8 Cbe Conservative *
AKIJITKATION IN I'LACU OF STRIKES.
The admirable and mutually just
agreement recently reached between the
employers forming the National Metal
Trades' Association and the workmen
organized as the International Associa
tion of Machinists , whereby the principle
of arbitration is substituted for that of
strikes and lockouts , is already recog
nized as representing an economic move
ment of the highest importance. The
Railway Ago has obtained from Mr.
Henry W. Hoyt of the Gates Iron Works ,
Chicago , one of the prime movers in this
great work , the following brief history
of its origin and development :
An almost universal /strike / among
the machinists was declared in Chicago
on March 1. It tied up nearly all the
shops in the city. At the end of two
weeks it was arranged that I should
meet Mr. James O'Conuell , president of
the International Association of Ma
chinists , by an appointment sought by
him. Before going to that appointment
I drew up a plan for arbitrating the
demands made by the machinists in
Chicago through a national board , to be
appointed in behalf of the National
Metal Trades' Association and the
International Association of Machinists.
Mr. O'Connell agreed to the general
proposition , and an effort was made
immediately to bring the two bodies
which we represented together in Chicago
cage to consider the matter. The meet
ing was held in Chicago on the 17th of
March , and what is known as the Chicago
cage agreement was at that time formu
lated by the administrative council of
the National Metal Trades' Association ,
laying down the following propositions :
"Resolved , That this committee of
conference indorse the principle of
national arbitration in the settlement of
trade disputes and recommend the same
for adoption by the members of the
National Metal Trades' Association and
the International Association of Ma
chinists. Be it further
"Resolved , That in all pending dis
putes , and in disputes hereafter to arise
between members of the respective
organizations , i. e. , an employer and his
employees , every reasonable effort shall
be made by the said parties to effect a
satisfactory adjustment of the difficulty ;
failing in which , either party shall have
the right to ask its reference to a com
mittee of arbitration , which shall consist
of the presidents of the National Metal
Trades' Association and of the Inter
national Association of Machinists , or
their representatives , and two others
from each association appointed by the
respective presidents. The findings of
this committee of arbitration by a
majority vote shall be considered as
final as regards the case at issue , and as
making a precedent for the future action
of the respective organizations. Pend
ing adjudication by the committee of
arbitration there shall be no cessation of
work at the instance of either party to
the dispute. The committee of arbitra
tion shall meet within two weeks after
tiie reference of the dispute to them.
"And it is further agreed that during
tiie time necessary for the ratification
lereof , as above provided , and the time
needed to consider and act upon the
above proposed joint agreement , there
shall be no lookout or strikes in either
association , and all lockouts or strikes
that now exist and are participated in
by the members of either of the parties
; o this agreement shall be immediately
and officially called off , wherever they
may exist.
"Signed on behalf of the administra
tive council of the National Metal
Trades' Association , by H. "W. Hoyt ,
F. W. Pilsbry , W. J Chalmers , sub
committee.
"Signed on behalf of the International
Association of Machinists by Jas. O'Cou-
nell , International President ; Stuart
Reid , General Organizer. "
At the meeting of March 17 , however ,
Mr. James O'Conuell and his executive
board declined to sign the joint agree
ment for the reason ( as he stated ) that
the situation among the machinists in
Chicago was so strained he did not
believe he could deliver the goods in
other words , call off the strike.
The strike drifted along for three
weeks more , and another effort was
made to get the joint agreement signed ,
this time successfully. The Chicago
strike was immediately called off and
the men , to the number of three or four
thousand , returned to work , with the
understanding that their demands were
to be arbitrated according to the Chicago
agreement as soon as arrangements
could bo made.
The National Metal Trades' Associa
tion held its annual convention on May
8 , at the Waldorf-Astoria Hotel , in New
York , and appointed its arbitration
board , consisting of Mr. Daniel W. Mc
Laren , general manager for the United
States Cast Iron Pipe & Foundry Com
pany ; Mr. Edwin Reynolds , general
manager for the E. P. Allis Company ,
Milwaukee , and Mr. Walter L. Pierce ,
general manager for the Lidgerwood
Manufacturing Company , Brooklyn.
The convention instructed its arbitration
board regarding the questions to be
arbitrated and the manner in which it
should be done.
In the meantime the International
Association of Machinists had appointed
its arbitration board , consisting of Mr.
James O'Connell , president of the Inter
national Association ; Mr. D. Douglas
Wilson , editor of the International Ma
chinists' Journal , and Mr. Hugh Doran
of Chicago.
The joint arbitration board met on
May 10 , at the Murray Hill Hotel , New
York , and organized by the election of
Mr. D. W. McLaren as president , and
Mr. D. Douglas Wilson as secretary.
The sessions continued for nine days ,
and every point was thoroughly con
sidered. A large number of manufac
turers had been appointed by the
convention to remain in attendance upon
the deliberations of the arbitration com
mittee and the International Association
of Machinists had called to their assist
ance many of their executive board and
business agents.
This arbitration committee agreed
upon certain fundamental questions , and
reduced their agreement to the form of
organic laws , which are considerably
more definite and advanced than any-
hiug that has resulted from similar
arbitrations in this country hitherto.
The agreement provides that existing
strikes shall be called off , former em
ployees to be reinstated on application if
; here are vacancies , declares that the
two organizations will honorably carry
out the findings of the board , defines
what constitutes a competent machinist
and specifies that the question of com
petency is to be determined by the
employers , and fixes rules as to over
time , apprentices , conditions of employ
ment and hours.
The result as a whole , undoubtedly
clears the way for harmonious life be
tween the manufacturers and their
machinists. It remains to be seen
whether the International Association
of Machinists can control its members.
At least we have established a principle
of arbitration in a national way , thus !
eliminating the local lodge , the "walk- }
ing delegate' ' and the business agent. ?
We have agreed that there shall be
neither strikes nor lockouts until all '
grave questions in dispute have been
carried up to the national arbitration
board. We certainly have started in
the right direction. If both sides man
age to keep traveling along these lines
we shall have peace in our shops. At
the time of the date of the Chicago
agreement , there were strikes in three
cities : Chicago , Cleveland and Paterson -
son , N. J. These cases were all arbitra
ted and settled. Chicago machinists re
ceived no increase in pay , nor the "min
imum wage" for which they contended.
It was decided that it is now impossible
to establish the principle of a "mini
mum wage , " and by abundant proof it
was shown that Chicago pays its mach
inists higher wages than any city west
of New York state. Railway Age.
DECLINE OF THE VALUED POLICY
LAW.
The current issue of the Monthly
Journal of Insurance Economics con
tains an able discussion of the valued
policy law , which we publish in part :
"While as a political expedient the
valued policy bill seems to be as popular
as ever , its importance as an economic
relief for over insurance is on the wane.
Some twenty-two states have enacted
laws of this character. During the our-
