ON iT'E
JHi-LCAG YO  St1894
gL_~~ t E; f r- JL STX,   8: --
BY THE
UNITED STATES SjI IIKE COl{MfISSION,
APPOINTED BY THE PRESIDENT  JULY 26, 1894, UNDER THE
PROVISIONS OF SECTION 6 OF CHAPTER 1063 )01
THE LAWS OF THE UNITED Sl''AT',ES
PASED OCTOBEIR 1, 1888.
WrASHINGTON: 
GOVERiN'IENT PRINTING OFFICE.
1 894.








UNITED STATES STRIKE COMMISSION.
COMIMISSIONEi:RS.
CARROLIoD. WRIGHT, Ex-olicio Chairman,..    WASHINGTON, D. C.
JOHN D. KERNAN,.                                 UTICA, N. Y.
NICHOLAS E. WORTHINGTON,.....  PEORIA, ILL.
CLERKS.
EUGENE B. HASTINGS,   -..UTICA, N. Y.
WILLIAM H. RAND,.WASHINGTON, D. C.
STENOGRAPHERS.
CHARLES P. WATSON............................................. PEORIA, ILL,
CYRUS L. WATSON ---------—.............. —------ ------ --    PEORIA ILL.
CHARLES' W. MORRIS, JR.................................... WASHINGTON, D. C.
U. S. DEPUTY MARSHAL (IN ATTENDANCE).
H. BARTLETT LINDLEY............................CHICAGO, ILL
3
















CONTENTS.
Page.
LETTEIl OF  TRANSMITTAL ------—. —... —............................ 7
INTRODUCTION. —--------------------------------------- *-* —----------- -  11-14
LOSSES  AND  CRIMES... —-1........................                                                   15
TROOPS, MILITARY, ETC.-............................. 15, 16
PULLMAN'S PALACE CAR COMPANY.-...... —----. —---------------- ---—. 17-1.9
THE  A:MERICAN  RAILWAY  UNION  -------—. —----—. —---- --------—.  19-24
THE  GENERAL  MANAGEIRS  ASSOCIATION  -. —---- ---------------                               -------—.  24-28
THE  PULLMIAN -STRIKE: ITS  CAUSES  AND  EVENT S. —--------------                           -------- 28-36
Wages. —................ 29-31
Rents-.-.-................................. 32, 33
Shiop abuses -------------------------------—.   --------------------—..                                  33
The strike -------.. —---------------------   --—. —-- ----—. —---- -----   33-36
RAILROAD STRIKEI-i. —...... —------                                      -—.-..... —-------— u 36-43
Action of federated uniols. —------------—. —---  37-39
Action of the General Managers' Associ:ation.....                                                   39, 40
Violence and destruction  of property and military proceedilngs..  40-43
CONCLUSIONS  AND  RECOMMAIENDATIIONTS.-. —-----------. —-----------  43-53
[The appendices  mentioned  in  the  letter  of transmittal and  containing  the full
testimonly taken  by the Commission, can not be printed  nntil ordered  bl)   Congress,
andl for that reason d(o not appear with this report.],
















LETTER OF TRANSMITTAL.
UNITED STATES STRIKE COMMISSION,
Washington, D. C., November 14, 1894.
SIR: We have the honor to hand you herewith our report upon the
controversies which arose between the Illinois Central Railroad Company and the Chicago, Rock Island and Pacific Railway Company and
certain of their employes in June last. This report is made in accordance with your directions of the 26th' of July and under the provisions
of section 6 of chapter 1063 of the laws of the United States passed
October 1, 1888.
The appropriation applicable to the investigation which we have
conducted was $5,000, a sum which has proved amply sufficient for all
the expenses of the commission.
In addition to our report covering ourl consideration, conclusions,
and recommendations, we hand. you lherewith a copy of the testimony
taken at the hearings conducted by the comumissioni, a digest of the
suggestions made in writing to the commission, and various other
matters which have been submitted to it, all bearing upon the difficulties and controversies considered. These matters are in tile form of
appenldices.
We are, very respectfully, your obedient servants,
CARROLL D. WRIGHT,
JOHN D. KERNAN,
NICHOLAS E. WTORTHINGTON.
The PRESIDMENT.
















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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:ipIJOIO ~
















REPORT OF THE COMMISSIONERS.
Upon the 26th of July, 1891, the President of the United States
issued the following, viz:
GROVER CLEVELAND,
President of the United States of Amnerica.
To all to whom these presents shall come, greeting:
Know ye, that whereas controversies have arisen between the Illinois Central Railroad Company, and the Chicago, Rock Island and
Pacific Railway Company, two corporations engaged in the transportation of property and passengers between two or more states of the
Uilited States, and certain of their emiployes, which controversies may
hinder, impede, obstruct, interrupt or affect such transportation of
passengers or property;
And, whereas the premises and the representations on behalf of said
employds being considered, the conditions in my opinion justify and
require the creation of a temporary commission to examine the causes
of said controversies, the conditions accompanying the same and the
best means of their adjustment, as authorized by section 6 of chapter
1063 of the laws of the United States passed on the first day of October, 1888;
N(w, therefore, by authority of the statute aforesaid, Carroll D.
Wright, Commissioner of Labor of the United States, who is designated in said statute, and John D. Kernan, of the state of New York,
and Nicholas E. Worthington, of the state of Illinois, hereby appointed
by the President of the Uited States commissioners under said act,
shall pursuant to the provisions of said act, constitute a temporary
commission for the purposes therein specified.
The said commission is hereby directed to visit the state of Illinois
and the city of Chicago, and such other places in the United States as
may appear proper in the judgment of the commission, to the end
that it, may mnake careful inquiry into the causes of any pending dispute or existing controversies and hear all persons interested therein
who may come before it; and said commission shall exercise all the
powers, perform all the duties and be subject to all the obligations
conferred and enjoined by the statute aforesaid upon temporary commissions created pursuant to its provisions.
11 witness whereof I have subscribed my name hereto and caused the
seal of the United States to be hereunto affixed this twentysEAL.] ixth day of July in the year of our Lord one thousand eight
[SEAL.]  hundred alid ninety-four, and of the Independence of the
United States of America the one hundred and nineteenthl.
GROVER CLEVELAND.
By the President:
W. Q. GRESHAMN
Secretary of State.












12                        CHICAGO  STRIKE.
Section 1( of chapter 1061;3 of the laws of the United States passed
October 1, 1888, reads as follows:
That the President mlay select two commllissioners, one of whowm at
least shall be a residelt of the state or territory in which the controversy ariscs,  who, together with the Commissioner of Labor, shall
constitute a temporary comnmission for the purpose of examin-iing the
causes of the controversy, the conditions accomllpanying, and the best
means for adjustilg it; the result of which examination shall be immediately reported to the President and Congress, andl on the rendering of
such report the services of the two comlllissioners shall cease.
" The controversy " referlred. to is defined in section L of said chapllter
1063 as follows:
Whenever differences or controversies arise between railroad or other
trarnlsportation companies engaged in the transportation of property or
passengers between two or more states of the United States, between
a territory andL state, within the territories of the United States, or
within the District of Columlbia, <a.nd the emlployes of said railroad
companies, which diffierences or controversies may hinder, impede,
qbstruct, interrupt, o7r affect sutch transportation of property or passengers.
At its first meeting in the cityT of lWaaslitigton, I). C., hiel,( on the 3ist
day of July, 1894, thle comLaLission adopted tle follo-wing preaumble anld
resolutions:
Whereas the P'resident of the Uiniited States has appointedd the undersigned a co:mmissiou to visit Chicago, Ill., and suchl other places in the
United States as may be prolper, in the judgmrellt of the commission, to
the end tthat it may make careful inquiry into the caluses of any pending
displ)te or existing controversies between the Illinois Ceiitral Railroad
Companly andi the Chicago, Rocli Island and Pacific Railway ({',omlpany
and certain of their employ-'s, and to hear all persons interestecd therein
who may come before it; and
Whllereas section 6 of chapter 1,0(63 of the lawrs of tfhe Unlited States
passed October 1, 1888, makes it the duty of said commission to examine the causes of said( controversies, the col;ditiolis accompanying and
the best umeans of aijustin.g the same, and to report the results of such
exanrillation to the President and to Congress; and
Whereas the questions involved in such controversies aff'ect all
interstate railroads and their employ es; md
Whereas it is desirable that the report of this co1lmmissioin and
future legislation, if any, upon the question.s at issue between labor,
whether organized or unorgalized, and employ)ers thereof, should be
based upon all facts having any legitimate bearilg upon suchl questions, and should be the result only of clear acnd well-defined public
opinion: Therefore,
Resolved (1), That tlhis commission will meet at the Untited States
post-office building in the city of Chicago, Ill., on the 15th day of
August, 1894, at 10 a. m., for the purpose of taking testimiony in relation to said controversies, and to hear and consider all fiacts, suggestions, and arguments aso othe causes thereof; the conditions accomplanying, and the best means of adjusting the same, and as to any legis



CHICAGO  STRIKE.                           13
lation or measures which ougllt to be recommended in regardto similar
controversies hereafter.
(2) That all railroads, labor organizations, and citizens having either
a personial or patriotic interest in the right solution of these questions,
and who can not conveniently attend such public heariing as aforesaid,
are requested to present their views and suggetions inl writing to the
commission at any titme prior to the date of such public hearing.
(3) That copies of this resolution be given to the press and be sent
to all railroads engaged in the transportation of propert:i,  aiid passengers betweenL two or more states of the United States and to all labor
organizations.
(4) That all communications be addressed to the chairmall of the
United States Strike Co-Immission, Washingtol, D. C.
Ii accordance with the above resolution the conniiissoion  let at the
United States district court room in the city of' Cllicago, Ill., on th!e
15th day of August, 1394, when the chairlllman mande the following
announecement:
By the act recited in the commission of the Presideint that has just
been re'ad, this commission is directed to examiniie the cauLses, controversies, and dlifficulties existing between the roads named and their
employl s at tile time the col-mminissioon of lthe President was issmud. The
board is constituted as a temporary conrianinission for this purpose, mid
not for the purpose o-F a-'bitrathing the diffic,-ulties that existed.  It is
practically a court of inquiry, ald itsj proceedings will be i;l acclorcdance
wit1h the usages of such courts, It will proceed to hlear, first, all the
witnesses on behalf of the employ. es, and, afterward, thlose ol behalf of
the corporations 1named in the commission, and all sulch witnesses are
requested to ha.nd their names to the clerk of the c0nnnissioi!.  Under
the law parties maay appear in person or by counsel, as they l;may see
fit, and exatminte and cross-examine witnesses.
After all the wiitnlesses have given their testimony the ommnlission
will then consider argunents and suggestions to be made bearing upon
the questions before it.  All such suggestiols, aind argullments presented
in writing will be filed and considermed by thlle comlnissioln; b)ut tlle
question as to how far the commlission will hear parties who desire to
be heard orally will depend upon the tilme left at the disposal of the
commission, and will be determiled after the testimony is concluded.
This conmmission, by the act creating it, possesses all the powers aind
authority which are possessed by anld belonlg to United States commnissioners appointed by the cirelit courts of the UlEnited States.  The
hours of sitting of the co-lmuission will be fTrolm 10 a. mn. to 12:30 p. im.
and friom 1:30 p. in. to 4 p. in. Parties aild their counsel and witnesses
attending will fjnd seats -within the r;il. The colmmission is nlow ready
to proceed to business, awnd the nma:rshall w-ill preserve order, limitiig
the attendance to the comfortable capacity of the room,'Th-e clerk
will now call the first witness.
During the session of thirteen days at Chicago the commission exallmined 107 witilesses, who were either presented by the parties or cited to
appear.  At an adjourntled session, held il Wrashin.gton, September 26,
2 witnesses (appeared, making a total of 109.
At the first hearing it developed that the _-Pullman emlployds very
generally became members of thle American Railway IJlion iln March












14                       CHICAGO STRIKE.
and April, 1894, and that the 19 local unions which they had formed
had declared a strike at Pullman; also that the railroad companies
named in the President's commission were imembers of thle General
Managers' Association.
The contest, was chiefly between these two organizations, and hence
nothing relating to the strike at Pullnman or Chicago that affected
members of either organization could be excluded as not germane to
the subject under investigation.  As a matter of discretion, the co1nmission believed it wise to perimit the broadest latitude of inquiry,
inasmuch as the directions to the commission were' to examine the
causes of and the conditions accompanying the controversies.,"
LOSSES AND CRIMES.
According to tile testimony the railroads lost in property destroyed,
hire of United States deputy marshals, and othler incidental expenses,
at least $685,308. The loss of earnings of these roads is estimiated at
$4,672,916. Some 3,100 emlployes at Pullman lost in wages, as estimated, at least $350,000. About 100,000 emlploy6s upon the 24 railroads centering at Chicago, all of which w ere more or less involved in
the strike, lost in wages, as estimatedl, at least $1,389,143. Many of
these employdls are still adrift and losing wages.
Beyolld these amounts very great losses, widely distributed, were
incideIntallysuffered throlughout the country. The suspension of transportation at Chicago plralyzed a vast distributive center, and imposed
many hardships and imuch loss upon the great number of people
whose manufacturing and business operations, employment, travel, and
necessary supplies depend upon and demand regular transportation
service to, fromn:, and through Chicago.
During the strike the fatalities, arrests, indictiments, aicln  disisals
of charges for strike offenses in Cllicago and vicinity were as follows:
Number shot and fiLtally woundedl.-............................. — —.   12
1Number arrested by the police..-. ——.......... —- ---  575
Number arrested under United States statutes and against whom indictments
were found -------------- ------------------—. ---------- 71
Number arrested against whom indictments were not foundl. -...... 1. 119
The arrests imade by the police were for murder, arson, buirglary,
assault, intilmidationl, riot, inciting to riot, and lesser crimes. The cases
passed upon by the special United States grand jury, which convened
on July 10, 1894, related to obstruction of the mail, forbidden by seetion 3995 of the Ullited States Revised Statutes; conspiracy to commit
offenses against the United States, forbidden by section 5440 of the




CHICAGO  STRIKE.                             115
Revised Statutes; conspiracy in restraint of trade or commerce among
the several states, forbidden by chapter 647 of the United States laws
of 1890; conspiracy to injure, oppress, threaten, or intimidate citizens
in the free exercise and enjoyment of their rights and privileges under
the constitution and laws of the United States, forbidden by section
5508 of the United States Revised Statutes.
Several indictments were found against Eugene V. Debs, George W.
Howard, L. W. Rogers, and Sylvester Keliher, officers of the American
Railway Union, under these different statutes.  Neither indictments
nor proceedings were had under the act to regulate commerce, approved
February 4, 1887, as has been sometimes stated.
TThese great losses and many crimes; the vast numbers, strength, and
resources of the labor that contended under the leadership of the American Railway Union upon the one side and Pullman's Palace Car Comnpanly and the General Mlanagers' Association  upon the other; the
attitude of labor toward capital, disclosed in its rea:liness to strike
sympathetically; the determination  of capital to crush  the strike
rather than to accept any peaceable solution through conciliation,
arbitration, or otherwise; the certainty with wAThich vast strikes let loose
the disreputable to burn, plunder, and even murder; the conversion
of industrious and law-abiding men into idlers, lawbreakers, or associates of criminals; the want brought to many ilnocent families; the
transformation of railroad yards, tracks, and stations, as well as the
busy marts of trade, into armed camps; the possibilities of future
strikes oln more extended lines of union against even greater combinations of capital-are all factors bearing upon the present industrial
situation which need to be thoroughly -understood by the people and to
be wisely and prudently treated by the government.
TROOPS, MIL. TARY, STC.
For the protectlion of city, state, and federal property, for thle suppression of crime (tand the preservation of order, the city, county, state,
and federal forces were utilized as s5hown in the following statement:
From,July 3 to July 10 the Inumber of United States troops sent to and used
in Chicaogo to protect the United States nuil service and federal buildings,
and to sustain the execution of the orders of the United States courts was  1, 936
Between July 6 and July 11 the state militia w:ais ordered on duty (at Chicago
and remained so long as needed, to the numnber of about......   4, 000
Extra deputy marshals, about.-............................................  5, 000
Extra deputy sheriffs -..................................................... 250
Police   force   of  Chicago.-...................................................   3, 000
Total..-..........................-....................... 14, 186












16                         CCHICAGO  STRIKE.
Section 4 of Article Iv of the federal constitution reads as follows:
The United States shall guarantee to every state in this Union a
republican form of gover-ment, and shall protect each of them against
invasion; and on application of the legislature, or of the executive
(when the legislature can not be convened), against domestic violence.
United States troops were not sent into Illinois upon the application
of the legislature, nor of the executive, against domestic violence; i. e.,
violence affecting the state and its government as suclel.  The President ordered the troops to Chicago(1) To protect federal property.
(2) To prevent obstruction in the carryinig of the mails.
(3) To prevent interference with the interstate commerce; and
(4) To euforce the decrees and ma,nda~tes of the federal courts.
H-e did this under the a'uthoritT of section 5298 of the Revised
Statutes of the United States, which provides:
WThellever7 by reason of unlawful obstructions, combinations, or
assenmblages of persons, or rebellion against the against  th athority of the government of the United States, it shall become impracticable, in the
judgment of the Presidenit, to enforce, by the ordinary course of judicial
proceedings, the laws of the IUnited Staites within any state or terri.
tory, it shall be lawtful for the President to call forth the militia of any
or all of the states, and to employ such parts of the land or naval
forces of the United States as he may dceea necessary to enforce the
faithful executionl of the laws of the United States, or to suppress such
rebellion, in whatever state or territory thereof the laws of the iUnited
States may be forcibly opposed,  or the execution thereof forcibly
obst~iruclted.
And of section 5'299, which pi'ovides:
Whenever insurrection,-  domestic violence, nnllla tful combinations, or
conspirncies in any state so obstructs or hinders the execution of the
laws thereof, a-nd of the United States, as to depri'v   anl  portion or
class of the people of such state of any of the rigllts, privileges, or
immunm ities, or protectionll, n.s.ned in the constitution antd s-ecured by
the laws for the protection of such rights, privileges, or immnnities,
ai.d the constituted authorities of such state are unable to) protect, or,
from any catuse, fail in or refuse protection of the people iln suchl rights,
such facts shall be deemed a denial by such state of the equal protection
of thle laws to whilch tley are entitled under the constitution of the
United States; and in all such c ases, or whenever  any such insurrection!, violence,a unlawfCul combination, or eonspiracy, opposes or
obstructs t;e laws of the United States, or the due execution thereof,
or impedes or obstructs the (due counrse of justice under the samue, it
shall be laiwful for the Presidenft, and it shalla be his duty, to take
such mleasures, by  1tle employlenlt of tlte militia or the lald and naval
forces of the United States, or of eithler, or by other -means, as he may
deem  liecess-bry, ft1r the suppression of s-uch in surrection, domllestic violence, or cowmbinations.
Other statutes tend to conifer  authority in the same direction.




CHICAGO STRIKE.                         17
PULLMAN'S PALACE CAR COMPANY.
This is a corporation organized in 1867, with a, capital of $1,000,000
It has grown until its present paid-up capital is $36,000,000. Its prosperity has enabled the company for over twenty years to pay 2 per cent
quarterly dividends, and, in addition, to lay up a surplus of nearly
$25,000,000 of undivided profits. From 1867 to 1871 dividends ranging
from 9- to 12 per cent per annum were paid. For the year elnding July
1, 1893, the dividends were $2,520,000, and the wages $7,223,719.51.
For the year ending July 1, 1894, the dividends were $2,880,000, and
the wages $4,471,7?4i.39.
The business of the comzpany is(1) The operation of its cars upon about 126,000 miles of railroad,
being about three-fourths of the railway mileage of the country, under
contracts similar to that in evidence.
(2) The manufacture and repair of such cars.
(3).The manufacture of cars of all kinds for the general market.
(4) The care and management, as owner and landlord, of the town
of Pullman.
In 1880 the company bought 500 acres of land, and upon 300 acres
of it built its plant and also a hotel, arcade, churches, athletic grounds,
and brick tenements suitable for the use of its enmploy6s. The town
is well laid out and has a conmplete sewerage and water system. It is
beautified by well-kept open spaces and stretches, flower beds, and
lakes. The whole is at all times kept in neat order by the company.
The m1ain object was the establishment of a great manufacturing business upon a substantial and mioney-making basis.  Efficient workmen
were regiarded as essential to its success, and it was believed that they
could be secured, held in contentment, and improved as such for their
own sakes and for the benefit of the company by the accommodations
and surrounldings that were provided.
The principal church and its parsonage are very attractive structures,
but often are not occupied because the rental required to b epaid is
higher than any church society is willing to pay to obtain the gospel
privileges to b to be thereby secured. In the arcade is a tasteful library of'
books, carefully selected and cared for by the company. Three dollars
per year is charged for its use, and as many as 250 persons a year out,of from 4,000 to 5,000 employes aid residents have at times, as stated
by the capable librarian in charge, availed themselves of its opportuni7787    2












18                          CHICAGO  STRIKE.
ties.  It is possible that the air of business strictly maintained there,
as elsewhere, and their exclusion from  any part in its management
prevent more universal and grateful acceptance of its advantages by
employes.  MAlenl, as a rule, even when employes, prefer independence
to paternalism in such matters.
The company provides and pays a physician and surgeon by the year
to furnish to injured employds necessary treatment and drugs.  It is,
however, also a part of lis employment to secure from the iinjured party
a written statement as to the causes of injury, and it is his customn
to urge the acceptance of any offered settlement.  If suit follows, the
doctor is usually a witness for the company.  Wve have no evidence
that the doctor has ever abused his confidential relation toward the
injured employes; but the system is admirably conceived from a business standpoint to secure speedy settlenaeint of claims for damages upon
terms offered by the company and to protect the company from. litigation and its results.
Prior to June, 1893, all weit well and as designed; the corporation
was very prosperous, paid ample and satisfactory wages, as a rule, and
clharged rents which caused no complaint.  During this period those
defects in the system  which have recently come to the surhfice and
intensified differences, such, for instance, as tlhe refusal to permit the
employes to buy land in Pullman and build homes there, caused no
disturbance.
Fromn the evidence presented by the Pullmlan Loanl and Savinlgs
Bank, it appears that prior to July 1, 1893, the wages paid enabled
prudent employes to lay by considerable savings.  Upon these the
bank has paid, uniformly and without any recent reduction, 4 per cent
per annum.  The statement of the bank is as follows:
DEPOSITS IN PULLMANi LOANT AND SAVINGS BANK.
Percents  age of em-'    Average
Date.  depoiti   ploys of  rTotal.  amount of
all depos,          deposit.
itors.
July 1, 1.893.-................................  2, 425  88-  $582,380. 39   $240. 16
May 1, 1894.................-..................    1, 679  86~-  422, 834. 34    251. 84
June 1, 1894.-...-. —-.-.. — - —.-..-.. —---.  1, 539  821  383, 590.09  249. 25
July  1, 1894...................................  1, 414  80  364, 454. 59  257. 75
August 1, 1894.-................-  -..........   1,212  85   303, 087.89    250. 07




CHICAGO STRIKE.                         19
About one-half of the accounts are under $100 and five-sixths under
$500. These figures illustrate how seriously the cutting down of wages
and the strike ate into savings.                                  -"
As the result of the Pullman system and its growtth, when the depression of 1893 came, morally calling for mutual concessions as to wages,
rents, etc., we find on the one side a very wealthy and unyielding corporation, and upon the other a multitude of employes of comparatively
excellent character and skill, but without local attach mients or any interested responlsibility in the townl, its business, tenemen ts, orsurroundings.
The collditions created at Pullman enable the maniagement at all
times to assert with great vigor its assumed right to fix wages and rents,
absolutely, and to repress that sort of independence which leads to labor
organizations and their attempts at mediation, arbitration, strikes, etc
THE A[MERICAN RAILWAY UNION.
This is ain association of about 150,000 railroad employes, as alleged,
organized at Chicago on the 20th of June, 1893, for the purpose of
including railway employes born of white parents in one great brotherhood.
The theory underlying this movement is that the organization of differenlt, classes of railroadl employes (to the number of about 140,000)
upon the trades-union idea has ceased to be useful or adequate; that
pride of organizationl petty jealousies, aLd the conflict of views into
which men are trained in separate organizations under different leaders, tend to defeat the common object of all, and enable railroads to use
such organizations against each otlher in contentions over wages, etc.;
that the rapid concentration of railroad  capital and'management
demands a like union of their employes for the purpose of mutual protection; that the interests of each of the 850,000 and over railroad
employes of the United States as to wages, treatment, hours of labor,
legislation. insurance, mutual aid, etc., are conmlon to all, and hence all
ought to belong to one organization that shall assert its united strength
in the protection of the rights of every member.
The American Federation of Labor, composed of affiliated unions,
with a membership of over 500,000, also tends in the direction of
broader union for labor. The order of the Knights of Labor, with an
estimated membership of from 150,000 to 175,000, has always advocated
the solidarity of labor.
In the American Railway Union there are departments of literature












20                        CHICAGO STRIKE.
and education, legislation, cooperation, mediation, insurance, etc. The
orlganization. consists of a general union lnd of local unions. The general union is foirmned by represenutati-ves of local unions, who elect a
board of' nine directors quadrennially. This board has authority to
4'issue snucl orders and adopt such measures as may be required to
carry out the objects of the order."  Any ten white persons employed
in railway serviee? except superilleendents, etc., can organize a local
union. Each local utlion has its boar(l of mediation, and the chairmen
of the various local boards upon a systemn of railroads constitute a
general board of mediation for that systeln.
The coistitutioln provides thaLtAll complaints and adcjustmeents must be first taken up by thie local
nllion; if accepted by a majority.vote it shall be referred to the local
board of irmediationll for adjustment, and, if failing, tlhe case shall be
submitted to the chairman of the general board of mediation, failing
in which, they shall notify the president of the general union, who shall
authorize the imost available member of the board of directors to visit
and meet wiiith the general cha{irman of the board of mediation and
issue.such instruction-s as will be promu.lgated by the directors.
UnIder these provisions it is claimed that no strike can be declared
except by order of a majorilty of the men involved. This is a comumendable feature of the union.  So long as strikes are resorted to, the
power to order them. should never be vested anywhere except in a
majority of the emnployes concerned. If a two-thirds or three-quarters
vote were required it would be still better. After a strike is ordered
tlhe board of directors of the general union practically directs its conduct.
In its professionl of principles anld purposes in its general and local
constitutions the Aimerican Railway Union proposes to protect and
prom-ote the'interests of its members as wage earners through organizatio, ancd legitimate cooperation. Its constitution reads:
First. The protection of all members in all matters relating to wages
and their rights as employ6s is the principal purpose of the organlization. Railway employe's are entitled to a voice in fixing wages and in
deterlinining condlitions of employment. Fair wages and proper treatIent must be the return ior efficient service, faithfully performed.
Such a policy insures harmonious relations and satisfaetory results.
The order, while pledged to conservative methods, will protect the
humblest of its members in every right he can justly claiml; but while
the rights of members will be sacredly guarded, no intemperate demand
or unreasonable propositions will be entertained.  Corporations will
not be pertnitted to toreat the organization better than the organization
will treat them. A high sense of honor must be the animating spirit,
and evenhanded justice the end sought to be obtained.  Thoroughly




CHICAGO STRIKEI.                          21
organized in every department, with a due regard for the right wherever
found, it is confidently believed that Call dlff'erenices Pmiay be satisfactorily adjusted, that harmronious relations nmay be established and imaintained, that the service nmay be incalculably imlproved, atnd that the
necessity for strike awld loekout, boycott atnd blacklist, alike disastrous
to employer and emnploye and a perpetual mlenace to the welfa re of the
public, will forever disappear.
It, is encouraging  to find that public opinion and a regard for their
own best interests now demand from ltabor orgaitizationls such a plain
recognition of conservative principles as thie foregoing.'The great
inherent xweakness of such. organizations at present is that, in colitentions with elmployers these principles are forgotten and that strikes are
often ordered in hasty and disorderly ways, asmd are frequently conducted with attendant violence and lawlessness. As an instance, it
appears from the evidence that the strilke on the IRock Island road was
ordered at a meeting at Blue Islald?, attended by both railroad em-ployes
and by persons not in the eimploy of the road,  and  that a rising
vote was takenl without confining it to employds, and that amidst comifusion alii uncertainty as to what the vote was or who the voters were,t
a strike upon a great railroad system wA-as inausguratued.
A recognition of the principle that unider this government wrongs
must be corrected in- lawful and orderly wayss ais  bsolutely indispensable; a practical denial of this principle in the conflifcts incident to
strikes would be fa).tal to both business and society aind is ullelldurable
under aly government. VWage earilers cain not deny that this would
be equally true were this government one entirely "'of labor, by labor,
and for labor."
The omnission of a direct provision in the constitutionl of thle Almerican1 Railwa y Union for the punisilhnellt or dicqualifica:tion of a Ilnemlber
whocouinnits or instigates violence toward persons or property in strikes
is a usual and a grievous omission, anwd deserves severe condemnn tion.
Until labor organizations take hold of this question vigorously and
control their own members effectually they are certain to lose symipathy in theirf contentions and to be def-eated, even thou0gli th leir c1ause be
just and deserve success.
In March, 1894, the emiployds of Pulhlnan's Palace Car Company,
being dissatisfied with their wages, rents, and shlop treatment for the
first time in the history of the tow-n, sought orgainization, aind joined
the Amnerican Railway Uhnionl ini large numllbers.  Their imeetinlgs were
held outside of Pullman, because t'he towrn has no facilities for such
purposes.












2 2                           CHICAGO  STrRIKE,
The Pullmunan coll-)mpany is hlostile to the idea of conferring with organized labor in thle settlemen-t of differelnces   arisinlg betweell it and its
employes.  The positionl of the colmpanp y 1il tlhis respect is clearly stated
inl the testimony of aIrtl WVickes, its seecod vice-presidenti, which is here
cited:
Q. 223. Has the conpanyly had any policy with reference to  la,bor
ulninlls  mog1101), i;,- ielp?-A. ho; Awe ifave never ob.)iected to unions
except in one ilstanace.  I plesulie that  tllere arle  nite a  umlnber of
uio)1s  is 0o1u1r shops 3  o w.
(.  4. W*h  ah  tt  a tLey?-A. I couldn't tell Syou, but. I h ave hear'd of
some of Ithem. he   supi~pose the cabinetmiiakers have  a union, a.i   d I sup
pose th:le car builders licave a union, and thle carvers, an 1"d the painters
amnd othl1ceT c(lasses of' mlen.  We do -ntot iiiquire into thiat at all.
4Q,. O25. T lua  is, aIllniOl s amiloni  tleiltseltves ii thle works. —. Moelbers of' tlhe cra -c-belongti; to other anions —tliat is', t:ihe cabinet llmion
niigh0lt ihave its lhadqua rte i     Olienhiago and oar me i wouldt  be members of it, but we did not, object to ailythtingl of' tha.lt kind.!Q; Z`i. T10'he m:vPty objection you ever made was to i    thle VAmterican Railway tUiion,. W aisi't it?-X.  @es, 8si r.
Q.  27e. 2  Wh ialI:t is the ba.sis of your objection to thati  u1 mo, li? —-A. Our
objection -to tihat lwTas that we Awould n.ot treat w\ith our m1 en as leimbers of the Amilericanl;Iailw-a-y Unioni, and -wNe Awould not treat with
th em as members of anjy union.   W Ve tr'eat with them  as individuals
allnd as men.
Q..2... Trplt is, ellacre mal as anji idivkidul,:?   f0 do  ou iieanli by thlt ia -
A. Yes sir.Q.. 229. D 3Lon  you thi.nkl   tr.o'Wickes, th at it wouild give the corporration 1 aT ver y great advaiit.age over those- ueAn if it could takell  thema up
one at a tiune ad disms te3 quesiion -whi theml  a W/itih the abilityT that
yoU h ave  ot: fo)r instance. wlere do you   i thill  the manl  would stailnd
in such a (discussio-.n? —-A. The manl  has got problaby ai(re ability than
I have.
Q  2.30. You thintl]i thl.at it -would be f-ir to   our 1men for each one of
them  to eome beafi-'e youtl a(1-l take up thie questiont oft his grievance and
atteml)t to mai3tfi'tsita Ini S end of ttle tiscssioHl (do you3 -— A. I thlink so;
yes.  If l]e is   ot. able, to  t(l  t tiaat, l alt, is!his nistbrtnlle.
Q. 231. Do in't you th iini tlhat tile faclt thliat you represent a vast coi.incentration of capita.i umid a're selected because of your an.bility to relpresent. it,7 en taitles himl iL' le pleases, to unite with all  oft the mlen of' his craft
and select the alles t oine thley Ihave got to represent the cause? —-A  As
a iliol?
Q. 2.12. As a iolln —A   TrIey.Ihave the right; yes, s Sir.'We have
the righlt to sayg wheth-er we shall receive theni or not.
Q4  233. )Do yen thlnik you haIve any righit to refusoe to i:'elognize thlat
riglit in. treiatig wNit.ll te mneni?-A. Yes, silr; if we celese to.
Q. 231-.  If you  chose O to.  fs it your poPltycy to d-, to'1,tki — -.   Yes -  sir.
23.}.    Tli3.e  y ou tiirlik tat hyou hve tle ri.a'it to leftse tto re,.o.ize
a ulionl of thLle lnca, l. d'(seld f-o'[r thle pnrlose -  i. Pe rouese -ch,'4 tlle
ablest of' t'heir mnemJibers, to y-ul conimpaiy,  the gLrie'vat ces rlwhich all coinpltill of') t,whtIlich any(3   complain of?-..     i p11 us the  o]icy of thie co.ap',tay;  yesi  t.  If I....t We wre to reCeiYve te.se,ncI  as representl atives of
tlhe unions tsl h 4eoy (t(1 piobabiy   rcfi., e us to pa, y ainy wagtes w lichi thley
saw.  fit, and  get. ti Puhllman co-mpany in the saime slhape that some




CHICAGO STRIKE.                        23
of the railroads are, by making concessions which ought not to be
made.
Q. 236. Don't you think that the opposite policy, to wit, that all
your dealings are to be with the men as indiividuals, in case you were
one who soughlt to abuse your power, might enable you to pay to the
men on the other hand just what you saw fit —A. Well, of course; a
man in an official position, if he is arbitrary and unfair, could work a
great deal of injustice to the men, no doubt about that; but then it is
a man's privilege to go to work somewhere else.
Q. 237. I)on't you recognize as to many mell, after they have become
settled in a place at work of that kind, that really that privilege does
not amount to lluch?-A. W~e find that the best men usually conme to
the front; the best of our mnen don't give us any trouble with unions or
anything else. It is ontilythe inferior rmeen —that is, the lea, st competent
— that give us the trouble, as a general thing.
Since the strike, withdrawal from the American Railway Union is
required froIn those seeking work. The company does notrecognize that
labor organizations have any place or necessity in Pullman, where the
company fixes wages and rents, and refuses to treat with labor organizations. The laborer can work or quit on the terms offered; that is the
limit of his rights. To join a labor organization in order to secure the
protection of union against wrongs, real or imaginary, is overstepping
the limit and arouses hostility. Tlis position secures all the advantage of the concentration of capital, ability, power, and control for the
company in its labor dealings, and deprives the employes of ally such
advantage or protection as a labor lunion might afford. Itn this respect
the Pullman company is behind the age.
To admit the Pullman shop employeis, however, intlo the Amnerican
Railway Union as "6 persons employed in railway service " was not wise
or expedient. The constitution can not fairly be construed to include
as eligible members those who build cars and run them  in and out
over private switches. Such loose construction of a labor constitution
is certain to involve any organization in such an infinite variety
of conflicting positions and to force it into so many contests demanding
different and perhaps apparently inconsistent treatment at the same
time as to curtail its -usefulness and threaten its existence. To reach
out and take in those so alien to its natural mnembership as the Pullman
employes, was, in the inception of the organization at least, a mistake.
This mistake led the union into a strike purely sympathetic and aided
to bring upon it a, crushing and demoralizing defeat.
It is undoubtedly true that'the officers and directors of the American Railway union did not want a strike at Pullman, and that they
advised against it, but the exaggerated idea of the power of the
union, which induced the workmen at Pullman to join the order, led












24                      CHICAGO STR fIKE.
to their striking against this advice. laving struck, the union could
do nothing less, upon the theory at its base, than support them.
The union was as yet yourng; its membership was not as extensive
as it hoped to obtain; its workings had the roughness of incipient
effort in a new direction; it had recently attained some success in a
strike upon the "1 Great Northern," and had thus aroused extravagant
expectations among its members generally; great business depression
prevailed; large numbers were idle and stood ready to accept almost
any offer of work. For these reasons the officers and directors of the
union knew that the times were inopportune for striking and did not
advocate it.
A union embracing all railroad employes, even, is as yet a doubtful
experiment. Such a union will have great difficulty in molding itself
to the complex character, nationalities, habits, employments, and
requirements of its vast and varied membership.
The trade unionists argue that their strength lies largely in their
coumparative freedom from these objections; and they insist that the
basis of the membership of a successful labor organization must be
substantial similarity in interests among the members. Trades unions
have a-record of success both here and abroad, especially in England,
which largely sustains their position. They have promoted conciliation, arbitration, conservatism, and responsibility in labor contentions
and agreemlents.
To preserve the integrity of associations designed to unite and organize labor on such a broad basis as that of the American Railway
Union but two courses seem open:
(1) To take a position against all strikes, except as a last resort for
unbearable grievances, and to seek the more rational m-ethods of conciliation and arbitration. To this object the power of public opinion
would lend aid to an extent not now appreciated.
(2) Conservative leadership,legal status, and the education of mrnmbers in governmental mlatters, with the principle in view that in this
country nothing can accomplish permianent protection and final redress
of wrongs for labor as an entirety except conservative progress,lawful
conduct, and wise laws enacted and sustained by tb!e public opinion of
its rulers-the people.
THE GENERAL MANAGERSi ASSOCIATION.
This voluntary, unincorporated association was formed in 1886, and has
as members the 24 railroads centering or terminating in Chicago. The




CHICAGO  STRIKE.                               25
following facts relating to these roads for the year ending June 30,
1894, have been furnished by the Interstate Commerce Commission:
Number of miles operated.. —- --------------------------------—.       a 4-0, 933
Number of stockholders -............- I —----------------------  b 52, 088
Capitalization:
Capital stock -.a.... —    - - - —.                 a $818, 569, 004
Funded debt.-.......................a$1, 210, 235, 702
Current liabilities.. —.a.......................  a $79, 747, 911
Tot al-. —------------------------------------------- -. - - a $2, 108, 552, 617
Gross earnings -                                                   c $325, 825, 726
Net earnings.                                                     c $102, 710, 917
Number of employ6s --         ---                                       d 221, 097
In its constitution the object of the association is stated to be G" the
consideration of problems of manageient arising from the operation
of railroads terminating or centering at Chicago."  It further provides
that; " all funds needed shall be raised by assessments divided equally
among the members."  There are no limitations as to "consideration
of problems" or  "funds" except the will of the managers and the
resources of the railroad corporations.
Prior to the recent strike the association was chiefly concerned with
matters other than wages. It dealt with all questions concerning transportation centering at Chicago in which the roads had a common interest.  It thus determined the policy and practically fixed the relations
of all of the roads toward the public as to switching, car service, loading and unloading cars, weights of live stock, rates, etc., and sustained
each road in maintaining the position of the association as to these
matters.
Until June, 1894, the association dealt incidentally and infrequently
with wages.  There were few railroad controversies as to wages during
its active life, dating from January 20, 1892.  HIence its possibilities as,
a strike fighter and wage arbiter lay rather dormant.  The following
are instances of its action as, to wage questions. Its roads fixed a
Chicago scale" for switchmen, covering  all lines at Chicago.  In
a Data for the Union Stock Yard and Transit Company are from Poor's Manual of
Railroads, 1894.
b Not including the Union Stock Yard and Transit Company and the Chicago and
Northern Pacific Railway.
c Data for the Union Stock Yard and Transit Company and the Pittsburg, Fort
Wayne and Chicago Railway are from Poor's AManual of Railroads, 1894. Those for
the Pittsburg, Fort Wayne and Chicago Railway are for the year ending December
31, 1893.
dNot including the Union Stock Yard and Transit Company, the Chicago and
Northern Pacific Railway, and (except general officers) the Pittsburg, Fort Wayne
and Chicago Railway.












26                      CHICAGO STRIKE.
March, 1893, the switchmen demanded more pay from each road. The
association concluded that they were paid enough-if anything, too
much. The roads so informed the men. The Swithlmen's Mutual Aid
Association of North America wrote to Mr. St. John, as chairman,
acquiescing. He, as chairman of the General Managers' Association,
concluded his reply as follows:
The association approves the course taken by your body and desires
to deal fairly with all employes and believes that our switchmen are
receiving due consideration.
This seems to show that employes uponl association roads are treated
as under subljection to the General Managers' Association. Mr. St..Johln, the president of the association, testifies as follows:
The result of- this declination on the part of the various companies
directly to their own committees was a threat on the part of some that
a strike would occur, and in times of trouble of that kind, or anticipated trouble, it would be the most natural thing in the world for the
association, or any line member of it, to arrange to protect the interests
of the conlpany he represented. He could not do otherwise. Arrangements were made by which agencies were established and men employed
to come to Chicago in case of necessity.
Q. Were those agencies established by the Managers' Association?A. Yes, sir.
Q. And they were designed for the purpose of protecting any line in
the association?-A. That was a member of it.
Q. Against anything they deemed to be an attempt to enforce an
unjust demnald? —A. Yes, sir.
Q. Was that the first occasion the managers ever took action in that
direction? -A. That was the first occasion it took action during any
period I was chairman of it.
This was the first time when mIen upon each line were brought sharply
face to face with the fact that in questions as to wages, rules, etc.,
each line was supported by 24 combined railroads. On several other
occasions similar action was taken; for instance, when some baggage
agents of the Lake Shore and Michigan Southern Railway wanted
higher wages, a committee of the association disposed of the matter.
Mr. St. John was asked:
Q. Why was not that application disposed of by the Lake Shore
road, instead of by the General Managers' Associatio3? —A. In order
that it might receive the attention due to the application, and so the
pay of other roads could be determined, and see if we were underpaying them. There hlas been quite a number of cases where the prayer
of the petition has been granted by this committee, and quite a number
where it has been denied, but only after the most careful investigation.
This answer is ingenious and suggestive.
This association likewise prepared for its use elaborate schedules of
the wages paid upon the entire lines of its 24 members. The proposed




CHICAGO STRIKE.                         27
object of these schedules was to let each road know what other roads
paid. Finding that the men upon some lines urged increase to corresponud with wages paid elsewhere, a committee of the association prepared and presented a uniform schedule for all membership roads. It
was deemed wise not to act upon the report. It was distributed to
lmemlbers in November, 1893.  This distribution alone enabled the
report to be used with efficiency as an "equalizer."  As the result,
during 1893 —it being then well understood that as to wages, etc., it
was an incident of the General Mianagers' Association to " assist" each
road in case of trouble over such matters, ogne form of assistance being
for the association to secure men enough through its agencies to take
the places of all strikers-reductions were here and there made on the
different roads, the tendency and effort apparently being to equalize
the pay on all lines.
It is admitted that the action of the 1association has great weight
with outside lines, and thus tends to establish one uniform  scale
throughout the country. The further single step of admitting lines
not running into Chicago to membership would certainly have the
effect of combining all railroads in wage contentions against all
emnployes thereon.
The coimmission questions whether any legal authority, statutory or
otherwise, can be found to justify some of the features of the association which have come to light in this investigation.  If we regard its
practical workings rather than its professions as expressed in its constitution, the General NManagers' Association has no more standing in
law than the old Trunk Line Pool. It can not incorporate, because railroad charters do not authorize roads to form corporations or associations to fix rates for services and wages, inor to force their acceptance,
nor to battle with strikers. It is a usurpation of power not granted.
If such an association is necessary friom a business or economic standpoint, the right to form and maintain it lmust comle froml the state that
granted its charter. In theory, corporations are limited to the powers
granted either directly or by clear inference. lWe do not think the
power has been granted in either way in this case.
The association is an illustration of the persistent and shrewdly
devised plans of corporations to overreach their limlitations and to
usurp indirectly powers and rights not contemplated in their charters
and not obtainable from the people or their legislators. An extension of
this association, as above suggested, and the proposed legalization of












28                       CHICAGO STRIKIE.
"pooling 1" would result in an aggregation of power and capital dangerous to the people and their liberties as well as to employes and their
rights. The question would then certainly arise as to which shall control, the governmnent or the railroads, and the end would inevitably
be governmnent ownership. IUnless ready for that result and all that
it implies, the government must restrain corporations withint the law,
and prevent thel- from. forming unlawful and dangerous comlbinations.
At least, so long as railroads are thus permitted to combine to fix
wages and for their joint protection, it would be rank injustice to deny
the right of all labor upon railroads to unite for siuilar purposes.
It should be noted that until the railroads set the example a general
union of railroad employes was never attempted. The unions had not
gone beyoni  enlisting the mel upon different systems in separate
trade organizations. These neutralize and check each other to some
extent and have no such scope or capacity for good or evil as is possible under the universal combination idea inaugurated by the railroads
and followed by the American Railway Union. The refusal of the
General Managers' Association to recognize and deal with such a combination of labor as the American Railway Union seems arrogant and
absurd when Awe consider its standing before the law, its assumptions,
and its past and obviously contemplated future action.
THIE PULLMAN STRIKE: ITS CAUSES AND EVENITS.
Pullman's Palace Car Company is in the market at all times to
obtain all possible contracts to build cars. Its relations with railroads,
its large capital and surplus, its complete and well-located plant and
efficient management enable it at all times to meet all competitors on
at least equal terms. Prior to the business depression of 1893, the
company was unusually active in building new cars for itself and for
railroads to meet the expanded demands of general business, and for
the expected requirements of the Columbian Exposition traffic. Its
repair department was also full of work. An average number of 4,497
workmen, during the year ending July 1, 1893, earned $2,760,548.99, or
an average of $613.86 each. The wages paid were about the same as
paid elsewhere in the business, Mr. Wickes thinks possibly a little
higher.
The depression of 1893 naturally affected the business at once, and
to a greater extent in some departments than in others. Matters grew
worse until, in the fall of 1893, the company closed its Detroit shops,




CHICAGO STRIKE.                        29
employing about 800, and concentrated its contract and repair business
at Pullmah. The company and the railroads had a surplus of cars for
the decreased traffic obtainable, and hence pending orders were cancelled and car building stopped, except as occasional straggling contracts were obtained at prices which averaged less than shop cost,
exclusive of interest upon capital or ainy charge for depreciation of
plant or machinery.
WAGES.
From  September 18, 1893, until May 1, 1894, the coimpany did contract work at the price of $1,421,205.( 75, which was 852,069.03, or 3.663
per cent below slop cost for labor andl materials. Against this the loss
to labor by the reduction of wages paid on this work was over $60,000,
making the wages of June, 1893, the basis of coimparison. It also had
$1,354,276.06 of unaccepted bids, upon which its similar loss would
have been $18 303.56, or 1.35 per cent. Assuming that the analysis
submitted as to the cost of several lots of cars affords a fair basis for
averaging the whole of the contracts, it appears that the average percentage of cost of material in this contract work was about 75 per
cent. Hence while the amount of loss was nearly equally divided, it
seems that tlhe percentage of loss bortne by labor in the reduction of
wages was much greater than that sustained by the company upon
material. Three-quarters of the loss for the company and the balance
for labor would have Gmore fairly equalized the division of loss on these
contracts.
Some justification for the determiniationl of the company as to the
division of loss is claimed from the fact that, in addition to its loss the
company received no interest upon its capital, etc. On the other hand,
it is an economic principle generally recognized that the shutting' down
of such a plant and the scattering of its forces usually result in a
greater loss than that exhibited here by the continuance of' bnsiness.
The Pullman Company could hardly shut down for seven and a half
months at a cost and loss of less than 1 per cent upon its capital an-d
surplus. To continue running was for its obvious and unfair advantage so long as it could divide losses equally with its labor.
The cut in wages during this period averaged about 25 per Lcent and
was reached ill two waysFirst, by reducing the price paid for_ pieee3:orkjyon.which 2,800
men are normally employed. This price is claimed to be based tupon












30                      CHICAGO STRIKE.
what a competent workman can do in a day. By testing the men the
prices are thus fixed so that a man, if neither an expert nor a laggard,
can earn an amount which is regarded by the company as fair wages.
The men at Pullman claim that the company during 1893-'94 set the
pace through experts, so that with their forced loss of time an average
man could earn little more than the rent of his homne, owned by the
company. The company alleges that it simply readjusted piecework
prices to suit the necessities of the times. The letting of piecework
and the readjustment of prices therefor is largely in the hands of the
"foremen," and hence sometimes subject to abuses unlllnown to the
management.
Second, by reducing the pay in the repair shops, employing about
800, to correspond with the contract-work prices. The main reason
given for this reduction was that wages must be kept uniform. Under
the contracts between railroads and the company the railroads have
paid, since 1887, 2 cents per mile for each mile run by Pullman cars.
This is to pay the Pullman company for keeping the cars in repair, as it
agrees to do, adi  is exclusive of the unreduced charges paid to the
comtpany for the use of berths, seats, etc.  The depression of 1893
caused no change in this mileage rate under existing contracts. The
company claims, and it is true, undoubtedly, that the depression somewhat reduced this fund by reason of the larger number of idle cars
than usual to be repaired arnd stored at some. expense, a(nd caused
somle losses from failing roads. The testimony of the Pulnman company, however, has left its claim. in this regard in such loose and
indefinite shape as to compel the conclusion that the reduction in the
repair department was not made with reference to these depression
results, but was part of a plan designed to reduce wages in every
department to the. lowest, point possible to be reached in the department most seriously affected by the depression. Some reduction of
wages in all departments was of course proper under the circumstances,
but a uniform reduction as between departments so differently situated
in reference to revenue as the car-bu-ildinig and repair departmenrts
was not relatively; just and fair toward the repair-shop employes.
The earnings of employes at Pullnan were reduced by these means
and by lessening the amount of work, as appears in the table iinmediately following:




CHICAGO STRIKE.                                         31
EARNINGS OF CERTAIN EMPLOYmS AT PULLMAN, 1893-'94.
T. Heatlhcote, in-    T. Rhodie,    R. WV. Coolmbs,  J. Curtis, seamlDate.            s(ide finisher.     painter.        carbuilder.        stress.
Hours. Amount. Hours. Amount. Hours. Amount. Hours. Amount.
1893.
May. —.. —...........    252$'  $78. 00    244-1  $65. 66    196'  $47. 42    235$   $39. 85
Jiunne..................    280-~i  96.85    241~)  65.28   92    21.00      212'    31i. 24
July ---------- --           233$   69. 12    216    57.05    170  38. 75    181           27. 72
August................. 2441   62.75    2242    65.14    173    36.91    197$    30.18
September............. I.  167.1   44.77    232    62.62  94    21.50      1472-    23.90
October. ---— 114!   26. 92    230-   62. 04                    4211   7. 39    2301$   34. 62
November...........         119    29.05    125$   32. 58       91    20. 54    151       24. 39
D)ecember..............- 229'   43. 85         52$   12.52    140J   18. 37    180$!   28. 18
1894.
January..................   261    49. 30    279$   66. 84    192$   34. 00    216        34.21
February...............   238$   44. 95    227$   51.69    240    60. 00    184          25.47
March. —....... —-....   2621   51.53     254    51.12       6 1   30. 80    212      24.92
April.....   185$   37. 77    226   48. 65                     60      9.00    197,$   22. 14
Total................  2, 5881   634.86  2,572   641.19   1,1611  345.68  ~2, 345  346.82
The total amount of wages paid for the years ending July 1, 1893,
an11  July 1, 18942 has been stated.
\ The above table is presented by the company.  Some witnesses
swear that at times, for the work done in two weeks, they  received  in
cheeks from 4 cents to 81 over and above their rent. The company has
not produced its checks in rebuttal.
During all of this reduction and  its attendant stffering none of the
salaries  of the  officers, nanagers, or superintendents  were reduced.
Reductions in these would not have  been so severely felt, would have
shown good faith, would  have relieved  the harshness of the situation,
and would have evinced  gennine syimpathy with labor in the disasters
of the times.
In its statemrents to the  public, which are in evidence, the company
represents that its object in all it did was to  continue  operations for
the benefit of its worlkmen and of trades people in and  about Pullman
and to save the public from  the annoyance of interrupted travel.   The
comlmission thinks that the evidence shows that it sought to keep running mainly for its own benefit as a malnufacturer, that its plalnt might
not rust2 that its competitors might not invade  its territory, that it
might keep  its  cars in  repair, that it might be ready for resumption
when business revived with  a live plant ald competent help, and that
its revenue from  its tenements might continue.












32                      CHICAGO STRIKE.
RENTS.
If we exclude the Esthetic and sanitary features at Pulllllan, the
rents there are from 20 to 25 per cent higher than rents in Chicago or
surrolunding towns for similar accommodations. The esthetic features
are admired by visitors, but have little money value to employes,
pecially when they lack bread.  The company aims to secure 6
per cent upon the cost of its tenements, which cost includes a proportionate share for paving, sewerage, water, parks, etc. It claims now
to receive less than 4 per cent.  It has some brickinakers' cottages
upon which, at $8 per month, it must obtain at least 40 per cent
return ujpon their value. These are, however, exceptional. The company makes all repairs, and heretofore has not compelled tenants
to pay for them. Under the printed leases, however, which. tenants
must sign, they agree to pay for all repairs which are- either necessary
(ordinary wear and damages by the elements not excepted) or which
the company chooses to make.
i  The comlpanyls claim that the workmen need not hire its tenemllents
and can live elsewhere if they choose is not entirely tenable. The fear
of losing work keeps them in Pullman as long as there are tenements
i unoccupied, because the company is supposed, as a matter of business,
to give a preference to its tenants when work is slack. The employes,
believing that a tenant at Pullman has this advantage, naturally feel
some compulsion to rent at Pullman, and thus to stand well with the
management.  Exceptional and necessary expert workmen do not
share this feeling to the same extent and are more free to hire or
own homes elsewhere. WThile reducing wages the company made no
reduction in rents. Its position is that the two matters are distinct,
and that none of the reasons urged as justifying wage reduction by it
as an employer can be considered by the company as a landlord.
The company claims that it is simply legitimate business to use its
position and resources to hire in the labor market as cheaply as possible and at the same time to keep rents up regardless of what wages
are paid to its tenants or what similar tenements rent for elsewhere; to
avail itself to the fifll extent of business depression and competition in
reducing wages, and to disregard these same conditions as to rents.
No valid reason is assigned for this position except simply that the
ceO.uma.y had the power and the legal right to do it.
Prior to the so-called "truck" law in Illinois, rent was deducted
fronl the wages. Since then a check is given for the amount of the




CHICAGO STRIKE.                        33
rent and another for the balance due for wages. There is nothing to
prevent the payee of the check from caslhing it outside of the bank,
but as the bank is rent collector it presses for the rent and is aided in
collecting it by knowledge on the part of the tenant tenant that by arrears he
may lose his job. At the time of the strike about $70,000 of unmpaid
rents had accumulated. It is fair to say that this accumulation of
unpaid rent was due to leniency on the part of the company toward
those who could not pay the uent and support their families. Neither
have ally actual evictions takle  place. The company has held these
matters in abeyance pending wage reductions and strike difficulties.
SHOP ABUSES.
Sholp abuses also played' some part in the controversy. The employes
claimed that foremen were arbitrary and oppressive and mistreated the
men in various ways. It is likely trifit this arose largely from the
friction caused by wage reductions and the more stringent shop rules
needed to repress growing discontent. In times of, depression the
officers, directors, managers, superintendents, and foremen of large
corporations are forced by their representative positions to bear down
on labor with such weight, in order to protect stockholders against
loss, that labor becomes sore and sensitive ill small matters that might
otherwise be overlooked. Whlell these iminor grievances were presented
to the management a speedy investigatio;n anll colrdection were promised.
The investigation was proniptly begun before the emnployes struck.
THE STRIKE.
The reductions at Pulllalm   after Septelber, 1893, were the result of
conferences among the managers; the employds foi the first time knew
of them when they took effect. No explanations or conferences took
place until May 7 and 9 in regard thereto between the employes and
the officers of the company. For the reasons stated the employes at
Pullman were during the winter in a state. of chronic discontent.
Upon May 7 and 9 a committee of 46 from all the departments waited
upon the management and urged the restoration of wages to the basis
of June, 1893. The company refused this, and offered no concession as
to wages whatever, maintaining and explaining that business conditiolls did not justify any change.  The company based its entire contentioln as to every department upon the facts in reference to car building to which we have alluded, and offered to show its books and figures
as to the cost and selling prices of cars. This offer, on account of the
7787    3












34                      CHICAGO STRIKE.
strike intervening, was not acted upon. Had it been, it would have
resulted in the figures we have noted as to car-building contracts.
The purpose of the manageinent was obviously to rest the whole matter
upon cost, etc., in its most seriously crippled departlmenllt excluding
from consideration the facts as to wages in the repair dlepartinent, to
which we have alluded.
The demand of the employ(s for the wages of June, 1893, was clearly
unjustifiable. The business in 3May, 1894, co)uld lot pay the wages of
June, 1893. Reduction was carried to excess, but the company was
hardly more at fault therein than were the employes in insisting upon
the wages of June, 1893. There was little discussion as to rents, the
company maintaining that its rents had nothing to do with its wages
and that its revenue from its tenements was tno greater thall it ought
to receive. Miss Curtis testified as to this as follows:
A. We stated our grievances to Mr. Wickes and told him we wanted
our wages raised; he said it was impossible to raise them as the company was losing money on its contracts, and it could Inot possibly raise
our wages a cent; we then asked if they (lid not think they could lower
rents a little; he said, no, it was utterly impossible to lower the rents
one penny, as they were only receiving' about 3 lper cent on their
investment now, and were losing money oni contracts just to enable
their men to have work. Mr. Wickes then appointed another interview with us the following Wednesday, aid we went down again and
saw Mr. Pullman; he said he could not raise our wages nor lower our
rents.
The company had a legal right to take this position, but as between
man and man the demand for some rent reduction was fair and reasonableundler allthe circumstancees. Some slight concession ill this regard
would probably have averted the strike, provided the promise not to
discharge men who served Upon the co-mmittee had been more strictly
regarded.
The next day, May 10, three of the colnm-ittee were laid off by foremen for alleged lack of work, not an unusual proceeding. Those who
made the promise had nothing to do with this actionl and deny knowledge of it at the time. The foremen who did it are suspected by the
employ5es of concluding that some laying off of committeemen just at
that crisis would have a good effect and would accord with the policy
and general views of the company. The foremen, however, deny this.
This incident was inopportune and unfortunate, to say the least, and
ught to have been more carefully guarded against by the comipany.
A/n explanation of this occurrence was not asked for by the employes,: 1ought to have been, before striking.




CHICAGO STRIKE.                       35
On the evening of May 10 the local unions met and voted to strike
at once. The strike occurred on May 11, and from that time until the
soldiers went to Pullman, about July 4, three humidred strikers were
placed about the company's property, professedly to guard it from
destruction or interference. This guarding of property in strikes is, as
a rule, a mere pretence. Too often the real object of guards is to prevent newcomers from taking strikers' places, by persuasion, often to
be followed, if ineffectual, by intimidation and violence. The Pullhnan
*ompany claims this was the real object of these guards. The strikers
at Pullman are entitled to be believed to the contrary in this matter,
because of their conduct and forbearance after May 11. It is in evi-deuce, anld uncontradicted, that no violence or destrnction of property
by strikers or symlpathizers took place at Pullman, and that until July
3 no extraordinary protection was had friom the police or military
against even anticipated disorder.
Such dignified, manly, and conservative conduct in the midst of
_xcitenent and threatened starvation is worthy of the highest type of
American citizenship, and with like prudence in all other directions
will result in due time in the lawful and orderly redress of labor
wrongs. To deny this is to forswear patriotism  and to declare this
goyernmnent and its people a failure.
As soon as the strike was declared the company laid off its 600
employ6s who did not join the strike, and kept its shops closed until
August 2. During this period the Civic Federation of Chicago, composed of/eminent citizens in all kinds of business and from all grades
of respectable society, called upon the company twice to urge conciliation and arbitration. The company reiterated the statement of its
position, and maintained that there was nothing to arbitrate; that the
questions at issue were matters of fact and not proper subjects of
arbitration. The Civic Federation suggested that competition should
be regarded in rents as well as in wages. The company denied this.
Wages and rents were to it separate matters; the principles applicable
to one had no relation to the other. Later it gave the same answer to a
committee of its employ6s. Upon June 15 and 22 it declined to receive
any communication from committees of the American Railway Union,
one proposition of that body being that the company select two arbitrators, the court two, and these four a fifth, to determine whether there
was anything to arbitrate. The company also refused to consider any
arbitration at the solicitation of the common council of Chicago, and












36                     CHICAGO STRIKE.
repeated its stereotyped answer that there was nothing to arbitrate
when appealed to by Mayor Pingree, of Detroit, himself a large manufacturer, whom Mayor Hopkins accompanied to Pullman. At that
interview AMayor Pingree claimed to have telegrams froml the mayors
of over fifty of the largest cities, urging that there should be arbitration.
RAILROAD STRIKE.
Between June 9 and June 26 a regular convention of the Amlericanl
Railway Union was held with open doors at Chicago representing 465
local unlions and about 150,000 mnembers, as claimed. The Pullman
matter was publicly discussed at these meetings before and after its
committees above mentioned reported their interviews with the Pullman compa[ny. On June 21 the delegates, under instructions from
their local unions, unanimously voted that the members of the union
should stop handling Pullman cars on June 26 unless the Pullmani
company would consent to arbitration. On June 26 the boycott and
strike began. The strike onl the part of the railroad employ(5s was a
sympathetic one. No grievances against the railroads had been presented by their employes, nor did the American Railway Uniol declare
any such grievances to be any cause whatever of the strike. To simply
boycott Pullman cars would have been an incongruous step for theremedy of complaints of railroad employes. Throughout the strike the
strife was simply over leadling Pullman cars, the men being ready to
do their duty otherwise. The contracts between the railroads and the
Pullman company as to Pullman cars created such close relations
between them as to increase the natural sympathy of organization
between the members of the American Railwvay Union upon railroads
and their brothers at Pullman. It is also apparent that the readiness
to strike sympathetically was promoted by the disturbed and apprehenlsive condition of railroad employes resulting frown wage reductions on
different lines, blacklisting, etc, and from the recent grow th and developmelt of the General Managers' Association, which seemed to them a
menace. Hence the railroad employes were ripe to espouse the cause
of the Pullman strikers. In solme instances they struck in disregard
of existing contracts between their different organizations and the railroads, notably upon the Illinois Central. They evaded the responsibility of their organizations for this conduct by claiming to act as
individuals. They justified themselves under the idea of balancing
wrongs.




CHICAGO STRIKE.                        37
After June 26 the officers and agents of the union managed and
urged on the strike at every available point upon the railroads centering at Chicago until it reached proplortions far in excess of their
original anticipations, and led to disorders beyond even their control.
Urgent solicitations and appeals to strike and to stand filrm continued
in the many public meetings held each day in ald about Chicago, and
appear in the telegrams sent about the country.
On July 7 the principal officers of the American Railway UIliion were
indicted, arrested, and held under $10,000 bail. Upon July 13 they
were attached for contempt of the United States court in disobeying
an injunction issued on July 2 and served onl the 3d and 4th, enjoining
themrn, among other things, from  compelling, orp inducing by threats,
intimidation, persuasion, force, or violellce, railroad employes to refuse
or fail to perform  their duties. It is seriously questioned, and with
much force, whether courts have jurisdiction to enjoin citizens from
"persuading" (a) each other in industrial or other matters of common
interest. However, it is generally recognized among good citizens
that a mlandate of a court is to be obeyed until it is modified and corrected by the court that issued it.
ACTION OF FEDERATED UNIONS.
Upon July 12, at the request of the American Railway Union, about
25 of tlle executive officers of national and int;elnational labor unions
affiliated with the American Federatioll of Labor met at Chicago. The
situation was laid before them. The conference concluded that the
strike was then lost; that a general sympathletic strike throughout the
country  would be unwise and inexpedient, and, at the time, against the
best interests of labor. This conference issued a strong and temperate
address to members, expressing sympathy with the i)urposes of the
American Railway Union, advisaing those on strike to return to work,
and urging that labor organize more generally, combine more closely,
and seek the correction of illdustrial evils.at the~ballot box. To some
extent the trade unions of Chicago had struck in sympatity, but this
movement was clhecked by the action of the conference of the 12th and
extended no furtiler. This action indicates clearer views by labor as
to its responsibilities, the futility of strikes, and the apprlopriate
remedies in this country for labor wrongs.
Upon July 13 the American Railway 1Union through the mayor of
a See decision of Mr. Justice Harlan in the Appendix.












38                      CHICAGO STRIKE.
Chicago, sent a communication to the General Managers' Associatiom
offering to declare the strike offi provided the men should be restored
to their former positions without prejudice, except in cases where they
had been convicted of crime. The General Managers' Association in
advance advertised that it would receive no communication whatever
from the American Railway Union, and when received returlled it
unanswered.  With reference to this, John M. Egan, strike manager of
the General Managers' Association, testified as follows:
A few days ltter I was out of the office for awhile, and on my return
I found the mayor and Alderman. McGillen talking to Mr. St. John.
I went into the room, anld Mr. St. John told me the mayor had come
there with a, letter signed by the officers of th.e American Railway
Union. I told the mayor I thought he should not, have permitted himself to be a, amessenger boy for those parties, and that I further considered that the General Managers' Association sshould not receive any
suelh document. The do'umaent was left there, and during the afternoon I was requested to take the document back to the mayor. I
endeavored to find him, but found he lhad gone to- Kensington. I
endeavored to reach him by telephone, but as it was growing late and
I could not locate hlilnl I took the document back to the city hall and
gave it to the chief of police, with the request that lie pllace it on the
mayor's desk so he would receive it early the next mlorning. I wrote
a: letter in wlich I stated to the malyor that the General Manlagers'
Association did lnot consider they should receive any such document.
On my return to the office I was able to locate the mayor at Kensington, but they told me he had retired for the rnight; but I telegraphed
the contents of the letter, with a request to the party who received it
that he deliver it to the mayor that nliglt. That is all I hnow about
any overtures.
Questions by Commissioner WORTHmING'TON:
18. WVas there anything in the document itself that was offensive or
insulting to you? -A. The document was printed in the papers that
afternoon and the next morning, and I think it, speaks for itself.
19. Did you consider it offensive or insulting'? —A. I con'sidered that
any party who attacked railway complaies as the American Railway
Union had done, and were whipped, as I considered they were, it was
displaying considerable cheek to dictate the terms of their surrender.
20. You do not answer my question. I asked you if there was anything in the document itself that was oflensive or illsulting to you?A. I don't know as I would be the judge of that.
21. What is your opinion about it? —A. I halve not the authority to
say whether it was insulting to the genieral managers, or anytlhing of
that kind.
22. D)id you return it oml tlhatt account-because the terms of the
document wvere offeinsive or insulting to you or to the managers?-A.
W tell, the managers requested it to be returned.
23. Was that the reason you returned it?-A. That was the reason I
returned it; yes, sir.
24. Is it not a fact, that, instead of beinmg offensive in its character
so far as the composition was concerned, it was a document courteously
composed and looking toward the settlement of a great and destructive




CHICAGO STRIKZE.                      39
strike that was then in progress? —A. Well, as I said, the document
speaks for itself. I considered that the matter was settled then, practically.
In reply to this Mayor llopkins testified:
I want to say in this connection that the papers quote Mr. Egan as
saying in his testimony that he told the mayor he should not be a messenger boy for those ineln. I want to say emphatically that Mr. Egan
never said that to mle;  don't think I would have allowed him to say it.
At this date, July 13, and for some days previous, the strikers had been
virtually beaten. The action of the courts deprived the American Railway Union of leadership, enabled the General Managers' Association to
disintegrate its forces, and to make inroads into its ranks. The mobs
had worn out their fury, or had succumbed to the combined forces of the
police, the United States troops and marshals, tand the state militia.
The railroads were gradually repairing damages and resuming traffic
with the aid of new men and with some of those strikers who had not
been offensively active or whose action was laid to intimidation and
fear. At this juncture the refusal of the General Managers' Association to treat with the American Railway Union was certainly not
conciliatory; it was not unnatural, however, because the Association
charged the Amlerican Railway Union with having inaugurated an
unjustifiable strike, laid at its door the responsibility for all the disorder and destruction that had occurred, and, as the victor in the fight,
desired that the lesson taught to labor by its defeat should be well
learned.
The policy of both the Pullman company and the Railway MIallagers'
Associationl in reference to applications to arbitrate closed the door to
all attempts at conciliation and settlement of differences. The cornmission is impressed with the belief, by the evidence and by the
attendant circumstances as disclosed, that a different policy would
have prevented the loss of life and great loss of property and wages
occasioned by the strike.
ACTION OF GENERAL BMANAGERS' ASSOCIATIOTN.
On June 22 anl officer of the Pullman- company met the general managers by invitation, and the general managers, almongl other things,
resolved:
That we hereby declare it to be the lawful right alnd duty of the said
railway companies to protest agaillst said proposed boycott; to resist
the same in the interest of their existing contracts aCd for the benefit
of the traveling public, and that we will act unitedly to that end.












40                       CHICAGO STRIKE.
Fromu June 22 until the practical end of the strike the General Managers' Association directed ad(l controlled the contest onl the part of the
railroads, using the combined resources of all the roads to supl)ort the
contentions and insurte the protection of each. On June 26 we find in
the proceedings of the association the following statement:
A general discussioin of the situation followed. It was suggested
that some common plan of action ought to be adopted in case employ6's
refused to do switching of passenlger trains with Pullman cars, but were
willing to continue all of their other work, and it was the general expression that in case any man refused to do his duty he would be discharged.
Heladquarters were established; agencies for hiring mlenl opened; as
the men arrived they were cared for and assigned to duty upon the
different lines; a bureau was started to furnish information to the press;
the lawvyers of the different roads were called into conference and combinatiorl in legal and criminal proceedings; the general managers met
daily to hear reports and to direct proceedings; constalt comnmunication was kept up with the civil and military authorities as to the movements and assignments of police, marshals, and troops. Each road did
what it could with its operating forces, but all the leadership, direction,
and concentration of power, resources, ani( influence on the part of the
railroads were centered in the General Aanagers' Association. That
association stood for each and all of its 214 comlbined members, and all
that they could command, in fightillg land crushing the strike.
VIOLENCl'] AND DESTRlUCTION  OF PlIOPER1TY  AND MILITARY  PRO(EEDING S.
The figures givenl as to losses, fatalities, destructioon of property, and
arrests for crime tell the story of violence, intimidation, and mlob rule
better thanl it can be described.  Cllicalgo is a vast metropolis, the center of an activity and growth unprecedented in history, and combining
all that this implies.  Its lawless elements are at present augmented
by shiftless adventurers and criminals attracted to it by the Expositioni and impecuniously strallded in its mlidst. In the mobs were also
activelT present many of a( certainl cllass of obljection able foreigners, who
are being pirecipitated upon us by unrestricted immigration. No more
dangerous place for such a strike could be chosen.
The strike, as a strike and as is usual with strikes, presentedl an
opportunity to these eleoments to burn and plunder, and to violate the
laws al-d ordinances of the city, state, and nation. Superintendenlt of
Police Brennan swears as follows:




CHICAGO STRIKE.                        41
On the 26th of June the mayor directed mlle to use the whole police
force in preserving the peace, protectillg property, and preventing violence, aind from that time until the arrival of the troops I think I succeedecl pretty well. So far as I understood, there had not been very
much violence or delredations committed prior to the 3cl of July, when
the troops arrived. At that time the in(icatjions looked  ad (tnd the
arri val q' the troops I think qwas opporttune.
Q. Why do you say the situation was threatening, thenl?-A. At
that tinme my police force had been on duty constantly for nine or ten
days aLnd the calls from the railway companies were so numerous and
became so frequent that it more than absorbed the whole police department to supl)ly all calls and demands. I had at that time 3.000 or 3,100
men in service, and every one of them  was engaged in that particular
business of preventing violence.
Q. D)id you have to keep parit of that force in other portions of the
city —A. Yes, sir; this trouble extended all over the city. This city
is practically a network of railways, and the territory being quite largeabout 195 square miles, I believe —and to cover that territory, which is
filled with railway tracks, yards, towers, switch houses, and freight
houses, it can readily be seen that it would absorb the whole police
force.
This appears to be a correct statement of the situation prior to July
3. The police force of Chicago, including the reserves, is not more
than sufficient for the protection of the city under normal conditions,
and it was during the strike placed under excessive and unusual strailn.
As a body, the police were courageous alld efficient. We have in the
evidence the authority of railroads for this statement. Some railroads
charged the police with inefficiency and with failing to discharge their
duties through sympathy with strikers. These charges have not been
proved. The malyor directed suspension and dischlarge for tany such
cause, and some suspensions occurred on charges, but investigation disclosed 1o evidence to sustain them. The disorders at Blue Island were
outside thle city of Chicago. Aplpropriate orders for the police to cooperate with the troops were issued. That policemen sympathized with
strikers rather than with the corporations can not be doubted, nor
would it be surprising to find the same sentiment rife among the military. These forces are largely recruited from  the laboring classes.
Indeed, the danger is growing that ii, strike wars between corporations
and employds, military duty will ultimately hlave to be done by others
thanl volunteers from labor ranks.
The military and police confined themselves to their duty of arresting criminals, dispersing mobs, and guarding property. United States
deputy marshals, to the number of 3,600, were selected by and appointed
at request of tile General Managers' Association, and of its railroads.
They were armed and paid by the railroads, and acted in the double












42                       CHICAGO STRIKE.
capacity of railroad employes and United States officers. While operating the railroads they assumed and exercised unrestricted United
States authority when so ordered by their employers, or whenever they
regarded it as necessary. They were not nnder the direct control of
any government official while exercising authority. This is placing
officers of the government under control of a combination of railroads.
It is a bad precedent, that might well lead to serious consequences.
There is no evidence before the commission that the officers of the
American Railway Union at any time participated in or advised inltimidation, violence, or destruction of property. They knew and fully
appreciated that as soon as mobs ruled the organized forces of society
would crush the mobs and all responsible for thenm in the remotest
degree, anld that this meant defeat. The attacks upon corporations
and monopolies by the leaders in their speeches are silnilar to those to
be found in the magazines and industrial works of the day.
Much stress has been laid upon the followinu  dispatch, which Mr.
Debs denies sending. It went, however, from the headquarters of tlh
union, and that body is responsible for whlatever it L means:
CIICAGO, JTdly,, 1894.
To COUTIrTHEAD, Soauth Butte, Mlont.:
The G. M. are weakening. If strike not settled in forty-eight hours,complete paralysis will follow. Potatoes and ice out of sight. Save
your tmoney and buy a gu11.
E. V. DEBS.
The union insists that a young clerk namled Benedict sent this dispatch to a friend; that the expression "buy a gun " was one used
between them and had no referemlce to the strike. Nothing like this
is found elsewhere among the dispatches before the conmmission.
The participation of strikers in riotous proceedings is another land
more serious matter. As to this, the commission: has before it not
only the evidence of parties interested for or against the strikers, but
a vast amount of testimony from disinterested sources. Among these
are the mayor and the officials of the police and fire departments of
Chicago and the reporters of the newspapers of that city representing
all shades of opinion as to the strike question. These latter witilesses
were iln the imidst of the occurrences from day to day and observed
events with keenly trained faculties.  From. this testimllony it is fair
to conclude that strikers were concerned in the outrages against law
and orderl, although the number was undoubtedly small as compared
with the whole number out. The strikers' experience and training'were to be seen in the spiking and misplacing of switches, renlloving




CHICAGO STRIKE.                         43
Tails, crippling of interlocking systemls, the detaching, side tracking,
and derailing of cars and engines, placing of coupling pins in ellgine
machinery, blockading tracks with cars, and attempts to detach and
unn in lmail cars. The commission is of opinion that offenses of this
character, as well as considerable threatening and intimidation of those
talking strikers' places, were committed or instigated by strikers.
The mobs that took possession of railroad yards, tracks, and crossings after July 3, and that stonedl, tipped over, burned, and destroyed
ears and stole their contents, were, by general concurrence in the testimony, cojmplosed generally of hoodlums, women, a low class of foreigners, and recruits from the criminal classes. Few  strikers wAere
recognized or arrested in these mobs, which were without leadership,
man(l seemiied siimply beit upon plunder ald destruction. They gathered
wherever opportunity offered for their dastardly work, and, as a rule,
broke an}d melted away when. force faced them. In the view that this
railroad strilke was wrong; that suchl mobs are well known to be incidenltal to strikes, and are thereby given an excuse and incentive to
gather and to coln:nit crime, the responlsibility rests largely with the
American lRailway Union; otherwise that association, its leaders? and
a very large majority of the railroads mlen onl strike are not shown to
have la}d any connectionl therewith. Labor advocates contend th'at
strikes are the last resort; that they are the industrial war tleasures
of labor to assert and obtain the rights which humanity, morality, and
chanlged co:,nditions demand; that labor ean not otherwise arouse inlterest inl its demaenaids, and that, hence,, labor is no more responsible f(r the
public (lisorders and calamities that attend strikes than are tile employers who provoke them. Many impartial observers are reaching the
view that mucll of the real responsibility for these disorders rests with
the l)eop)le thlemselves and with the government for not adequately
eontrollilng mnoploolies amid corporations, and for failing to reasonably
protect the rights of labor and redress its wrongs. None assert that
aws can completely remedy contenltions as to wages, etc., but many do
insist that somnethi:lg substantial can be accomplished in this direction
if attempted honestly, reasonably, and ill good faith.
CONCLUSIONS AND RECOMMENDATIONS.
The conmmission has tried to find tie drift of public opinion1 a s to strikes,
eoycotts, and labor disputes upon railroads, and to find their reme(ly.
The invitation freely extended in this direction has brought before the












44                       CHICAGO STRIKE.
commission many expressions of views, orally andc by written commnulications. A condensation of these latter is presented with this report.
In reaching its conclusions the comltnission has endeavored, after careful consideration, to give due weight to the many suggestions anld arguments presented. It is encouraging to find general concurrence, even
amonlg labor leaders, in condemning strikes, boycot~ts, and lockouts as
barbarisms unfit for the intelligence of this a.ge, atnd as, economllically consideredl, very injurious and destructive forces. Whether woni or lost is
broadly immlaterial. They are war-inlternlecine war-and call for progress to a higher plane of education ad intelligence in adj usting tlle relations of capital and labor. These barbarismlls waste the l)roducts of both
capital and labor, defy law and. order, disturb society, intimidate capital, convert industrial paths where there ought to be plenty ilto highways of poverty and crinme, bear as their fruit the arrogant flush of
victory and the humiliating sting of defeat, and -lead to preparations
for greater and more destructive conflicts. Since nations have grown
to the wisdom of avoiding disputes by conciliation, and even of settling'
them by arbitration, why should capital and labor in their dependenlce
upon each other persist in cutting each other's throats as a settlement of
diffei ences? Official reports show that mulLch progress has beell made ia
the more sane direction of conciliation and arbitration even il America.
Abroad they are in advance of us in this policy. Were our population
as dense and opportunities as limited as abroad, present industrial
conditions would keep us much more disturbed than we now are by
contests between capital and labor.
In England, prior to 1824, it was conlspiracy and felony for labor to
unite for purposes now regarded there by all classes as dlesirable for
the safety of the governlent?, of capital, and for the protection of the
rights of labor. All industrial labor is there, as a rule, covered by
unions trained to greater conservatism  through many disastrous conflicts under harsh conditions and surroundings. Capital abroad prefers to (leal withl these unions rather than with individuals or mobs,
and from their joint efforts in good faith at conciliation and arbitra,tion much good and many peaceful days have resulted. In fifteen of
our states arbitration in various forms is now provided by law; the
United States and eleven states have sanctioned labor organizations
by statute. Some of our courts, however, are still poring over the law
reports of antiquity in order to construe conspiracy out of labor unions..
VTWe also have employers who obstruct progress by perverting and muis



CHICAGO STRIKE.                        45
applying the law of supply and demand, and who, while insisting upon
individualism for workmen, demand that they shall be let alone to
combine as they please and that society and all its forces shall protect
them in their resulting contentions.
The general sentiment of employers, shared in by some of the most
prominent railroad representatives we have heard, is now favorable to
organization almong employes. It results in a clearer presentatiol and
caliner discussion of differences, instils lmutual respect and forbearance,
brings out the essentials, and eliminates misunderstandings and immaterial matters. To an ordinary observer, argument to sustain the
justice an(d necessity of labor unions and unity of action by laborers is
superfluo us.
The rapid colcentration of power and wealth, under stimulating legislative conditions, in persons, corporations, an(ld monopolies has greatly
changed the business and industrial situation.  Our railroads were
c.hartered upon the theory that their competition would amply protect
shippers as to rates, etc., and employes as to wages and other conditions.
Combination has largely destroyed this theory, and has seriously disturbed the natural working of the laws of suplply and demand, which,
in theory, are based upon competition for labor between those who' demand" it as well as among those who supply it. The interstate
commaerce act and railroad-commission legislation int over thirty states
are simply efforts of the people to free themselves from the results of
this d(estruction of competition by combination. Labor is likewise
affected by this progressive combination.  While competition amitong
railroad employers of labor is gradually disappearing, competition
among those who supply labor goes on with increasing severity.
For instance, as we have shown, there is no longer any competitive
demand among the 24 railroads at Chicago for switchmen. They have
ceased competing with each other; they are no longer 24 separate and
compreting employers; they are virtually one. To be sure, this combination has not covered the whole field of labor supply as yet, but it is
constantly advancing in that direction. Competition for switchmen's
labor still continues with outside employers, among whom,. again, we
find a, like tendency to eliminate competitive demand for labor by
similar combinationl. In view of this progressive perversion of the laws
of supply and demand by capital and chan!ged conditions, no man can
well denly the right nor dispute the wisdom of unity for legislative and
protective lpurposes among those who supply labor.












46                      CHICAGO STRIKE.
However men may differ about the propriety and legality of labor
unions, we must all recognize the fact that we have them with us to
stay avnd to grow more numerous and r)owerful. Is it not wise to fully
recognize them by law; to admit their nlecessity as labor guides a1n1
protectors, to conserve their usefulness, increase their responisibility,
and to prevent their follies and aggressions by conferring upon them
the privileges enjoyed by corporations, with like proper restrictions and
regulations?  The growth of corporate power and wealth ltas been the
marvel of the past fifty years. Corporations have undoubtedly benefited the country and brought its resources to our doors. It will not be
surprising if the marvel of the next fifty years be the advancement of
labor to a position of like power and responsibility.  We have heretofore encouraged the one and comparatively neglected the other. Does
not wisdom demand that each be encouraged to prosper legitimately
and to grow into harmonious relations of equal standing and responsibility before the law? This involves nothing hostile to the true interests and rights of either.
A broad range of remedies is presented to the commission as to the
best means of adjusting these controversies, such as government control or ownership of railroads; compulsory arbitration; licensing of
employes; the single-tax theory; restriction of immigration ad excluasion of pauper labor; protection of American industries; monetary
legislation; suppression of trusts and combinations; written contracts
requiring due notice of discharge by employers annd of leaving service
by employes; United States labor commission to investigate and fix
hours of labor, rates of wages, etc.; a fixed labor unit; authority to
courts to settle these questions; insurance departments and pensioning
of employes; fixing hours of labor and minimum rates of wages by
statute; change in law of liability of master to servant; and various
suggestions for relief, outside of allny legislative action, through educa,tional methods tending to the inculcation of mutual forbearance amn
just consideration of each other's rights in the premises.
The commission deems recommendations of specific remedies premlature. Such a problem, for instance, as universal government ownership of railroads is too vast, many-sided, and far away, if attempted, to
be considered as an immediate, practical remnedy. It belongs to the
socialistic group of public questions where government ownlership is
advocated of monopolies, such as telegraphs, telephones, express comnpanies, and municipal ownership of w aterwTorks, gas and electaic




CHICAGO STRIKE.                       47
lighting, and street railways.  These questions are pressing more
urgently as time goes on. They need to be well studied and considered in every aspect by all citizens. Should continued combinations
and consolidations result in half a dozen or less ownerships of our railroads withiln a few years, as is by no means unlikely, the question of
government ownership will be forced to the front, and we need to be
ready to dispose of it intelligently. As combination goes on there
will certainly at least have to be greater government regulation and
control of quasi-public corporations than we have now.
Whenever a nation or a state finds itself in such relation to a railroad that its investments therein mlust be either lost or protected by
ownership, would it not be wise that the road be taken and the experiment be tried as an object lesson in government ownership?  The
Massachusetts Railroad Commission, which is noted for its eminent
services as a conservative pioneer in the direction of government control of railroads through the force of public opinion, for several years
urged that the experiment of state ownership be tried with the Fitchburg system, because of the large state investment in the Hoosac tunnlel. We need to fear everything revolutionary and wrong, but we
need fear nothing that any nation can successfully attempt in (lirections made necessary by changed economic or industrial conditions.
Other nations under their conditions own and operate telegraphs and
railroads with varying results.  Whether it is practicable for this
nation to do so successfully when it becomes necessary to save an
investment or when the people determine it shall be done, is an open
and serious question which can not be answered fully except by actual
experiment.
We ought now to inaugurate a permanent system of investigation
into the relations between railroads and employes in order to prepare
to deal with themn intelligently, and that we may conservatively adopt
such remedies as are sustained by public opinion for defects or wrongs
that may from time to time appear. In thle long contest between shippers and railroads penal and specific legislation proved inadequate.
The lessons of this period of legislation need to be well remembered
by labor. Hasty, revengefil, and retaliatory legislation injures every
interest, benefits nobody, and can not long be enforced.
The question of the right of Congress to legislate in regard to the
conditions of employment and service upon railroads engaged in interstate commerce is a most important one, and the right seems by analogy












CHICAGO STRIKE.
to exist. Simlilar power as to rates, discrimillations, poroliiigs, etc., hIas
been exercised in the act to regulate commerce, and hlas been sustained by the courts. The position of railroads as quasi-public corporation)s subjects them and their emnployes to this power, and imlposes
its exercise upon Congress as a duty, whenever necessary for tlhe
protection of the people. The question of what, shall be done is tlhrel
fore one of expediency and not of lower. When railroads acted as
judge and jury in passing uponl the complaints of shippers, the, peolle
demanded and Congress granted a government tribunal where slippers alnd railroads could meet on equal terms and have the law adjust
their differences.  In view of the Chicago strike and its suggested
dangers, the people have the same right to provide a government commission to investigate and report. upon differences between railroads and
their employtes, to the end that inlterstate commnerce and public order may
be less disturbed by strikes,and boycotts.  l'ublic opinion, enlightened
by the hearings before such a commission, will do much toward settling
many difficulties without strikes, adl in strikes will inltelligently sustain
the side of right and justice and often compel reasonable adjustments.  Experience, however, has taught that public opinion is not
alone powerful enough to control railroads. Hence power to review and
enforce the just and lawful decisions of the colmmissionl against railroads ought to be vested in the United States courts. Tlhere can be no
valid objection to this when we bear ill mind that we are now dealing
simply with quasi public corporations and not with either individuals
or private corporations. What is safe and proper as to the former
might be unsafe and unjust -for the latter. Tllt which is done ullder
the act to regulate commerce as to rates canl safely and ought properly
to be done as to railroad wages, etc., by a comlmission and the courts.
Solne stability and tille for conciliation and tamicable adjustment of
disputes can also be secured by providing that labor unions shall not
strike pending hearings which they seek; and that railroads shall not
discharge men except for cause during hearings, and for a reasonable
time thereafter. A provisionl may well be added requiring employes
during the same period to give thirty days' notice of qnitting and forbidding their unions from orderinlg or advising otherwise.
Many assert with force that no law can be justly devised to compel
employers and emlployes to accept the decisions of tribunals in wage
disputes.  [It is insisted that while the employer can readily be made
to pay under an arbitration decision mlore than is or than he thinks is




CHICAGO STRIKE.                       49
right, the employe can not practically be made to work. He can quit,
or at least force his discharge, when the decision. gives him less than
he demands. Hence nothing reciprocal can be devised, and without
that element it its urged that nothing just can be enacted of a compulsory nature. This may be true in general industries, but it has less
weight as between railroads and their labor. Railroads have not the
inherent rights of employers engaged in private business; they are
creatures of the state, whose rights are conferred upon them for public
purposes, and, hence, the right and duty of government to compel them
to do in every respect what public interest demands are clear and free
from embarrasslnent. It is certainly for the public interest that railroads shall not abandon transportation because of labor disputes, and,
therefore, it is the duty of the government to have them accept the
decision of its tribunals, even though complete reciprocal obligations
can not be imposed upon labor. The absence of such reciprocal obligations would rarely affect railroads unjustly, if we regard the question
in a practical light.
Rlailroad employment is attractive and is sought for. There has
never been a time in the history of railroads when men did not stand
ready to fill a labor vacancy at the wages fixed - by the roads. The
number is constantly increasing. If railroads can thus always get the
men that they need at what they offer, is there any doubt that the
supply will be ample at any rates fixed by a commission and the courts 
A provision as to notice of quitting, after a decision, would be ample
to enable railroads to fill vacancies caused in their labor departments
by dissatisfaction with decisions. To go further, under present conditions, at least, in coercing employes to obey tribunals in selling their
labor would be a dangerous encroachment upon the inherent, ina,lienable right to work or quit, as they please.
When railroad employds secure greater certainty of their positions
and of the right to promotion, compensation for injury, etc., it will be
time enough to consider such strict regulation for them as we can now
justly apply to railroads, whose rights are protected by laws and
guarded by all the advantages of greater resources and more conwe.trated control.
In solving these questions, corporations seldom aid the efforts of the
people or their legislators. Fear of change and the threatened loss of
some power invariably make them obstructionists. They do not desire
to be dealt with by any legislation; they simply want to be let alone,
7787   4












50                      CHICAGO STRIKE.
confident in their ability to protect themselves. Whatever is right to
be done by statutes must be done by the people for their own protection, and to meet the just demand that railroad labor shall have public
and impartial hearing of all grievances.
The commission does not pretend to present a specific solution of these
questions. Its effort is simply to present the facts; to point out that
the relations of capital and labor are so disturbed as to urgently demand
the attention of all thinking and patriotic citizens; to suggest a
line of search for practical remedial legislation which may be followed
with safety, and, finally, to urge and invite labor and railroads to hearty
cooperation with the government and the people in efforts to substitute law and reason in labor disputes for the dangers, sufferings,
uncertainties, and wide-spread calamities incident to strikes, boycotts, and lockouts.
To secure prompt and efficient data for the formation of correct
public sentiment in accordance with this line of thought, the commission
contends that law should make it obligatory-upon somepublic tribunal
promptly to intervene by means of investigation and conciliation, and
to report whenever a difficulty of the character of that occurring during the past season at Chicago arises. This intervention should be
provided for, first, when the tribunal is called upon to interfere by
both of the parties involved; second, when called upon by either of the
parties, and, third, when in its own judgment it sees fit to intervene.
The proper tribunal should have the right, in other words, to set
itself in motion, and rapidly, too, whenever in its judgment the public
is sustaining serious inconvenience. If the public can only be educated out of the belief that force is and must always remain the basis
of the settlement of every industrial controversy the problem becomes
simplified. A tribunal, however, should not intervene in mere quarrels between employer and employed, unless the public peace or convenience is involved; but where it is a clear case of public obstruction,
whether caused by individuals or by a corporation, a tribunal should
not wait until called on by outside agencies to act. All parties
concerned should be notified that the tribunal proposes, upon a
certain day-and the earlier the day the better-to be at a given
place, there to look into the cause of the trouble, to adjust the difficulties by conciliation, if possible, and, in the event of failure, to fix the
responsibility for the same. Proceeding in this way the report of such
a commission would cause public opinion promptly to settle the ques



CHICAGO STRIKE.                       51
tion, or, at least, to fix the responsibility where it belonged, and to
render successful opposition to the conclusions reached an improbability. To carry out this idea involves no complicated legislation.
As authorized by statute, the commission has decided upon certain
recommendations and certain suggestions, growing out of its study of
the Chicago strike and boycott. These recommendations and suggestions are UpOll three lines: First, for Congressional action; second, for
state action; and third, for the action of corporations and labor organizations. It readily sees the impropriety to a certain extent of making
any recommendation for state action, yet feels it a duty, as a result
of its investigations, to make such suggestions as will enable citizens
interested in state legislation to benefit by its experience, and also to
make such suggestions to corporations and labor organizations as shall
tend to harmonize some of the existing difficulties. The commission
therefore recommends:
I.
(1) That there be a permanent United States strike commission of
three members, with duties and powers of investigation and recommendation as to disputes between railroads and their employes similar
to those vested in the Interstate Commerce Commission as to rates, etc.
a. That, as in the interstate commerce act, power be given to the
United States courts to compel railroads to obey the decisions of the
commission, after summary hearing unattended by technicalities, and
that no delays in obeying the decisions of the commission be allowed
pending appeals.
b. That, whellever the parties to a controversy in a matter within the
jurisdiction of the commission are one or more railroads upon one side
and one or more national trade unions, incorporated under chapter 567
of the United States Statutes of 1885-'86, or under state statutes, upon
the other, each side shall have the right to select a representative, who
shall be appointed by the President to serve as a temporary member of
the commission in hearing, adjusting, and determining that particular
controversy.
(This provision would make it for the interest of labor organizations
to incorporate under the law and to make the commission a practical
board of conciliation. It would also tend to create confidence in the
commission, and to give to that body in every hearing the benefit of
practical knowledge of the situation upon both sides.)












52                     CHICAGO STRIKE.
c. That, during the pendency of a proceeding before the commission
inaugurated by national trade unions, or by an incorporation of
employes, it shall not be lawful for the railroads to discharge employes
belonging thereto except for inefficiency, violation of law, or neglect of
duty; nor for such unions or incorporation during such pendency to
order, unite in, aid, or abet strikes or boycotts against the railroads
complained of; nor, for a period of six months after a decision, for such
railroads to discharge any such employes in whose places others shall
be employed, except for the causes aforesaid; nor for any such employes,
during a like period, to quit the service without giving thirty days'
written notice of intention to do so, nor for any such union or incorporation to order, counsel, or advise otherwise.
(2) That chapter 567 of the United States Statutes of 1885-'86 be
amended so as to require national trades unions to provide in their
articles of incorporation, and in their constitutions, rules, and by-laws
that a member shall cease to be such and forfeit all rights and privileges conferred on him by law as such by participating in or by instigating force or violence against persons or property during strikes or
boycotts, or by seeking to prevent others from working through violence, threats, or intimidations; also, that members shall be no more
personally liable for corporate acts than are stockholders in corporaations.
(3) The commission does not feel warranted, with the study it has
been able to give to the subject, to recommend positively the establishment of a license system by which all the higher employes or others of
railroads engaged in interstate commerce should be licensed after due
and proper examination, but it would recommend, and most urgently,
that this subject be carefully and fully considered by the proper cornmittee of Congress. Many railroad employes and some railroad officials
examined and many others who have filed their suggestions in writing
with the commission are in favor of some such system. It involves too
many complications, however, for the commission to decide upon the
exact plan, if any, which should be adopted.
II.
(1) The commission would suggest the consideration by the states of
the adoption of' some system of conciliation and arbitration like that,
for instance, in use in the commonwealth of Massachusetts. That
system might be reenforced by additional provisions giving the board




CHICAGO STRIKE.                        53
of arbitration more power to investigate all strikes, whether requested
so to do or not, and the question might be considered as to giving labor
organizations a standing before the law, as heretofore suggested for
national trade unions.
(2) Contracts requiring men to agree not to join labor organizations
or to leave them, as conditions of employment, should be made illegal,
as is already done in some of our states.
III.
(1) The commission urges employers to recognize labor organiza,tions; that such organizations be dealt with through representatives,
with special reference to conciliation and arbitration when difficulties
are threatened or arise. It is satisfied that employers should come in
closer touch with labor and should recognize that, while the interests
of labor and capital are not identical, they are reciprocal.
(2) The commission is satisfied that if employers everywhere will
endeavor to act in concert with labor; that if when wages can be
raised under economic conditions they be raised voluntarily, and that
if when t~here are reductions reasons be given for the reduction, much
friction can be avoided. It is also satisfied that if employers will consider employes as thoroughly essential to industrial success as capital,
and thus take labor into consultation at proper times, much of the
severity of strikes can be tempered and their number reduced.