On another of the various occasions when I had labor leaders to dine at the White House, my critics were rather shocked because I had John Morley to meet them. The labor leaders in question included the heads of the various railroad brotherhoods, men like Mr. Morrissey, in whose sound judgment and high standard of citizenship I had peculiar confidence; and I asked Mr. Morley to meet them because they represented the exact type of American citizen with whom I thought he ought to be brought in contact.
One of the devices sometimes used by big corporations to break down the law was to treat the passage of laws as an excuse for action on their part which they knew would be resented by the public, it being their purpose to turn this resentment against the law instead of against themselves. The heads of the Louisville and Nashville road were bitter opponents of everything done by the Government toward securing good treatment for their employees. In February, 1908, they and various other railways announced that they intended to reduce the wages of their employees. A general strike, with all the attendant disorder and trouble, was threatened in consequence. I accordingly sent the following open letter to the Inter-State Commerce Commission:
February 16, 1908.
"To the Inter-State Commerce Commission:
"I am informed that a number of railroad companies have served notice of a proposed reduction of wages of their employees. One of them, the Louisville and Nashville, in announcing the reduction, states that 'the drastic laws inimical to the interests of the railroads that have in the past year or two been enacted by Congress and the State Legislatures' are largely or chiefly responsible for the conditions requiring the reduction.
"Under such circumstances it is possible that the public may soon be confronted by serious industrial disputes, and the law provides that in such case either party may demand the services of your Chairman and of the Commissioner of Labor as a Board of Mediation and Conciliation. These reductions in wages may be warranted, or they may not. As to this the public, which is a vitally interested party, can form no judgment without a more complete knowledge of the essential facts and real merits of the case than it now has or than it can possibly obtain from the special pleadings, certain to be put forth by each side in case their dispute should bring about serious interruption to traffic. If the reduction in wages is due to natural causes, the loss of business being such that the burden should be and is, equitably distributed between capitalist and wage-worker, the public should know it. If it is caused by legislation, the public, and Congress, should know it; and if it is caused by misconduct in the past financial or other operations of any railroad, then everybody should know it, especially if the excuse of unfriendly legislation is advanced as a method of covering up past business misconduct by the railroad managers, or as a justification for failure to treat fairly the wage-earning employees of the company.
"Moreover, an industrial conflict between a railroad corporation and its employees offers peculiar opportunities to any small number of evil-disposed persons to destroy life and property and foment public disorder. Of course, if life, property, and public order are endangered, prompt and drastic measures for their protection become the first plain duty. All other issues then become subordinate to the preservation of the public peace, and the real merits of the original controversy are necessarily lost from view. This vital consideration should be ever kept in mind by all law-abiding and far-sighted members of labor organizations.
"It is sincerely to be hoped, therefore, that any wage controversy that may arise between the railroads and their employees may find a peaceful solution through the methods of conciliation and arbitration already provided by Congress, which have proven so effective during the past year. To this end the Commission should be in a position to have available for any Board of Conciliation or Arbitration relevant data pertaining to such carriers as may become involved in industrial disputes. Should conciliation fail to effect a settlement and arbitration be rejected, accurate information should be available in order to develop a properly informed public opinion.
"I therefore ask you to make such investigation, both of your records and by any other means at your command, as will enable you to furnish data concerning such conditions obtaining on the Louisville and Nashville and any other roads, as may relate, directly or indirectly, to the real merits of the possibly impending controversy.
"THEODORE ROOSEVELT."
This letter achieved its purpose, and the threatened reduction of wages was not made. It was an instance of what could be accomplished by governmental action. Let me add, however, with all the emphasis I possess, that this does not mean any failure on my part to recognize the fact that if governmental action places too heavy burdens on railways, it will be impossible for them to operate without doing injustice to somebody. Railways cannot pay proper wages and render proper service unless they make money. The investors must get a reasonable profit or they will not invest, and the public cannot be well served unless the investors are making reasonable profits. There is every reason why rates should not be too high, but they must be sufficiently high to allow the railways to pay good wages. Moreover, when laws like workmen's compensation laws, and the like are passed, it must always be kept in mind by the Legislature that the purpose is to distribute over the whole community a burden that should not be borne only by those least able to bear it—that is, by the injured man or the widow and orphans of the dead man. If the railway is already receiving a disproportionate return from the public, then the burden may, with propriety, bear purely on the railway; but if it is not earning a disproportionate return, then the public must bear its share of the burden of the increased service the railway is rendering. Dividends and wages should go up together; and the relation of rates to them should never be forgotten. This of course does not apply to dividends based on water; nor does it mean that if foolish people have built a road that renders no service, the public must nevertheless in some way guarantee a return on the investment; but it does mean that the interests of the honest investor are entitled to the same protection as the interests of the honest manager, the honest shipper and the honest wage-earner. All these conflicting considerations should be carefully considered by Legislatures before passing laws. One of the great objects in creating commissions should be the provision of disinterested, fair-minded experts who will really and wisely consider all these matters, and will shape their actions accordingly. This is one reason why such matters as the regulation of rates, the provision for full crews on roads and the like should be left for treatment by railway commissions, and not be settled off hand by direct legislative action.
Appendix.
SOCIALISM
As regards what I have said in this chapter concerning Socialism, I wish to call especial attention to the admirable book on "Marxism versus Socialism," which has just been published by Vladimir D. Simkhovitch. What I have, here and elsewhere, merely pointed out in rough and ready fashion from actual observation of the facts of life around me, Professor Simkhovitch in his book has discussed with keen practical insight, with profundity of learning, and with a wealth of applied philosophy. Crude thinkers in the United States, and moreover honest and intelligent men who are not crude thinkers, but who are oppressed by the sight of the misery around them and have not deeply studied what has been done elsewhere, are very apt to adopt as their own the theories of European Marxian Socialists of half a century ago, ignorant that the course of events has so completely falsified the prophecies contained in these theories that they have been abandoned even by the authors themselves. With quiet humor Professor Simkhovitch now and then makes an allusion which shows that he appreciates to perfection this rather curious quality of some of our fellow countrymen; as for example when he says that "A Socialist State with the farmer outside of it is a conception