E42r A A 11 n I) 9 b 1 9 ■T> b -n Eliot A Remedy for Industr5.al Warfare 8 FACILIT 5 7- ;? /--r6 THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES Social Service Series Bulletin Number 4 A Remedy for Industrial Warfare By Charles W. Eliot Published for free distribution American Unitarian Association 25 Beacon Street, Boston Library — liiaU i ^ulB uf liii i ij.- ' ' '^ ^"^"' ' ' •" . . . UnivorGity of Loa Angele? aiiforu^a, SOCIAL SERVICE BULLETIN The purpose o( the Bulletin is to oiler suggestions (or the conduct of work for the common good in our churches, and also to give circulation to articles of value on different phases of the social question, — some original contributions, and others reprints from the magazines and the reports of various societies. They are primarily intended for free distribution and are gladly sent M^herever they can do good. Owing, however, to the expense at which they are prepared, the right is reserved to make a nominal charge of two cents each (except No. 20, which is five cents) in cases where Bulletins are desired for use as text books or for distribution in quantity. Any orders of this sort will be cheerfully filled at the prices named, which include delivery. No. 1. The Social \y elf are Work of Unitarian Churches. The report of an investigation. No. 2. Working with Boyi. By Rev. Elmer S. Forbes. Hints on the organization and conduct of Boys' Clubs. No. 3. The Individual and the Social Order in Religion. By Rev. Frederic A. Hinckley. Individuahsm arvd socialism reconciled by religion. No. 4. A Remedy for Industrial Warfare. By Charles W. Eliot. The Canadian Act (or maintenance of indiutrial peace. No. 5. Discontbued. No. 6. The Social Conscience and the Reli- gious Life. By Francis G. Peabody. The awakening of the churches to social problems. No. 7. Friendly Visiting. By Mary E. Richmond. A direct and personal method of philanthropic activity. No. 8. Rural Economy as a Factor in the Suc- cess of the Church. By Thomas N. Carver. Prosperous members essential to a successful church. No. 9. The Relation of the Church to the Social Worker. By Herbert Welch. The spiritualization of charity and socizJ reform. No. 10. Discontinued. No. 1 1 . The Wise Direction of Church Activ- ities Toward Social Welfare. By Charles W. Eliot. Points out effective social work which churches can do. (.For additioncU titles in lhii> series see inside back cover o) this Bulletin.) Order by number only, not by title. AMERICAN UNITARIAN ASSOCIATION 25 Beacon Street, Boston. "TTFrary Inctitute of Industrial Pf^Tationf University cf 0*^,1^' f:rr. la liOQ Angel--v ,,ia Social Service Series Bulletin Number 4 * A Remedy for Industrial Warfare Charles W. Eliot Published for free distribution American Unitarian Association 25 Beacon Street, Boston Some rlithical r hases of the JLabor (Question By CARROLL D. WRIGHT N important book written from the ethical point of view by a former U. S. Commis- sioner of Labor, who until his death was the leading authority in this country on industrial problems and labor conditions. The contending forces of modern industrialism will result in a candid examination, to quote the author, "into the treatment of the uses of wealth, as well as its ac- cumulations, distribution, and exchange, and incite discussion upon the relations of labor and capital on an ethical basis, combining with the old question the old school always asks, 'Will it pay?' another and higher query, 'It it right?'" <»* 12mo ; 207 pages Cloth, $1.00 net; by mail, $1.10 Paper, 25 cents net ; by mail. 33 cents THE BEACON PRESS 25 Beacon Street Boston, Mass. ■ • library Jfi§tiM-§ 6f fndusiriai BeUtion$ \^ University of Caiiforn^a Prefatory Note From the vei-y beginning of the factory system in the United States there have been serious differences between capital and labor. Strikes, lockouts and boy- cotts have been common, and these struggles between employer and employed are nothing less than industrial war, costing the combatants huge sums of money, and often causing the innocent and inoffensive public great distress and excessive inconvenience. Of late years the situation has become so intolerable that governments the world over have been seeking ways of escape. In 1907 Canada passed what is known as the Industrial Disputes Investigation Act, which has proved to be a most effective means of settling industrial conflict. In view of the chaotic labor conditions existing in the United States this Canadian Act should receive careful attention, to see if its policies are not as applicable here as on the other side of the border. President Eliot's article is a clear and convincing exposition of its value to all concerned, employer, employed, and the suffering public. E. S. F. ^840024 A Remedy for Industrial Warfare* The Canadian Act for the maintenance of indiis- trial peace in all public utilities, including mines, went into effect on the 22d of March, 1907, and had therefore been in operation two years at the close of March, 1909. The results of proceedings under the Act ought to be very interesting to the Ameri- can public ; because it is obvious that in the United States industrial peace is not steadily maintained in all public utilities, and that, in consequence, the public suffers, both directly in actual loss of money and in deprivation of almost indispensable services, and indirectly in arrest or disturbance of business, and in the anxiety of mind which violations of public peace always cause to multitudes of persons who have no interest in the disputes. The recent strikes on the Philadelphia street railways and on the Georgia railroad illustrate the barbarous con- dition of American society in these respects, and the urgent need of adopting some means of diminishing the number of strikes and lockouts which arrest the * Reprinted by permission froin McClurc's Magazine, [1] A Remedy For operation of public utilities and cause violations of public order. The chief feature of the beneficent Canadian Act called the Industrial Disputes Investigation Act was the requirement that, in the event of a dispute aris- ing in any industr}^ known as a public utility, it should be illegal to resort to a strike or lockout until the matters in dispute had been made the sub- ject of an investigation before a Board of Concilia- tion and Investigation, to be established under speci- fied rules by the Canadian Minister of Labor. Under this Act, either party to a dispute may ap- ply for the appointment of a Board of Investiga- tion. Each of the two parties to the dispute may nominate one member of the Board, and these two may select the third who serves as chairman of the Board of three. If either party fails to nominate a member, the Minister of Labor appoints that mem- ber ; and if the two members fail to agree upon the third member, the Minister appoints the third mem- ber. The Board will therefore inevitably be con- stituted, and will go to work, if either party to the dispute applies for an investigation. The proceed- ings of every Board appointed and its final report are published throughout the Dominion in the most complete manner. During the two years from March 22, 1907, to the end of March, 1909, fifty-five applications were re- f2] Industrial Warfare ceived for the appointment of Boards, under which forty-nine Boards were set up. In the remaining six cases the disputes were settled, either during the discussions arising out of the application, or dur- ing the formation of the Board ; but these six cases of prompt settlement are obviously due to the in- fluence of the Act — that is, to the prospect of complete publicity with regard to the causes of the dispute and the claims of the disputants. The fifty- five applications were distributed as follows : — Concerning mines and smelters, 30 ; concerning transportation or means of communication, 23 ; con- cerning disputes in industries which were not public utilities, 2. In these two cases, both parties to the industrial dispute applied for an investigation, the Act providing that its benefits may be extended to industries other than public utilities, if both parties, instead of only one, make application for the estab- lishment of a Board. Ninety-six per Cent of Strikes Avoided or Ended On the fifty-five applications received, strikes were avoided or ended in twenty-five coal mines, and four metalliferous mines ; in fifteen railroads and three street railways ; in two bodies of 'longshoremen ; in one body of teamsters, and in one body of sailors ; and in two industries not public utilities. Thei-e were two cases in which strikes were not averted or A Remedy For ended. Only two cases, therefore, out of fiftj-five ultimately resulted in strikes, these two strikes being in perfect accordance with the wise tenns of the Act, which permit owners to lock out their men and workmen to strike after the public investigation has been completed and its results published. The details of these two exceptional cases are highly interesting. A coal mine strike occurred in 1907 among the employees of the Cumberland Railway and Coal Company at Spring Hill, Nova Scotia, concerning the rates of payment for certain portions of the miners' work which did not directly yield coal, such as pillar work. The Investigation Board appointed for this case could not agree, the majority report being signed by the chairman and the member nom- inated by the employers, the minority report by the nominee of the employees. The recommendations of the Board were not accepted by the employers. The strike which was threatened prior to the appli- cation for the Board on May 8th was averted for the time being, but took place on August 1st, continu- ing until October 31st, when the employees returned to work on the conditions recommended by the ma- jority of the Board. The other strike which was not prevented occurred among the emplo3'ees in the mechanical departments of the Canadian Pacific Railway Company. Here, [4] Industrial Warfare again, the Board did not present a unanimous re- port. The majority of the Board made certain rec- ommendations for the settlement of the dispute which were accepted by the company with some de- mur. The employees refused to accept the findings of the Board, and ceased work on August 5th. They returned to work on October 5th, accepting finally the recommendations of the majority of the Board. In this case, the tribunal was made up, first, of the representative nominated by the employees, sec- ondly, of a representative appointed by the Minis- ter of Labor with the consent of the employers, and thirdly, of the chairman, who was appointed by the Minister in the absence of a joint recommendation by the two members first appointed. In the former case, that of the Cumberland Railway and Coal Com- pany and its employees, both the workmen and the company were represented on the tribunal by their own nominees ; but the chairman was appointed by the Minister, because the two members first appointed could not agree on a joint recommendation. Controversies Involved Tens of Thousands of Em- ployees The question naturally arises whether these Cana- dian disputes were on a large scale or a small; whether they directly affected a large number of [5] A Remedy For persons or only small groups ; and whether the gen- eral welfare of the community was seriously threat- ened by any of them. May it not have happened in Canada that these quarrels were insignificant as regards the number of persons affected? The official reports (see the Labor Gazette, issued monthly by the Department of Labor, Ottawa, April, 1909, pp. 1080-91) make it plain that some of these disputes were serious, affecting directly large numbers of persons and indirectly threatening the common welfare. Among the strikes in mines may be mentioned that on the Cumberland Coal Company, with seventeen hundred men concerned ; that on the Crow's Nest Pass Coal Company, in which eighteen hundred men were involved; that on the Dominion Coal Company, January 4, 1908, with seven thou- sand men affected ; that on the Nova Scotia Steel and Coal Company, with seventeen hundred and fifty men affected; and that on the Dominion Coal Company, on March 4, 1909, with three thousand men affected. Among the disputes in transportation companies, the most important were the Grand Trunk Railway of Canada and its locomotive engineers, with thirteen hundred men affected ; the Canadian Pacific Railway Company and railroad telegraphers, with sixteen hundred and fifty-six men affected ; the Canadian Pa- cific Compan}' and carmen employed on the eastern lines of the company, with twelve hundred and fifteen [6] Industrial Warfare men affected ; the Canadian Pacific Railway Com- pany and the men in its mechanical departments, with eight thousand men affected ; the Canadian Pa- cific Railway Company and its railway telegraphers, with sixteen hundred and five men affected ; the Cana- dian Pacific Railway Company and its firemen and engineers, with seven thousand men affected ; the Shipping Federation of Canada and the 'longshore- men of Montreal, w ith fifteen hundred men affected. These were all serious disputes affecting large num- bers of persons and the general welfare. The last case mentioned illustrates first a violation of the Act and then its successful application. On May 13th the 'longshoremen went on a strike, not- withstanding the provisions of the Act. On May 15th the Secretary of the Department of Labor went to Montreal and explained the provisions of the Act to both parties to the dispute. As a result, the em- ployees returned to work, agreed to refer the dis- pute to a Board to be appointed under the Industrial Disputes Investigation Act, and made a formal ap- plication for the establishment of a Board. The em- ploying companies withdrew on May 18th the ap- plication they had made on May 15th for the ap- pointment of a Board. In the end the employing companies accepted the reconnnendations of the Board which the 'longshoremen had asked for; but the 'Longshoremen's Union did not formally accept [7] A Remedy For them. Nevertheless, the members of the Union, with the exception of a few persons, signed individ- ual agreements with the employers, based on the rec- ommendations of the Board, which covered the con- ditions of employment for the seasons of 1907 and 1908. No further cessation of work took place. As a rule, interruptions of work in coal mines and in industries which provide transportation and other means of communication are troublesome to the pub- lic, and occasion large losses both to employers and employed. The Canadian industrial disputes be- tween March 22, 1907, and March 31, 1909, would have illustrated this rule, had they not been pre- vented or settled by the Industrial Disputes Investi- gation Act. Of the fifty-five applications for the appointment of Boards, seven were made by employers, forty-six by employees, and two by both employers and em- ployees. The Act requires that every application for the appointment of a Board shall be accom- panied by a statement of the nature, cause, or sub- ject of the dispute. In the fifty-five applications for the appointment of Boards, the alleged nature of the dispute covers the usual sources of industrial strife, such as the employment of non-union men ; the hours of labor; the terms of the joint agreement concerning wages ; the conditions of employment ; alleged discrimination against members of certain [S] Industrial Warfare unions ; alleged wrongful dismissals ; the reinstate- ment of former employees ; and the introduction of machinery. It is obvious that the Canadian workingmen, in numerous trades connected with pubhc utihties, have acquired confidence in the just operation of the Act ; otherwise they would not have uppHed, in forty-six cases, for the appointment of Boards. Tlie satis- faction of the employers is not so clearly determined, because the number of applications for Boards on the part of employers has been relatively small. Nevertheless, the employers did not ultimatel}^ reject in a single case the advice of the Boards ; and they must have taken satisfaction in the fact that inter- ruption of service to the public was prevented in fifty-three cases out of fifty-five. It is quite natural that the employers should have been slower than the emplo^'ees to accept cordially an Act which relies on publicity. The sound prin- ciple, that the public has a right to know much about any business which is conducted on rights or privi- leges conferred by legislation, is not universally ac- cepted by proprietors and managers — not even by corporations which enjoy the great privileges of lim- ited liability and long viability, privileges exclu- sively conferred by the public through general or special laws. Its stout assertion that the public has a right to know about the causes of industrial 10] A Remedy For disputes in public utilities, including mines, is one of the good incidental services which the Act of March 22, 1907, has rendered to Canada. Majority of Each Board Familiar with Business In- volved It is an admirable feature of the Canadian Act that a special Board of three members has to be ap- pointed for each separate dispute. Every corpo- ration or body of employees can count on obtaining a Board of Investigation, two members of which, at least, will be well informed about the particular busi- ness in which the dispute has occurred. As soon as a Board has made its report, it disappears, and will probably never reappear. It is another very important feature of this ad- mirable Act that there is no arbitration in it what- ever, and no standing Board of Arbitration, which must be employed in all sorts of industries. Neither party promises to abide by the decision of the Board, or to adopt its recommendations. It has long been known that arbitration is not a means of preventing industrial strife, and is, to say the least, a very im- perfect means of adjusting a strife already declared and in effect. The Act absolutely abandons arbi- tration, and relies exclusively on discussion, concili- ation, publicity, and public opinion. Under the operation of this Act, both employers [10] Industrial Warfare and employed are prevented from striking a sudden blow, either against the other. Employers cannot lock out their men without notice, and a strike can- not be suddenly declared. Although perfect liberty to strike or lock out ultimately is reserved under the Canadian Act, several weeks must elapse from the time the dispute began before work can be stopped. How long this time may be is a matter of impor- tance ; for both parties to an industrial dispute may reasonably object to a long delay of decisive action. The date at which each Board was constituted and the date of the receipt of that Board's report are both given in the official Labor Gazette with regard to every industrial dispute which has occurred in Canada in the two years between March 22, 1907, and March 31, 1909. The interval between the two dates has been ordinarily between one month and twO' months, although in twenty-one cases it was less than one month. Some days must elapse, in most cases, between the sending in of an application for a Board and the bringing of the Board together — particularly when the dispute has occurred in some remote part of the Dominion. During this interval of from one to two months there is time for passions to cool, and for the costs of war to be counted by both parties. The interests of the public may also get some sort of effective expression during this in- terval; and when the report of the Board is thor- [11] A Remedy For oughly published, in accordance with the provisions of the Act, pubhc opinion, being well informed, usu- ally expresses itself with clearness and force. In- deed, the Act relies solely on the ultimate reasonable- ness of the parties to the dispute when the facts on both sides are publicly stated and discussed, and on the fairness and sound judgment of that long-suffer- ing and patient public which ultimately pays for the greater part of the cost of industrial warfare. American States Could Adopt a Similar Act It is obvious, from these two years of experience with the Canadian Industrial Disputes Investigation Act, that it is the best piece of legislation in the world for the prevention and settlement of lockouts and strikes in an important class of industries, which, in the interest of the nation as a whole, ought never to be interrupted. It is simple, prompt, and just, and therefore effective. Canada has this great advantage over the United States in regard to industrial disputes, that the cen- tral government can constitutionally take cogni- zance of industrial disputes ; whereas in the United States the power of intervention in such quarrels re- sides with the States. The Canadian Minister of Labor can interfere equally well in a lockout or strike the effects of which are confined to one prov- [12] Industrial Warfare ince, and in a strike on a continental railroad, or a telegraphers' strike which involves the whole Do- minion and indefinite regions beyond. The several States of the American Union could, however, exercise through some single official — La- bor Commissioner or Governor — the powers which are exercised by the Minister of Labor in the Domin- ion of Canada, and could appoint the Boards ap- plied for in local disputes. If an industrial dispute extended beyond the limits of a single State, some combination of State officials could probably be con- trived to make the appointments for the Boards needed in such cases. The prompt appointment of Boards would be facilitated if the provision of the Canadian Act were copied whereb}' the normal mode of securing a Board is for each party to nominate one member to the Minister of Labor, and these two members to select a third. One very formidable feature of lockouts and strikes in industries concerned with public utilities, or in monopolistic industries which deal witli neces- saries of life, is the secrecy with which preparations are made on both sides for a war to be suddenly de- clared. The Canadian Act does not prevent secret preparations on both sides ; but it does prevent — not only by its theory or promise, but in its practical application for two years — the sudden declaration [13] A Remedy For of secretly prepared hostilities. This is an enor- mous gain for the community as a whole, both ma- terially and morally. Some of the Canadian unions connected with rail- roads have suggested one or two amendments to the Act, which are under consideration at the present time ; but these amendments relate to some of the ex- isting requirements concerning procedure, and do not affect the Act in any material respect. The na- ture of the amendments suggested indicates pretty clearly that the unions have become entirely recon- ciled to the principle of compulsor}^ investigation before resort is had to lockouts or strikes. More- over, the Trades and Labor Congress of the Do- minion have officiall}' indorsed the Act at each of the sessions of the Congress held subsequent to its enact- ment. An Incentive to Conservatism in Labor Leaders The respect for the law shown by the working- men and the labor organizations has been such that the government has had no occasion to consider the question of enforcing penalties against striking before public investigation. The possibility or im- possibility of enforcing such penalties has, there- fore, not come up for serious consideration. The Dominion government has wisely pursued the pohcy of non-interference; because the law against strik- [li] Industrial Warfare ing or locking out before public investigation has been made can be set in motion by any private per- son or corporation, and it may be presumed that any parties injured through violations of the law will take advantage of the machinery which the law it- self has provided for their protection. If the in- jury is not sufficient to induce the injured parties to set the machinery of the law in motion, it is ques- tionable whether the government ought to take upon itself that task. The policy of non-interference on the part of the government has also another advantage. If individ- ual labor leaders bring men out on strike without securing for them in the first instance the advantages to their case that would probably accrue from pub- lic inquiry before an impartial tribunal on which the workmen are represented, the final issue of the dis- pute will probably discredit such leaders, and demon- strate the unwisdom of that method of proceeding; and this result would be highly educative to the unions concerned. In strikes which concern large masses of men, it is wiser for any government to try to educate and convince the masses through public discussion than to drive them — particular!}' when the driving process has to be applied to a compara- tively small number of individuals. The Act of March 22, 1907, has proved to be an excellent means of public instruction, [15] Industrial ^Varfa^e Results in the Dominion To the question wliethcr the Industrial Disputes Investigation Act has been effective, the clear an- swer is that since its enactment in March, 1907, the Dominion has known no cessation in the continuous operation of any of its great agencies of communi- cation — steam railways, electric railways, telegraph and telephone lines, or other public utilities of the kind — and the national industries and the public have not suffered any inconveniences other than a few of a purely temporary and local nature through the cessation of some mining operations. This re- markable record may not be continuously main- tained; but it seems quite possible that never again will the interests of the Canadian public be in- jured through the threatening, or actual outbreak, of sudden and extensive industrial conflicts, such as frequently occurred in Canada prior to the enact- ment of the law, and still occur, with enormous and wide-spread damage, in the United States. ' _ — -""^ library jMlifute of Industrial Relatla-. ii.„ *°^ Angeles S4. feli£«,„^ [16] SOCIAL SERVICE BULLETIN (For the firU eleven titles in this series see inside front caver 0} this BtUletin.) No. 12. The Democracy of the Kingdom. By Rt. Rev. Charles D. Waiiams, D.D. The church must stand for men simply as men. No. 13. Bad Housing and What it Mean* to the Community. By Albion Fellows Bacon. The eSect oi slum lite on physical and moral health. No. 14. City Building in Germany. By Frederic C. Howe. Art, foresight, and common-sense in city development. No. 15. Religious Work and Opportunity in Country Towns. The Report of a Committee of Investigation. No. 16. Comprehensive Planning for Small Towns and Villages. By John Nolen. How to prevent mistakes in the growth of towns. No. 17. The Inter-relation of Social Move- ments. By Mary £. fUchmond. Shows how different social movements are connected. No. 18. Vocational Guidance. By Meyer Bloomfield. An effort to fit youth for their life work. No. 19. The Improvement of the Rural School. By Harlan Updegratf. The benefit to country life of the socialized school. No. 20. Knowing One's Own Community. By Carol Aronovici. Suggestions for social surveys of small cities and towns. No. 21. Social Service for Young People in the Church School. By Clara Bancroft Beatley. The social interest of young people developed by service. No. 22. The Church at Work. By Elmer S. Forbes. Discusses parish organization for social work. No. 23. Social and Civic Centers. By Eldward J.Ward. Concerned with the larger use of public school buildings No. 24. A Rural Experiment. By Ernest Bradley. A study of the recreation of a country community. (For the remaining titles in this series see outside back cover oj this Bulletin.) Order by number only, not by title. AMERICAN UNITARIAN ASSOCIATION 25 Beacon Street, Boston. SOCIAL SERVICE BULLETIN (For the first twentv-Jottr titles in this eeries set inside front and back covers of this BvUctin.) No. 25. A Practical Platform for Social Pro- gress. By Charles F. Dole. Suggests ways in which social ideals can be realized. No. 26. The Rural Problem and the Country Minister. By Joseph Woodbury Stiout. A diagnosis of the backwardness o( the country. No. 27. Prisoners' Work. By E. Stagg Whitin. Ph. p. Aimed against the exploitation of the convict. No. 28. Conservation of National Resources. Calls a halt upon national extravagance and waste. No. 29. Both Sides of the Servant Question. By Annie Winsor Allen. The way out of a difficult social problem. No. 30. The Control of Tuberculosis. By Mark W. Richardson, M.D. Shows how tuberculosis can be exterminated. No. 31. Copartnership in Housing. By Rev. Paul Revere Frothi..t>'iam. An English method of solving the housing problem. No. 32. The Church and New Americans. By George W. Tupper, Ph. D. Considers the duty of Protestant churches to immigrants. No. 33. Problems and Opportunities of Country Life. By Margaret B. Barnard. The report of a social survey in rural New England. No. 34. The Church and the City. By Paul Moore Strayer. The task of the church is to make every city a city of God. No. 35. Religion and the World's Peace. By Howard N. Brown. Considers the influence of fear in provoking war. Xlis^'itute of Indur,tr \ University of Ca lioa Angelea £4, C Order by number only, not by title. AMERICAN UNITARIAN ASSOCIATION 25 Beacon Street, Boston. The American Unitarian Association also publishes for free distribution many tracts and pamphlets setting forth the liberal interpretations of religion, a full descripnve.Cf)talo|.oLvduc|^may be had upon application. mttVERSITY OF CALIFORSDa LOa AJiGJELM. UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. -ms MB Form L9-Serie8 444 T "■■■fl.