One of the devices sometimes used by big corporations to break down the law was to treat the passage of laws as an excuse for action on their part which they knew would be resented by the public, it being their purpose to turn this resentment against the law instead of against themselves. The heads of the Louisville and Nashville road were bitter opponents of everything done by the Government toward securing good treatment for their employees. In February, 1908, they and various other railways announced that they intended to reduce the wages of their employees. A general strike, with all the attendant disorder and trouble, was threatened in consequence. I accordingly sent the following open letter to the Interstate Commerce Commission:
To the Interstate Commerce Commission:
I am informed that a number of railroad companies have served notice of a proposed reduction of wages of their employees. One of them, the Louisville and Nashville, in announcing the reduction, states that “the drastic laws inimical to the interests of the railroads that have in the past year or two been enacted by Congress and the State Legislatures” are largely or chiefly responsible for the conditions requiring the reduction.
Under such circumstances it is possible that the public may soon be confronted by serious industrial disputes, and the law provides that in such case either party may demand the services of your Chairman and of the Commissioner of Labor as a Board of Mediation and Conciliation. These reductions in wages may be warranted, or they may not. As to this the public, which is a vitally interested party, can form no judgment without a more complete knowledge of the essential facts and real merits of the case than it now has or than it can possibly obtain from the special pleadings, certain to be put forth by each side in case their dispute should bring about serious interruption to traffic. If the reduction in wages is due to natural causes, the loss of business being such that the burden should be and is, equitably distributed between capitalist and wage-worker, the public should know it. If it is caused by legislation, the public, and Congress, should know it; and if it is caused by misconduct in the past financial or other operations of any railroad, then everybody should know it, especially if the excuse of unfriendly legislation is advanced as a method of covering up past business misconduct by the railroad managers, or as a justification for failure to treat fairly the wage-earning employees of the company.
Moreover, an industrial conflict between a railroad corporation and its employees offers peculiar opportunities to any small number of evil-disposed persons to destroy life and property and foment public disorder. Of course, if life, property, and public order are endangered, prompt and drastic measures for their protection become the first plain duty. All other issues then become subordinate to the preservation of the public peace, and the real merits of the original controversy are necessarily lost from view. This vital consideration should be ever kept in mind by all law-abiding and farsighted members of labor organizations.
It is sincerely to be hoped, therefore, that any wage controversy that may arise between the railroads and their employees may find a peaceful solution through the methods of conciliation and arbitration already provided by Congress, which have proven so effective during the past year. To this end the Commission should be in a position to have available for any Board of Conciliation or Arbitration relevant data pertaining to such carriers as may become involved in industrial disputes. Should conciliation fail to effect a settlement and arbitration be rejected, accurate information should be available in order to develop a properly informed public opinion.
I therefore ask you to make such investigation, both of your records and by any other means at your command, as will enable you to furnish data concerning such conditions obtaining on the Louisville and Nashville and any other roads, as may relate, directly or indirectly, to the real merits of the possibly impending controversy.
This letter achieved its purpose, and the threatened reduction of wages was not made. It was an instance of what could be accomplished by governmental action. Let me add, however, with all the emphasis I possess, that this does not mean any failure on my part to recognize the fact that if governmental action places too heavy burdens on railways, it will be impossible for them to operate without doing injustice to somebody. Railways cannot pay proper wages and render proper service unless they make money. The investors must get a reasonable profit or they will not invest, and the public cannot be well served unless the investors are making reasonable profits. There is every reason why rates should not be too high, but they must be sufficiently high to allow the railways to pay good wages. Moreover, when laws like workmen’s compensation laws, and the like are passed, it must always be kept in mind by the Legislature that the purpose is to distribute over the whole community a burden that should not be borne only by those least able to bear it—that is, by the injured man or the widow and orphans of the dead man. If the railway is already receiving a disproportionate return from the public, then the burden may, with propriety, bear purely on the railway; but if it is not earning a disproportionate return, then the public must bear its share of the burden of the increased service the railway is rendering. Dividends and wages should go up together; and the relation of
