On October 21,1902, a five month strike by the United Mine Workers ended. "It was the first labor dispute in which the U.S. federal government intervened as a neutral arbitrator." From the article:
The Coal strike of 1902 (also known as the anthracite coal strike)[1][2] was a strike by the United Mine Workers of America in the anthracite coalfields of eastern Pennsylvania. Miners struck for higher wages, shorter workdays and the recognition of their union. The strike threatened to shut down the winter fuel supply to major American cities. At that time, residences were typically heated with anthracite or "hard" coal, which produces higher heat value and less smoke than "soft" or bituminous coal.
President Theodore Roosevelt became involved and set up a fact-finding commission that suspended the strike. The strike never resumed, as the miners received a 10% wage increase and reduced workdays from ten to nine hours; the owners got a higher price for coal and did not recognize the trade union as a bargaining agent. It was the first labor dispute in which the U.S. federal government intervened as a neutral arbitrator.
The United Mine Workers of America (UMWA) had won a sweeping victory in the 1897 strike by the soft-coal (bituminous coal) miners in the Midwest, winning significant wage increases. It grew from 10,000 to 115,000 members. A number of small strikes took place in the anthracite district from 1899 to 1901, by which the labor union gained experience and unionized more workers. The 1899 strike in Nanticoke, Pennsylvania, demonstrated that the unions could win a strike directed against a subsidiary of one of the large railroads.[3]
It hoped to make similar gains in 1900, but found the operators, who had established an oligopoly through concentration of ownership after drastic fluctuations in the market for anthracite, to be far more determined opponents than it had anticipated. The owners refused to meet or to arbitrate with the union; the union struck on September 17, 1900, with results that surprised even the union, as miners of all different nationalities and ethnicities walked out in support of the union.
Republican Party Senator Mark Hanna from Ohio, himself an owner of bituminous coal mines (not involved in the strike), sought to resolve the strike as it occurred less than two months before the presidential election. He worked through the National Civic Federation which brought labor and capital representatives together. Relying on J. P. Morgan to convey his message to the industry that a strike would hurt the reelection of Republican William McKinley, Hanna convinced the owners to concede a wage increase and grievance procedure to the strikers. The industry refused, on the other hand, to formally recognize the UMWA as the representative of the workers. The union declared victory and dropped its demand for union recognition.[4]
The issues that led to the strike of 1900 were just as pressing in 1902: the union wanted recognition and a degree of control over the industry. The industry, still smarting from its concessions in 1900, opposed any federal role. The 150,000 miners wanted their weekly pay envelope. Tens of millions of city dwellers needed coal to heat their homes.
John Mitchell, President of the UMWA, proposed mediation through the National Civic Federation, then a body of relatively progressive employers committed to collective bargaining as a means of resolving labor disputes. In the alternative, Mitchell proposed that a committee of eminent clergymen report on conditions in the coalfields. George Baer, President of the Philadelphia and Reading Railroad, one of the leading employers in the industry, brushed aside both proposals dismissively:
Anthracite mining is a business, and not a religious, sentimental, or academic proposition.... I could not if I would delegate this business management to even so highly a respectable body as the Civic Federation, nor can I call to my aid . . . the eminent prelates you have named.[5]
On May 12, 1902, the anthracite miners voting in Scranton, Pennsylvania, went out on strike. The maintenance employees, who had much steadier jobs and did not face the special dangers of underground work, walked out on June 2. The union had the support of roughly eighty percent of the workers in this area, or more than 100,000 strikers. Some 30,000 left the region, many headed for Midwestern bituminous mines; 10,000 men returned to Europe. The strike soon produced threats of violence between the strikers on one side and strikebreakers, the Pennsylvania National Guard, local police, and hired detective agencies on the other.[6]
On June 8, President Theodore Roosevelt asked his Commissioner of Labor, Carroll D. Wright, to investigate the strike. Wright investigated and proposed reforms that acknowledged each side's position, recommending a nine-hour day on an experimental basis and limited collective bargaining. Roosevelt chose not to release the report, for fear of appearing to side with the union.
The owners, for their part, refused to negotiate with the union. As George Baer wrote when urged to make concessions to the strikers and their union, the "rights and interests of the laboring man will be protected and cared for—not by the labor agitators, but by the Christian men to whom God in His infinite wisdom has given the control of the property interests of the country."[7] The union used this letter to sway public opinion in favor of the strike.
Roosevelt wanted to intervene, but he was told by his Attorney General, Philander Knox, that he had no authority to do so. Hanna and many others in the Republican Party were likewise concerned about the political implications if the strike dragged on into winter, when the need for anthracite was greatest. As Roosevelt told Hanna, "A coal famine in the winter is an ugly thing and I fear we shall see terrible suffering and grave disaster."[8]
Roosevelt convened a conference of representatives of government, labor, and management on October 3, 1902. The union considered the mere holding of a meeting to be tantamount to union recognition and took a conciliatory tone. The owners told Roosevelt that strikers had killed over 20 men and that he should use the power of government "to protect the man who wants to work, and his wife and children when at work."[9] With proper protection, the owner said that they would produce enough coal to end the fuel shortage; they refused to enter into any negotiations with the union. The governor sent in the National Guard, who protected the mines and the minority of men still working. Roosevelt attempted to persuade the union to end the strike with a promise that he would create a commission to study the causes of the strike and propose a solution, which Roosevelt promised to support with all of the authority of his office. Mitchell refused and his membership endorsed his decision by a nearly unanimous vote.[9]
The economics of coal revolved around two factors: most of the cost of production was wages for miners, and if the supply fell, the price would shoot up. In an age before the use of oil and electricity, there were no good substitutes. Profits were low in 1902 because of an over supply; therefore the owners welcomed a moderately long strike. They had huge stockpiles which increased daily in value. It was illegal for the owners to conspire to shut down production, but not so if the miners went on strike. The owners welcomed the strike, but they adamantly refused to recognize the union, because they feared the union would control the coal industry by manipulating strikes.[10]
Roosevelt continued to try to build support for a mediated solution, persuading former president Grover Cleveland to join the commission he was creating. He also considered nationalizing the mines under the leadership of John M. Schofield.[11] This would put the U.S. Army in control of the coalfields[12][13] to "run the mines as a receiver", Roosevelt wrote.[14]
J.P. Morgan, the dominant figure in American finance, had played a role in resolving the 1900 strike. He was deeply involved in this strike as well: his interests included the Reading Railroad, one of the largest employers of miners. He had installed George Baer, who spoke for the industry throughout the strike, as the head of the railroad.[15]
At the urging of Secretary of War Elihu Root, Morgan came up with another compromise proposal that provided for arbitration, while giving the industry the right to deny that it was bargaining with the union by directing that each employer and its employees communicate directly with the commission. The employers agreed on the condition that the five members be a military engineer, a mining engineer, a judge, an expert in the coal business, and an "eminent sociologist". The employers were willing to accept a union leader as the "eminent sociologist," so Roosevelt named E. E. Clark, head of the railway conductors' union, as the "eminent sociologist." After Catholic leaders exerted pressure, he added a sixth member, Catholic bishop John Lancaster Spalding, and Commissioner Wright as the seventh member.[16]