THE UNIVERSITY OF ILLINOIS LIBRARY 305 li- ve NOT A PERIODICAL Return this book on or before the Latest Date stamped below. University of Illinois Library DEC 2 4 1953 496V Wage Bargaining on the Vessels of the Great Lakes HENRY ELMER HOAGLAND PREFACE This study is an attempt to trace the development of methods of wage bargaining in the transportation industry of the Great Lakes. Beginning as an industry in which both profits and wages were highly speculative, lake traffic has been so modified that the returns to both capital and labor have become standard- ized. This has been made possible by the ever-increasing con- centration of control of physical property and by the unification of the interests of wage earners. In the early days one man owned but one vessel and carried freight for other men each of whom owned but a small fraction of the supply of such freight. At present one corporation controls through ownership and charters a majority of the available tonnage, and in addition owns an even greater majority of the freight to be shipped. Formerly the wage earner identified his interest with that of his employer. Later he banded with his fellow workers into unions for the purpose of bargaining with the employers. More re- cently he has had the terms of his labor contract dictated by the same corporation which dominates the management of the phy- sical property involved in lake traffic. Much of the information was collected while the writer was employed as special investigator for the United States Commis- sion on Industrial Relations. Grateful acknowledgment is made to representatives of employers' associations, to union officials, to government agents connected with lake traffic, and to the many individuals who have assisted in furnishing the background of facts from which to interpret labor relations on lake vessels. From the nature of the problem investigated, much of the testi- mony obtained from interested parties was necessarily contradic- tory. For this reason care has been taken to avoid reliance upon oral statements. Reference has been made to published records wherever possible. Throughout the entire investigation the writ- er was impressed by the desire of all parties interested in lake traffic to have the subject of labor relations on lake vessels fully and fairly presented. It is his earnest hope that this desire has been satisfied in this study. The writer is indebted to his colleagues, Prof. E. L. Bogart, for suggestions concerning the form of presentation of the mate- rial in this study, and Dr. M. H. Hunter, for assistance in read- ing proof. H. E. HOAGLAND Urbana, Illinois October, 1917 CONTENTS CHAPTEB I BEGINNINGS OF ORGANIZATION 9 CHAPTEB II GROWING CONCENTRATION 23 CHAPTER III TRADE AGREEMENTS 37 CHAPTER IV DISRUPTION OF THE UNIONS . 61 CHAPTER V OPEN SHOP 84 APPENDICES A. WAGE BARGAINING ON LAKE ERIE DOCKS 103 B. GRAIN HANDLERS ' AGREEMENTS 110 0. WAGE BARGAINING IN THE LUMBER CARRYING INDUSTRY . 116 CHAPTER I BEGINNINGS OF ORGANIZATION Previous to 1840 nearly all traffic on the Great Lakes was from the East to the West to supply the needs of a new country. Earlier than this the chief traffic eastward was in grain and as late as 1836 the total receipts of grain at Buffalo were only a half million bushels. 1 This came largely from Ohio ports. The first grain shipped from Chicago to Buffalo, a few bags of wheat, was sent in 1831. 2 By 1840 the total traffic in grain from Chicago to Buffalo was only a few thousand bushels. From then on, however, grain shipments increased rapidly, until in 1846 Buffalo received six and a half million bushels from Ohio and other western states. 3 The boats which had supplied the west-bound traffic were built for miscellaneous freight and passenger service. The east-bound traffic in grain brought forth in 1850 the first bulk freighter, a small sail-boat capable of carrying about 13,000 bushels of grain.* Relatively few west-bound boats were built for con- tinuous service, their chief purpose being to take their cargoes to the new West, much as the arks were used on the Ohio River or the prairie schooners were used in land transportation. Once at their destination the early west-bound boats were broken up, the materials of which they were made were used for other pur- poses and the men who operated them entered other occupations. 1 Marine Eeview, May 30, 1907, p. 22. 2 Ibid., Feb. 22, 1906, p. 15. s Ibid., May 30, 1907, p. 22. * Marine Becord, Aug. 25, 1898, p. 6. The Marine Becord and the Marine Review were both trade journals, patronized by and representing lake shipping interests. The former was- established in 1878 and the latter in 1890. Both were published at Cleveland. On August 14, 1902, they were consolidated and for a year and four months appeared under the name of Marine Eeview and Marine Becord. In January, 1904, the name was changed to Marine Beview. 10 WAGE BARGAINING ON LAKES [160 The new grain freighters changed the character of lake traffic and created a demand for a class of men to follow lake sailing as a vocation. A typical crew of these early days consisted of a captain, two mates, twelve sailors, a cook and a royal boy. 5 The captain not infrequently was also the owner of the boat. At any rate he was always complete master of it, making an accounting with its owner only at the end of the season. 6 The risks of the traffic were great and freights were high. The chances of great profits induced investment in boats and with good fortune a captain could hope to pay for his boat in one or two seasons. Very often boats were built for captains with no other security than faith in the integrity of the purchaser. Sailing was a trade to be learned in the school of apprentice- ship. In the winter time the sailor was engaged in repairing his boat and in fitting it for the coming season, if not indeed in making a new boat. 7 Knowledge of sailing was required of the men who did this work. The hazards of the sailing occupation and the hardships to be endured demanded that the sailor be a rough, uncouth pioneer. Being such and having served his apprenticeship, he had a right to expect to become some day a captain and perhaps the owner of a boat if he could demon- strate his integrity and his ability to control the men under him. It was this type of men who formed the first sailors' organiza- tion on the Lakes the Seamen's Benevolent Union of Chicago. The early records of this organization indicate that it was formed August 18, 1863, and that it received a charter from the State of Illinois in 1867. 8 The scaricty of labor at this time made wages high without collective action. This condition, together with the absence of direct antagonism between em- ployer and employee, confined the object of the organization to the "moral, mental and mutual improvement of its mem- bers." Similar organizations followed at other ports, but all of these, like the parent union, were short-lived. It was not until there developed a real need for collective action that the organization of lake sailors was again attempted. 5 Marine Record, Aug. 25, 1898, p. 6. 6 Marine Review, Dec. 15, 1904, p. 21. 7 Ibid., Dec., 1909, p. 528. s From an old seal and miscellaneous records in the office of the present Lake Seamen's Union. 161] BEGINNINGS OP ORGANIZATION 11 About 1870 began two of the contests which have helped to revolutionize lake traffic; the first was the contest of iron ore with grain for first place in shipments, and the second was the contest of steam with sail as the motive power of lake transpor- tation. Iron ore was discovered on the Marquette range Sep- tember 19, 1844. 9 The first ore removed from the mines was carried on the backs of prospectors. For several years attempts were made to make iron in the upper lake district and it was not until 1853 that plans were laid to ship the ore itself to the lower lakes. In September of that year, 152 tons were shipped in four vessels from Marquette to Sault Ste. Marie where it was portaged over the falls, reloaded upon another boat and carried to Erie, Pa. The Sault Ste. Marie canal was opened June 18, 1855, and immediately iron ore shipments began to assume importance. It was not until several years later, however, that the ore trade equaled the grain trade or even the lumber trade. For ex- ample, in 1866 the grain receipts at Buffalo alone were 1,500,000 tons; the lumber receipts at Chicago alone were 400,000 tons; while the ore receipts at all Lake Erie ports together amounted to only 279,000 tons. By 1880 grain shipments were double those of 1866, while ore shipments increased sevenfold and to- talled approximately 2,000,000 tons. Eight years later ore ship- ments exceeded 5,000,000 tons and for the first time surpassed grain shipments. Since then iron ore has had no competitor in lake tonnage. The 1890 shipments were almost double those of 1888 ; 1899 more than double 1890; 1906 more than double 1899 ; while by 1912 the annual ore shipments by lake boats had reached almost 50,000,000 tons. 10 As late as 1863, 93 per cent of all lake tonnage was sail. 11 Barges were first used on the Lakes in 1861 in the lumber trade. 12 Four to six were towed by propellers or tugs. None of the early steam-boats were ore carriers. All of them carried This brief historical statement is condensed from an article appear- ing in the Annual Report -of the Lake Carriers' Association for 1910, pp. 102 et seq. 10 Marine Review, Dec., 1912, p. 440. The unprecedented war demand for ore caused a further increase in lake shipments to 65,000,000 tons in 1916. Ibid., Feb., 1917, p. 75. 11 Ibid., Apr. 14, 1904, p. 30. 12 Ibid., June 2, 1904, p. 52. 12 WAGE BARGAINING ON LAKES [162 passengers and were ill-fitted to carry ore though some of them occasionally carried a deck load. 13 The first steam-boat built for the iron trade a 200 footer appeared in 1869. A sec- ond followed the next year, built to carry 1,200 tons. The second was built as the consort of the first. This started a method of ore transportation which was the prevailing practice for nearly twenty years. Sail-boats carried up to 600 tons and had, until 1870, almost a monopoly of bulk freight trade. Steam gained very rapidly from then on. The early steam-boats, like the schooners, were built of wood. The first iron steamer to be used on the Lakes for commercial purposes was built in 1862 ; 14 this had a gross tonnage of 861 tons. The first to be used in the ore trade was built in 1882. 15 Two years later steel boats appeared and by 1886 iron ceased to be used for ship-building on the Lakes. 16 As late as 1887 all but 42 of the freighters on the Lakes were built of wood. The largest number of steam vessels built in any one year previous to this time was five. In 1888 14 were built. With the advent of steel boats wood ceased to be used for ship-building material and sail-boats gradually gave place to steam-boats. No sail freighters have been built since 1891 and by 1904, 97 per cent of the tonnage on the Lakes was propelled by steam. 17 The draught of ore vessels has always been regulated by the depth of the water hi the locks at the Sault Ste. Marie so that increase in the size of vessels has depended upon the activity of the United States government in deepening channels, building locks, installing lights, and in other ways making traffic more safe and providing for a larger class of boats. The response to such improvements has been rapid and the boats have contin- ually increased in size. The first of the ore boats carried less than 1,000 tons. The largest cargo in 1882 was 1604 tons; by 1892 the largest cargo was almost double that of 1882 ; by 1898, almost double that of 1892; while with the appearance of the 500 footer in 1900, a cargo of 10,000 tons was made possible. 18 is Annual Eeport Lake Carriers' Association, 1910, p. 106. i* Marine Review, Feb., 1910, p. 64. is Ibid., June 2, 1904, p. 53. ^ Ibid., Feb., 1910, p. 64. IT Ibid., Apr. 14, 1904, p. 30. is Annual Eeport Lake Carriers' Association, 1910, pp. 109 et seq. 163] BEGINNINGS OP ORGANIZATION 13 Even this amount has been increased more than 40 per cent since 1900. After the first real boom in lake traffic, beginning in 1871, came the depression of 1872 from which the lake trade did not recover until 1878. 19 The labor riots which accompanied the de- pression resulted in the revival of the spirit of organization, this time under changed conditions. Wages were low ; the boats had increased in size and hence in cost; the percentage of captains owning their own boats had decreased and in their places had appeared vessel owners who began to try to run their boats on a more business-like basis. Following the Chicago riots of 1877 one of the labor leaders a longshoreman organized a strong union in his own trade and then turned his attention to the sea- men. Under his leadership the old seamen's union was reorgan- ized on April 1, 1878, under the name of Chicago Seamen's Benevolent Union, having as its object the "mental, moral and financial improvement of its members. ' ' 20 Immediately branches were organized at other lake ports nine within a year. Con- trol of the organization, including the branches, was retained in the parent union at Chicago. The return of prosperity in 1878-1879 found the sailors well organized and ready to dictate terms to the vessel owners. Only sailors those with practical knowledge of operating sail- boats were admitted to membership in the union, but mates and even captains were included at times, since the interests of captain and owner were no longer identical. The increased de- mand for sailors gave the union a sense of power and "scab" became anathema. 21 Union members were not permitted to sail with non-union men 22 and those who incurred the enmity of the organization by refusing to join it were, in some instances, for- ever prohibited from becoming members or were driven from the Lakes if even harsher methods were not used. When necessary to keep non-union men off the boats union men were permitted is Marine Review, Feb., 1910, p. 64. 20 As stated in its constitution, in ms. 21 Boarding-house keepers were boycotted for harboring non-union sail- ors and even an undertaker who had buried a non-union man was placed on the unfair list for a period of 99 years. Journal of the Chicago Sea- men 's Benevolent Union, in ms., passim. 22 Constitution, 1879, sec. 7. 14 WAGE BARGAINING ON LAKES [164 to work at less wages than the scale adopted by the union itself. The idea of a trade agreement, fixing for a season wages and conditions of work, was not thought of. Union members looked with distrust upon any conference with boat owners and pre- ferred to dictate the terms under which they were willing to work. 23 The sailing year was divided into four seasons: 1. Pre-season shipments began before the regular spring shipments were definitely started. High freights due to unusual risks of the weather tempted some boats to make a trip or two before spring really opened. 2. The regular spring season began with settled weather conditions. 3. The fall season was characterized by decreasing traffic and the disappearance of "summer sailors" from the Lakes. 4. Post-season shipments were made under conditions similar to the very early shipments. In the first and fourth periods wages were usually paid at so much per trip since the time required to make a trip was uncertain and day wages might prevent shipments since wages might amount to more than the freights received. Wages during the second and third periods were paid by the day. It was customary for the captain to pay off his crew upon reaching port and to hire a new crew only when again ready to sail. 2 * Under these conditions the union forbade its members to ship for a round trip when sailing to a port which had a branch union. For it was not unusual for wages to be changed every few days if the union members thought freight rates warranted an increase in wages. The method of increasing wages was as follows: the union men at any port were called together and asked to vote an increase of $.25 per day. Such increases al- ways took effect the following day. Hence a member shipping from Chicago to Buffalo, for example, at $1.75 per day might find upon reaching the latter port that wages had been raised to $2.00 per day. In fact such increases became so frequent that at the second general convention of the union, in 1879, it was voted that no branch could raise its wages above the scale set by the Chicago union. 25 In reality of course this was an attempt to establish a sliding scale of wages to be governed by freight conditions. But when 23 Ms. records of Lake Seamen 's Union, passim. 24 Marine Record, Oct. 17, 1901, p. 11. 25 Journal of Chicago Seamen 's Benevolent Union, in ms., passim 165] BEGINNINGS OF ORGANIZATION 15 left to an irresponsible group of sailors to learn first what freight rates prevailed and then to adjust wages accordingly, it often resulted in tying up the boats because the wages demanded in- cluded profits as well. Indeed it was not unusual for the union to call a second meeting within a day or two after voting to raise wages in order to reduce them again if its members thought the boats would not leave port under the wages set. In the hands of the union the individual vessel owners were at a disadvantage. If they secured non-union men, these were either driven from the Lakes or into the union. The owner must either have accepted the terms offered by the union or have kept his boats tied to the docks. After almost three years of submission to union dictation the vessel owners at Cleveland met on September 1, 1880, and formed the Cleveland Vessel Owners' Association, having as its chief purpose the destruction of the seamen's unions. The owners at other ports were favor- able to the formation of a general vessel owners' association to effect this and other purposes and on February 16, 1881, a gen- eral meeting was held at Chicago to discuss such an association. 28 Already the ore trade was centered in Cleveland, the grain trade in Buffalo, and the lumber trade in Chicago. There was not yet sufficient community of interest to insure the success of a general organization and the Chicago meeting failed to accom- plish its purpose. Instead the local associations continued and met with varying success. The most successful were those at Buffalo and Cleveland. The Cleveland Vessel Owners' Association began by estab- lishing shipping offices at Cleveland, Ashtabula, and other near- by ports, for the purpose of securing non-union men and of pro- tecting them on the boats. As its chief shipping officer the association secured a man who though once a union sympathizer and a member of a sailors' union, had since cast his lot with the opponents of unionism and had already demonstrated his ability as a strike breaker. Being a prize fighter of no mean ability and a police officer with notches on his gun barrel he was the type of man needed by the association to do battle with the turbulent unionists. Calling to his assistance men of his own type, the shipping officer began a twenty years' war upon the sailors' unions. The 26 Beers, History of the Great Lakes (Chicago, 1899), p. 465. 16 WAGE BARGAINING ON LAKES [166 first open' fight occurred during the season of 1881 and resulted in a victory for the employers. When the union began to re- coup its losses two years later it turned first to demands for legislation as a means of remedying its ills. The lobby at "Wash- ington to secure the passage of various seamen's bills was es- tablished at this time. 27 Failing in immediate success in its demands for legislation, the union again gave battle to the Cleve- land Vessel Owners' Association and again met defeat in 1885. In addition to a return to legislation after the second defeat, the union turned to the Knights of Labor for support and on March 24, 1886, secured a charter for the Seamen's Assembly of the Knights of Labor. 28 The war against the Cleveland Ves- sel Owners' Association was continued as before, but the Knights of Labor failed to accomplish for the seamen more than the latter had been able to do for themselves. Furthermore the type of men who sailed the Lakes were not greatly enthused over the ritualistic ceremonies demanded in the meetings of the Knights of Labor, nor were they willing to grant their officers the deference due a Venerable Sage, an Unknown Knight, a Judge Advocate, or an Almoner. Union membership failed to increase and the Vessel Owners' Association retained control over wages and labor conditions on the boats. At the same time a new cloud began to assume huge proportions on the horizon of the seamen's union. Up to this time the union was composed of sailors men on sailing vessels only. Here, with the exception of the master of the boat, there was little distinction of skill among the workers. All were sailors members of a skilled trade. While on the steam-boats there were various grades of men with the unskilled deckhands and firemen in the majority. The sailors looked with disdain upon these two classes of men and "Wooden boats, iron men: iron boats, wooden men" became their slogan. 29 27 The first appropriation noted in the journals of the seamen's union for the purpose of defraying the expenses of a representative at Washington was in 1884. Since that time much attention has been given by the union to legislation. The now famous so-called LaFollette Seamen's Law is based upon the same demands made by the imion in 1884. 28 Branches of the union were given proper names in addition to their K. of L. numbers. For example, the Buffalo local was called the ' ' Perry Labor Club," Local Assembly 6166, K. of L. 29 Ms. journal of Lake Seamen's Union, Feb. 20, 1894. 167] BEGINNINGS OP ORGANIZATION 17 In spite of its two decisive defeats by the Vessel Owners' As- sociation and in spite of the fact that the steam-boats were steadily taking over the business of the sailing vessels and hence reducing the demand for sailors, the union had continued its system of voting changes in wages whenever it seemed at all like- ly to succeed in forcing an advance. To be sure, its failures since 1881 had far outnumbered its successes. Nevertheless it continued the plan. By 1888 the union leaders realized that steam-boats would soon completely displace sailing vessels and that if the union would prosper it must organize the men on the steam-boats. The rank and file of the men did not realize the change taking place in lake traffic and opposed any plan to ex- tend the jurisdiction of the union. Then too the Vessel Owners' Association so thoroughly controlled the situation that the steam- boatmen did not dare join the union at this time. In 1889 offers were made to the vessel owners to have a com- mittee of the union meet a committee of the association and try to effect 'an amicable settlement of their differences. 80 These offers were ignored. The year 1889 was a dull season for sailing vessels on the Lakes and the owners had little difficulty in se- curing non-union men at any wages they were willing to pay. Failing in their request for a conference, the union leaders then proposed that any attempt to set a union scale of wages be abandoned and that the organization be continued merely as a beneficial association. This too was opposed by the members 31 and for two years longer the losing fight was continued. The union suffered an unusual loss of membership in 1889 and at the opening of 1890 prospects looked discouraging. With- drawal from the Knights of Labor was discussed though not acted upon. It was voted, however, that the question of wages "shall not be entertained in any way, shape or form collectively by any branch or body attached to this Association;" and that "members shall make no discrimination as to whom they shall sail with or as to where they shall obtain this employment. ' ' 32 Later in the season the demand for seamen increased and the so Circular letters were sent out by the union to the members of the association. si At the same meeting, however, the union modified its policy toward non-union sailors by permitting its members to sail with such men. 32 Journal of the union, in ms., Jan. 21, 1890. 18 WAGE BARGAINING ON LAKES [168 above action was rescinded. Union shipping offices were estab- lished, wage scales were again voted, and union members were prohibited from sailing with non-unionists. 33 The vessel own- ers' shipping offices were boycotted and members of the union found within such offices were fined heavily. The Vessel Own- ers' Association resorted to its accustomed practice of securing non-union men from the Atlantic ports and succeeded in pre- venting any effective action by the union. Near the end of the season of 1890 all available vessel tonnage was in commission and the outlook for 1891 was good. The spirit of unionism revived. The determination to withdraw from the Knights of Labor and to substitute a strong union of lake-faring men for the old conglomerate organization of all trades had become general enough to lead the members of the union to follow the advice of their leaders. One faction of the union, led by the Milwaukee branch, remained loyal to the Knights of Labor for two years longer. The seceders formed a new organiation but they were still im- bued with the industrial union philosophy of the Knights of Labor, as is indicated by the following announcement to the press at the time of organizing: We want to number among us every man on the Great Lakes who is em- ployed in any capacity connected with the Lakes. We want the man who builds the boat; the man who runs her engines and fires her boilers; the man who loads and unloads her; her deckhands; cook; every man who de- pends for a living upon the vessel owner. When we have these men enrolled as members we will be on an equal footing with the owner of floating prop- erty, and not until then. Then we can go to our employers and demand fair compensation for our labor, and we will be in a position to back up our claims. This action was followed the next year by the formation of the National Seamen's Union of America to include the unions on the Lakes, the Pacific Coast, and the Gulf of Mexico. The unions on the Atlantic Coast were not represented but sent their greet- ings. The national union also was to be a democratic organiza- tion, to include all men who ' ' make a living by following the sea or on the Lakes in any capacity in steam or sailing vessels. ' ' 34 The dreams of the founders of these organizations were never 33 Journal of the union, in ms., passim. 84 Proceedings of the union for 1892, p. 3. 16!)] BEGINNINGS OF ORGANIZATION 19 realized but their success was immediate and helped to bring about a change in the employers' associations on the Lakes. As already noted, the attempt to form a general vessel owners' association at Chicago in 1881 failed because there was not yet sufficient community of interest to hold the local associations to- gether. Their interests were, for the most part, local in their nature and as such could be handled better by local organiza- tions. These local associations continued their separate exist- ences, with the Cleveland association leading in importance and at times assuming the character of a general organization. Hav- ing succeeded in defeating the seamen's union in its first open battle in 1881, the Cleveland association turned its attention to legislation, navigation problems, etc., retaining its shipping of- fices and its non-union policy as its chief reason for existence. The Lake Carriers' Association was formed at Buffalo May 21, 1885, after a preliminary meeting of vessel owners from the various lake ports had been held at Chicago April 14, 1885. 35 According to its constitution, the purpose of the association was ' ' to consider and take action upon all general questions relating to the navigation and carrying business of the Great Lakes and the waters tributary thereto, with the intent to improve the character of the service rendered to the public, to protect the common interest of the lake carriers, and to promote their gen- eral welfare. " 36 It was composed at first of passenger and package freight lines and was dominated by the larger interests. It was opposed by the smaller owners in this class of business and by the bulk freighters who already had membership in the ex- isting associations. In order to overcome the opposition of the latter, the new association eschewed labor troubles and refused to consider any question of a purely local nature. It encouraged the formation of local associations for these purposes and was instrumental in building up a strong local association at Buffalo. The new association was opposed especially by the Cleveland Vessel Owners' Association because the former was dominated by Buffalo interests while the latter largely dominated the policies of the local associations at other lake ports. But in spite of strong opposition, the Lake Carriers' Association included in its as Marine Record, Jan. 26, 1899, p. 15. 36 Beers, op cit., p. 466. 20 WAGE BARGAINING ON LAKES [170 membership, at the end of its first year, one-fifth of all lake ton- nage, steam, sail, and barge. Its first official act was to secure the services of a representative at Washington to watch legisla- tion affecting lake interests. Other subjects which received at- tention early were the establishment of lights, the clearing out of obstructed channels, and the building of bridges over connecting water courses. From 1885 to 1891 the Lake Carriers' Association and the Cleveland Vessel Owners' Association remained independent of each other, occasionally acting in harmony but more often work- ing at cross purposes, even though seeking the same end. 87 The weakening effect of this division of forces, together with the growing strength of the seamen's union, brought about at the beginning of 1891 a demand among the vessel owners for an amalgamation of the two major associations and the absorption of all other such organizations on the Lakes. Throughout the latter part of 1891 conferences were held at various ports around the Lakes and on April 28, 1892, a general conference at De- troit effected the reorganization of the Lake Carriers' Associa- tion to include all vessel owners on the Lakes and to take over all activities of existing associations. 38 The new association took over the shipping offices formerly maintained by the Cleveland Vessel Owners' Association and in addition established similar offices at other important lake ports. 89 Almost immediately thereafter a war of extermination was begun against the reorganized seamen's union. 40 Shipping offices were established in New York City and men were sent from there to the Lakes to take the places of the union seamen, the Lake Carriers' Association paying the cost of transporta- tion. 41 Violence was practiced by both sides and personal en- counters became very common. 42 Numerous murders have been 37 Annual Report Lake Carriers' Association, 1892, pp. 14 et seq.; ibid., 1893, p. 1. SB Ibid., 1893, pp. 1-2. 39 Ibid., 1893, p. 2. ^Proceedings International Seamen's Union, 1893, p. 7; 1895, p. 7. 4* Annual Report Lake Carriers' Association, 1893, p. 22. 42 Ibid., 1893, pp. 13-14. The prosecution of union men and the defense of non-unionists arrested during fights and pistol duels caused one of the greatest items of expense for the association during this year. 171] BEGINNINGS OP ORGANIZATION 21 charged to these encounters. Police protection varied inversely with the strength of unionism in politics and directly with the degree of influence exerted by the members of the Lake Carriers' Association. For example, in Buffalo, one of the two chief cen- tres of the Lake Carriers' Association strength, ninety police officers were detailed by the city authorities to give non-union men protection while in port. And this without expense to the vessel owners. 43 While in Chicago, the centre of union strength, the vessel owners and their non-union employees were left to the mercy of the union pickets. Measured by the shipments of iron ore, lake traffic decreased over 30 per cent in the depression of 1893 and the 1892 figures were not reached again until 1895. This slump in traffic created a surplus of labor and, together with the dissensions which de- veloped within the ranks of the union, helped the Lake Carriers' Association in its fight to disrupt the union. In spite of the inclusive declaration to the press which accompanied the re- organization of the Lake Seamen's Benevolent Association in 1891, 44 the rank and file of the union were still opposed to ac- cepting steam-boatmen as members. After a two years' strug- gle to prevent the lake seamen from withdrawing from the Knights of Labor, the Milwaukee local gave up the fight at the beginning of 1894 and started a new organization to be composed of steam-boatmen and sailors and to be called the Lakefaring Men's Union. 45 It was thought by the seamen's union that this new organization was fostered by the Lake Carriers' Association to divide the forces of the seamen. At about the same time the Steamboatmen 's Protective Association, to be composed of wheelsmen, lookoutsmen, watchmen, and stewards, was started at Chicago with 150 members. A general organization to include all steam-boatmen on the Lakes was planned. 46 The general dissatisfaction with the failure of the Lake Sea- men's Benevolent Association to withstand the attacks of the Lake Carriers' Association in 1893, together with the formation of the dual organizations, brought about another reorganization of the parent union in 1894 under the name of Lake Seamen's 43 Annual Report Lake Carriers' Association, 1893, p. 12. 44 Cf. supra, p. 18. 45 Journal Lake Seamen '3 Union, in ms., Jan. 30, 1894. 46 Marine Review, Jan. 5, 1892, p. 12. 22 WAGE BARGAINING ON LAKES [172 Union. 47 A definite effort was then made to enlist in its mem- bership the able seamen on steam-boats. Men were plentiful at this time, however, and the efforts of the union were unavailing for a time, either to increase its membership or to secure favor- able terms from the vessel owners. For the third time the owners of the vessels which carried iron ore had succeeded in driving the seamen's union from the Lakes twice when organized in the Cleveland Vessel Owners' Association and once in the Lake Carriers' Association. At no time had there been any serious talk of compromise, of trade agreements, of giving the men on the boats a voice in the de- termination of the conditions under which they worked. In- censed at the dictatorial methods of the early unions, the owners began a counter attack and won the first open battle in 1881. Intermittent guerrilla warfare during the succeeding four years was followed by the second open fight in 1885 and again the owners won. Again the union resorted to secret attacks upon non-unionists and vessel owners until, encouraged by reinforce- ments in 1891, its members began the third campaign against the combined forces of their union-hating employers. Like the vessel owners, the unionists did not wish compromise or trade agreement, but sought dictation of the terms of their employment instead. 47 Journal of Lake Seamen's Union, in ms., Mar. 6, 1894. CHAPTER II GROWING CONCENTRATION By 1896 the bulk freight traffic on the Lakes had become definitely established as primarily a movement of iron ore. Ship- ments of coal up the Lakes were increasing to be sure, but such cargoes were profitable only when carried in the vessels which brought ore down the Lakes. The coal was carried to offset the charges of returning the vessels to the ore mines. The ship- ments of grain, the nearest rival to ore, amounted in 1896 to less than 5,000,000 tons; the shipments of ore amounted to more than twice as much as the shipments of grain. The banner year for grain shipments was 1898 when slightly more than 6,000,000 tons were received at Buffalo. 1 Since then the grain trade has declined nearly 50 per cent. This decline has been due to changed conditions of agriculture, more grain now being fed to stock than formerly, and to larger shipments south rather than east. 2 On the other hand, annual ore shipments since 1896 have in- creased from 10,000,000 tons to 65,000,000 tons. Owing to the depression in the early nineties, but little more ore was shipped in 1896 than in 1890 ; but beginning in 1896 the increase in ore traffic has been rapid and, except for occasional lean years, continuous. During this time capital invested in every branch of the iron and steel industry and hence control of every branch of the in- dustry has become concentrated into fewer hands. This con- centration of control has affected lake traffic as well. Previous to 1897 there had been corporate control of a part of the vessels and the furnace interests were large owners of boats. But up to this time the independent boat owners, those with no mine or 1 Marine Record, Oct. 20, 1898, p. 8. 2 Marine Review, Jan. 22, 1906, pp. 15-16. 23 24 WAGE BARGAINING ON LAKES [174 furnace connections, had maintained a fair balance of power. Small fleets were most common. The Mesabi Range was opened in 1892. 3 Three years later it took the lead in ore shipments, sending nearly 3,000,000 tons to the Lake Erie ports. By 1901 it was furnishing approximately one-half of the ore shipped from Lake Superior. Since 1905 it has furnished from 60 to 75 per cent. 4 Before the formation of the United States Steel Corporation, it had not been the policy of the Carnegie interests to own either mines or vessels. Hence when the Rockefeller interests secured control of the Mesabi Range 5 they sold the ore to the Carnegie Steel Company and also secured a contract to convey it to the Lake Erie ports. In December, 1895, Rockefeller placed orders for seven steamers and five barges which formed the nucleus of the fleet which for a short time exerted a great influence in lake ore traffic. 6 Rocke- feller's contract for selling ore to the Carnegie Steel Company stipulated that the Rockefeller fleet would be given a minimum of 1,200,000 tons annually at the going rate for the season. 7 The importance of this clause will be noted later. The coming of the Rockefeller or Bessemer fleet meant many changes in the methods of dealing with the various classes of labor on the boats. Although the managers of the new fleet in- troduced relatively few new ideas, they put into successful oper- ation for the first time many ideas already in the minds of the managers of other fleets. With the appearance of the large steel steamer and the organization of the larger fleets, the old system of leaving the entire control of the vessel, including the charter- ing of cargoes, collecting of freight, etc., to the captain gradually had disappeared. But as yet the captain had received but little dictation in the actual management of his boat or in the control of his men. Up to this time the two chief requirements of the captain were 3 During this year it sent 4,245 tons of ore down the Lakes. Marine Record, Dec. 14, 1899, p. 9. * Annual Eeports of Lake Carriers' Association, passim. 5 During the panic of 1893 John D. Eockefeller secured his title to the ore deposits, accidentally perhaps. Annual Report Lalce Carriers' Asso- ciation, 1910, p. 112. Marine Review, Dec. 12, 1895, p. 5. 7 Ibid., Jan. 14, 1897. 175] GROWING CONCENTRATION 25 that he be a successful navigator and that he be able to handle his men, using force if necessary to quell mutinies and other disturbances on the boat. These were heritages from the days when the sail-boat and the sailor dominated lake traffic. Then small investments in boats made wages the chief element in the cost of delays. And if delays were occasioned while the boat was in port, even this cost was reduced to a minimum since only the captain and the cook were retained on the pay-roll. All this was changed when a costly steam-boat with a heavy overhead expense replaced a cheap sailing vessel with prac- tically no costs but wages and repairs. Then too, in the sailing vessel the captain had at one time or another filled every position from royal boy up; on the steam-boat he was a graduate of the forward end of the boat only and he knew nothing of the opera- tion of the boat's machinery. In the first place, then, the an- cient prerogatives of the master of the boat began to be over- ruled by the owner of the boat who insisted upon a more business- like management of his large investment; and in the second place, the supreme authority of the master began to be ques- tioned by the chief engineer, a man who looked upon his position as of at least equal importance with that of the captain and who, therefore, looked to the owner of the boat rather than to the captain for his orders. These changes were accentuated in the Bessemer fleet. A shore captain or commodore was appointed to whom the captain must look for his orders. 8 The engineer received his orders from a similar official known as the fleet engineer. Dispatch meant greatly increased dividends and attention was given to fuel costs, time studies in running light and in running loaded, etc. Definite schedules were made showing the amount of fuel to burn per hour and the rate of speed to be followed. In numerous other ways system replaced luck and efficiency be- came the watchword. Masters were required to give orders to engineers in writing in order to place responsibility in case of mistake. 9 Finally, another important change occurred in the attitude of the owner toward the employees on the boats. In sailing days a Marine Review, Feb. 27, 1896, p. 7. o Ibid., passim. 26 WAGE BARGAINING ON LAKES [176 it was customary for the captain to hire for a single trip and to dismiss his crew as soon as he reached port. In securing a new crew upon leaving port he might, of course, hire a part of the same men. This was largely a matter of accident. In so far as the unions controlled the men the chances were against a man sailing on the same boat very long at a time, for if there were idle men in port these were given first opportunity to ship. Furthermore, but little inducement was offered to keep men on the boats. Living quarters furnished the minimum accommoda- tions for physical well-being and food was poor in quality and illy prepared. 10 Seamen were considered to be so many units of labor power and that captain was considered most successful who could extract this power with least expense and least open hostility. This failure to provide physical comforts and to con- sider sailors as more than machines had its effect in the low class of men who were attracted to this work. In the early days of steam-boat supremacy this attitude was continued and it was not expected nor desired that unlicensed men should remain long on a boat. Firemen and deckhands es- pecially were recognized as a shifting lot of rough characters and no owner expected much of these men except the exercise of brute strength during the time they were employed. A few owners were beginning to take steps to change these conditions when the Bessemer fleet was organized, but it was left to this line of boats to announce the change as a definite policy of the management. As soon as these boats were launched the man- ager announced that he proposed "to offer every inducement for crews to remain aboard their vessels, year after year, and to seek promotion, with a full understanding that they are to be promoted if they are deserving of it, and that a system of ad- vancement, from firemen up, is to be encouraged on the com- pany 's boats. ' ' " Wholesome food and comfortable quarters were provided and attention was given to the selection of men employed on the boats. In 1896 the ore carrying tonnage on the Lakes was increased over 20 per cent by the appearance of thirty new boats having a gross tonnage of over 100,000 tons. 12 This increase in tonnage 10 Marine Review, passim. 11 Ibid., July 2, 1896, p. 7. 12 Ibid., Feb., 1910, pp. 64-65. 177] GROWING CONCENTRATION 27 was equal approximately to the additions of the preceding three years. In the absence of a combination to fix rates, the competi- tion produced by this addition to the carrying capacity of the ore boats reduced charter freights for the following year from $.91 per ton to $.63 per ton. 13 In 1897 eighteen more boats with a tonnage of 58,000 were built and in 1898 freights ruled at $.61 per ton. 14 In the fall of 1898 unusually severe storms on the Lakes made a considerable reduction in the available tonnage. The Span- ish-American War drew from the Lakes a large number of wage earners 15 and attracted to the Atlantic Coast numerous lake bulk freighters. 16 At the same time the boom period on the Lakes, following the return of prosperity in the late nineties, created an unprecedented demand for both boats and men. In spite of the fact that dispatch in loading and unloading boats and time study in running the boats were greatly increasing the possible annual carrying capacity, ore freights rose from $.61 per ton in 1898 to $.95 in 1899. Other freights rose in pro- portion. Such freight rates on tonnage approximately as great as that in 1896 made the year 1899 by far the most prosperous ever experienced by the vessel owners. The increasing demand for iron and steel products indicated a banner year for 1900. As stated above, the Bessemer Steamship Company was guaranteed an annual tonnage of 1,200,000 tons by the Carnegie Steel Com- pany at the going rate for the season. Anticipating a capacity demand for vessel tonnage in 1900, the Rockefeller interests be- gan as early as October, 1899, to charter all available boats for the following season. 17 The knowledge of this fact in itself forced up charter rates for 1900. In addition, boats represent- ing a total capacity of 100,000 tons were held at the docks by is These are average freights from the mines at the head of Lake Su- perior to the receiving ports on Lake Erie. i* In December, 1897, the executive committee of the Lake Carriers' Association discussed a change in the by-laws of the association to permit the adoption of minimum freight rates for the following season. This ef- fort to fix freight rates by the association, like previous similar attempts in the same direction, failed. Marine Review, Dec. 9, 1897, p. 7. is Ibid., June 16, 1898, p. 8. is Marine Eecord, Mar. 16, 1899, p. 10. 17 Ibid., Oct. 26, 1899, p. 7. 28 WAGE BARGAINING ON LAKES [178 the Bessemer Steamship Company in June, 1900, and another increase was effected. 18 The rate for 1900, corresponding to those already quoted, was $1.05 per ton an increase of $.10 over 1899. During the same year freights on coal and grain fell as follows : hard coal Buffalo to Chicago, $.73 to $.48 per ton ; soft coal Ohio ports to Milwaukee, $.69 to $.45 per ton ; and wheat Duluth to Buffalo, $.036 to $.020 per bushel. 19 The reaction which resulted from this demonstration of the ability of the Rockefeller fleet to control freight rates on iron ore brought about important changes in the control of lake traf- fic and in the relations of the vessel owners to the men employed upon the boats. There had always been a fairly constant relationship between the wages of one class of men on the boats and those of each of the other classes. So that to the vessel owner one union strong enough to maintain wages or to force increases was as undesir- able as an effective union for each class of employees. Up to this time the seamen's union had occasioned most annoyance to the owners. When the Lake Carriers' Association had ended their campaign of 1893 against this union the only barrier be- tween the vessel owner and his right to manage his boat as he saw fit had been removed. In the absence of any effective labor organization, the owners had little trouble in reducing wages. The reductions from 1893 to 1897 were as follows: 20 WAGES PER MONTH STEAMERS 1893 1897 First mates $60-$80 $50-$75 Second mates 45-60 40-50 Wheelsmen 30-37.50 25-30 Watchmen and lookoutsmen 30- 37.50 25- 30 Deckhands 15-20 15 Chief engineers First class boats 115-125 105 Second class boats 100-115 90 Third class boats 80-100 60- 75 i& Marine Record, June 7, 1900, p. 11. is Marine Review, Dec. 26, 1907, p. 23. 20 From data compiled for the writer by the secretary of the Lake Car- riers ' Association. 179] GROWING CONCENTRATION 29 Second engineers First class boats 75- 80 70 Second class boats 70- 75 65 Third class boats 60- 70 50 Firemen 30-37.50 25-30 Oilers 30-37.50 30 Chief cooks 45- 55 40- 50 Second cooks and helpers , 15- 20 12- 15 SAIL-BOATS AND CONSORTS First mates 45-60 30-45 Second mates 35- 45 35 Cooks 30-37.50 25-32 Seamen 30-37.50 20-30 Deckhands and boys 15- 20 13- 17 The wages for 1898 were the same as for 1897. By 1898 the general unrest among the wage-earners on the Lakes had taken the form of increased union activity and membership in all lake organizations grew very rapidly. The heavy enlistments in the Spanish-American War took many workers from the boats and perhaps would have made labor scarce even in a normal year. But in a year of unusual traffic the scarcity of men was very marked and gave the unions considerable advantage. More wages were demanded and at the opening of navigation in 1899 the following wages were paid as compared with those paid in 1898 : 21 WAGES PER MONTH STEAMERS 1898 First mates $50-$75 Second mates 40 50 Wheelsmen 25- 30 Watchmen and lookoutsmen 25 30 Deckhands 15 Chief engineer First class boats 105 Second class boats 90 Third class boats 60-75 Second engineer First class boats 70 75 Second class boats 65 70 Third class boats 50 55 21 From data compiled for the writer by the secretary of the Lake Car- riers ' Association. 30 WAGE BARGAINING ON LAKES [180 Firemen 25- 30 30- 35 Oilers 30 35 Chief cooks 40- 50 45- 55 Second cooks and helpers 12 15 17- 20 SAIL-BOATS AND CONSORTS First mates 30- 45 35- 50 Second mates 35 40 Cooks 25-32 30-35 Seamen 20- 30 25- 30 The success of this wage demand gave the men on the boats confidence in their organizations and made the union leaders conscious of their power. The wages paid at the beginning of 1899 had scarcely restored the scale paid in 1893. 22 Increases ranging from $2.00 to $5.00 per month were granted to all em- ployees on the boats below the licensed officers on August 15, 1899, and in September the third increase for the year, ranging from $2.00 to $22.00 per month and applying to practically all men on the boats, was granted to take effect October 1, 1899. 23 Again at the opening of navigation in 1900 the employees below the licensed officers received substantial advances over the high- est wages paid in 1899. 24 In the scramble for the unusual profits to be had in the ore carrying trade, the owners did not dare risk a tieup of their boats in a strike. Hence the demands of the unions met no organized opposition and indeed but little objec- tion from individual owners. In order to understand the development of union policies at this time, a brief summary of the history of the labor organiza- tions on the Lakes is necessary. The history of the Lake Sea- men's Union has already been traced to 1896. In its reorgan- ization after its third disruption by the Lake Carriers' Asso- ciation, it definitely abandoned its opposition to steam-boatmen and depended upon this class of men for increases in its mem- bership. In fact, from this time on it was dominated by able seamen who worked on steam vessels. The organization of deck- hands was discussed from time to time, but it was not until January, 1902, that a majority of the membership of the union 22 Marine Record, Aug. 17, 1899, p. 13. 23 Hid., Sept. 28, 1899, p. 5. 24 From data compiled for the writer by the secretary of the Lake Car- riers ' Association. 181 j GROWING CONCENTRATION 31 was made to see that every deckhand was a potential wheels- man or watchman, especially if trouble should come with the owners. Separate organization of deckhands was discussed for a time but finally, in January, 1902, it was voted to accept them as members of the Lake Seamen's Union, to be given a black book or ordinary seamen's book. 25 Even then some of the local unions refused to abide by the decision of the Lake Seamen's Union and made little effort to join the deckhands within their jurisdiction. At the same time the deckhands were not easily organized. Being a shifting conglomerate of tramps, criminals, school boys, and young men who had some expectation of fol- lowing the Lakes for a living, the changes from deckhands to able seamen and the desertions from the boats to enter some other work made it almost impossible to gather together and to hold such men in a union. Hence for a year after it was voted to accept deckhands to membership in the union all efforts to organize them failed. With the increase in the number and size of steam-boats on the Lakes, there developed the need for organization of firemen and engineers. The first firemen's union was formed at Cleve- land, April 12, 1888. On April 28 of the same year a similar organization was formed at Buffalo. These two organizations were unaffiliated except as they had mutual interests in the Knights of Labor. In 1891 the firemen withdrew from the Knights of Labor and incorporated in the State of New York under the name of Marine Firemen, Oilers and "Water Tenders' Benevolent Association of the Great Lakes. This charter was retained until 1898. 26 During these ten years the methods em- ployed by the firemen in dealing with their employers were very similar to those employed by the seamen. As a rule the fire- men were as difficult to organize as were the deckhands and because the nature of their work demanded on the whole a hard- ier set of men they were perhaps even more difficult to manage. The firemen's union was always numerically weak and the Lake Carriers' Association had even less difficulty in subduing them than in keeping the seamen quiet. In 1899 the firemen numbered but 300. They had applied several times for admit- 25 Proceedings Lake Seamen 's Union, 1902, p. 16. 26 Ibid., 1906, pp. 94-95. 32 WAGE BARGAINING ON LAKES [182 tance to the seamen's union, but the sailors looked upon the firemen with the same contempt as they applied to the deckhands and refused the applicants admittance. In 1899 the firemen af- filiated with the International Longshoremen's Association and under the leadership of this organization increased in numbers very rapidly. Previous to 1902 the cooks had no lake union. In the days of sail-boat supremacy, very often the cooks were members of the seamen's union. Those employed on steam-boats in 1901 who were members of any labor organization belonged either to the Hotel and Restaurant Employees' International Association or to the Bartenders' International League of America. Outside of the Buffalo local, the marine cooks formed the minority in these organizations. In 1900 and again in 1901 the Lake Sea- men's Union tried to organize the cooks on the lake boats, but the opposition of the American Federation of Labor prevented. In February, 1902, the Marine Cooks' Association of the Great Lakes was formed at Cleveland. 27 Early in 1903 this union called a general convention of all cooks on the Lakes to meet in Detroit. It was here decided to withdraw from the hotel em- ployees' and bartenders' unions and to affiliate with the Lake Seamen's Union. The first union of steam-boat engineers on the Lakes was formed at Buffalo in February, 1854, to resist a reduction in wages. 28 The movement was successful and the union continued in existence until 1857. By this time wages were satisfactory and union activity was permitted to lapse. "Wages were re- duced in each of the two years following the breakup of the union. When the outbreak of the Civil "War failed to restore wages to their former level, the union was reorganized on Feb- ruary 25, 1863, and a considerable increase in wages was ob- tained. Buffalo was at this time the centre of Lake Erie ship- ping and it was not until several years later that the operation of steam-boats became an important trade at other lake ports. The lake engineers joined in the movement for the organ- ization of the National Marine Engineers' Association of the 27 Marine Record, Mar. 20, 1902, p. 8. 28 Proceedings Marine Engineers' Benevolent Association, 1899, pp. 101-2. 183] GROWING CONCENTRATION 33 United States of America which- was formed at Cleveland, Feb- ruary 21, 1875. 29 This association was not a wage regulating 1 union at the time of its organization, although from the begin- ning a minority of its members insisted that the regulation of the wages of its members should be one of its objects. It con- tinued as a benevolent and fraternal association and in 1882 it amended its constitution to prohibit any subordinate association from dealing with the question of wages. 30 To make this policy of the association clear, the name of the organization was changed the following year to National Marine Engineers' Benevolent Association. 31 Indirectly, however, the actions of the association did influence wages. For example, an applicant for the government license required of engineers must be recommended by two men who already held such licenses. As early as 1885 the association voted that its members must not sign such applications until given permission to do so by the nearest subordinate association. 32 The association has also given much attention to legislation af- fecting lake navigation, the number of men required by law to man the boats, etc., so that by these means it has influenced the supply of available engineers on the Lakes and hence, indirectly, wages. At various times as in 1895 and in 1899 the association took a direct stand for wage increases. 33 It was not until the latter year, however, that the trade union minority became the majority and brought about a definite change in the policy of 29 Proceedings National Marine Engineers' Association, 1875, p. 4. so Ibid., 1882, p. 28. si Proceedings National Marine Engineers' Benevolent Association, 1883, p. 77. With this definite statement of policy concerning wages came a change in the attitude of the vessel owners toward the association. For- merly opposed to it because some of the local associations carried on minor strikes, the owners now gave their support to the association and in some instances refused to hire engineers who were not members. 32 Ibid., 1885, p. 320. as In 1895 the president of the union asked the Lake Carriers' Asso- ciation for a wage conference but was refused. Marine Review, Feb. 7, 1895, p. 10. In 1899 the union took part in the general demand for wage increases on the boats and after threats to strike secured an advance of 20 per cent, to take effect October 1, 1899. Proceedings Marine En- gineers' Benevolent Association, 1900, pp. 210, 329, 330. 34 WAGE BARGAINING ON LAKES [184 the organization. This change is best shown by the address of president of the association in his annual report delivered Jan- uary 22, 1900. In discussing the futility of depending entirely upon legislation and the need for a change in the policy of the association he said in part: 8 * The policy that for years has dominated our methods and procedures in their application to the establishment and continuance of suitable and just recompense for our labor, hours of service, and assistance in our particular department, has outlived its usefulness and the policy of conservatism and reserve is no longer sufficient to meet the conditions that they once over- came, for the inclination on the part of the owners, managers, agents and others to be just and fair, has given way in a majority of instances, to arrogant spirit of selfish presumption that can be met only by the defiant courage of a body of men who have not yet forgotten that we have as much right to name our price, as the great trusts of the present day have to offer remuneration that hereafter can only be spurned as not worthy of considera- tion, and which can only be interpreted as an attack upon the value, use- fulness and integrity of a profession, without which they cannot operate, and who will hereafter see to it that they are recognized in all matters where their interests are involved, or where their comfort, their manhood, and their self-respect are at stake. . . The people with whom we are dealing must be made to understand that the Marine Engineers of this country have discarded the swaddling clothes of timidity, humiliation and fear, and that they stand forth today, happy in the knowledge that the door of opportunity stands wide open, that at last they are awake, and henceforth will work under conditions that will in a sense, guarantee some adequate return for the responsibilities, dangers, dis- comforts, and distress of our profession. This declaration launched the marine engineers upon a cam- paign as a militant union which was destined to give vessel owners much concern for several years. The history of associations of captains or masters up to this time is somewhat like the history of the Marine Engineers' Benevolent Association; having in common the absence of ag- gressive unionism. Formerly mates and occasionally a captain who did not own his boat were members of the seamen's union. This was not the general practice except as the seamen tried on one or two occasions to force the masters into their union in or- der to fortify themselves against discrimination by the owners since the master hired the men. As already noted, the introduction of the steam-boat, involv- ing a large investment of capital and a heavy overhead expense, 3* Proceedings Marine Engineers' Benevolent Association, 1900, p. 210. GROWING CONCENTRATION 35 forced a change in methods of ^navigation which in turn de- manded a different type of men to command the boats. The line managers at Buffalo were the first to insist that their cap- tains obtain more knowledge of navigation and suggested the es- tablishment of a nautical school for this purpose. The masters rebelled and refused to be considered novices at their trade or pro- fession. At the same time some of the more thoughtful recog- nized the change taking place in lake navigation and offered as a substitute an association of the masters themselves. According- ly, on March 2, 1886, the Excelsior Marine Benevolent Associa- tion was formed by the captains at Buffalo. 35 One of the ob- jects of the new association was ' ' to discuss matters of benefit to those in our calling, so as to make us more desirable to the owner of the craft we navigate." In 1887 organizers were sent out to other ports and other locals were formed. 36 In 1891 a general organization was formed, retaining the name of the original Buffalo local. In 1893 the name was changed to Ship Masters' Association. 87 Except for its beneficial features, this associa- tion has always been more closely identified with the owners' associations on the Lakes than with the marine trade unions. Parallel with this association another and more inclusive or- ganization developed, including in its membership masters and mates on the Lakes. On January 17, 1887, the American Brotherhood of Steamboat Pilots was formed in New York City as a benevolent and fraternal association. 38 In 1893 its name was changed to American Association of Masters and Pilots. For some time it gained little support on the Lakes because of the success of the Ship Masters' Association. The latter soon came to be influenced largely by the boat owners, many of whom had once been captains and members of the association. Some of these retained their membership even after leaving the boats. 35 Beers, op. cit., p. 491. The organization of this association did not immediately satisfy the owners, however, for during the same year the Lake Carriers' Association started a school for masters and mates at Buf- falo and gave serious consideration to a proposal not to hire in 1887 any but those who could pass the examination conducted by their school. An- nual Report Lake Carriers' Association, 1886, p. 9. se Beers, op. cit., p. 492-3. 37 Marine Review, Jan. 26, 1893, p. 6. ss Beers, op. tit., p. 495. 36 WAGE BARGAINING ON LAKES [186 Other owners were warm personal friends of members of the association and through their friendship helped to influence the policy of the organization. Gradually, as the Ship Masters' As- sociation became more conservative, and as the American Asso- ciation of Masters and Pilots became more radical and wage- conscious, the latter seemed to many masters on the Lakes to more nearly meet the needs of their calling and it gained in strength. Especially was this true in 1899 and the following years when the general labor unrest on the boats spread to many of the younger captains and mates. 39 Other short-lived frater- nal and benevolent associations of masters and mates on the Lakes, such as the Whales or the Lake Pilots' Aid Association, had ceased to exist by 1899 and hence had no influence upon the period of trade agreements which began at this time. 89 Marine Eecord, Jan. 31, 1901, p. 7; Feb. 28, 1901, p. 8; March 14, 1901, p. 7; July 18, 1901, p. 6; etc. CHATER III TRADE AGREEMENTS At the time of the amalgamation of the Cleveland Vessel Owners' Association and the Lake Carriers' Association, each was composed of fleets aggregating about 300,000 tons. During the first year of the reorganized Lake Carriers' Association, the enrolled tonnage was as follows : 1 Number of Boats Tonnage Steamers 360 430,880 Schooners 255 149,039 Total 615 579,919 This tonnage increased to 842,248 in 1900. 2 In the meantime the character of enrolled ships underwent a great change. The schooners largely dropped out of the association as did also the steam-boats under 1200 tons and the fleets composed entirely of vessels under 1400 tons. 3 By 1900 the Lake Carriers' Associa- tion had became an organization of ore carrying boats and the schooners and smaller steam-boats had been relegated to the lumber trade. In 1897 the Bessemer Steamship Company, with a tonnage of 48,661, constituted but 7 per cent of the tonnage of the Lake Carriers' Association; while the eight largest fleets in the asso- ciation made up less than one-third of its tonnage. By 1900 the Bessemer fleet had increased to 114,964 tons which was but 13.6 per cent of the enrolled tonnage of the association. Never- theless the appearance of the Bessemer fleet was the signal for opposition on the part of independent vessel owners who feared a Rockefeller-Carnegie combination which would deprive them of their business. The steel producers, with the notable excep- 1 Annual Eeport Lake Carriers' Association, 1893, p. 3. 2 Marine Eecord, Jan. 17, 1901, p. 10. s Ibid., Jan. 18, 1900, p. 20; Jan. 16, 1902, p. 13. 37 38 WAGE BARGAINING ON LAKES [188 tion of the Carnegie Steel Company, had for a number of years carried a part of their own ore and collectively had exerted enough influence upon lake traffic to defeat previous attempts by the independents to regulate ore freight rates. But when freights fell to the lowest point in the history of lake traffic in 1897 and 1898, the independent vessel owners gave an undue share of the blame to the Bessemer Steamship Company and again planned to regulate ore rates. 4 In the rush for a share of the great profits which resulted from carrying ore during the two prosperous years which followed, the plan was abandoned. The temporary success of the Rockefeller interests in boosting freights in 1899 prompted the formation of the Pittsburg Steam- ship Company by the Carnegie interests at the close of that season. 5 Starting with six boats at the beginning of the follow- ing season, it soon increased the number to twelve and planned the building of a ship-yard at Conneaut. Although the Rocke- feller interests had succeeded in maintaining an artificial stand- ard of freight rates, the high charter fees paid to the inde- pendents had absorbed most of the profits. This fact, together with this possibility of a rival Carnegie fleet, induced the Rocke- feller interests to sell out to the Carnegie Steel Company in August, 1900. 6 Then came the organization of the United State Steel Corpora- tion. "When first announced nothing was said about the pur- chase of mines or boats, but in March, 1901, it was announced that the former Rockefeller interests on the Lakes, including the Bessemer Steamship Company, had been absorbed by the Steel Corporation. 7 In addition the Pittsburg Steamship Com- pany, the Steel Corporation fleet, purchased other fleets so that in 1901 it owned 112 boats having an aggregate tonnage of 285,- * The real basis for complaint by the independents was the f act that their boats have always been used merely to carry ore which the boats owned by the furnace interests cannot handle. In a dull season such as 1897 it could easily happen that the furnace interests could carry all the ore they needed. Their boats were kept busy during both dull and heavy seasons, while they employed outside tonnage only when the demands for ore exceeded their own carrying capacity. 5 Marine Eecord, Nov. 16, 1899, p. 11. e Ibid., Aug. 16, 1900, p. 6. T Ibid., Mar. 21, 1901, p. 6. 189] TRADE ARGEEMENTS 39 565 tons, or 33 per cent of all 'tonnage enrolled in the Lake Carriers' Association. 8 Having absorbed the Rockefeller fleet and finding the inde- pendents fighting each other for charters, the reorganized Pitts- burg Steamship Company had little difficulty in ruling ore freights in 1901. The independents again discussed combination to maintain rates, but the uncertainty of securing charters for 1 all, in the presence of a single shipper owning a fleet with a carrying capacity of more than one-third of the ore to be brought down the Lakes caused a rush for charters instead. 9 As a result ore freights fell from $1.05 in 1900 to $.84 in 1901, in spite of the fact that the boats were held at the dock until the middle of May by the engineers' strike. 10 During the year the absolute power of the new fleet was demonstrated when independent vessels were held up at both the upper and the lower docks to permit the Pittsburg Steamship Company's boats to exercise greater dispatch in loading and unloading their cargoes. 11 These delays caused considerable loss to the independent owners. Nevertheless the independents were largely dependent upon the Steel Corporation for their cargoes so that they dared not com- plain. A further decrease to $.76 per ton was experienced in 1902. Vessel owners had never been regular attendants at the meet- ings of the Lake Carriers' Association, leaving the management in the hands of the executive officers. In fact, the association had existed only from year to year. Not all of its membership was constant and members withdrew from or joined the associa- tion according as its policy displeased or pleased them. 12 This was especially true of the independents in regard to the labor policy of the association. One of the greatest offenders in this respect was the owner of the largest independent fleet, a man who in 1901 controlled over 11 per cent of the tonnage of the asso- s The total tonnage in 1901 was 874,203 tons. Annual Report Lake Carriers' Association, 1901, pp. 19-20. a Marine Record, Apr. 11, 1901, p. 7. "Also ore shipments were nearly 8 per cent greater in 1901 than in 1900. 11 Ibid., Dec. 5, 1901, p. 7. 12 Proceedings Lake Carriers' Association, passim. 40 WAGE BARGAINING ON LAKES [190 elation. 13 If an increase in wages was granted by the association, and he believed he could secure non-union men at lower terms, he often refused to abide by the ruling of the association and withdrew for a time. On the other hand, if an increase in wages was demanded and refused and a tie-up of traffic was threatened, he never failed to grant the union's demands if by so doing he could operate his boats and secure profits while others were idle at the dock. In this policy this fleet was followed by others of smaller size but which, taken together, at times forced the Lake Carriers' Association to change its decision. Being a purely voluntary, year-to-year organization, the asso- ciation had no power to discipline members who violated its rules or refused to abide by majority vote. Meantime the power of the Steel Corporation as a boat owner was feared by other mem- bers of the association and the organization of the corporation's fleet almost disrupted the association. Owning the most up-to- date boats on the Lakes, and being able at all times to drive their vessels to the limit, the owners of this fleet expected to secure the most efficient men available to man their boats and were willing to pay high wages to such men. Other members of the association recognized that a standard so set would be forced up- on them also. Hence they sought a means to control the pay- ment of wages to all employees on the Lakes. A third factor which aided in bringing about a reorganization of the Lake Car- riers' Association was the growing strength of the unions, in- cluding at this time every man on the boats from the captain down. The Bessemer Steamship Company's insistence upon a busi- ness-like management of its vessels was but a beginning to the changes which took place when the United States Steel Corpora- tion assumed control in 1901. Captains were shifted about from boat to boat in the interests of efficiency. 14 They were no longer permitted to hire their men but every employee on the boat, from the chief engineer to the deckhand, was supplied by the management on shore. It had been customary for the captain, upon reaching a port near his home, to visit his family while his boat was being loaded or unloaded. Now this privilege was de- is Proceedings Lake Carriers' Association, 1901, p. 18. i* Marine Record, June 20, 1901, p. 6. 191] TRADE ARGEEMENTS 41 nied him and he was not permitted to leave port except by per- mission of his manager. 15 In these and other ways the reins over the captain were gradually tightened until he came to feel that he had no greater privileges or authority and was considered of no greater importance than a deckhand. At its annual convention in January, 1901, the Marine En- gineers' Benevolent Association made a new classification of lake boats, 16 involving a demand for more help in the engine room and a considerable increase in wages. 17 The demands were presented to the Lake Carriers' Association on January 26, 1901. At first they were ignored by the Lake Carriers' Association but later the president of the union was told that he must deal with the individual owners. 18 Being protected by their licenses so that strike breakers could not be secured to take their places, the union set a date for settlement and threatened increased demands if their original terms were not complied with. A strike was called on February 27 and owners outside of the association hastened to accept the classification proposed by the union. 19 Members of the association were more hesitant about accepting the union's terms but by May all of the owners, acting individ- ually and including the Pittsburg Steamship Company, had made peace with the union upon terms which gave its members all their original demands and a wage scale considerably in ad- vance of that at first submitted. 20 To prevent a repetition of such a strike, the Pittsburg Steam- ship Company, at the close of the season of 1901, asked its en- gineers to sign individual contracts which would permit it to hold back the first month's pay in order to insure continuous 18 Marine Record, Sept. 5, 1901, p. 7. is Formerly this was done by the Lake Carriers' Association alone, without consulting with any of the employees. Marine Record, Jan. 31, 1901, p. 10. 17 Proceedings Marine Engineers' Benevolent Association, 1901, p. 159. is Annual Report Lake Carriers' Association, 1901, p. 10. is Proceedings Marine Engineers' Benevolent Association, 1901, p. 233. 20 Marine Record, May 2, 1901, p. 7. Aside from increases in wages, the chief gain for the union was an increase in the number of assistants on the boats. In discussing this gain the president of the union said: ''Steamers that have never carried oilers are now carrying one, and in many cases two." Proceedings Marine Engineers' Benevolent Associa- ti^n, 1901, p. 244. 42 WAGE BARGAINING ON LAKES [192 service throughout the season. 21 The officials of the union ad- vised against this policy, fearing that a few contracts might pre- vent any aggressive action by the organization. In spite of this warning a small number of contracts were signed for the season of 1902. However, they were not numerous enough to warrant any wage reductions by the Pittsburg Steamship Company in case any such action was contemplated. In addition to these con- tracts, the Pittsburg Steamship Company declared a bonus to their engineers for the season of 1901, ranging in amount from $77 to $100, to be paid when the engineer had actually started to work for the season of 1902. 22 Neither the Ship Masters' Association nor the American Asso- ciation of Masters and Pilots took any part in the engineers' strike of 1901. 23 After failing to induce either of these asso- ciations to act, a small number of captains, some of whom were members of one or both of these organizations, formed a new organization in March, 1901, to help the engineers. They called it the Ship Masters' Protective Association. 24 It did not gain sufficient strength of numbers to be of use to the engineers and after the settlement of the strike it disbanded. Under the restrictions imposed by the Pittsburg Steamship Company throughout the season of 1901, the captains became more and more dissatisfied and the hitherto small minority in favor of a trade union began to increase in strength. Through- out the season unionism was urged until by fall the masters and mates on the Lakes were pulling in three directions: Those in control of the Ship Masters' Association constituted the con- servative wing and advocated closer relations with owners rather than any action which would incur their enmity. Those in con- trol of the American Association of Masters and Pilots proposed sufficient action to restore to the master his former authority on the boat, but without at the same time forcing him to sacrifice his individual rights in dealing with his employer. The radical wing proposed the withdrawal of the lake members of the Amer- ican Association of Masters and Pilots and the reorganiaztion of 21 Proceedings Marine Engineers' Benevolent Association, 1902, p. 252. 22 Marine Record, Jan. 23, 1902, p. 7. 23 Ibid., Mar. 21, 1901, p. 7. 2* Ibid., Mar. 7, 1901, p. 6. 193] TRADE ARGEEMENTS 43 the Ship Masters' Protective Association on distinctly trade union lines. 25 At the beginning of the season of 1902 such reor- ganization was actually attempted but again failed to gain suffi- cient support to make it effective. 28 At the opening of navigation in 1902 the firemen demanded an increase in wages. 27 The Pittsburg Steamship Company took the initiative in calling a conference of vessel owners to take some action in reaching an agreement with the firemen. Some of the owners objected to this method of procedure as did the union members who feared that the lack of responsibility on the part of the owners, meeting informally, would not insure the accept- ance of a new scale by all vessel owners. It was finally decided to leave the settlement to the Lake Carriers' Association and the union. Since the association had no power to discipline its mem- bers in case of violation of its rules, the settlement as finally agreed upon made the individual owners rather than the asso- ciation responsible for the faithful observance of its terms. The agreement fixed wages at $45.00 per month until September 1, and at $52.50 per month for the remainder of the season. 28 The firemen had acted independently in this matter and had not consulted the seamen. Hence the latter were not included in the advance promised for September 1. Spring wages for seamen were $45.00 for able seamen and $25.00 for deckhands. 29 The latter were not members of the seamen's union at that time. Although it was customary to raise wages in the fall, the seamen had no assurance of an increase as had the firemen. When Sep- tember came the seamen too demanded an advance to $52.50 and were at first refused. 30 But realizing the strength of the union and the inability of the Lake Carriers' Association to hold to- gether in case of a threatened tie-up of their boats, the owners granted the demand to take effect October 1. The seamen were asked to make the new scale rule for the remainder of the season. This request was refused. Instead, on November 1 they de- 25 Marine Record, Dec. 26, 1901, p. 6. 28 Ibid., Jan. 30, 1902, p. 11. 27 Ibid., March 20, 1902, p. 7. 28 Ibid., Mar. 27, 1902, p. 11. 29 From data furnished the writer by the secretary of the Lake Car- riers ' Association. so Marine Review, Sept. 4, 1902, p. 26. 44 WAGE BARGAINING ON LAKES [194 manded and received another advance to $60.00 per month. 31 Although the fireman had agreed to finish the season at $52.50, this second advance to the seamen called for an equal advance to the firemen to prevent a strike by that union. Anticipating the final outcome of the growing strength of the labor organizations on the Lakes in 1899 and 1900, the owners, at the end of the latter season, sought a means of counteracting union activity. In December, plans were laid to form an or- ganization to include all men employed on the boats; such or- ganization to be managed and controlled by the Lake Carriers' Association under the name of Lake Carriers' Beneficial Feder- ation. 32 In order to overcome expected opposition from union leaders it was proposed that this federation be a sort of accident insurance association and that membership in it would not debar an employee from membership in any other organization. At the same time it was expected that membership in such an or- ganization would insure greater loyalty to employers and greater continuity of service on the boats. In one of his letters to the vessel owners, explaining the benefits of the federation to the employers, the secretary of the Lake Carriers' Association made it clear that the owners would be expected to give preference in employment on their boats to holders of benefit books and that "unfaithfulness" in service would cause the forfeiture of the book and all claims to the fund. 33 The plan for the federation was definitely announced in Jan- uary, 1901, and some of the captains were notified to see to it that the men on their boats made application for membership. Because of the weakness of the loose organization of owners in the Lake Carriers' Association, it was announced that the plan would not be put into operation unless 90 per cent of the owners agreed to it. 34 The engineers' strike in the spring of 1901; the very outspoken opposition of all union leaders, backed by the almost unanimous union sentiment in all branches of labor on the boats; the growing dissatisfaction of the captains and the consequent uncertainty of their support in case of trouble with si Marine Review, Nov. 20, 1902, p. 17. 32 Contemporary numbers of Marine Review, passim and pamphlet en- titled Welfare Plan, issued by the Lake Carriers' Association in 1909. 33 Marine Record, Jan. 10, 1901, p. 7. s* IUd., Feb. 21, 1901, p. 10. 195] TRADE ARGEBMENTS 45 the other employees; and the independent owners' distrust of Steel Corporation control all combined to defeat the plan. When it was found that the requisite 90 per cent of the vessel owners were unwilling to sanction the formation of the federation, the Lake Carriers' Association announced that labor conditions ren- dered a test of the plan "inexpedient" at that time and that the matter would be held in abeyance ; but that the work already done ' ' will be available in the future if the time shall come when the members of the Association desire to revive the plan. ' ' 35 Although victorious for the moment, some of the union leaders foresaw some of the possibilities of a revival of such a plan by the vessel owners and immediately increased their activities in two directions : First, to increase their own membership ; and second, to get into closer relationship with other employees en- gaged in lake traffic. Previous to this time the relations of the organizations on the Lakes which called themselves unions had been cordial, for the most part. When unionism revived in Chicago in 1877-1878 the man most instrumental in organizing the longshoremen also took the initiative in organizing the seamen. During the following decade these unions usually relied upon each other for support in time of strike. At the beginning of the season of 1888 the formation of a trades council of lake unions was discussed but no action was taken. 36 Again in 1890 when the Seamen's As- sembly was little more than a name and when withdrawal from the Knights of Labor was under discussion, a proposal was made to the longshoremen for the formation of an Interstate Union of Sailors, Vessel Loaders, and Unloaders. 37 Before the plan could be adopted the seamen withdrew from the Knights of Labor and for a time succeeded independently. In 1891 both the longshore- men and the seamen became affiliated with the American Federa- tion of Labor. The cooperation idea continued in the minds of its originators but now became federation rather than amalgama- tion. This idea took definite form in December, 1891, in the or- ganization of the Marine Trades' and Labor Council of the ss Annual Eeport Lake Carriers' Association, 1901, p. 10. 36 Journal of Lake Seamen 'a Union, in ms., Feb. 28, 1888. 37 Ibid., Dec. 9, 1890. 46 WAGE BARGAINING ON LAKES [196 Great Lakes, including in its membership unions of longshore- men, ship carpenters and caulkers, salt unloaders, and seamen. It was expected that the unions of coal shovelers and hoisters, iron ore trimmers, grain trimmers, coal unloaders, and marine engineers would join also. The original council continued an in- different existence for four years. It was given no power and while its advice was plentiful not even the delegates who framed its resolutions heeded them while sitting as members of their own unions. 38 In the meantime the longshoremen had formed an interna- tional union in 1892. The seamen in the same year had formed the International Seamen 's Union. The latter had given up their industrial union idea of including in their organization "every man on the Great Lakes who is employed in any capacity con- nected with the Lakes" and had but gradually indeed permitted men of their own class employed upon steam-boats to join their organization. On the other hand, the longshoremen, beginning in 1892 as an international union of lumber shovers, had steadily ex- tended their jurisdiction until by 1901 they included the follow- ing trades : lumber handlers ; coal handlers ; coal, grain, and ore trimmers; ore handlers; hoisters and engineers; car dumpers, pinchers and wall trimmers; freight handlers; grain scoopers; marine firemen, oilers, and water tenders; stationary dockfire- men ; marine divers, helpers, tenders and steam pump operators ; top dock men; general dock laborers; mjll men; lumber in- spectors and sealers; and lumber pilers and yard men. 39 Except for occasional aid given to vessel owners or dock man- agers in furnishing strike breakers when the other union was on strike, these two organizations maintained an indifferent attitude toward each other during the decade following 1892. The sea- men raised no objection to the expanding policy of the longshore- men until the marine firemen, oilers, and water tenders were ab- sorbed in 1899. As already noted the seamen had themselves re- fused admittance to the firemen on several occasions. But when the International Longshoremen's Association accepted the fire- men, the seamen appealed to the American Federation of Labor ss Journal of Lake Seamen's Union, in ms. passim. **Procedings International Longshoremen's Association, 1901, pp. 48 et seq. 197] TRADE ARGEEMENTS 47 for jurisdiction over this class of labor on the Lakes. 40 This started a jurisdictional fight which weakened both organizations in their dealings with their employers. The proposal of the Lake Carriers' Association in 1901 to form a federation of all employees on the boats, to be managed and controlled by the vessel owners, aroused the unions to a renewed effort to band together for mutual protection. The marine coun- cil idea was revived. The Milwaukee unions took the lead and organized a council composed of representatives of the following unions: International Longshoremen's Association; Marine En- gineers' Benevolent Association; American Association of Mas- ters and Pilots; Licensed Tugmen's Protective Association; Ma- rine Firemen, Oilers, and Water Tenders' Union; and Lake Sea- men's Union. 41 These councils existed throughout 1902 but never became a factor in the labor movements on the Lakes for the following reasons : First, as before, the councils were given no powers but were merely advisory bodies. And second, the aristocracy of labor prevented a close cooperation of unions. The captains considered themselves to be on a higher plane than the engineers and refused to join in a movement demanding an equality of interests. 42 The engineers in turn considered the masters to be ignorant sailors with sufficient experience and years of service to gain for them a position to command other sailors. Both captains and engineers looked with disdain upon all other classes of labor on the Lakes. The seamen continued to hold themselves aloof from the firemen and longshoremen since their work re- quired a higher degree of skill and intelligence and hence at- tracted the most desirable of the unlicensed men. Finally, the unions were individually too strong to make ef- fective cooperation necessary. With the exception of the cap- tains, no class of labor on the boats had failed to secure its de- mands from the vessel owners since the beginning of the boom period on the Lakes in 1899. The failure of the captains was due to their own inability to work together rather than to a lack of outside assistance. In the face of these successes, the fear of a re-