Rosebery, it was arranged
that work should be resumed on the old terms, and that a
board of Conciliation should regulate the wages for at least
twelve months,

In the “fidland counties the effect of the strike was very
disastrous, All the funds of the Union were exhausted; the
miners were in debt; the trade was seriously damaged; and
the markets for coal were temporarily, if not permanently
lost. In Northumberland, Durham, and South Wales, wages had
been reduced, but the miners had taken a more philosophical
view of the question, In South Wales, a sliding scale had
been adopted, and in Northumberland, and Durham, the wise
counsels of the leaders had kept the workmen quiet; the min-
ers had worked regularly, and excellent wages had been earned

Here is a case where Conciliation having failed, that
Arbitration should have been made compulsory by the state,
The government has no right to allow industrial war to dis-

turb trade, break up markets, and discommode the public when
=] =

there is a more reasonable, and justifiable method to settle
the dispute, The House of Commons should have formed some
means of Arbitration, and had it been rejected by the men,
a statement of the true facts in the case should have been
published as to the earnings of the men, and the false in-
pressions which had gained ground in the mind of the public,
and had led them to believe that they were sustaining men who
were fighting for a living wage, would have been destroyed,
When Arbitration was refused by the men, the owners should
have immediately published for the enlightment of the miners
themselves, and the public, the facts and figures which jus-
tified the demand for the reduction proposed,

The miners were entirely in the wrong, They believed
that by the mere strength of the Federation they would be
able to maintain wages at any point, and to maintain those
wages even in a falling market by the force of combination.
This was their great mistake, to be learned only at too late
a day. A loss of many millions was incurred in fighting out
a question, which could have been avoided by the understand-
ing of the principles (¢e} That the workmen must share with
the owners of the coal mines in the variations of trade,
whether the prices are rising or falling.

A board of Conciliation has been decided upon which will,

it is hoped, regulate wages in the future, One lamentable
~1o=—

fact still stands out above all others- that such a board
might have been arranged in time to save the sacrifice of a
single day, had the proposals of the coal-owners been enter-
tained,

The problem which every person is anxious to solve at
the present time is, the discovery of some scheme or system
which providegfor the remuneration to capital and labor ac-
cording to the varying states of trade, and which will pre-
vent the capitalist, the workman, and the consumer from being
the victims of such a castrophe as that so recently experi=-
enced,

Both the coal-owners and the workmen have come out of
the recent struggle with a better insight into the principle,
that both employers and workmen should co-operate in sharing
the occasional burdens of hard times, and as both sides have
agreed to the Board of Arbitration, it is certain that there
is a great opportunity for the arrangement of some scheme by
which future wages will be regulated and the country ensured
against strikes for the future,

Other Arbitration boards have been established in the
iron, coal, and cotton industries similar to those at Notting-
ham, and having for their object voluntary arbitration of dif-
ficulties. This is an important point to note, that boards of

Arbitration in England are voluntary. The legislative attempt
-19—

to establish Arbitration and Conciliation has been a failure,
Not a single organization has availed itself of the laws made
by Parlianent to secure legal arbitration, MThere are three
laws on the statute books of England on this subject, but
they are virtually dead letters,

Notwithstanding the fact that the organization of Capital
and Labor is more perfect in England to day than in any other
country, it is still exceptional to find a trade provided
with a permanent joint poard of Conciliation and Arbitration,
definitely constituted and meeting regularly. Special con-
ferences by representatives of both parties are most common,
In fact, the Royal Commission for 1894, has reported against
the systematic establishment of boards of APbitration, endowe
ed with legal powers, but favor the organization of institu-
tions similar to the'FPrench Councils of Experts, '

In summing up, we find that for the first time in the
weaving trades at Nottingham, and in the building trades at
Wolverhampton, in place of the organized conflict between
employers and laborers, a system has been jnaugfrated which
permanently promotes peace, which has transformed the organ-
ization for conflict into a more thoroughly organized body
for the solid support of peace, From these industries, the
system has spread from industry to industry until it has been

adopted in almost all of the important centers of British
—20-

manufacturing,

We find times when these boards have been put to the
severest test, Their workings have not been always harmon-
ious; the awards have not always been accepted, and when re-
jected, it has generally been by the workingmen, but this
must be expected as long as men are human, But considering
their general workings, Arbitration has conferred a lasting
and incalculabie benefit on the industries of England, In
place of nostility; confidence, mtual respect, and often
friendly fecling exists where formerly all was hatred and
suspicion. It has taken years to accoiztplish this; the strife
of a century is not easily forgotten, and it has not been ac=-
couplishned without occasional lapses into the old state of
things, but the troubles in Arbitration have been so unimpor+
tant, that we must drayv the conclusion; that Arbitration in
England through voluntary boards is a success, and where they
have failed was in their lack of legal power to enforce the
awards,

We heve found that the chief obstacles to Arbitration and
cone 1iation are;

(1) The refusal of the employers to recognize the offi-
cers of the Unions as agents of the workingmen.

(2) Some employers scem to think that sitting at the

same table and talking over the rate cf wages, hours of lapor
~21-

and other matters as beneath their dignity, and as conceding
too much,

(3) The worknen are equally to blame, for they quite as
frequently refuse to make the slightest advance toward a con=
ciliatory course. This is very stupid, it originates ina
prejudice against compromise, which,after all, is the basis
of every settlement,

The fault lies not in the system, but in the disregard
for the objects which the promoters of the system have in
view, and the provisions made for their attainment, Voluntary
they must ever be, except in so far as the pressure of public
opinion may be made to operate in a sufficiently powerful
manner to morally enforce their adoption, and also any decis-
ion at which they may arrive, after due consideration of all
the facts and their modifying influences,

We have studied several experiments in the Old World in
Arbitration and Conciliation, resorted to wnen a difficulty
had arisen in a particular industry or branch of trade, They
were tentative in character and method, but they have served
to show that Conciliation is possibile if the employers and
workingmen will only reason together on fairly equal terms,
Whenever the first difficulty has been overcome, that of the
employers meeting the representatives of the men, the con-
tact of the two parties did not produce a further cleavage,

but tended more to a mutual cohesion and respect,
io =

Arbitration and Conciliation in the United States,

The belief still exists in the minds of many that, what-
ever the cause of strikes in the Old World, this country
ought to be free of industrial conflicts, if it were not for
the pernicious and wicked activity of labor agitators. In
determining the influences and agents at work in our indus-
trial disputes, we must necessarily consult the records, and
critically review the history of our strikes to determine
whether labor trouclcs are novel in our industrial history
and merely the fruit of labor organizations,

A Brief History of Strikes from 1741 to 1865,

It was not until 1741 that those vexing questions which
inevitably arise between cmuployers and employed had their
actual outbreak in the United States. As is usual, the greater
number were for snorter hours or higner wages, and as certain-
ly failed in their purpose, the strikers being locked out
by their employers and driven to other places of employment,

The first strike worthy of notice was in 1805, when a
Philadelphia shoemakers' union struck for an increase of
wages, The strike was a failure, but the cnarges against
the eight men arrested are worthy of notice, They are;

(a) That the defendants were guilty of unjustly and
offensively contriving to increase the market price for their

services.
(b) That they had tried by threats and other wlawful
means to prevent other workmen from continuing on the old
ters,

(c) That they had unlawfully met and tried to form then-
sclves into a club and ordain arbitrary and unlarful bylaws
for their otm guidance as well as well as other workmen.

The jury found the defendants guilty of ''a combination
to raise wages'',

At the trial of several strikers a few years later in
New York, the judge's charge to the jury was that,''It was
by no means clear that an agreenent not to work for certain
wages was illegal, but that the sole offense of the strikers —
lay in the unlawful means which they employed to obtain their
opject.'' The ''unlawful means referred to were coercion and
boycotting. The offenders were convicted,

Later on, at Philadelphia in 1815, a trial was conducted
on the charge of ''conspifing to raise the price of wages,''
The great point in the case was whether ''peacedly conspir=-
ing'' or arguing with the men to refuse to work for certain
wages was ''unlawful means'', The defendants wore acquit-
ted,

A history of these strikes up to 1850 is a long list of
tetty quarrels between employers and vorkmon, in which, there

is no sugsestion of Arbitration, anc when carriec to the
courts, the verdicts were unsatisfactory because of the lack
of clearly defined laws on the subject,
Fall River Strike.

On Nov, 2oth, 1850, the Fall River corporation of Mass-~
achusetts gave a notice of reduction in wages, which was fol-
lowed by a strike in all mills except the Watuppa. This
strike from its magnitude caused considerable attention over
the country, much distregs was felt by the workmen, and
~20,000 was subscribed for their relief, The strikers claim-
ed that the manufacturers were receiving sufficient profits,
and as evidence pointed to other mills that were running.
They also claimed that improvement in the mills had increased
their labor and lessened their wages,

While the manufacturers claimed that the improvements had
enabled the spinners to run more time and thus earn the usual
wages, notwithstanding the reduction, After four months of
contention, a workman not connected with the mills proposed
that they arbitrate the matter, but neither side could humble
their pride sufficiently to accede this much, After a strug
gle of six months, the mills were filled with new men = the
old euployes were crowded out = 13500 persons were thrown out
of employment with a loss cf 140,000 dollars in wages, It
had shed disaster uwpon all concerned and was a severe blow

to the prosperity of the city,
Conclusion,

The abcve is a typical description of the usual strike
up to 1865, Here we reach the end of the first epoch of
the labor movement, The facts set forth enavle us to draw
certain conclusions, We observe that up to the time of the
rebeliion, there were very few strikes against the reduction
of wages, The greater majority were for shorter hours and
increased pay. This was an indication of general prosperity,
for labor felt strong, and any grievance was sufficient cause
for a strike, No great organizations existed; trades unions
were small and weak, but labor felt that the country was rich
and undeveloped. Natural opportunities were open to all;
land was practically free, and there was no pressing neces-
sity for accepting low wages. The population was small; nat-
ural resources were abundant, and the avenues for enterprise
were almost innumerable, In fact during this time, we do not
find any real!problem of the unemployed!., The laborer felt
secure and independent. It was natural that he should seek
to improve his condition under the circwastances, and his
strikes were demands for better terms, and not protests
against the encroachuents of his employers.

Ushered in by the war of the rebellion is the second
epoch of our labor movement, Here we snall find a great

change in the conditions and the character of the struggle.
The Second iipoci of the Lavor Movement,

Tne cra of the Civil War brought into prominence a vast
muiber of labor probloiis, mug LO Plucvwuations of the currency
rapid accimulation of wealth, and the widening of the field
Sor thie liovelent of labor, From this time forward, labor
becomes organized, and the history of labor is the history
of these lorsco organizations, The strikes become less fre=-
quent, but of larger area and of more consequence, The dan-
gers and eviis of collisions between employers and workmen
yeco.ig wwultiniied, We shall note the most important of
these, and consider at length certain ones in which Arbitra-
tion or Conciliation played any part,

Early Arbitration in Massachusetts,

An organization imown as the Knights of St; Crispin was
formed at Lynn, "ass, in the year 1868, This order became
popular in all the shoe industries, and it is here that wo
find the first form of Arbitration or Conciliation in Mass-
achusetis, In tho spring of 1870, there was considerable
troitwle sotyeon che Crispin lodge at Lynn and the manufactur-
ers. Five of tho principal cmployers met five of the Crispin
delesates and arranged a scale of prices to last for one
year. Several strikes which had been inaugurated speedily

cane to an end, This scale of prices worked successfully
-—27-

for a ywar, at the end of which time the committee met, and
after congratulating themselves on the operation of the
skedule, agsrecd to an other one for the coming year; There
was no noticeasle outbreak during thwe second year, but bitter
feelings began to be engendered early in the fall of 1871,

The Crispins claimed that they received no sympathy in
their efforts tO adjust difficulties, that several of the
manufecturers cut under the established prices within three
months of the date of agreement, and that they were wnable
to get a meeting or the Board of Arbitration,

The manufacturers on the other hand, claimed that the
Crispins became unreasonable in their demands, that certain
of them had entered into secret compact to work for less than
the established prices, A general spirit of opposition
grew up, and in 1872 the manufacturers united to overthrow
the Crispin organization, The Crispins joined issue in the
struggle for what was to be the life or death of their organ-
ization. They were given the alternative of leaving their
lodge or giving up their situations, and almost to a man they
preferred the latter, After a struggle of some months, in
which tho Crisvins' cause became more and more doubtful, they
oreanized a committee which made an attempt to effect a re=
eonciltation, They proposed;

(2) That the question be not raised, whether the men be=
-28-

longed to the Crispin lodge,

(b) That the list of prices be abolished, and that each
firm should make its own contracts,

These propositions were refused by the manufacturers,
and the Crisnins were given to understand that no terms would
be accented until the workmen entirely and finally renounced
their orsanization,

The loage vweaxened fast, its power of resistence was lost
and its unity broken up. The men either renounced the order
and went quietly to work, or were locked out, Thus died the
organization which had given a foothold to the cause of Arbi-
tration, Their mistakes were many, but that was to be ex-
pected of men strange to the organization of labor,

It is worthy of noticc that for the two years in which
Arbitration was allowed, the shoe business prospered, and the
active and material growth of Lynn was the subject of conment
not only in the local press but through ths country, Had
there been a standing committee to adjust disputes,with fre-
quent meetings, the horrors of the strike of 1872 might have
been avoided,

During the next two years, the general business depres
sion bore heavily upon the shoe business, and wages went
down so low, that the manufacturers admitted that it was im-

possible for the men to support their families,
-29-

With considerable countenance and aid therefore from the
manufacturers, the Unity lodge of St. Crispin was reestab-
lished in 1876, A board of arbitration was established, in
which many of the old difficulties were avoided, No claim was
made to the right of interference of the right of employers
in hiring or discharging help. No strike could be ordered,
sustained, or allowed except by vote of the committee on Ar-
bitration, and the unanimous consent of the shop's crew where
such strike was to take place,

In the year immediately succeeding its organization,
about one hundred cases were disposed of amicably and with
out muck trouble. Nearly all the cases arose from the employ—
ers attempting to cut under what was considered a fair price,
The duties of the Board were continuous, and often arduous
and difficult, involving the exercise of consideravie prudence
and patience, Mcctings were held as often as required, some-
tines twice a week,

Tnese efforts at Conciliation and Arbitration were not
pernianently successful, not the less, however, did the work
accomplished by the Board snow the value of the principle,

In the fact, that this board differed from the one of 1871
in mecting as often as required, is due its success, and if

it could allay i111 feeling and prevent strife in a period of

wer

-_

depression, what might ieve v»cen expected of it in 1871?
-50-

Conciliation in the Iron Trades of Pittsburgh, Penn,

The city of Pittsburgn is the chief center of the iron
trace of this country, and « history of tie labor troubles
that cectvrea in this vicinity will prove a valuable aid in
the discussion of the present subjcct,

After reyected etrikes besi:..ing as early as 1849, with
os ineny Taeilures, the worlasen crganizgecd a tradcs union under
the nai.e of tre ''The United Sons of Vulcan'', The growth
of this organization was slow, but by 18°05 its power began
to be felt, and the Union was recognized, Finally a general
comferencu & resentative tien frou cach side, eurloyer and
Qnplevec,sugsected itse Pf, trrovgh when wages were to be
fixed anc cifficulties avoided; while its action was to be
binding on all,

Tois is the first importent cttenypt et conciliation in
this eccwrtry. It involved lergse interests, anc is also the
eerliest crcmple of a siidines cecle veec in tris cevrtry,. The
Pluctvictions of the -riece of iron secon Lrche vr the scale,
anc in 1€eS the menvicetvrere wnitec to reduce tne price of
puddling, “.e worsen refused to accept tne temas, ant a

ee “ : a7 “oe ~. ~ - \ J. ‘ od. “ . ” =~ Co wv 7 5
eaneral lockout was inowerrectee by the wanwvacturers whien

Tova wo poticce there was

4

a. 7 wy . 7 7 NNO d. ~ Oma ae ‘ ~~
Tasted Prou Dee, 1°C7% ta Voy 1a"

bed

no attcmpt made by the manufacturers to arbitrate the matter,

The lockout finelly terminated in the old wages »veing paid.
-31-

Altnougnh the manufacturers resumed work, they were evi-
dently dissatisfied, and the'Sons of Vulcan! made an effort
to again get the adoption of a sliding scale of wages, We
notice that these attempts at conciliation were made by the
workingmen. They addressed circulars to every firm in the
city, which were responded to willingly by the manufacturers,
and in 1867 a scale of prices was agreed upon which lasted
seven years, At the end of this time, the price of iron had
fallen so low that the scale had to be revised,

The employers were the first to terminate tne agreement,
In the conference which followed, it was evident that the
manufacturers demanded a scale which would work to their own
profit, In the previous scale, we find that for every re-
duction of one fourth of a cent on the card rates, there was
a corresponding reduction of twenty five cents in the price
of puddling, but in the conference of 1874 there was demanded
a reduction of fifty cents, instead of the previous twenty
five, This,the workmen refused, but after holding a meeting,
they agreed to allow a reduction of fifty cents on the three
cent card rates to the two and onehalf cent rates, This, the
manufacturers refused and the conference was adjourned with
the mutual understanding that there be a general lockout and
strike, Had this conference been in the form of a board of.
Conciliation, with an umpire whose decision nad been final,

we can see how this disagreement might have been avoided,
3 2—

Their intentions were just, but their method was wrong,

This memorable strike lasted all winter, In March, the
employers proposed to arbitrate, but the men, at that late
day refused to do so, At last in April, the manufacturers
allowed the employes their terms and the strike ended, No
general scale was adopted, but each employer signed the scale
for himself,

At the end of this strike, tho different organizations
of iron workers amalgamated into a federation, under the
title of ''The Amalgamated Association of Iron, Steel, and
Tin Workers of the United States'', This body has succeeded
in establishing scales covering nearly all of the skilled
work in the rolling mills of not only Pennsylvania, but also
in those states west of the Allegaheny mountains,

It is worth noticing that in nearly every instance, the agree
ments have been faithfully kept, and where there has been a
change in terms, it has been done readily and satisfactorily

by conciliation,
Arbitration in the Anthracite Coal Regions of Penn,

It may be said to the credit of Pennsylvania, that in
no state in the Union, has industrial Arbitration received
so much attention as it has in that state. The first attempt

at formal arbitration in this country took place in the An-
thracite regions of Pennsylvania in 1871. The industrial
history here has been marked by thy greatest fluctuations

in demands and prices, and a most terrible catalogue of out-
rages connected with the labor difficulties has been the
result,

At the time at which Arbitration was introduced, there
were over fifty thousand persons employed, that had gathered
there from all kinds of trades, and different sections ofthe
country. The men had nothing in common, they did not readily
unite, and strikes were a normal condition with the result
generally in favor of the employers. Periods of plenty and
of suffering followed each other with grim regularity, reck-
lessness became the ruling spirit, a pandemonium of outrage,
violence, and anarchy reigned} such utter disregard for the
sanctity of law has seldom been known in a nation,

It was in the midst of such a condition of affairs that
two associations were formed, that for years exerted a power-
ful influence on the trade in this region. ThetWorkingmens'
Benevolent Association of St. Clair''was incorporated in 1868.
and in 1869, the'Anthracite Board of Trade'of the Schuykill
coal region was formed of operators of the different collier-
ies, Each party was thus representated by an organization
that could yoice its wishes and intentions, Representatives
from these two organizations arranged a scale of wages ac-

cording to prices for 1869 which was a success,
~34~

The representatives of the workingmen unduly interfered
with the business of the 'Board of Trade', were arrested for
conspiracy, convicted, and imprisoned, To avoid a repetition
of this difficulty, an agreement was entered into at the
meeting for 1870, which clearly defined the rights of the
committees; a scale was also arranged for the coming year
which worked successfully.

At the meeting for 1871, the attempt to fix a seale of
wages ended in a disagreement, An appeal was made by the
operators directly to the men, but they did not respond,
Finally at a meeting on May llth, it was decided to refer the
matter to an umpire for a decision. Judge Elwell was chosen
umpire and rendered a decision which was accepted by both.
parties, but it only lasted until September, owing to the
Thomas Coal Co, acceding to the demand for an advance in
wages, The demand immediately spread to the other collieries
and being refused, the men struck, The terms were finally
conceded,

Wages were arranged for the years 1872 and 1873, but 1874
was narked by a strike against a reduction. It is unneces-
sary to give further details of the operation of this system;
it has become an unwritten law of the region, and while sev-
eral long and important strikes have occured under its oper-

ation, this basis system has done away with the petty strikes
tsi

of the region,

We have considered quite carefully the history of these
labor troubles, as they show most admirably the advantages
that result from Conciliation, If in such a trade,with such
a class of men as described, and under so many adverse cir-
cumstances, an agreement could be reached that was self act-
ing, and regulated wages with the fluctuations of the market,
it is evident that other trades under more favorable condi-
tions need not despair of this method of settling the vexing
questions that afflict industry.

We notice in all these conferences, a vital error eccured
in not electing an umpire before a deadlock was reached, It
is always best to elect one at the beginning, that he may be
present at all meetings and discussions, and be better ableto

decide promptly and accurately,
Arbitration in Onio,

In Ohio, the attention of not only the employers, but of
the legislature was early turned to Industrial Arbitration in
settling disputes between labor and capital. The first at-
tempt was made in the Tuscarawas valley. The operators an-
nounced a reduction of from ninety to seventy cents a ton,
The Miners! National Association proposed that a joint con=-

ference of the operators' and miners! representatives be had
~36-

to discuss the questions in dispute, This committee met in
Akron on Dec, 17th, 1874, and unanimously agreed to refer the
dispute to a board of arbitration,

The board was well chosen and the matter in dispute was
well and ably discussed, The award was accepted and the
miners resumed work, except those of the Crawford Coal Ccom-~
pany. These men wished to have a check weigh master, a right
given them by law, that they would be sure of having their
coal weighed correctly. The company refused this and stopped
the mine, Rather than employ the check weigh master, they
offered an advance of nine cents rer ton to the men over the
award of the board of arbitration, This was eagerly accepted
and the miners resumed work. The other miners, seeing one
company voluntary make an advance, also demanded the same
terms, which were finally conceded and the work of the arbi~
tration board was loudly denounced, It is very evident that
the company would not have been willing to pay nine cents

more per ton than other mines, unless they expected some ad-

vantage to arise from not having a check weigh master,
The Terrible Strike of 1877,

We must now turn to the darker side of our history; We
have reached the period, at which another industrial upheaval

occupied the attention of our entire country, The great
nS "7

railroad strike of 1877 began on the Baltimore and Ohio Rails»
read at Martinsburgh, West Va; The immediate cause of the
first strike was a reduction of ten per cent; in wages; This,
however, was but one of many grievances, The wages were made
still lower by irregular employment. Men with families were
permitted to work only three or four days per week, and part
of this time, they were forced to spend away from home at the
Company's hotel, at an expense of often a dollar per day, .
thus leaving them but thirty to fifty cents for a day's wage,
Often this pay was kept back two or three menths when it
should have been paid monthly. There was considerable riot=
ing and destruction of property in Baltimore, Cincinnati,
Toledo, and St, Louis, but the strikers were held in cheek
by troops sent from the West, as the militia only affiliated
with the strikers and refused to fire upon them.

In this strike, we find the railroad officials te blame
for the manner in which they ignored the rights of their en-
ployes, making ne attempt whatever to cenciliate with their
men, The strikers, on the ether hand, though willing to ars
bitrate, grew desperate and became a disorganized mob which
had to be dispersed by troops,

This was followed soon after by an other strike; this
time by the employes of the Pennsylvania Railroad Company.

Orders had been issued that freight trains should be run as
=358—

‘double headers!, thus disposing of about one half of their
conductors, brakemen, flagmen, and other miscellaneous help.
Here , again, no attempt was made by the company to concili-
ate matters; The state interfered by sending troops to put
down one side of the dispute and protect the other,

The strikers obtained firearms and continually attacked
the troeps, only to suffer severely in return, The mob was
finally dispersed with Gatling guns,

That this mob was accessible to reason is shown by the
manner in which they responded to the influence of the cit-
izens! Cemmittes which succeeded in quelling several dis-
turbances, In fact, they did more real good by peaceful
means than the soldiery did with their Gatling guns, From
the very beginning, the strikers had the active sympathy of
a vast portion of the people of Pittsburgh, The loss inflict-
ed by the mob is estimated at $5,000,000. The whole country
was greatly excited over the strike, and the question was re-
peatedly asked,*How can such affairs be prevented or the

causes leading up to them be removed?
The Telegraphers! Strike of 1883,

The next great strike was that of 18835, There were involved

in this strike, the majority of the commercial operators of
mB Gi

the entire country; It took place to secure the abolition
of Sunday work without extra pay, a reduction of day turns
to eight hours, and the equalization of pay between the sexes
for the same work,

The strike was unsuccessful, the employees lost 250,000
and the employers $1,000,000. One of the companies made an
agreement with the Brotherhood of Telegraphers to resume bus-
iness, and this broke the backbone of the strike; No attempt
was made to arbitrate the case, I note this strike to show
that industrial troubles, because of the organization of
labor,are becoming of huge proportions compared with former
years, This, I believe to be a help to successful arbitratiouw
as there is a chance to locate the trouble and get at it ina

tangible way.
The Southwestern Strike,

There were two strikes on the Gould system of railroads,
and we shall contrast the two. The first took place in March
1885, The men struck for the restoration of wages which they
had received the preceding September, since which date re-
ductions amounting to from ten to fifteen percent had taken
Placo, The strike only lasted fifteen days, This result was
brought about through the efforts of the governors of Mis-

gouri and Kansas, who assisted in urging upon the parties the
importance of adopting a method of conciliation,

The company agreed to pay the same wages that they had
in September, to restore all employees without prejudice,
and that here after,rates would not be changed except by a
thirty days! notice, The SUT oss in this affair had the
general sympathy ana norAi Ff the public,

The second strike took place in March 1886, because of 1
the discharge of a foreman for alleged incompetency.,. This
foreman was prominent in the assembly of the Knights of Labor
which order inaugurated the strike. After a struggle of a
month their cause proved unsuccessful,

The strike of March 1885 was generally considered a just
one, and its success probably led to the inauguration of the
second one on the small grievance of the discharge of a
single man; It was ill judged, had no adequate cause, and

the disastrous result combined with the lack of public sym-

pathy brings the two strikes into sharp contrast,
The Homestead Strike of 1892.

At Homestead, Pa, in July 1892, there occured one of the
most serious strikes know to our history, The Carnegie
Steel: Company and its employees were unable to come to a
mutual agreement in regard to wages and the company closed

its works June 30th, and discharged its men, only a small
—~—l1-

portion of the men were affected by the proposed adjustment
of wages, The larger portion of the men, who were members

of the Amalgamated Association of Iron and Steel Workers,
were not affected at all, nor was the larger force of employ=-
ees, some three thousand in number, who were not members of
the association, The company refused to recognize the Amal
gamated Association of Iron and Steel Workers as an organiza-
tion, or to hold any conference with then,

The men who could not secure recognition, refused to ace:
cept the reduced rates, and resolved to resist the company
in the attempt to run the works with non-union men,

On July Sth,, the company employed a sheriff with deputie§
to protect the works, The employees, on their part, organ-
ized to defend the works against encroachments, When the
sheriff's men approached, the workmen who were assembled in f
force, notified them to leave the place, as they did not in-
tend to create any disorder, and that they would not allow
any damage to be done to the property of the company, They
also offered to act as deputies, but they were ignored, The
Advisatory Committee which had preserved peace successfully
so far, dissolved upon the rejection of this offer to serve
as deputies and all of their records were destroyed,

It is lamentable to see how persistently the company

avoided any attempts to conciliate the matter, and how even
—_4 o=~

the officers of the law regarded the strikera as not having
the privileges of American citizens, The men were willing
to arbitrate, but the company was not, Here is the place
where antattempt to arbitrate! should have been compulsory,
No fairer or better field for arbitration has ever been of=
fered in so extensive a strike,

So shockingly unnecessary was all the strife and blood-
shed, that it is with something of indignation that ons con-
siders them, Experience ought to have taught both sides to
adjust the wage scale for less than ten per cent without re-
sorting to methods that would have disgraced the so called
dark ages, The wrath of asensible man is justly kindled
because the company did not seem disposed to avert a sit-
uation that must inevitably tempt men to violence, and bring
sorrow into hundreds of innocent homes. Both parties Knew
full well the fearful responsibility they were assuming, The
point of contention was not vital, if wages are to be con-
sidered,

Was it wages,or was it principle that the men were fight-
ing for? Legally, the company had the right to say; We will
offer only such wages; we will not confer with our men on the
wages question; we will not recognize the tradesunion; we
will lock them all out if we choose, in utter disregard of

them or their familiss,
m4 3-

But morally, it has no right to say any thing of the kind»
No one recognizes more fully the mutual duties of employer
and men at such critical moments of mental strain than does
Mr; Carnegie, as is shown kn his published articles,

The Nation and the state of Pennsylvania have dealt so
broadly and liberally with Mr. Carnegie, and he has so pros-
pered under the conditions, that he and his associates have
been able to bring together under one control the greatest
iron and steel plant in the world, There is no competition
against them, it is a monopoly, They owe it to their Nation
and the state of Pennsylvania to keep the peace with their
men,and avert public scandal and the disgrace of open war
between their men and hired soldiery. A littie more tact,
humor, and friendliness, and a little less lawful obstinacy
would have affected a peaceful settlement,

We do not wish to shield the strikers, A properly con
ducted strike is impossible under such conditions. A strike
in an establishment like Carnegics is terrible, it 1s some-
thing infernal, there is no keeping it within bounds, The
men should not hamye resorted to such extreme measures, they
should still have clung to arbitration. Instead, they poss-
essed themselves of fire arms, and thereby forfeited all pub-
lic sympathy, It is true that Mr, Carnegie indirectly did

¢
the same, but their assumption of firearms and storing up of
 

dynamite put them on the plane of anarchists,

Again, was all this for the mere ten per cent of wages,
or was there a principle in it? To accept with out inquiry,
such terms as the Carnegie Steel Company saw fit to offer,
would stamp the hand of inferiority on the workmen at Home-
stead. Independence is worth as mich to the workmen as to
the employers. The right to sell his labor in the highest
market is as dear to the workman as the right of selling the
product of that labor can be to the employer, Every workman
should have a voice in determining what shall be the minimm
rate of compensation, The fixing of that rate was no hard-
ship to Carnegie, as all stecl manufacturers paid the same
rates, which were determined yearly. The question at stake
did not concern the price so much as the right to a voice in
fixing that price,

The corporation, composed of men, delegates its authority
to an agent who deals with the men, All bodies of organized
workmen, stand in the same relation to the men as the corpor-
ation does to the capitalists. One invests money, the other
labor, The workmen should have the same right to be heard
through the officer of a labor organization, that the corpor-
ation has to be heard through the superintendent. This was
the bone of contention at Homestead,

The strike terminated after a sacrifice of several lives,
and a loss of many millions of dollars to both sides, besides
@ blll of nearly a million dollars which the tax payers of
Pennsylvania had to meet, With this great sum, there could
have been built and equipped, a series of technical and prac-
tical trades schools that would have become the glory and
pride of Pennsylvania, and rendered incalculable benefit to
workmen and capitalists alike,

Against compulsory arbitration, one finds many glib ob-
jections; *'It would be quite, quite impossible, and would be
quite objectionable if it were possible, pecause certain met=
aphysical rights might be infringed upon, Men evidently have
different views as to the order in which rights should be as-
serted, I believe that it is the right of the state, which
created the corporation at Homestead, to see that some peace-

ful and regular way is provided for settling labor disputes,

The Chicago Strike of 1894,

Probably the bitterest, the most far reaching, the most
expensive strike of our generation, occured at Chicago in
June and July of 1894, Beginning with a private strike, it
spread to the principal railroads radiating from Chicago,
paralyzing commerce, delaying the mails, and in general de-

moralizing business,

The original strike grew out of a demand of certain en-
ployees of the Pullman Company, in May, 1894, for a restora»
tion of wages paid during the previous year, The American
Railway Union espoused the cause of the employees on the
ground that they belonged to the Union, and numbering about
150, O00 men it refused to handle Pullman cars unless the
Couppany accededto the demands made upon it,

Another force was soon involved which took up the cause
of the Pullman Company. This was the General Managers' As-
sociation, representing all the roads radiating from Cnicago,
with a combined capital of over 2,000,000,000 and employing
more than one fourth of all the railroad employees of the
United States, With two such great forces, it is not imposs-
ible to imagine a great industrial war that might endanger
the safety of our Republic,

That there was no thought on the part of the Pullman
Company to arbitrate the matter was shown by the fact the
eommittce appointed by the workmen to wait upon Mr; Pullman
was summarily dismissed and almost instantly discharged, And
again it was shown by Mr, Pullman's own statement, ‘''That the
question as to whether the shops at Pullman should be operate
at a loss or not, is one which it was impossible for the Com
pany, ag a matter or principle, to submit to the opinion of
any third party, and as to whether they are running at a loss

upon contract work in general, as explained to the committee
4.7 -

of men in my interview with them, that was a simple fact
which I knew to be true, and which could not be made other
wise by the opinion of any third party,''

The report of the United States Strike Commission was a
surprise to many, It is a critical review of the whole con-
troversy and has been hailed with delight by labor organiza-
tions throughout the country. It treats the American Railway
Union with the utmost consideration, while the Pullman Conm-
pany's methods and conduct are subjected to a cold searching
analysis which amounts to the severest criticism, that has
ever been passed upon them, Nothing that lr. Debs ever
Claimed or argued amounted to half so relentiess an indict=
ment of the Pullman Company as this official document con-
tains, nor is the condemnation of the part which they played
lightened or extenuated by a single word, It is not the law-
lessness of the Railway Union that fixes the attention of the
Commission, but the usurpations, the illegalities, and the
tyrannous conduct of the General Managers’ Association, which
has,for the purpose of fixing wages, consolidated twenty four
railway. lines centering at Chicago, and which presents an
aggregation of corporate interests, in the presence of which
the American Union seems almost insignificant,

Many indictments have grown out of the difficulties at

Chicago, but all attending circumstances point to one con-
—4$8—

clusion-- that a share of the responsibility for bringing

it on rests, in some degree, on every one involved, The
strike generated a vast amount of bitter feeling = so bitter
that neither party was ready to consider the rights of the
other, The strikers claimed that their grievances warranted
them in adopting any means in their power to foree conces-
sions; The other parties, on the other hand, claimed that
they were justified in adopting any means in their power to
resist the demands of the attacking party.

It was the most suggestive strike that has ever occured
in this country, and if it only proves a lesson sufficiently
severe to teach the public its rights in such matters, and
teaches them to adopt measures to preserve those rights, it
will be worth all it has cost,

The Brooklyn Strike of 1895,

In January 1895, there was a concerted strike of the
employees of the Brooklyn Street Car Company, numbering in
all five or six thousand workmen, The company are charged
with paying low wages, working the men through long and irreg
ular hours, and to have substituted !trippers' -extra men =
for the regular workmen, Nearly all of the newspapers of the
city agreed that the men had genuine grievances, which the

Company showed no disposition to voluntarily redress, and
that the men were entitled to public sympathy, The people
of Brooklyn were also practically unanimous in agreeing with
this view. One or two of these lines were induced by the
State Commission of Arbitration to make concessions, which
were promptly accepted by the men, but there was no movement
for general arbitration in the matter,

The Special Committee of the New York Assembly made the
following report regarding the strike, ''This strike threw
out of employment about five thousand men, of whom not over
ten per cent, have recovered their places, interrupted traf-
fic in Brooklyn about a month, cost the strikers about $750,
000 in wages, and about $275,000 was expended in suppressing
the disorder, while the cost to the companies and the busi=
ness commmities cannot be estimated, The causes of the
strike were due to the plans by which the companies strove
to get an increased profit on capital without giving labor
any corresponding benefit. Their plans were of a question-
able character.

The Committee does not approve of compulsory arbitration,
put says that, ''Arbitration had not been resorted to, and had
not even been suggested by either party previous to the de-
Claration of the strike. Had that been done and an arbitra-
tion had, there is no doubt in the minds of your comnittee,

that the entire difficulty might have been avoided,''
=50O=—

Aside from tnis failure of the men to ask for arbitration,
the committee!s report places the blame for the causes which
led to the strike wholly upon the company,

On the other hand, had the employewps taken one fourth the
amount they lost in wages to procure legal counsel, and made
a public demand for arbitration, I believe that the State
Board of Arbitration, backed up by public opinion, would have
persuaded the Street Car Conpanies to settle the matter peace-
ably.

From a stuay of the facts and figures relating to these
strikes, we rise with the firm conviction that these phenomerg
cannot be due to the subterranean plottings of a few selfish
agitators, but must be resarded as one of the inevitable re-
sults of the system of free industry, and they all call the
attention of thinking men to the necessity of some sane meth-
od of preventing like occurences, or of at least reducing
their number and severity.

These lessons have been very expensive, the losses great,
but out of it all,there is emphasized upon our minds the all
important fact, that there must be some way of dealing with

these affairs other than by employing a standing army.
=-51=

Later Attempts at Conciliation and Arbitration,

One of the most interesting of all the efforts at indus=
trial arbitration in this country, was that in the cigar man-
ufactory of Straiton & Storms, New York City. This board of
arbitration grew out of a benefit association that had been
organized after the great strike of 1876, The most noticea-
ble feature is, that it is composed of nine persons= four
employers and five, the majority, of employees; This board
has decided successfully all questions which have come before
it. A private letter from Straiton & Sborms makes this
statement, ''wWe think that the principle of arbitratiom has
worked to the benefit of both ourselves and our employees,
and we think that the moral effect upon the trade in general
has been beneficial, There has been a general advance in
labor throughout our branch of business, and it has been ac-
complished without strikes. Our people, by their numbers and
intelligence, occupy a position by which they exercise a con=
siderable influence upon their fellow workmen, '!

Conciliation in New York, From 1876 to 1896,

The long strike in the summer of 1884 of the Bricklayers!
Union for a working day of nine hours, is a memorable epoch
in the industrial history of tho United States, This led to

a formation of a Mason Builders? Association to make a stand
against the Bricklayers' Union; The executive committee of
the Mason Builders' recomiended a committee to be appointed
with a view to the adjustment of differences that existed or
that might arise between their Association and the labor
Union,

Tne joint arbitration comnittee which was formed consisted
of ten members, five from each side, with an umpire in case
of a disagreement, whose decision was to be binding on both
sides, Weekly meetings were held, and special meetings at
the call of the cnair,

In 18385, after many meetings and discussions, on ‘farcn,24 —
the agreement as,the hours and wages was ratified, with this
important addition, ‘" That no strike is to be declared until
the matter in dispute shall have been submitted to the Joint
Arbitration Committee for settlement , Tne weexly meetings
were ‘given up for want of business

At the first annual meeting of the National Association
of Builders in Mareh, 1887, lfr. Tucker made the following
statement, !!In our efforts for the bettor establishment of
the interests of all, we have established an arbitration
through a conference held with our men, and by that arbitra-~
tion, we cover all disputes that may arise in the prosecution
of our work, For two or three years past thet work has been

going on, and has worked very satisfactorily to both sides,
BOO

We have monthly meetings, at which the members on the other
side meet us, and any dispute that may arise during the pro-
gress of our employment is brought there for adjucation, and
every case that has arisen so far has been met and adjusted
without any difficulty on either side, and perfect harmony
exista, I look upon the very fact of our coming now to this
National Convention as being the commencement of a spirit of
unity that is likely to pervade our land, and that the succes?
of the movement will grow, and from it the condition of our
mechanics will be very much improved through the incentive
that will be given from this body,'!

On September e2nd, and 2oth, 1892, certain complaints of
the workmen against the employers were considered, and were
amicably settled, The minutes for this year do not evem men-
tion such a thing as strikes and lockouts, while in every
other branch of the Building Trade of New York City, they
had been @ constant source of trouble,

Never in all the history of this joint committee, has it
been necessary to call upon an umpire to decide a question.
This in itself speaks volumes for the work of the committee;
The gains for the worknen can be seen by comparing the agree=
ment for the year 1885 with that for 1895, Besides minor
changes, wages have increased from 42 cents to 50 eents an

hour, and the working day has decreased from nine to eight
hours, The employers are satisfied with the results, and the
gain for the cormmmity can scarcely be computed,

This example of successful arbitration drew the attention
of several organizations of workmen, and on May, 10th, 1892,
a Committee of Arbitration was formed between this same Mason
Builders! Association and a Labors! Union consisting of rep-
resentatives of the different National divisions of workmen,
consisting in all of eleven divisions.

Again, on December 8th, 1892, through the influence of
the Secretary of the Mason Builders' Association there was a
like committee formed between the Hod Hoisting Employers and
the United Association of Engineers, Nor is this all that
this one association o£ employers has done for the good of
Conciliation, for they have repeatedly helped to settle dif-
ficultics, and they well deserve the good wishes of the peo-
ple of New York City for their constant efforts to settle

those petty difficulties before they becoie strikes,

Arbitration in Chicago.

In 1887, the labor question in Chicago had assumed a ser-
ious as;ect., The state of feeling engendered by years of
petty frirferences had precipitated the contest, Here again,
the Master Masons and Builders were the leaders on the side
of the employers, and fortunately they took the right view

of the matter, This is their statement to the workmen,’ 'We
submit to your consideration that a subject of this Kind can
hardly be fixed in a mecting of employers, but should be re=
ferred to a joint comuittee of both employers and employees
before action is taken,'! Thus the Yrignt principle was an-
nuncieted from the very outset, but it took two months before
it was acted upon,
Finally, in July, a comuittee was formed which met the is—

issue successfully, It consisted of ten tichwers, five from

1

each sido, anc an worire, Alt?

.)
¢

VELL uc is culy elected each
year, the umpire ins nevor beon called upon since 13887 to
decide a disputed question. Every question has been settled

]
without scrious difficulty up to date,

The National Association of Builders on Conciliation,

In March 1887, delegates from 27 citics met in Cnicago,
and forined the National Association of Builders, This has
continued to i.ect annually, and at every mecting, there has
been thoroughly discussed the methods of Arbitration and Con-
ciliation, and as a result, the plan whicn they have recon-
mended is boing introduced into many of the building trades
of NewYork, Boston, Chicago and other large cities, Although
the plan has been in operation for only a few years, there is

every prospect that it will meet with success,
Have State Boards of Arbitration been a Success?

Thus far, we nave considered only voluntary boards of
arbitration, What has the Stete done in this matter and has
it becon a success? Previous to 1890 there were laws that
provided for the creation of local boards of arbitration in
each county, but diligent inquiry fails to reveal that the
laws were of any real use, It is found that voluntary boards
were resorted to, and that both euployers and employees had
a decided aversion to statutory machinery, Pennsylvania in
three trials found her laws unsatisfactory, The other statos
had not thought them worth trying.

In 1885, we find a new departure; Massachusetts and New
York inaugurated a system of local boards with a state board
of three members appointed by the governor, and having juris-
diction over the whole state in case of appeals, A year’s ex-
perience convinced the boards that,as a court of appeals, they
were superfluous,= not because the local boards were suffi-
cient, not because there was a dearth of disputes to settle,
but because there were no local boards called into existence,
The testimony of all labor bureaus and other experts as to
such boards is that they have been practical failures where-
ever they have existed in the United States,

These boards, having nothing to do, sought to justify

their existence by appealing to the disputants, and in spite
of the fact that they were only courts of appeal, they ten-
dered their servicvs as mediators where ever strikes occured;

This led to their reorganization with fuller powers, and
to their being given not only the right, but the duty of in-
itiative in settling disputes,

The power granted to these boards was considerable, The
poarad_pmst put itself at once in commmication with the con-
testants and tender its services, and upon the joint appli-
cation of both parties, it must proceed to investigate and
settle the dispute in question = the decision to be binding
for six months. In case either party or parties refused to
accept the offices of the board, it might proceed to a thor-
ough investigation for the purpose of declaring which of the
contestants was to be blamed for the breach of industrial "
peace, and the verdict of the board was to be made public,and
reported to the legislature,

It is evident that this was not compulsory arbitration,
It could use compulsory measures in the investigations and
publish the facts in the case, that the public might condem
the censured party, but tho success of this lietnod depended
on the degree of susceptibility of the censured party to the
unenviable notoriety of being made the mark of public criti-

cism, Experience has shown that public opinion is capricious
=m IO

and the most culpable persons sometimes indifferent to its;
yet the element of coercion is a real one, and the alternative
presented to the party to have mediation forced upon him may
prove disagreeable or even disastrous to him if he declines,
To some people, the possibility of state intervention
seems intolerable, and a menace to business righta@, To others
it seems the official recognition of .the vested rights which
the public has in every business enterprise, To the boards
themselves, the new powers seemed as essential and as natural
as the right of a fire department to respond to an alarm
without waiting for a joint petition from the owners of the

property and the incendiary.

The accompanying table gives a brief summary of the

system of state arbitration in the United States,

fae fast O) mm
Sumuary of the Boards of Arbitration of the United States,

 

State,

date oflaws State or localg Composition; Power of; Industry 5
United
states, Local, Conmission of 3, Advisory. R.R; and

1888. Trans Co,
Cal,
1391, State, Commission of 3.; Decision bindingg Any,
Col, Comnissioner of Of 25
13a7, State Lapor, Advisory. employed
Towa, County Equal number May be made Manufact-
1335, tribunals, from eacn side, binding. uring.
Kansas, 2 from each with
18865, tt an umpirc, Decision final, | Any,
L

Louisiana, State, he Decision published. Of 20
Maryland, Local, Judge and two Any trade
1888, from each side, | Decision final,] or man'f,
MASK ¢ One from each Decision bind-= Of 25 men
1290, State, side and umpire.| ing for 60 days, employed,
Mich, Three appointsd | Decision bind- | Any,
1890 tt by the governor,} ing.
Missouri, Conmissioner Com, and two Decision pubd=
1889, of Labor, from each side, lished, Any.
‘fontana,.| State; One from each side. Decision bind, Of 20 mon
1887. Local; Optional, Pe ota gt
Ne. J; State; 1 employer& 2 others, '! "t | Any.
1892 Local; 2 of each side & U, Decision appedled, Any.
Ns Y< State; 1 Bmp, l1Dem.1 Ren, af final, tf
1886=7 , Local 1 of each & wmpine, 't appealed] ee
N, Dak,1B8S, Com, of Labor, By request, Mediation, Of 25 wen,
Ohio, State board, 1 from each sidg@& U, Proceed, Pub} '! #!' ?!!
1894, Local at Optional, nf
Penn, Local, 5 from each,and Final, Min .!fan,
1893 5S named by judge, & Trans,

 

 

 

 
~60-

With all this machinery, we are surprised to learn little
or nothing of its actual work, the strikes seem still to
grow larger and more extended, But these boards accomplish
more than they decide, Their work is largely preventative;
They remove the excuse for resorting to industrial warfare,
They lend official dignity to the principle of Arbitration,
They menace the guilty with the displeasure of public opinion
and they strengthen the weak with the hope of aid against op-
pression, The tendency of public opinion to takes sides in
labor controversies would be fraught with grave dangers if
unaccompanied by dispassionate investigation, and a rigid
adherence to facts,

The machinery is waiting, the field for operation is
ready, but we need some foree to bring them together; The
system has failed to impress on the minds of employers and
employed the fact that they forfeit their claim to public
sympathy, if found guilty of precipitating industrial warfare
without a genuine effort to secure redress by means of the
machinery which is provided for the purpose by the state,

It is now evident that the state must take the initiativo
in the matter, but shall we have compulsory arbitration? Far
from it. By such means we should be compelled to force the
award of the committee upon the employer and if it is uwnreas-

onable, thereby compel him to go out of business,
-61-

Compulsory arbitration must provide for compulsion at
each stage of the controversy, for without it, an award made
without power to enforce the judgement would be ridiculous,
Compulsory arbitration must compel the parties to accept the
result and with that power, it is none other than a lawsuit,
This is against our principle,'to settle the matter amicably
that there may be no waiting for a convenient ‘season of rev-
enge'. We wish to promote good feeling rather than to dispel
what little confidence has already been established,

But if we cannot have compulsory arbitration, can we not
at least make the '! attempt at arbitration!' cempulsory? We
have found that in nearly every case that voluntary arbitra-
tion was successful; What we want is compulsory - voluntary
arbitration, This would have compelled Carnegie and Pullman
to have made at leat the attempt to arbitrate their disputes.

On the other hand, the experience of state boards has
been that the employees seldom make any resort to the machin
ery for arbitration until they have tried the method of
strikes with disappointing results, Obviously they have
nothing to lege, It is hardly fair for either opponent, who
has deliberately, chosen the kind of weapons, to call upon his
adversary to drop the sword just when the issue seems unfav-
orable,

How are we going to do this? We must first get the par-
ties in such a position that they are responsible to the
state and to each other for their conduct, The employer is
already amenable to the state. We must also have the labor
organizations incorporated and accountable to the state, That
employers cannot make legal contracts with labor organization
as they are now constituted is evident, and that they some~
times weary of the farce is to be expected, It is merely a
mockery to insist upon entering into contracts in which only
one of the parties is in a position to supply the guarantee
of performance amd good faith, Society does not tolerate
even common business without some guarantee of good faith.
Much less then,should any organization presume to contract
for the sale and delivery of labor until it has been proper-
ly organized under the laws of the state, been granted a char-
ter, and an adequate guarantee fund been deposited in propor-
tiom to the membership of the organization.

With both parties, responsible, and subject to legal con=

oteplore

tracts, we can go farther, We need no longer, the trighnt to
strike', but the 'need to striko', We have proven conclus=
ively that voluntary arbitration is the most successful; and
this when the board is composed of an equal number of repre-
sentatives from each side with the addition of an umpire, We

‘have settled conclusively upon the right method, Can we

force its adoption? Can we make the'attempt to arbitrate!
compulsory?

In the case of corporations, the task is very easy, and
we are dealing with corporations. The state has made then,
it can unmake thom, or prevent them from doing business for
any length of timc, The state has given them their power,
it has the right, and the duty to limit that power so that
no injury is inflicted, The stato can say to either side,
only on these terms will we give you a charter; only on these
terms will we allow you to exist. This is an extreme measure,
If either side refuses to make the attempt to arbitrate, they
can be-compelled to suspend business until the demand ig ac-
ceded to,

We shall only ask them to voluntarily arbitrate the mat=
ter, it will rest with the disputants whether the decision
shall be binding or not, We do not wish to make the award

compulsory as a power wielded by the state, Weli, suppose

_ they do ee [Dt ser foce fully an dP, nof ary e,at_an

wv a verde
agreement, what then? | mae is an extreme case; we must court

publicity; the facts must be published, that the public may
know clearly whom to censure,

The increasing tendency of organized public opinion to
take sides in labor controversies, and furnish material as
well as moral support would make it not only unpleasant, but

extremely menacing for either side to refuse to arbitrate a
CHC
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matter, unless in their judgement, it was very unfair to
themselves, Public opinion would act as a lash to the back
of the wan , ,7wno refused to conciliate the matter .,
Che ae ae ae EL ee celled nt ay
‘If soctoty has not provided adequate means for redréss,
no ons can blame an individual for protecting his own rights
in his own way, but a bonafide offer of arbitration should
always be required before society condones an appeal to force,
Let us do away with our state boards of arbitration, As
a board of appeals they are useless, only as a board of con=
ciliation are they of any use whatever, In their place, we
shall have a single man appointed as Commissioner of Arbitra-

ar

tion and Conciliation. His duties shall be mostly executive
Immediately at the beginning of a dispute, it shall be his
duty to subpoena one or two of the most prominent men fron
each side, and it shall be the duty of these men to form a
board of conciliation, They are to use their joint influence
for a peaceful settlement, and to assist in the convening of
a board of arbitration or conciliation to consist of an equal
number from each side, with the addition of an umpire; Upon
the refusal of either party to respond to.the subpoena, the
penalty shall be the same as that for a refusal to arbitrate
the question, aa/dilianined by Lact;

As a part of their duty to the public welfare, the employ

er snall be obliged to give a notice twenty days previous to
a general dismissal of employees, and the same notice shall
be required of employees before quitting their service,

In the meantine, a board of arbitration shall be estab-
lished, and an effort made to settle the question. Such a
method, while in nowise involving a radical change, I believe
would auwply guard the public against the evil effects of
labor disputes, and at the same time be eminently fair to
both the employer and employee. It would give to each side
time to adjust and prepare for any change of position that
would seem necessary, and would fully recognize the principle
! that violent chamge is rarely healthy change,'

With the state sanctioning and inaugurating boards of
conciliation that are voluntary, and composed of the disput-
ants themselves, and with public opinion demanding them, a
tendency will soon arise, as soon as the advantages of the
system are seen, to form permanent boards of conciliation,
to which all matters of dispute can be referred and amicably

settled,

Conclusion,
Arbitration in order to be most effective for good, must
not only be compulsory in the sense of requiring the two par-
ties to the controversy to appear before a board of arbitra-

tion and submit their grievances to a full examination, but
-66-

it must be imperative with the board to take whatever testi-
mony may be necessary, and to publish the same,1if either party
fails to accept the award, for the general information of the
public, Under present conditions, public opinion too often
has to rely upon garbled information, and thifs becoming in-=
flamed, becomes only an-other source of violence.

Any system of compulsory arbitration which attempts to
do more than has been outlined above might easily become
more unbearable than the disease it attempts to remedy.

I have not forgotten that the present constitution of
industrial society is not for all time. There are great and
vital changes that must take place, While this is true, the
practical question for us is, what, in the present condition
of the relations of capital and labor, is best calculated to
harmonize these relations, and give to each party its just
proportion of the results of their united energies.

I believe that the practice of conciliation and arbitra-
tion will tend to these ends, As a result of the fair and
open discussions of the boards, Knowledge will be acquired,
the views of each will modify the others, and out of it, and
as a result of it, will come such relations between capital
and labor as will effectually put an end to industrial con-

flict,
~-~67=

The new way of reason and respect for the rights of ether
will win. It is not an end nor a solution of the problem,
but it is on the way to the end, and is much better than a
strike or a lockout,

It will be a day of the greatest premise, when in our
state, we shall put aside our prejudices and notions of the
past, when we shall realize that something higher than
brute force has come into the affairs of men to adjust and
harmonize then, and when, acting on this belief, we shall
urge forward an industrial reorganization on the basis of
reason and right. There can be no nebler or more sacred

work for men to do,

--—- The End =~
ois

References consulted in preparation of Thesis,

Economics Quatterly, vol 1 page 86,
tt a! fey tf 94,
1s A mtg ot 98,
at tt 127 ©: S65,
1 it 8g tt 230,
i nt July 1895
Review of Reviews, vol.9 page 6
a? if fh 7 6 EL 401
11 nf ‘toll '! 504,
ts it '' 6 !° 133-724-467-5335-197.;
tt ot re 6 Of tt 1117528726168,
Arena, t' 7 '' §587,=-30.
11 ‘' 10 !' 497,
Nation, f' 42 '%! 354-559,
1 ‘59 '' 42,
Forun, ft 1 '* 307.

't ft 10 = ='! 367,
Century, mre gg 6 E O46,
Bankers! Magazine, '' 39 *' 368,

ht tt te 37 tt 1.
North American Review, '' 142 "' 502.

Engineering Magazine, mt 7 tt 864,
VS

American Joumnal of Politics, vol. 5S page 487,

Industrial Arbitration, Lowell,

it Cooperation, Wright.
Public OPinion, 1894, 1895, and 1896,
Westminster, 135, 247.
Spectator, 67, 88,
Nineteentn Century 25, 67.

Report of Chicago Strike Commission for 1895,
Labor reports of Mich. Mass, and Pennsylvania,
Industrial Revolution of the United States, Wright,

United States reports on Strikes and Lockouts,

is ut labor bullstins., issued bi-monthly.
Conflicts of Capital and Labor, Howell,
The Relation of Labor to Law, Bretano,
ee ee

ROOM PSE CHLY,

        

A USE QNLY,
a 1%

 

 
 

MICHIGAN STATE UNIVERSITY LIBRARIES

iii iii