It was only a small union, that first one, but it had courage. One afternoon President Hairy looked up from his desk to find four stout, red-faced capitalists pushing each other nervously into his office. He asked them their business. They huskily demanded that every capitalist on that company's books be paid at least a half per cent more for his money. The president refused to treat with them except as individuals. They then called a strike.
The results of this first strike were profoundly discouraging. The leaders were tried for conspiracy, those who walked out at their call were blacklisted, and the victorious labor men soon secured other capitalists in plenty, a private car-load being brought over from Philadelphia at night. The labor leaders became so domineering in their triumph they refused to engage capitalists who drank or who talked of their wrongs. They began importing cheap foreign capital to supply all new needs. But these measures of oppression only increased the class feeling of capitalists and taught them to stand shoulder to shoulder in the fight for their rights.
The years of warfare that followed were as obstinate as any in history. Little by little, in spite of the labor men's sneers, the enormous power of capital made itself felt. An army of unemployed capitalists marched upon Washington. The Brotherhood of Railway Bondholders, being indicted for not buying enough new bonds to move the mails, locked up every dollar they possessed and defied the Government. The Industrial Shareholders of the World, a still more rabid body, insisted on having an eight per cent law for their money. All great cities were the scenes of wild capitalist riots. Formerly indifferent citizens were alarmed and angered by seeing their quiet streets turned into Bedlam at night, with reckless old capitalists roaring through them in taxis, singing Yankee Boodle or shouting "Down with labor!" For that finally became the cry: labor must go. They still meant to use labor, somehow, they confusedly admitted, but capital and not labor must have absolute control of all industries.
As the irrepressible conflict forced its way into politics, Congress made statesmanlike efforts to settle the problem. After earnest and thoughtful debate they enacted a measure which made the first Monday in September a holiday, called Capital Day. As this hoped-for cure did not accomplish much they attempted another, by adding a Secretary of Capital to the President's cabinet. Conservative people were horrified. But Congress was pushed even further. It was persuaded to prohibit employing the capital of women and children, and it ordered all Japanese capital out of the country. On one point, however, Congress was obstinate and would not budge an inch. They wouldn't give capital full control of the railroads and mills.
The capitalists themselves were obliged to realize, gradually, that this could be at best but a beautiful dream. It seemed there was one great argument against it: labor men were a unit in believing the scheme wouldn't work. How could scattered investors, who had not worked at an industry, elect—with any intelligence—the managers of it? Even liberal labor men said that the idea was preposterous.
At this moment a citizen of East Braintree, Mass., stepped forward, and advocated a compromise. He said in effect:
"The cause of our present industrial turmoil is this: The rulers that govern our industries are not rightly elected. Our boards of directors may be called our industrial legislatures; they manage a most important part of our national life; but they are chosen by only one group of persons. No others can vote. If Congress were elected by a class, as our boards of directors are, this country would be constantly in a state of revolution politically, just as it is now industrially." That was his argument.
"Both those who do the work and those who put in the money should rightfully be represented in these governing bodies." That was his cure. If corporations would adopt this democratic organization, he said, two-sided discussions would take place at their meetings. "These discussions would tend to prevent the adoption of policies that now create endless antagonism between labor and capital." And he went on to point out the many other natural advantages.
This compromise was tried. At first it naturally made labor angry, labor having been in exclusive control for so long. Many laborers declined to have anything to do with concerns that were run by "low ignorant speculators," as they called them, "men who knew nothing of any concern's real needs." Ultimately, however, they yielded to the trend of the times. Democratic instead of autocratic control brought about team-play. Men learned to work together for their common good.