Part 7

In June the following statement appeared in the Chicago _Herald_: "The Burlington Company is having a hard time to make both ends meet. Its statement of net earnings for the month of May, which came to light yesterday, showed a decrease of $803,000, and for the first five months of 1888 the loss compared with the corresponding period last year reaches the astounding total of $4,194,172. Never in the history of Western railroads has such a disastrous record been made by a big railway corporation in so short a time. Less than a year ago the Burlington Company was reported to be the strongest corporation of its kind in the country. It paid the highest rate of dividends, and its securities commanded larger prices than any similar paper on the New York Stock Exchange. Since the beginning of 1888 its dividend rate has been reduced from eight to four per cent, and even the four per cent has not been earned by many thousand dollars. The interest requirements, which come ahead of the stock, alone amount to, approximately, $6,000,000 per year, or at the rate of $500,000 per month. The net earnings for five months, however, are only a little over $1,000,000, or less than half of what would be required to pay current interest charges. In face of this showing, however, the company has, since the beginning of 1888, paid three per cent in dividends on $77,000,000 stock. This required an expenditure of nearly $2,400,000. If this $2,400,000 be deducted from the net earnings of the company for the first five months of the year an actual deficit of nearly $1,400,000 is left, without allowing anything whatever for interest on bonds, which are always a prior lien. Deducting $2,500,000 interest charges, which somebody must pay, and the deficit is swelled to nearly $4,000,000. To put the matter plainly, the Burlington Company lacks $4,000,000 of being able to pay its debts out of its current earnings. It had a a surplus at the end of last year of $1,000,000, but this has been wiped out, and a floating indebtness of approximately $3,000,000 now stares the Burlington management in the face. It is currently rumored that the company has been trying to negotiate a loan of $2,000,000 in Chicago to help it out of its present difficulties, but these negotiations have fallen through, and it is understood that an effort will be made to raise the money in the East. The depreciation in value of the $77,000,000 stock, of at least one-third, is another serious loss, which will probably never be retrieved."

THE DYNAMITE PLOT.

July 5, J. A. Bowles, Thos. Broderick and J. Q. Wilson were arrested on the train leaving Aurora, at 2:15 P. M., by Deputy Marshal Burchard and Superintendent McGinty of the Pinkerton Agency. A package of some substance, said to be dynamite, was taken from the rack over the seat occupied by Wilson. They were arraigned before United States Commissioner Hoyne, under section 5353, United States Statutes, which provides a penalty of $1,000 to $10,000 fine for transporting or having in possession dynamite on trains or vessels carrying passengers.

Chairman Hoge was sent for, but when he learned the gravity of the charge against the prisoners he had little comfort to give them, but promised to secure an attorney if he found on investigation that their cause was worthy. All three of the men denied ownership of the package found in the rack. Bowles came to Aurora at the beginning of the strike, and ran an engine for thirteen days. His brother finally induced him to leave the service of the company, and he was taken into the Brotherhood Division at Aurora. The Burlington officials testified that Broderick was in their employ as late as April last, two months after the strike began. Wilson was a Pinkerton detective. Thus it will be seen that the trio were Burlington and Pinkerton employes.

The company claimed that dynamite was used at Eola, West Aurora, Galesburg and Creston, to blow up and wreck trains, but that no damage was done, except to a portion of a flange on an engine wheel at Eola. In some of these cases a portion of the dynamite was found unexploded, together with parts of the wrapper. If this stuff had really been dynamite, it is impossible to conceive how part of the cartridge could have remained unexploded.

J. A. Bauereisen, Chief of the Aurora Division of B. of L. E., was arrested July 6 as an accomplice, it having been claimed that Bowles received the package from him before starting for Chicago with Wilson and Broderick.

Alexander Smith was arrested July 6. Smith is a fireman, and was charged with having handled the dynamite in connection with the explosion at Eola and West Aurora.

Attorneys Donohue and David were retained for the defense of these men.

Chairman Hoge stated that the Brotherhood did not tolerate violence of any kind, and would not come to the assistance of any member caught in the act of committing crime. The Brotherhood would look into these cases, and if satisfied that the men were victims of a conspiracy, it would aid and defend them, but if it were shown that they had explosives and meant violence, they would be left to shift for themselves. At this time Mr. Hoge was charged by the Burlington people with having issued a circular April 16, to the various divisions of the Brotherhood, advising that a large number of engineers go to work for the road, and, after disabling as many engines as possible with sal-soda and emory, to quit in a body. Mr. Hoge denies having written this circular, or of having signed it, and stated that it was a forgery, if it existed at all. However, Hoge and Chairman Murphy of the firemen were arrested July 10 for conspiracy, and held under the Merritt law in bonds of $1,500, which was furnished by W. R. Fitzgerald. The complaint alleged that the defendants issued a circular with the fraudulent or malicious intent, wrongfully and wickedly to injure the property of the Chicago, Burlington & Quincy railroad. The penalty upon conviction is five years in the penitentiary or a fine of $2,000, or both. The warrant also contained the names of John J. Kelly and J. H. McGilvery, secretaries to Hoge and Murphy, who were arrested later in the day, but not locked up. Kelly made a statement to the effect that he issued the circular at the dictation of Hoge, and that the latter signed it. It was written with hektograph ink and copied on a hektograph. Kelly also swore that he had been in the employ of Pinkerton for several months, during which time he acted as secretary to Hoge. This man belonged to the Brotherhood of Firemen, but was running a switch engine on the "Q" in Chicago, and at the time of the strike was taken into the Brotherhood of Engineers. He is a tall, slender man of twenty-seven or twenty-eight years, blonde, very natty in appearance, small brown moustache, light eyes inclined to be deep set, and a clear ringing voice, like the voice of a woman. He was considered of a giddy, frothy nature by his intimates, who were surprised at his ability to keep secret the fact that he was in the employ of Pinkerton.

George Godding, an engineer, was arrested in Aurora July 9, charged with Bauereisen in violating the United States law in handling dynamite.

George Clark, an engineer, was arrested at Galesburg July 17, charged with the same offense. During the examination of these men, Bowles, Smith, Wilson, Kelly and McGilvery appeared with the prosecution as detectives and informers.

Bauereisen was tried, and sentenced to two years imprisonment, at the last term of Kane County Court, at Geneva, Ill. He was convicted on the testimony of the informers and Pinkerton men, Bowles, Broderick, Smith and Wilson. The weight of evidence was clearly in favor of Bauereisen, but the fact that it was a Kane County jury, and that the Burlington Company was the prosecutor, settled the case against him. An appeal for a new trial is now pending.

None of the other cases have matured, and probably never will.

The general opinion of the strikers, and those who have been particularly interested in these cases, can be summed up in a few words. Knowing that the strike had financially wrecked the property, the management found it necessary to make capital for themselves, and concluded that a dynamite scheme would answer their purpose.

They believed that the Brotherhoods were a law abiding class of citizens, and that they would be dumfounded at the evidence of a dynamite plot, and immediately declare the strike off. That it was originally intended as a bluff is proven by the low grade of dynamite used, which had scarcely the explosive power of black powder. The evidence shows that the "Q" employes and the detectives procured and used the stuff without effect. The only evidence against the Brotherhood men was that they had been told by these spies what they were doing; and while the defendants placed no reliance in the story, this knowledge was considered sufficient evidence of guilt to hold them as accomplices. This course was probably decided upon when it was found impossible to make them active participants in the crime.

In the case of Hoge and Murphy, the web was easier to weave. Having a Pinkerton man as Hoge's secretary, it was a simple matter to put up a fraudulent circular, and back it up with the utterances of other confederates who visited him, and sought to induce him to resort to violence as a means of compelling a settlement of the strike.

PROPOSITIONS FOR A SETTLEMENT.

July 14, Mr. Stone sent for Chairmen Hoge and Murphy to talk over a settlement of the strike. Being under bonds, Hoge and Murphy declined to go without their attorney; therefore, Mr. Alexander Sullivan was included in the invitation. They met Mr. Stone at his residence the same evening, but having no authority to make a settlement, only a general conversation ensued. Mr. Stone indicated a willingness to take up the schedule and pay as good wages as was paid by the other roads, especially so in the passenger runs. Another meeting was arranged for July 16, at which meeting Messrs. Arthur, Sargent, Sullivan, Hoge and Murphy, on behalf of the men, and Messrs. Stone, Perkins and Dexter, for the company, were present. Mr. Perkins had arrived unexpectedly from Boston, and seemed dissatisfied with the action of Mr. Stone in calling the meeting, and for a time refused to make any concessions. Mr. Stone insisted, and the following was drawn up as a basis of settlement by the company:

"If the strike be declared off, the company agrees to take back such of the old men as can at present be given employment, and as business increases and more men are needed, they will be taken from the ranks of the strikers in preference to hiring men who had not previously been in the employ of the company.

"The company further agree that those men not so taken back would not be blacklisted, and that those whose previous record had been good would be given letters of recommendation. Mr. Perkins also agreed to rescind the order of J. D. Besler, dated March 25, to the effect that the switchmen would not again be employed by the Burlington company.

"That engineers, firemen and switchmen would be treated alike in the matter of re-employment."

This was in substance all that the company would concede. As these gentlemen had no authority to make any settlement without the consent of the men, it was decided to submit the proposition to them along the entire system, and Messrs. Hoge, Murphy and the writer were appointed to lay the matter before them. Mr. Arthur was opposed to the switchmen being represented on this committee.

Before going out on the road, a meeting of the Chicago strikers was held at Curran's Hall. In order to get the matter properly before them, the following resolution was put by the chairman, "_Resolved_, That the striking engineers, firemen and switchmen do hereby appoint the following Committee to settle the strike: Arthur, Sargent, Alexander Sullivan, Hoge, Murphy and Hall, with the understanding that we will abide by their decision and will accept the above proposition of the company, if no better terms can be obtained by the Committee." Arthur, Sargent and Mr. Sullivan strongly recommended the acceptance of the terms, and sent letters to that effect by the Committee to the men along the line.

The resolution was rejected by the Chicago men, and, in fact, by every body of strikers along the entire system. In these terms of settlement nothing was said about dismissing the dynamite cases, it being understood that they would be continued.

July 17 the Committee left Chicago to place the proposition before the men, and returned July 27. The strikers everywhere decided to accept no terms that did not include the signing of their schedule and the absolute discharge of all the new men. They considered that the company had asked them to make an unconditional surrender, and that the conspiracy cases had influenced their leaders to side with the company, and they would not now make any settlement that was not made by the entire Grievance Committee and include the whole schedule and discharge of the new men. Hoge and Murphy knew the temper of the men and knew what the result would be, but felt it their duty to present the propositions as instructed by their chiefs, Arthur and Sargent, and to give the men a complete statement of the condition of the strike, prospects of support, etc. It was a disagreeable duty, but they performed it faithfully. Many of the men were inclined to censure the Committee for presuming to offer them such terms.

UNION MEETING AT ST. JOE, July 24, 1888.

The following is the official report:

The Chairman stated the purpose of the meeting was to discuss the merits of the C., B. & Q. strike and to try and adopt some plan to bring it to a speedy termination. He also explained and outlined the situation of affairs on the C., B. & Q. R. R.

The Chairman then introduced Bro. G. W. Hitchens, Chairman of the G. G. Com., K. C., Ft. S. & G. R. R., who made a good speech, encouraging the C., B. & Q. Bros. and saying that he was in favor of the Boycott and Federation.

Bro. R. Powers, a member of the B. of R. B., was then introduced, and spoke encouragingly to the C., B. & Q. Bros., telling them to stand firm and they were sure to win.

Bro. F. P. Sargent, G. M. of the B. of L. F., was the next speaker. He was in favor of Federation, but did not speak very encouragingly to the C., B. & Q. Bros. in their struggle for Right and Justice.

Bro. Bailey, of the S. M. A. A., made an able address, which was enthusiastically received.

Bro. L. W. Rodgers, of the B. of R. B., and a man who has traveled over the C., B. & Q. R. R. several times, spoke and outlined the condition of the C., B. & Q., and urged the the Bros. to stand firm and they were sure of victory.

Speeches were made by Bro. Wm. McClain, of Quincy, and a member of the G. G. Com. of the C., B. & Q.; Bro. Slattery, of Butte City, M. T.; J. F. Bryan, of Creston, Iowa; and a great many other Bros. of the different organizations, who nearly all spoke in favor of Federation and said they would do all in their power to assist the C., B. & Q. Bros. who are now battling for justice. And they all told the Bros. to never declare the strike off but to fight it to the bitter end.

On motion, a committee of nine was appointed to draw up resolutions and adopt a line of action for this meeting.

The Chairman appointed the following Committee on Resolutions: W. H. Young, of Div. 307; W. F. Gould, Div. 184; R. Lacy, 105, B. of L. F.; T. J. Hayes, 44, B. of L. F.; L. W. Rodgers, B. of R. B.; T. Slattery, 151, B. of R. B.; F. Wells, Grand Lodge. S. M. A. A.; and T. C. Lyons, No. 9, S. M. A. A.

On motion adjourned until 9 o'clock, A. M., July 25, 1888.

_Second Day._

Meeting called to order by F. P. McDonald in the chair.

On motion resolutions were ordered read, and each article taken up and adopted or rejected at one time.

The following resolutions were read and unanimously adopted, the last article being debated freely:

_To the Engineers, Firemen, Switchmen and Brakemen, in Union Meeting assembled_:

We, your Committee on Resolutions, beg leave to report the following:

_Resolved_, That in regard to the alleged dynamite plot, we denounce all unlawful acts; and that while we believe the accused innocent until proven guilty, yet should any member of our organization be proved guilty of the atrocities charged, we will not only promptly expel them, but be the first to demand their punishment.

_Resolved_, That we regard this as a conspiracy by the C., B. & Q. Co. and the Pinkertons, to bring our Order into disrepute, and turn public opinion and sympathy against us; and we ask the public to withhold their decision until the case has been passed upon by a fair and impartial jury.

_Resolved_, That we thank the managers of this meeting for their vigilance in discovering the company's spy who had been secreted in the opera house to report our proceedings, and that we denounce such dishonorable methods of obtaining information.

_Resolved_, That we, the engineers, firemen, switchmen and brakemen represented in this meeting, heartily endorse the plan of federation, and ask our coming conventions to authorize immediate action on this subject.

_Resolved_, That this meeting ask Bros. Hoge and Murphy, or the G. G. Com. of the C., B. & Q., to place on the payroll the names of the trainmen who struck April 1, 1888, and that they receive $40 per month for the time they have been out.

_Resolved_, That each and every delegate at this union meeting be instructed to use every endeavor to have his subordinate Division or Lodge, take such action as will guarantee financial support to our brothers now struggling for their legitimate rights, until such time as the several conventions shall convene, and shall incorporate in their constitutions such laws as shall thoroughly unite the several organizations.

_Resolved_, That we return to our respective Divisions and Lodges and notify our constituents to prepare to place a boycott on C., B. & Q. cars as soon as the Chairmen of the several Grievance Committees think it practicable, and we earnestly ask the Chairmen to institute this boycott as soon as in their judgment it can be worked with advantage to our cause.

_Resolved_, That this meeting heartily endorse the action taken by the C., B. & Q. Brothers, in refusing to declare the strike off.

All business pertaining to the purpose of the meeting being accomplished, the meeting adjourned at 5:15 P. M., July 25.

At a special meeting of the engineers at St. Joe, a plan was formed to call together the Chairmen of all the Grievance Committees in the United States and Canada authorized by the chiefs of the Brotherhoods to meet in St. Louis August 9, 1888.

The previous meeting at Kansas City, New York and St. Joe were the results of local arrangements, and unauthorized by the chiefs of the Brotherhoods, and their actions were without proper authority, although giving expression to the general feelings of the men. A Committee was appointed to visit Chiefs Arthur and Sargent and request them to make an official call of all the Chairmen of Grievance Committees. This was done, and the meeting convened in St. Louis August 9.

SECRET MEETING AT ST. LOUIS.

Chiefs Arthur and Sargent were present. The entire Grievance Committee of the Burlington and the Chairmen of all the other Committees composed the assembly. All work was done in secret session. Nothing whatever was given to the public. The strike was the only question dealt with at this meeting. Many of the men favored an immediate boycott of "Q" cars and "Q" freight. After two days of discussion, it was agreed that the time and conditions were not such as to warrant a boycott; it was believed that the road had no business of consequence to be injured. This matter was then laid aside to be taken up in October. Another Committee was appointed to confer with the "Q" officials. This Committee was composed of Chairmen of roads not on strike.

The meeting adjourned Saturday, August 11. On Monday, August 13, Alexander Sullivan, Chairman Vrooman of the Union Pacific and his committee had an interview with Vice President Peasley and General Superintendent Besler.

The meeting was an informal one. The proposition presented by the Committee was a demand that all the men be taken back in a body; that the former proposition of Mr. Stone, to pay as good wages as his neighbors, be accepted by the Brotherhood. Mr. Peasley stated that he had no power to act in the absence of Manager Stone and President Perkins, but that he would submit the proposition to these officials on their return from the East. He also said that the company desired peace with the Brotherhoods.

No action was taken by Messrs. Stone and Perkins; the only result of the meeting was to strengthen them in their determination to fight the Brotherhoods to the end.

All efforts to produce a boycott had failed. The only result of the union meetings held at various points was to convince the strikers that the boycott was not necessary, in fact that they had already won the strike. They continued their meetings, and were just as much out of the way of the company as though they had been locked up for months. In the meantime, and in fact from the beginning of the strike, the company had been moving heaven and earth in their efforts to bring victory out of what seemed hopeless defeat. Starting with an inferior grade of men, they have been constantly weeding out the poorer ones as fast as a more competent man appeared who was willing to work for them. A very great number of those originally hired have disappeared and better men have taken their places. Many competent men, who had been driven out of the Brotherhoods for dissolute habits, or from prejudice, and who had at first stood aloof from the trouble, had now come forward and entered the service.

Beginning on the 27th of February with their business almost wholly destroyed, they have used every means in their power, and have left no stone unturned that promised to increase their traffic. In this they have not been unsuccessful, and their business is today probably as good as any other Western road. In their relation to the strikers, they have outwitted them at every point, and have used with fatal effect every weapon that came to their hand. The truth is that the old employes never had a leader, from the 27th of February until the present day; they have been under the orders and at the beck and call of this committee and that committee, and have trusted to this chairman and that chief until they were bewildered, and finally lost. The "Ides of March" was as fatal to them as to Cæsar. When the first boycott was lifted, their defeat was absolute and certain; as an evidence of that the action of the self-constituted Advisory Board, in sending road engineers into the yards in Chicago to take the switch engines given up by their brothers at the second boycott, the last of March, should have been deemed ample and sufficient.

Any strike, by any body of men, conducted as this one was, would have the same ignominious ending. When a class of men are forced into a strike, and their places are filled by men who are allowed to retain them; when the business interests, interrupted by the strike, are permitted to be resumed, does not such a condition plainly indicate failure? There should be no more great railroad strikes until men, other than those immediately interested, are ready and willing to win them.

AT THE CONVENTIONS.