William G. McAdoo to Woodrow Wilson
Title
William G. McAdoo to Woodrow Wilson
Creator
McAdoo, W. G. (William Gibbs), 1863-1941
Identifier
WWP16089
Date
1919 November 27
Source
Cary T. Grayson Papers, Woodrow Wilson Presidential Library, Staunton, Virginia
Language
English
Text
Dear Governor
We are thinking of you today and giving thanks for your continued improvement. Nell and I hoped to run down to Washington to see you but it was impossible. We must content ourselves with sending to you, Edith and Margaret our dearest love and hopes that you had a happy day. I have asked Grayson to let you read the following if he thinks it will not worry you and be helpful: The coal strike has reached a very grave stage—particularly in the Middle West. Schools and industries are being closed, labor rendered idle and hardships in homes enforced—a blizzard now would cause great suffering. I have no sympathy with the strike. You very properly denounced it and asked all parties to submit to the decision of a Commission of your appointment. The miners declined it to my great regret. The Attorney General then brought an injunction against the strike, which was granted by Judge Anderson at Indianapolis, but as the men had already gone out the proceeding was wholly ineffectual and served only to irritate and solidify the men. The deadlock has been on for a month and the coal supply is rapidly diminishing while the winter is rapidly approaching. The miners have asked for 60% increase in pay. After the injunction and after the mine leaders had issued orders, in compliance with the Courts mandate, recalling the strike, the men stayed out and remain out. Secy. Wilson called the miners leaders & the operators to Washington for conference and Dr. Garfield was called in. Secy. Wilson proposed a 31% increase (and a fraction) for the miners instead of 60% as they demanded. The miners signified their acceptance. But Dr. Garfield & the Cabinet have refused more than 14% to the miners which they decline to accept and I understand that the Conference is about to break up leaving the whole situation in chaos and the country in imminent peril. The chief difficulty in granting the miners 31% appears to be the unwillingness of the rapacious mine owners to consent unless they are permitted to increase the price of coal to the public to cover in whole or in part the increased wage. The question at once arises as to whether the profits of the operators are wide enough to justify their absorption of the wage increase without putting a new burden on the public.
I wired Garfield that the income tax returns of the operators for showed profits on capital stock ranging from 15% to 2000% before deducting taxes. As a matter of fact the range was from 15% to 4500%. But the operators claim that their invested capital exceeds capital stock and yet even on that basis their profits ranged from 15% to 400% and in some instances to 800%. In short they got back their total investment in many instances several times over in and have their mines as clear profit. In profits were less but they were still fabulous—in fact their profits for & were shocking. The operators are able in my opinion to absorb the 31% increase to the miners and still make big profits. I have given these general facts about the operators profits to the papers and it has brought upon me the wrath of the coal operators & the reactionaries & the vested interests as I expected but I care nothing for that. It has shown the public that the greedy coal operators have robbed the people these two years and now refuse to pay the miners enough additional wages to cover the increased cost of living (William B. Wilson">Secy Wilson’s figures show that 31% increase in wages will cover the increased living cost) unless the public is subjected to further exactions to maintain if not increase the coal operators unconscionable profits. I suggested to Garfield and to the public that the miners be given the 31% increase proposed by Secy. Wilson; that the operators be given no increase in the price of coal but that a Commission be appointed by you or that the Cabinet & Dr Garfield, instead, make a careful examination of the income tax returns for & and an investigation of the operators books for and determine if any increase in price of coal should be allowed; that the mines be re-opened immediately and that the income tax returns of the various coal operators for & be made public in the meantime, as they can be with your approval. This plan ought to be adopted immediately. The entire public would approve except the selfish operators & their reactionary allies. The situation would be saved now—and it needs saving instantly. But the Cabinet & Garfield refuse and offer the miners 14% which they refuse. I am sure that this is a very serious blunder. It puts the Administration in the position of defending and fighting for the greedy coal operators and protecting them in their inordinate profits. It puts us against all our friends in the labor world, it practically repudiates Secy. Wilson & destroys his influence, while the continuation of the deadlock & strike puts the people in grave peril. I would earnestly urge that you direct the Cabinet & Dr Garfield (1) to grant the increased wages recommended by Secy. Wilson. 2. Maintain present price of coal until examination of operators earnings for , & after which readjustment in the price of coal will be made if facts justify. 3. That income tax returns for & of the coal companies & operators be opened for public inspection as you can, by order under the law, direct. This is the most effective thing you can do to get the truth to the country. I am sure that we should not, by keeping these returns secret, shield the coal operators from the consequences of their greed & rapacity. Such publications will be a warning to all Companies which are keeping up the cost of living by charging grossly extortionate prices under the belief that the public will never know about it. Heretofore in all labor disputes, labor has frequently been forced back to work & told that wage increases would be considered afterwards & award made. Why not put capital back to work in this coal case & fix its wage or return afterward? We have a chance to apply the same principle to capital for the first time within my knowledge. If I can help you have only to command me. Nell begs to join in warmest love for you and Edith and Margie –
Always affectionately
We are thinking of you today and giving thanks for your continued improvement. Nell and I hoped to run down to Washington to see you but it was impossible. We must content ourselves with sending to you, Edith and Margaret our dearest love and hopes that you had a happy day. I have asked Grayson to let you read the following if he thinks it will not worry you and be helpful: The coal strike has reached a very grave stage—particularly in the Middle West. Schools and industries are being closed, labor rendered idle and hardships in homes enforced—a blizzard now would cause great suffering. I have no sympathy with the strike. You very properly denounced it and asked all parties to submit to the decision of a Commission of your appointment. The miners declined it to my great regret. The Attorney General then brought an injunction against the strike, which was granted by Judge Anderson at Indianapolis, but as the men had already gone out the proceeding was wholly ineffectual and served only to irritate and solidify the men. The deadlock has been on for a month and the coal supply is rapidly diminishing while the winter is rapidly approaching. The miners have asked for 60% increase in pay. After the injunction and after the mine leaders had issued orders, in compliance with the Courts mandate, recalling the strike, the men stayed out and remain out. Secy. Wilson called the miners leaders & the operators to Washington for conference and Dr. Garfield was called in. Secy. Wilson proposed a 31% increase (and a fraction) for the miners instead of 60% as they demanded. The miners signified their acceptance. But Dr. Garfield & the Cabinet have refused more than 14% to the miners which they decline to accept and I understand that the Conference is about to break up leaving the whole situation in chaos and the country in imminent peril. The chief difficulty in granting the miners 31% appears to be the unwillingness of the rapacious mine owners to consent unless they are permitted to increase the price of coal to the public to cover in whole or in part the increased wage. The question at once arises as to whether the profits of the operators are wide enough to justify their absorption of the wage increase without putting a new burden on the public.
I wired Garfield that the income tax returns of the operators for showed profits on capital stock ranging from 15% to 2000% before deducting taxes. As a matter of fact the range was from 15% to 4500%. But the operators claim that their invested capital exceeds capital stock and yet even on that basis their profits ranged from 15% to 400% and in some instances to 800%. In short they got back their total investment in many instances several times over in and have their mines as clear profit. In profits were less but they were still fabulous—in fact their profits for & were shocking. The operators are able in my opinion to absorb the 31% increase to the miners and still make big profits. I have given these general facts about the operators profits to the papers and it has brought upon me the wrath of the coal operators & the reactionaries & the vested interests as I expected but I care nothing for that. It has shown the public that the greedy coal operators have robbed the people these two years and now refuse to pay the miners enough additional wages to cover the increased cost of living (William B. Wilson">Secy Wilson’s figures show that 31% increase in wages will cover the increased living cost) unless the public is subjected to further exactions to maintain if not increase the coal operators unconscionable profits. I suggested to Garfield and to the public that the miners be given the 31% increase proposed by Secy. Wilson; that the operators be given no increase in the price of coal but that a Commission be appointed by you or that the Cabinet & Dr Garfield, instead, make a careful examination of the income tax returns for & and an investigation of the operators books for and determine if any increase in price of coal should be allowed; that the mines be re-opened immediately and that the income tax returns of the various coal operators for & be made public in the meantime, as they can be with your approval. This plan ought to be adopted immediately. The entire public would approve except the selfish operators & their reactionary allies. The situation would be saved now—and it needs saving instantly. But the Cabinet & Garfield refuse and offer the miners 14% which they refuse. I am sure that this is a very serious blunder. It puts the Administration in the position of defending and fighting for the greedy coal operators and protecting them in their inordinate profits. It puts us against all our friends in the labor world, it practically repudiates Secy. Wilson & destroys his influence, while the continuation of the deadlock & strike puts the people in grave peril. I would earnestly urge that you direct the Cabinet & Dr Garfield (1) to grant the increased wages recommended by Secy. Wilson. 2. Maintain present price of coal until examination of operators earnings for , & after which readjustment in the price of coal will be made if facts justify. 3. That income tax returns for & of the coal companies & operators be opened for public inspection as you can, by order under the law, direct. This is the most effective thing you can do to get the truth to the country. I am sure that we should not, by keeping these returns secret, shield the coal operators from the consequences of their greed & rapacity. Such publications will be a warning to all Companies which are keeping up the cost of living by charging grossly extortionate prices under the belief that the public will never know about it. Heretofore in all labor disputes, labor has frequently been forced back to work & told that wage increases would be considered afterwards & award made. Why not put capital back to work in this coal case & fix its wage or return afterward? We have a chance to apply the same principle to capital for the first time within my knowledge. If I can help you have only to command me. Nell begs to join in warmest love for you and Edith and Margie –
Always affectionately
Original Format
Letter
To
Wilson, Woodrow, 1856-1924
Files
Collection
Citation
McAdoo, W. G. (William Gibbs), 1863-1941, “William G. McAdoo to Woodrow Wilson,” 1919 November 27, WWP16089, Cary T. Grayson Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.