Chapter 8: Partial Recognition and New Difficulties, 1898-1914 (1)

When, in 1898, industrial prosperity returned, there came with it a rapid expansion of labor organization. At no time in its history, prior to the World War, not excepting the Great Upheaval in the eighties, did labor organizations make such important gains as during the following five years. True, in none of these years did the labor movement add over half a million members as in the memorable year of 1886; nevertheless, from the standpoint of permanence, the upheaval during the eighties can scarcely be classed with the one which began in the late nineties.

During 1898 the membership of the American Federation of Labor remained practically stationary, but during 1899 it increased by about 70,000 (to about 350,000); in 1900, it increased by 200,000; in 1901, by 240,000; in 1902, by 237,000; in 1903, by 441,000; in 1904, by 210,000, bringing the total to 1,676,000. In 1905 a backward tide set in; and the membership decreased by nearly 200,000 during that year. It remained practically stationary until 1910, when the upward movement was resumed, finally bringing the membership to near the two million mark, to 1,996,000, in 1913. If we include organizations unaffiliated with the Federation, among them the bricklayers[44] and the four railway brotherhoods, with about 700,000 members, the union membership for 1913 will be brought near a total of 2,700,000.

A better index of progress is the proportion of organized workers to organizable workers. Two such estimates have been made. Professor George E. Barnett figures the organizable workers in 1900 at 21,837,000; in 1910 at 30,267,000. On this basis wage earners were 3.5 percent organized in 1900 and 7 percent in 1910.[45] Leo Wolman submits more detailed figures for 1910. Excluding employers, the salaried group, agricultural and clerical workers, persons engaged in personal or domestic service, and those below twenty years of age (unorganizable workers), the organizable total was 11,490,944. With an estimated trade union strength of 2,116,317 for 1910 the percentage of the organized was 18.4.[46] Excluding only employers and salaried persons, his percentage was 7.7, which compares closely with Professor Barnett's.

Of greater significance are Wolman's figures for organization by industries. These computations show that in 1910 the breweries had 88.8 percent, organized, printing and book binding 34.3 percent, mining 30.5 percent, transportation 17.3 percent, clothing 16.9 percent, building trades 16.2 percent, iron and steel 9.9 percent, metal 4.7 percent, and textile 3.7 percent.[47] By separate occupations, railway conductors, brakemen, and locomotive engineers were from 50-100 percent organized; printers, locomotive firemen, molders and plasterers, from 30-50 percent; bakers, carpenters, plumbers, from 15-30 percent organized.[48]

Accompanying the numerical growth of labor organizations was an extension of organization into heretofore untouched trades as well as a branching out into new geographical regions, the South and the West. On the whole, however, though the Federation was not unmindful of the unskilled, still, during the fifteen years after 1898 it brought into its fold principally the upper strata of semi-skilled labor. Down to the "boom" period brought on by the World War, the Federation did not comprise to any great extent either the totally unskilled, or the partially skilled foreign-speaking workmen, with the exception of the miners and the clothing workers. In other words, those below the level of the skilled trades, which did gain admittance, were principally the same elements which had asserted their claim to organization during the stormy period of the Knights of Labor.[49] The new accretions to the American wage-earning class since the eighties, the East and South Europeans, on the one hand, and the ever-growing contingent of "floaters" of native and North and West European stock, on the other hand, were still largely outside the organization.

The years of prosperity brought an intensified activity of the trade unions on a scale hitherto unknown. Wages were raised and hours reduced all along the line. The new strength of the trade unions received a brilliant test during the hard times following the financial panic of October 1907, when they successfully fought wage reductions. As good a test is found in the conquest of the shorter day. By 1900 the eight-hour day was the rule in the building trades, in granite cutting and in bituminous coal mining. The most spectacular and costly eight-hour fight was waged by the printers. In the later eighties and early nineties, the Typographical Union had endeavored to establish a nine-hour day in the printing offices. This was given a setback by the introduction of the linotype machine during the period of depression, 1893-1897. In spite of this obstacle, however, the Typographical Union held its ground. Adopting the policy that only journeymen printers must operate the linotype machines, the union was able to meet the situation. And, furthermore, in 1898, through agreement with the United Typothetæ of America, the national association of employers in book and job printing, the union was able to gain the nine-hour day in substantially all book and job offices. In 1903 the union demanded the eight-hour day in all printing offices to become effective January 1, 1906. To gain an advantage over the union, the United Typothetæ, late in the summer of 1905, locked out all its union men. This at once precipitated a strike for the eight-hour day. The American Federation of Labor levied a special assessment on all its members in aid of the strikers. By 1907 the Typographical Union won its demand all along the line, although at a tremendous cost of money running into several million dollars, and in 1909 the United Typothetæ formally conceded the eight-hour day.

Another proof of trade union progress is found in the spread of trade agreements. The idea of a joint partnership of organized labor and organized capital in the management of industry, which, ever since the fifties, had been struggling for acceptance, finally showed definite signs of coming to be materialized.

(1) _The Miners_

In no other industry has a union's struggle for "recognition" offered a richer and more instructive picture of the birth of the new order with its difficulties as well as its promises than in coal mining. Faced in the anthracite field[50] by a small and well knitted group of employers, generally considered a "trust," and by a no less difficult situation in bituminous mining due to cut-throat competition among the mine operators, the United Mine Workers have succeeded in a space of fifteen years in unionizing the one as well as the other; while at the same time successfully and progressively solving the gigantic internal problem of welding a polyglot mass of workers into a well disciplined and obedient army.

The miners' union attained its first successes in the so-called central bituminous competitive field, including Western Pennsylvania, West Virginia, Ohio, Indiana, Michigan, and Illinois. In this field a beginning had been made in 1886 when the coal operators and the union entered into a collective agreement. However, its scope was practically confined to Ohio and even that limited agreement went under in 1890.[51] With the breakdown of this agreement, the membership dwindled so that by the time of a general strike in 1894, the total paid-up membership was barely 13,000. This strike was undertaken to restore the wage-scale of 1893, but during the ensuing years of depression wages were cut still further.[52]

The turn came as suddenly as it was spectacular. In 1897, with a membership which had dropped to 10,000 and of which 7000 were in Ohio and with an empty treasury, the United Mine Workers called a general strike trusting to a rising market and to an awakened spirit of solidarity in the majority of the unorganized after four years of unemployment and distress. In fact the leaders had not miscalculated. One hundred thousand or more coal miners obeyed the order to go on a strike. In Illinois the union had but a handful of members when the strike started, but the miners struck to a man. The tie-up was practically complete except in West Virginia. That State had early become recognized as the weakest spot in the miners' union's armor. Notwithstanding the American Federation of Labor threw almost its entire force of organizers into that limited area, which was then only beginning to assume its present day importance in the coal mining industry, barely one-third of the miners were induced to strike. A contributing factor was a more energetic interference from the courts than in other States. All marching upon the highways and all assemblages of the strikers in large gatherings were forbidden by injunctions. On one occasion more than a score of men were sentenced to jail for contempt of court by Federal Judge Goff. The handicap in West Virginia was offset by sympathy and aid from other quarters. Many unions throughout the country and even the general public sent the striking miners financial aid. In Illinois Governor John R. Tanner refused the requests for militia made by several sheriffs.

The general strike of 1897 ended in the central competitive field after a twelve-weeks' struggle. The settlement was an unqualified victory for the union. It conceded the miners a 20 percent increase in wages, the establishment of the eight-hour day, the abolition of company stores, semi-monthly payments, and a restoration of the system of fixing Interstate wage rates in annual joint conferences with the operators, which meant official recognition of the United Mine Workers. The operators in West Virginia, however, refused to come in.

The first of these Interstate conferences was held in January, 1898, at which the miners were conceded a further increase in wages. In addition, the agreement, which was to run for two years, established for Illinois the run-of-mine[53] system of payment, while the size of the screens of other states was regulated; and it also conceded the miners the check-off system[54] in every district, save that of Western Pennsylvania.[55] Such a comprehensive victory would not have been possible had it not been for the upward trend which coal prices had taken.

But great as was the union's newly discovered power, it was spread most unevenly over the central competitive field. Its firmest grip was in Illinois. The well-filled treasury of the Illinois district has many times been called upon for large contributions or loans, to enable the union to establish itself in some other field. The weakest hold of the United Mine Workers has been in West Virginia. At the end of the general strike of 1897, the West Virginia membership was only about 4000. Moreover, a further spread of the organization met with unusual obstacles. A large percentage of the miners of West Virginia are Negroes or white mountaineers. These have proven more difficult to organize than recent Southern and Eastern European immigrants, who formed the majority in the other districts. And yet West Virginia as a growing mining state soon assumed a high strategic importance. A lower wage scale, the better quality of its coal, and a comparative freedom from strikes have made West Virginia a formidable competitor of the other districts in the central competitive field. Consequently West Virginia operators have been able to operate their mines more days during the year than elsewhere; and despite the lower rates per ton, the West Virginia miners have earned but little less annually than union miners in other States. But above all the United Mine Workers have been handicapped in West Virginia as nowhere else by court interference in strikes and in campaigns of organization. In 1907 a temporary injunction was granted at the behest of the Hitchman Coal and Coke Company, a West Virginia concern, restraining union organizers from attempting to organize employes who signed agreements not to join the United Mine Workers while in the employ of the company. The injunction was made permanent in 1913. The decree of the District Court was reversed by the Circuit Court of Appeals in 1914, but was sustained by the United States Supreme Court in March 1917.[56] Recently the United States Steel Corporation became a dominant factor in West Virginia through its ownership of mines and lent additional strength to the already strong anti-union determination of the employers.

Very early the United Mine Workers established a reputation for strict adherence to agreements made. This faithfulness to a pledged word, which justified itself even from the standpoint of selfish motive, in as much as it gained for the union public sympathy, was urged upon all occasions by John Mitchell, the national President of the Union. The first test came in 1899, when coal prices soared up rapidly after the joint conference had adjourned. Although they might have won higher wages had they struck, the miners observed their contracts. A more severe test came in 1902 during the great anthracite strike.[57] A special union convention was then held to consider whether the bituminous miners should be called out in sympathy with the hard pressed striking miners in the anthracite field. By a large majority, however, the convention voted not to strike in violation of the agreements made with the operators. The union again gave proof of statesmanly self-control when, in 1904, taking into account the depressed condition of industry, it accepted without a strike a reduction in wages in the central competitive field. However, as against the miners' conduct in these situations must be reckoned the many local strikes or "stoppages" in violation of agreements. The difficulty was that the machinery for the adjustment of local grievances was too cumbersome.

In 1906 the trade agreement system encountered a new difficulty in the friction which developed between the operators of the several competitive districts. On the surface, the source of the friction was the attempt made by the Ohio and Illinois operators to organize a national coal operators' association to take the place of the several autonomous district organizations. The Pittsburgh operators, however, objected. They preferred the existing system of agreements under which each district organization possessed a veto power, since then they could keep the advantage over their competitors in Ohio and Indiana with which they had started under the original agreement of 1898. The miners in this emergency threw their power against the national operators' association. A suspension throughout most districts of the central competitive field followed. In the end, the miners won an increase in wages, but the Interstate agreement system was suspended, giving place to separate agreements for each district.

In 1908 the situation of 1906 was repeated. This time the Illinois operators refused to attend the Interstate conference on the ground that the Interstate agreement severely handicapped Illinois. As said before, ever since 1897 payment in Illinois has been upon the run-of-mine basis; whereas in all other States of the central competitive field the miners were paid for screened coal only. With the operators of each State having one vote in the joint conference, it can be understood why the handicap against Illinois continued. Theoretically, of course, the Illinois operators might have voted against the acceptance of any agreement which gave an advantage to other States; however, against this weighed the fact that the union was strongest in Illinois. The Illinois operators, hence, preferred to deal separately with the United Mine Workers. Accordingly, an Interstate agreement was drawn up, applying only to Indiana, Ohio, and Pennsylvania.

In 1910, the Illinois operators again refused to enter the Interstate conference, but this time the United Mine Workers insisted upon a return to the Interstate agreement system of 1898. On April 1, 1910, operations were suspended throughout the central competitive field. By July agreements had been secured in every State save Illinois, the latter State holding out until September. This long struggle in Illinois was the first real test of strength between the operators and the miners since 1897. The miners' victory made it inevitable that the Illinois operators should eventually reenter the Interstate conference.

In 1912, after repeated conferences, the net result was the restoration of the Interstate agreement as it existed before 1906. The special burden of which the Illinois operators had been complaining was not removed; yet they were compelled by the union to remain a party to the Interstate agreement. The union justified its special treatment of the operators in Illinois on the ground that the run-of-mine rates were 40 percent below the screened coal rates, thus compensating them amply for the "slack" for which they had to pay under this system. The Federal report on "Restriction of Output" of 1904 substantiated the union's contention. Ultimately, the United Mine Workers unquestionably hoped to establish the run-of-mine system throughout the central competitive field.

The union, incidentally to its policy of protecting the miners, has considerably affected the market or business structure of the industry. An outstanding policy of the union has been to equalize competitive costs over the entire area of a market by means of a system of grading tonnage rates paid to the miner, whereby competitive advantages of location, thickness of vein, and the like were absorbed in higher labor costs. This doubtless tended to eliminate cut-throat competition and thus stabilize the industry. On the other hand, it may have hindered the process of elimination of unprofitable mines, and therefore may be in some measure responsible for the present-day overdevelopment in the bituminous mining industry, which results in periodic unemployment and in idle mines.

In the anthracite coal field in Eastern Pennsylvania the difficulties met by the United Mine Workers were at first far greater than in the bituminous branch of the industry. First, the working population was nearly all foreign-speaking, and the union thus lacked the fulcrum which it found in Illinois with its large proportion of English-speaking miners accustomed to organization and to carrying on a common purpose. Secondly, the employers, instead of being numerous and united only for joint dealing with labor, as in bituminous mining, were few in number besides being cemented together by a common selling policy on top of a common labor policy. In consequence, the union encountered a stone wall of opposition, which its loose ranks found for many years well-nigh impossible to overcome.

During the general strike of 1897 the United Mine Workers made a beginning in organizing the anthracite miners. In September 1900, they called a general strike. Although at that time the union had only 8000 members in this region, the strike order was obeyed by over 100,000 miners; and within a few weeks the strike became truly general. Probably the union could not have won if it had to rely solely on economic strength. However, the impending Presidential election led to an interference by Senator Mark Hanna, President McKinley's campaign manager. Through him President John Mitchell of the United Mine Workers was informed that the operators would abolish the objectionable sliding scale system of wage payments, increase rates 10 percent and agree to meet committees of their employes for the adjustment of grievances. This, however, did not carry a formal recognition of the union; it was not a trade agreement but merely an unwritten understanding. A part of the same understanding was that the terms which had been agreed upon should remain in force until April, 1901. At its expiration the identical terms were renewed for another year, while the negotiations bore the same informal character.

During 1902 the essential instability of the arrangement led to sharp friction. The miners claimed that many operators violated the unwritten agreement. The operators, on their part, charged that the union was using every means for practically enforcing the closed shop, which was not granted in the understanding. In the early months of 1902 the miners presented demands for a reduction of the hours of labor from 10 to 9, for a twenty percent increase in wages, for payment according to the weight of coal mined, and for the recognition of the union. The operators refused to negotiate, and on May 9 the famous anthracite strike of 1902 began.

It is unnecessary to detail the events of the anthracite strike. No other strike is better known and remembered. More than 150,000 miners stood out for approximately five months. The strike was financed by a levy of one dollar per week upon all employed miners in the country, which yielded over $2,000,000. In addition several hundred thousand dollars came in from other trade unions and from the public generally. In October, when the country was facing a most serious coal famine, President Roosevelt took a hand. He called in the presidents of the anthracite railroads and the leading union officials for a conference in the White House and urged arbitration. At first he met with rebuff from the operators, but shortly afterward, with the aid of friendly pressure from New York financiers, the operators consented to accept the award of a commission to be appointed by himself. This was the well-known Anthracite Coal Strike Commission. Its appointment terminated the strike. Not until more than a half year later, however, was the award of the Commission made. It conceded the miners a 10 percent increase in wages, the eight and nine-hour day, and the privilege of having a union check-weighman at the scale where the coal sent up in cars by the miners is weighed. Recognition was not accorded the union, except that it was required to bear one-half of the expense connected with the maintenance of a joint arbitration board created by the Commission. When this award was announced there was much dissatisfaction with it among the miners. President Mitchell, however, put forth every effort to have the union accept the award. Upon a referendum vote the miners accepted his view.

The anthracite coal strike of 1902 was doubtless the most important single event in the history of American trade unionism until that time and has since scarcely been surpassed. To be sure, events like the great railway strike of 1877 and the Chicago Anarchist bomb and trial in 1886-1887 had equally forced the labor question into public attention. What distinguished the anthracite coal strike, however, was that for the first time a labor organization tied up for months a strategic industry and caused wide suffering and discomfort to the public without being condemned as a revolutionary menace to the existing social order calling for suppression by the government; it was, on the contrary, adjudged a force within the preserves of orderly society and entitled to public sympathy. The public identified the anthracite employers with the trust movement, which was then new and seemingly bent upon uprooting the traditional free American social order; by contrast, the striking miners appeared almost as champions of Old America. A strong contributory factor was the clumsy tactics of the employers who played into the hands of the leaders of the miners. The latter, especially John Mitchell, conducted their case with great skill.

Yet the award of the Commission fell considerably short of what the union and its sympathizers outside the ranks of labor hoped for. For by refusing to grant formal recognition, the Commission failed to constitute unionism into a publicly recognized agency in the management of industry and declared by implication that the role of unionism ended with a presentation of grievances and complaints.

For ten years after the strike of 1902 the union failed to develop the strength in the anthracite field which many believed would follow. Certain proof of the weakness of the union is furnished by the fact that the wage-scale in that field remained stationary until 1912 despite a rising cost of living. The wages of the anthracite miners in 1912 were slightly higher than in 1902, because coal prices had increased and the Anthracite Coal Strike Commission had reestablished a sliding scale system of tonnage rates.

A great weakness, while the union still struggled for existence, was the lack of the "check-off." Membership would swell immediately before the expiration of the agreement but diminish with restoration of quiet. With no immediate outlook for a strike the Slav and Italian miners refused to pay union dues. The original award was to be in force until April 1, 1906. In June, 1905, the union membership was less than 39,000. But by April 1, 1906, one-half of the miners were in the union. A month's suspension of operations followed. Early in May the union and the operators reached an agreement to leave the award of the Anthracite Coal Strike Commission in force for another three years.

The following three years brought a duplication of the developments of 1903-1906. Again membership fell off only to return in the spring of 1909. Again the union demanded formal recognition, and again it was refused. Again the original award was extended for three more years.

In the winter of 1912, when the time for renewing the agreement again drew near, the entire membership in the three anthracite districts was slightly above 29,000. Nevertheless, the union demanded a twenty percent raise, a complete recognition of the union, the check-off, and yearly agreements, in addition to a more expeditious system of settling local grievances to replace the slow and cumbersome joint arbitration boards provided by the award of the Commission. A strike of 180,000 anthracite miners followed on April 1, 1912, during which the operators made no attempt to run their mines. The strike ended within a month on the basis of the abolition of the sliding scale, a wage increase of approximately 10 percent, and a revision of the arbitration machinery in local disputes. This was coupled with a somewhat larger degree of recognition, but by no means a complete recognition. Nor was the check-off system granted. Strangest of all, the agreement called for a four-year contract, as against a one-year contract originally demanded by the union. In spite of the opposition of local leaders, the miners accepted the agreement. President White's chief plea for acceptance was the need to rebuild the union before anything ambitious could be attempted.

After 1912 the union entered upon the work of organization in earnest. In the following two years the membership was more than quadrupled. With the stopping of immigration due to the European War, the power of the union was greatly increased. Consequently, in 1916, when the agreement was renewed, the miners were accorded not only a substantial wage increase and the eight-hour day but also full recognition. The United Mine Workers have thus at last succeeded in wresting a share of industrial control from one of the strongest capitalistic powers of the country; while demonstrating beyond doubt that, with intelligent preparation and with sympathetic treatment, the polyglot immigrant masses from Southern and Eastern Europe, long thought to be impervious to the idea of labor organization, can be changed into reliable material for unionism.

The growth of the union in general is shown by the following figures. In 1898 it was 33,000; in 1900, 116,000; in 1903, 247,000; in 1908, 252,000; and in 1913, 378,000.[58]

(2) _The Railway Men_

The railway men are divided into three groups. One group comprises the Brotherhood of Locomotive Engineers, the Order of Railroad Conductors, the Brotherhood of Firemen and Enginemen, and the Brotherhood of Railroad Trainmen. These are the oldest and strongest railway men's organizations and do not belong to the American Federation of Labor. A second group are the shopmen, comprising the International Association of Machinists; the International Brotherhood of Blacksmiths, Drop Forgers, and Helpers; the Brotherhood of Railway Carmen of America; the Amalgamated Sheet Metal Workers' International Alliance; the Brotherhood of Boilermakers and Iron Ship Builders and Helpers of America; the International Brotherhood of Electrical Workers; and the International Brotherhood of Stationary Firemen and Oilers. A third and more miscellaneous group are the Brotherhood of Railway Clerks, the Order of Railway Telegraphers, the Switchmen's Union of North America, the International Brotherhood of Maintenance of Way Employes and Railroad Shop Laborers, and the Brotherhood of Railway Signalmen. The organizations comprised in the latter two groups belong to the American Federation of Labor. For the period from 1898 to the outbreak of the War, the organizations, popularly known as the "brotherhoods," namely, those of the engineers, conductors, firemen, and trainmen, are of outstanding importance.

The brotherhoods were unique among American labor organizations in that for many years they practically reproduced in most of their features the sort of unionism typified by the great "Amalgamated" unions of the fifties and sixties in England.[59] Like these unions the brotherhoods stressed mutual insurance and benefits and discouraged when they did not actually prohibit striking. It should, however, be added that the emphasis on insurance was due not to "philosophy," but to the practical consideration that, owing to the extra hazardous nature of their occupations, the men could get no insurance protection from ordinary commercial insurance companies.

By the end of the eighties the brotherhoods began to press energetically for improvements in employment conditions and found the railways not disinclined to grant their demands in a measure. This was due in great measure to the strategic position of these trades, which have it in their power completely to tie up the industry when on strike, causing enormous losses to the carriers.[60] Accordingly, they were granted wages which fairly placed them among the lower professional groups in society as well as other privileges, notably "seniority" in promotion, that is promotion based on length of service and not on a free selection by the officials. Seniority was all the more important since the train personnel service is so organized that each employe will pass several times in the regular course of his career from a lower to a higher rung on the industrial ladder.[61] For instance, a typical passenger train engineer starts as fireman on a freight train, advances to a fireman on a passenger train, then to engineer on a freight train, and finally to engineer on a passenger train. A similar sequence is arranged in advancing from brakeman to conductor. Along with seniority the brotherhoods received the right of appeal in cases of discharge, which has done much to eliminate discrimination. Since they were enjoying such exceptional advantages relative to income, to the security of the job, and to the stability of their organization, it is not surprising, in view of the limited class solidarity among American laboring men in general, that these groups of workers should have chosen to stand alone in their wage bargaining and that their refusal to enter "entangling alliances" with other less favored groups should have gone even to the length of staying out of the American Federation of Labor.

This condition of relative harmony between employer and employe, notwithstanding the energetic bargaining, continued for about fifteen years until it was disturbed by factors beyond the control of either railway companies or brotherhoods. The steady rise in the cost of living forced the brotherhoods to intensify their demands for increased wages. At the same time an ever tightening regulation of railway rates by the Federal government since 1906 practically prevented a shift of increased costs to the shipper. "Class struggles" on the railways began in earnest.

The new situation was brought home to the brotherhoods in the course of several wage arbitration cases in which they figured.[62] The outcome taught them that the public will give them only limited support in their efforts to maintain their real income at the old high level compared with other classes of workers.

A most important case arose from a "concerted movement" in 1912[63] of the engineers and firemen on the 52 Eastern roads for higher wages. Two separate arbitration boards were appointed. The engineers' board consisted of seven members, one each for the interests involved and five representing the public. The award was unsatisfactory to the engineers, first, because of the meager raise in wages and, second, because it contained a strong plea to Congress and the country to have all wages of all railway employes fixed by a government commission, which implied a restriction of the right to strike. The award in the firemen's case, which was decided practically simultaneously with the engineers', failed to satisfy either side.

The conductors and trainmen on the Eastern roads were next to move "in concert" for increased wages. The roads refused and the brotherhoods decided by a good majority to quit work. This threatened strike occasioned the passage of the so-called Newlands bill as an amendment to the Erdman Act, with increased powers to the government in mediation and with more specified conditions relative to the work of the arbitration boards chosen for each occasion. Whereupon both sides agreed to submit to arbitration.

The award allowed an increase in wages of seven percent, or less than one-half of that demanded, but disallowed a plea made by the men for uniformity of the wage scales East and West, and denied the demanded time and a half for overtime. The men accepted but the decision added to their growing opposition to the principle of arbitration.

Another arbitration case, in 1914, involving the engineers and firemen on the Western roads led the brotherhoods to come out openly against arbitration. The award was signed only by the representatives on the board of the employers and the public. A characteristic aftermath of this case was an attack made by the unions upon one of the "neutrals" on the board. His impartiality was questioned because of his relations with several concerns which owned large amounts of railroad securities. Therefore, when in 1916 the four brotherhoods together demanded the eight-hour day, they categorically refused to consider arbitration.[64] The evolution to a fighting unionism had become complete.

While the brotherhoods of the train service personnel were thus shifting their tactics, they kept drawing nearer to the position held by the other unions in the railway service. These had rarely had the good fortune to bask in the sunshine of their employers' approval and "recognition." Some railways, of the more liberal sort, made agreements with the machinists and with the other shop unions. On the whole, however, the hold of these organizations upon their industry was of a precarious sort.

To meet their strong opponents on a basis nearer to equality, they started about 1904 a movement for "system federations,"[65] that is, federations of all organized trades through the length of a given railway system as, for instance, the Pennsylvania Railroad or the Illinois Central Railroad. In turn the creation of system federations sharpened the employers' antagonism. Some railway systems, like the Illinois Central, might be willing to enter into agreements with the separate crafts, but refused to deal with a federation of crafts. In 1912, stimulated by a dispute on the Illinois Central Railroad and on the Harriman lines in general, involving the issue of system federations, a Federation of System Federations was formed by forty systems upon an aggressive program. In 1908 a weak and rather tentative Railway Employes' Department had been launched by the American Federation of Labor. The Federation of Federations was thus a rival organization and "illegal" or, at best, "extra-legal" from the standpoint of the American Federation of Labor. The situation, however, was too acute to permit the consideration of "legality" to enter. An adjustment was made and the Federation of System Federations was "legitimatized" through fusion with the "Department," to which it gave its constitution, officers, and fighting purpose, and from which it took only its name. This is the now well-known Railway Employes' Department of the American Federation of Labor (embracing all important national unions of the railway workers excepting the four brotherhoods), and which, as we shall see, came into its own when the government took over the railways from their private owners eight months after America's entry into the World War.

(3) _The Machinery and Metal Trades_

Unlike the miners and the railway brotherhoods, the unions in the machinery and metal trades met with small success in their efforts for "recognition" and trade agreements. The outstanding unions in the industry are the International Association of Machinists and the International Molders' Union, with a half dozen smaller and very small unions.[66] The molders' International united in the same union the stove molders, who as was seen had been "recognized" in 1891, and the molders of parts of machinery and other foundry products. The latter found the National Founders' Association as their antagonist or potential "co-partner" in the industry.

The upward swing in business since 1898, combined with the growth of trade unionism and with the successful negotiation of the Interstate agreement in the soft coal mining industry, created an atmosphere favorable to trade agreements. For a time "recognition" and its implications seemed to all concerned, the employer, the unions, and the public, a sort of cure-all for industrial disputes. Accordingly, in March 1899, the National Founders' Association (organized in the previous year and comprising foundrymen engaged principally in machinery manufacturing and jobbing) and the International Molders' Union of North America met and drew up the following tersely worded agreement which became known as the New York Agreement:

"That in event of a dispute arising between members of the
respective organizations, a reasonable effort shall be made by the
parties directly at interest to effect a satisfactory adjustment of
the difficulty; failing to do which, either party shall have the
right to ask its reference to a Committee of Arbitration which
shall consist of the President of the National Founders'
Association and the President of the Iron Molders' Union or their
representatives, and two other representatives from each
organization appointed by the respective Presidents.

"The finding of this Committee of Arbitration by majority vote
shall be considered final in so far as the future action of the
respective organizations is concerned.

"Pending settlement by the Committee, there shall be no cessation
of work at the instance of either party to the dispute. The
Committee of Arbitration shall meet within two weeks after
reference of dispute to them."

The agreement was a triumph for the principle of pure conciliation as distinct from arbitration by a third party. Both sides preferred to run the risk of a possible deadlock in the conciliation machinery to throwing decisions into the hands of an umpire, who would be an uncertain quantity both as regards special bias and understanding of the industry.

The initial meeting of the arbitration committee was held in Cleveland, in May 1899, to consider the demand by the unions at Worcester, Massachusetts, and Providence, Rhode Island, for a minimum wage which the employers had refused. In each city one member of the National Founders' Association was involved and the men in these firms went to work pending the arbitration decision, while the others stayed out on strike.

The meeting ended inauspiciously. The founders and molders seemed not to be able to settle their difficulties. Each side stood fast on its own principles and the arbitration committees regularly became deadlocked. The question of a minimum wage was the most important issue. From 1899 to 1902 several joint conventions were held to discuss the wage question. In 1899 a settlement was made, which, however, proved of short duration. In November 1902, the two organizations met, differed, and arranged for a sub-committee to meet in March 1903. The sub-committee met but could reach no agreement.

The two organizations clashed also on the question of apprentices. The founders contended that, because there were not enough molders to fill the present demand, the union restrictions as to the employment of apprentices should be removed. The union argued that a removal of the restriction would cause unlimited competition among molders and eventually the founders could employ them at their own price. They likewise failed to agree on the matter of classifying molders.

Owing to the stalling of the conciliation machinery many strikes occurred in violation at least of the spirit of the agreement. July 1, 1901, the molders struck in Cleveland for an increase in wages; arbitration committees were appointed but failed to make a settlement. In Chicago and San Francisco strikes occurred for the same reason.

It was at last becoming evident that the New York agreement was not working well. In the autumn of 1903 business prosperity reached its high watermark and then came a sharp depression which lessened the demand for molders. Early in 1904 the National Founders' Association took advantage of this situation to reduce wages and finally practically abrogated the New York agreement. In April, 1904, the founders and molders tried to reach a decision as to how the agreement could be made effective, but gave it up after four days and nights of constant consideration. The founders claimed that the molders violated the agreement in 54 out of the 96 cases that came up during the five years of its life; and further justified their action on the ground that the union persistently refused to submit to arbitration by an impartial outsider the issues upon which the agreement was finally wrecked.

An agreement similar to the New York one was concluded in 1900 between the National Metal Trades' Association and the International Association of Machinists. The National Metal Trades' Association had been organized in 1899 by members of the National Founders' Association, whose foundries formed only a part of their manufacturing plants. The spur to action was given by a strike called by the machinists in Chicago and other cities for the nine-hour day. After eight weeks of intense struggle the Association made a settlement granting a promise of the shorter day. Although hailed as one of the big agreements in labor history, it lasted only one year, and broke up on the issue of making the nine-hour day general in the Association shops. The machinists continued to make numerous agreements with individual firms, especially the smaller ones, but the general agreement was never renewed. Thereafter the National Metal Trades' Association became an uncompromising enemy of organized labor.

In the following ten years both molders and machinists went on fighting for control and engaged in strikes with more or less success. But the industry as a whole never again came so near to embracing the idea of a joint co-partnership between organized capital and labor as in 1900.

(4) _The Employers' Reaction_

With the disruption of the agreement systems in the machinery producing and foundry industries, the idea of collective bargaining and union recognition suffered a setback; and the employers' uneasiness, which had already steadily been feeding on the unions' mounting pressure for control, now increased materially. As long, however, as business remained prosperous and a rising demand for labor favored the unions, most of the agreements were permitted to continue. Therefore, it was not until the industrial depression of 1907-1908 had freed the employers' hands that agreements were disrupted wholesale. In 1905 the Structural Erectors' Association discontinued its agreements with the Structural Iron Workers' Union, causing a dispute which continued over many years. In the course of this dispute the union replied to the victorious assaults of the employers by tactics of violence and murder, which culminated in the fatal explosion in the _Los Angeles Times_ Building in 1911. In 1906 the employing lithographers discontinued their national agreement with the lithographers' union. In 1907 the United Typothetæ broke with the pressmen, and the stove founders with the stove mounters and stove polishers. In 1908 the agreements between the Lake Carriers and Lumber Carriers (both operating on the Great Lakes) and the seafaring and water front unions were terminated.

In the operation of these unsuccessful agreements the most serious stumbling blocks were the union "working rules," that is to say, the restrictive rules which unions strove to impose on employers in the exercise of their managerial powers in the shop, and for which the latter adopted the sinister collective designation of "restriction of output."

Successful trade unionism has always pressed "working rules" on the employer. As early as the first decade of the nineteenth century, the trade societies then existing tried to impose on the masters the closed shop and restrictions on apprenticeship along with higher wages and shorter hours. As a union advances from an ephemeral association to a stable organization more and more the emphasis is shifted from wages to working rules. Unionists have discovered that on the whole wages are the unstable factor, going up or down, depending on fluctuating business conditions and cost of living; but that once they have established their power by making the employer accept their working rules, high wages will ultimately follow.

These working rules are seldom improvisations of the moment, but, crude and one-sided as they often are, they are the product of a long labor experience and have taken many years to be shaped and hammered out. Since their purpose is protective, they can best be classified with reference to the particular thing in the workingman's life which they are designed to protect: the standard of living of the trade group, health, the security of the worker's job, equal treatment in the shop and an equal chance with other workmen in promotion, the bargaining power of the trade group, as a whole, and the safety of the union from the employer's attempts to undermine it. We shall mention only a few of these rules by way of illustration. Thus all rules relating to methods of wage payment, like the prohibition of piece work and of bonus systems (including those associated with scientific management systems), are primarily devices to protect the wage earner's rate of pay against being "nibbled away" by the employer; and in part also to protect his health against undue exertion. Other rules like the normal (usually the eight-hour) day with a higher rate for overtime; the rule demanding a guarantee of continuous employment for a stated time or a guarantee of minimum earnings, regardless of the quantity of work available in the shop; again the demand for the sharing of work in slack times among all employes; and further, when layoffs become necessary, the demand of recognition by the employer of a right to continuous employment based on "seniority" in the shop;--all these have for their common aim chiefly the protection of the job. Another sort of rules, like the obstruction to the splitting up of trades and the restrictions on apprenticeship, have in view the protection of the bargaining power of the craft group--through artificially maintaining an undiminished demand for skilled labor, as well as through a reduction of the number of competitors, present and future, for jobs. The protection of the union against the employer's designs, actual or potential, is sought by an insistence on the closed union shop, by the recognition of the right of appeal to grievance boards in cases of discharge to prevent anti-union discrimination, and through establishing a seniority right in promotion which binds the worker's allegiance to his union rather than to the employer.

With these rigid rules, partly already enforced on the employer by strikes or threats to strike and partly as yet unrealized but energetically pushed, trade unionism enters the stage of the trade agreement. The problem of industrial government then becomes one of steady adjustment of the conflicting claims of employer and union for the province of shop control staked out by these working rules. When the two sides are approximately equal in bargaining strength (and lasting agreements are possible only when this condition obtains), a promising line of compromise, as recent experience has shown, has been to extend to the unions and their members in some form that will least obstruct shop efficiency the very same kind of guarantees which they strive to obtain through rules of their own making. For instance, an employer might induce a union to give up or agree to mitigate its working rules designed to protect the job by offering a _quid pro quo_ in a guarantee of employment for a stated number of weeks during the year; and likewise, a union might hope to counteract the employer's natural hankering for being "boss in his own business," free of any union working rules, only provided it guaranteed him a sufficient output per unit of labor time and wage investment.

However, compromises of this sort are pure experiments even at present--fifteen to twenty years after the dissolution of those agreements; and they certainly require more faith in government by agreement and more patience than one could expect in the participants in these earlier agreements. It is not surprising, therefore, that the short period of agreements after 1898 should in many industries have formed but a prelude to an "open-shop" movement.[67]

After their breach with the union, the National Founders' Association and the National Metal Trades' Association have gone about the business of union wrecking in a systematic way. They have maintained a so-called "labor bureau," furnishing men to their members whenever additional help was needed, and keeping a complete card system record of every man in the employ of members. By this system occasion was removed for employers communicating with the business agents of the various unions when new men were wanted. The associations have had in their regular pay a large number of non-union men, or "strike-breakers," who were sent to the shop of any member whose employes were on strike.

In addition to these and other national organizations, the trade unions were attacked by a large and important class of local employers' associations. The most influential association of this class was the Employers' Association of Dayton, Ohio. This association had a standing strike committee which, in trying to break a strike, was authorized to offer rewards to the men who continued at work, and even to compensate the employer for loss of production to the limit of one dollar per day for each man on strike. Also a system was adopted of issuing cards to all employes, which the latter, in case of changing employment, were obliged to present to the new employer and upon which the old employer inscribed his recommendation. The extreme anti-unionism of the Dayton Association is best attested by its policy of taking into membership employers who were threatened with strikes, notwithstanding the heavy financial obligations involved.

Another class of local associations were the "Citizens' Alliances," which did not restrict membership to employers but admitted all citizens, the only qualification being that the applicant be not a member of any labor organization. These organizations were frequently started by employers and secured cooperation of citizens generally. In some places there were two associations, an employers' and a Citizens' Alliance. A good example of this was the Citizens' Alliances of Denver, Colorado, organized in 1903. These "Citizens' Alliances," being by virtue of mixed membership more than a mere employers' organization, claimed in time of strikes to voice the sentiment of the community in general.

So much for the employers' counter attacks on trade unions on the strictly industrial front. But there were also a legal front and a political front. In 1902 was organized the American Anti-Boycott Association, a secret body composed mainly of manufacturers. The purpose of the organization was to oppose by legal proceedings the boycotts of trade unions, and to secure statutory enactments against the boycott. The energies of the association have been devoted mainly to taking certain typical cases to the courts in order thereby to create legal precedents. The famous Danbury Hatters' Case, in which the Sherman Anti-Trust law was invoked against the hatters' union, was fought in the courts by this Association.

The employers' fight on the political front was in charge of the National Association of Manufacturers. This association was originally organized in 1895 for the pursuit of purely trade interests, but about 1903, under the influence of the Dayton, Ohio, group of employers, turned to combating trade unions. It closely cooperated with other employers' associations in the industrial and legal field, but its chief efforts lay in the political or legislative field, where it has succeeded through clever lobbying and manipulations in nullifying labor's political influence, especially in Congress. The National Association of Manufacturers saw to it that Congress and State Legislatures might not weaken the effect of court orders, injunctions and decisions on boycotts, closed shop, and related matters.

The "open-shop movement" in its several aspects, industrial, legal, and political, continued strong from 1903 to 1909. Nevertheless, despite most persistent effort and despite the opportunity offered by the business depression which followed the financial panic of 1907, the results were not remarkable. True, it was a factor in checking the rapid rate of expansion of unionism, but it scarcely compelled a retrogression from ground already conquered. It is enough to point out that the unions managed to prevent wage reductions in the organized trades notwithstanding the unemployment and distress of 1907-1908. On the whole trade unionism held its own against employers in strictly competitive industry. Different, however, was the outcome in industries in which the number of employers had been reduced by monopolistic or semi-monopolistic mergers.

The steel industry is the outstanding instance.[68] The disastrous Homestead strike of 1892[69] had eliminated unionism from the steel plants of Pittsburgh. However, the Carnegie Steel Company was only a highly efficient and powerful corporation, not yet a "trust." The panic of 1893 dealt another blow to the Amalgamated Association of Iron & Steel Workers. The steel mills of Alleghany County, outside Pittsburgh, were all put upon a non-union basis before 1900. In Pittsburgh, the iron mills, too, became non-union between 1890 and 1900. There remained to the organization only the iron mills west of Pittsburgh, the large steel mills of Illinois, and a large proportion of the sheet, tin, and iron hoop mills of the country. In 1900 there began to be whisperings of a gigantic consolidation in the steel industry. The Amalgamated officials were alarmed. In any such combination the Carnegie Steel Company, an old enemy of unionism, would easily be first and would, they feared, insist on driving the union out of every mill in the combination. Then it occurred to President Shaffer and his associates that it might be a propitious time to press for recognition while the new corporation was forming. Anxious for public confidence and to float their securities, the companies could not afford a labor controversy.