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Article Title: The Governor and the Guard in the Omaha Tram Strike of 1935

Full Citation: Mary Cochran Grimes, "The Governor and the Guard in the Omaha Tram Strike of 1935," Nebraska History 69 (1988): 120-130.

URL of article: http://www.nebraskahistory.org/publish/publicat/history/full-text/NH1988OmaTramStrike.pdf

Date: 5/30/2012

Article Summary: At the height of violence in the Omaha streetcar strike of 1935, Nebraska's new governor, Robert Leroy "Roy" Cochran, called out the National Guard and declared martial law to force the street car company to arbitrate.

Cataloging Information:

Names: Robert Leroy "Roy" Cochran, Ronald Gephart, Gurdon W Wattles, Jack Shanahan, William Sheets, Richard L Blume, J A C Kennedy, B F Danbaum, John Savage, Walter Jurgensen, H J Paul, Walter Christenson, R B Armstrong, Ernest Bowerman, Clyde Herring, Hugh P Finerty, R N Denham, Guy R Spencer, Floyd B Olson, Roy Towl, Nelson Kraschel, Hugh A Butler, Richard Samardick, H J Paul, Sam W Reynolds, John J Ledwith, Hird Stryker

Keywords: martial law; anti-unionism; New Deal; National Industrial Recovery Act, Omaha-Council Bluffs Street Railway Company, Business Men's Association; War Labor Board; Amalgamated Association of Street, Electric, and Motor coach Employees Local 1002; American Federation of Labor; National Industrial Recovery Act; Employees' Protective Association; Paxton Hotel; Midwest Adjustment Company; Omaha Free Ride Association; jitney ordinance; the Unionist; Tram Workers Union; Omaha Central Labor Union; Wagner Act

Photographs / Images: April 1935 photo of Omaha streetcar with heavy wire over the windows to protect riders from possible violence; Governor Robert L Cochran; March-June 1935 scrapbook of unidentified newspaper clippings, Roy Towl papers, MS 3534, State Archives, NSHS; Omaha Police Chief Richard Samardick and Adjutant General H J Paul; Remnants of burned out streetcars near Railroad Avenue; Arrival of National Guardsmen in mid-June of 1935; Guy R Spencer cartoon "Speaking of 'Seniority Rights', Omaha World Herald, June 20, 1935; Meeting in the fall of 1935 to plan a toll-free bridge spanning the Missouri: Omaha Mayor Roy Towl, Iowa Governor Clyde L Herring, Nebraska Governor Robert L Cochran, and Council Bluffs Mayor Hugh P Finerty (others not identified)

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ByApril 1935 Omaha streetcars had been equipped with heavy wire over the windows to protect riders from possible violence. Courtesy of John Savage.

THE GOVERNOR AND THE GUARD IN THE OMAHA TRAM STRIKE OF 1935

By Mary Cochran Grimes

At the height of violence in the Gephart, the primary role of state troops, his subsequent handling of the Omaha streetcar strike of1935 Ne bras­ militias or the National Guard was 1935 strike represented a more bal­ ka's new governor, Robert Leroy shifting from fighting Indians to break­ anced approach to resolving a labor­ ("Roy") Cochran, called out the ing strikes. This shift conformed to the management conflict. He used his brief National Guard and declared martial thinking of many businessmen who assumption of power in a city accus­ law. This brought immediate peace, argued that the main purpose of tomed to anti-unionism to force the national attention, and praise from the government was to protect and pro­ tram company to arbitrate. He was ada­ press and even from labor, which mote the interests of property.2 mant that the National Guard was in usually dreaded the march of the Government officials routinely used Omaha only to maintain order and not troops.! Not since the late nineteenth state or federal troops as "the prescrip­ to take sides. century had Nebraska governors re­ tion applied to industrial disputes" The New Deal brought a changing sorted to military force to maintain with the usual effect of crushing a political climate. For the first time a order. Then, according to Ronald strike.3 presidenthad endorsed legislation, the Several things were unusual about National Industrial Recovery Act of the Omaha tram strike of 1935. The 1933, that made it legal for employees Mary Cochran Grimes is the daughter of Omaha World-Herald said it was the to organize and bargain collectively Robert L. Cochran, governor of Nebraska from 1935 to 1941. She is the editor of first time the city had had a "military through representatives of their own Knights in Fiction: Two Labor Novels of the dictator."4 Though Cochran employed choosing. While conservative Ne­ 1880s (University of Illinois Press, 1987). the traditional response of calling out braska still had an anti-picketing law, it 120 Omaha Tram Strike of 1935

also had a governor who supported deductions. Finding the company in New Deal measures.5 "fair financial condition," the comp­ The Omaha-Council Bluffs Street troller thought prospects for improve­ Railway Company, which operated a ment were good if "business tactics streetcar and bus system throughout leading to betterment of public ser­ and between the two cities, had a his­ vice," i.e. lower fares, were adopted. 14 tory of stormy labor relations. Conflict Probably more relevant to its dated from the crushing of a union in traditionally fierce opposition to union 1909 by company president Gurdon W. activity was the fear, shared by other Wattles with support from the Busi­ Omaha business leaders, that an out­ ness Men's Association, whose chief side union would "remove the company purpose was to oppose unions. During from the hands of its owners" and give the 1909 strike, Wattles announced that organized labor a foot in the door for the company would "operate its cars, if future gains.IS necessary, under protection of govern­ In April 1934 a brief strike ended ment itself."6 Another attempted strike when both sides agreed to federal in late 1918 or early 1919 led to the arbitration. The National Labor Board intervention ofthe War Labor Board on sent mediator Richard L. Blume from the side of the tram company.7 The its Kansas City office. Though Blume's Business Men's Association later report granted a five cent retroactive claimed success in keeping Omaha pay increase (which still did not re­ "the best open shop city of its size in store the ten percent cut of 1933), it the United States."s said nothing about union recognition. One tram company president, "Smil­ Workers in July rejected Blume's ing Jack" Shanahan (1927 -32), excelled report by a vote of 359 to 1, claiming in the art of smoothing relationships continued discrimination against union 9 Governor Robert L. Cochran. (NSHS­ with employees. In 1931 there was the C663-7J members. The union called another threat of a strike, but Shanahan strike and Blume returned. This time skillfully gained the replacement of (in effect, a company union). It was workers were appeased with promises two-man cars with those requiring only later revealed that the company paid an to establish a grievance board, further one operator by offering workers a five­ operative, William Sheets, to stay at arbitration, and the "possibility of an cent-per-hour raise along with the Paxton Hotel for two months under election on collective bargaining." But assurance that there would be no an assumed name while he organized the tram company had no intention of layoffs. However, Shanahan's suc­ the company union. He was warned to recognizing the union; it merely wanted cessors would be perceived as less take every precaution "to give the to buy time to prepare for the next friendly to labor.lo appearance of independent action."12 strike and to solidify support from After Shanahan left Omaha in 1933, a Claiming that it could not afford Omaha businessmen and politicians. 16 ten percent wage cut was absorbed by wage increases, the company refused Under the counsel of J. A. C. Ken­ the carmen. Six months later, when the to recognize Local 1002. Company nedy, the company's tactics were National Industrial Recovery Act finances had been hurt by a decline in planned carefully. The company even opened the doors to collective bargain­ passengers and revenue since 1921, hired mediator Blume as co-counsel ing, a union organizer from Detroit when there had been over 58,000 riders after a shakeup in the Kansas City NLB came to Omaha to help organize the compared to 23,000 in 1934. Fare office. Opposing the union's demand Amalgamated Association of Street, increases in 1925 and 1930 caused for an election to determine represen­ Electric, and Motor Coach Employees resentment against the tram company tation for collective bargaining, the Local 1002, affiliated with the and reduced ridership. However, the company contended that it had already American Federation of Labor.11 Early company was still making healthy prof­ negotiated with the union and that no in 1934 the union, claiming 442 of 535 its on its Douglas Street toll bridge, election was requiredP The National eligible workers, gave the tram com­ popularly regarded as a gold mine.13 In Labor Board agreed in the spring of pany a list of demands concerning 1934 the company claimed a profit of 1935. Two more national mediators wages, hours, and working conditions. $131,411 on its streetcar operations, came to Omaha but the tram company To combat the union, the company se­ while a city comptroller's audit showed refused further arbitration. On April cretly sponsored its own organization, $194,148. The discrepancy was due to 20, 268 streetcar and bus drivers went the Employees' Protective Association the auditor disallowing some company on strike.18 121 Nebraska History - Fall 1988

In anticipation of a strike,..the tram a photographer-reporter with the allowed the company to run the cars at company had hired 100 armed private Omaha Bee-News, recalled witnessing its own risk.28 guards from the Midwest Adjustment police dispersing a mob with tear gas A heat wave added to Omaha's dis­ Company, run by B. F. Danbaum, a for­ near 18th and Dodge streets.23 comfort as bloody riots erupted in mer Omaha police official. At the The violence was precipitated, union South Omaha June 13. A missile was height of the strike 390 private guards leaders claimed, by the city ordinance thrown through a streetcar window and were employed, many sworn in as spe­ forbidding jitneys - privately owned an operator was injured. Police could cial policemen.19 Lines blurred be­ automobiles used for public transpor­ not disperse a crowd estimated at tween the Omaha police department tation - despite the fact that the city 1,000, which gathered in the hot sum­ and the detective agency. The com­ council had received petitions bearing mer night. Many threw objects at pany authorized Danbaum to spend over 22,000 signatures in favor of jit­ streetcars, streetlights, store windows, whatever he needed to "protect prop­ neys. To encourage people not to use and police officers. Of the sixteen who erty and personnel." He did not have to streetcars, members of the Omaha were jailed, none proved to be a striker. account for funds spent to furnish Free Ride Association tendered their The city council voted a $50,000 ammunition, tear gas, and extra services and their automobiles to the emergency fund for police, and Mayor firearms to the Omaha police depart­ public. But police arrested and fined Towl asked for state assistance. When ment.20 To help him carry out his task, hundreds ofjitney drivers for not being Lieutenant Governor Walter Jurgen­ Danbaum received over $170,000 from licensed. In a hearing to determine if sen phoned Cochran, who was at a the tram company. Little wonder that the jitney ordinance was enforceable if governors' conference in Biloxi, Mis­ one city councilman accused Danbaum no fares were collected, the judge dis­ sissippi, the governor, who believed in of running the city's police depart­ missed charges against 430 jitney local autonomy, suggested that Omaha ment.21 drivers. Union leaders asked the gover­ seek help from the county sheriff.29 Determined to keep the streetcars nor to suspend the jitney ordinance, But violence and fear escalated the running, the company hired 250 strike­ claiming that the ordinance "forced the following night as a man was killed and breakers and fired all the striking union public to patronize the streetcars more than 100 were injured. A second members. When the first two cars were against their wishes .. . up to this time man died from injuries three days later. sent out on April 24 with thick wire very few lawless acts were committed." Cochran, who had been posted by a covering the windows, heavily armed The governor refused ·on the grounds telephone for hours, heard this news guards on board, and escorted by that the jitney ordinance was a local plus wild rumors about threats to burn police cars, few passengers appeared, issue.24 the Brandeis store, to kill tram com­ either from fear of violence or out of The Unionist, a labor journal, pany stockholders, and to wipe out the sympathy with the strikers. Public sen­ charged that the police commissioner Omaha police. The mayor, the county timent appeared to favor the union, and chief of police had become "wet sheriff, the chief of police, and leading especially in South Omaha, according nurses" for strikebreakers.25 Many business and newspaper men (but not to newspaper accounts. The tram com­ strikers were arrested, but most were managers of the tram company) pany with its fare increases and toll released or acquitted. Later, union pleaded with the governor to call out bridge was not popular. leaders sent to the governor the names troops. Cochran finally told Jurgensen Of course, violence erupted. Street­ ofmen the tram company hired (includ­ to issue the order and to explain that cars were mobbed and burned; a ing one on parole) who were caught and the crisis was caused not by actions of strikebreaker was beaten. A dynamite found guilty of carrying arms and organized labor, but by "irresponsible bomb exploded on the sidewalk near molesting strikers who were simply on agitators and mobs" endangering the home of company counsel Ken­ the street. Union men complained that public welfare. Cochran stated that nedy, shattering windows but injuring the "hired guns" were fined and turned although Omaha was placed under no one. The union disclaimed respon­ loose.26 The World-Herald blamed the martial law because "civil authorities sibility and filed a petition in federal violence on "toughs," who "hurt the had failed to maintain the peace," he court charging that the company had cause of the striking car men who had noted that "the military will under no planted fake bombs. Nothing came of apparently conducted themselves in an circumstances operate as strike­ the petition, but it was later revealed exemplary manner." It also blamed the breakers."3o that Danbaum had hired a stool pigeon police and city commissioners "for Then the governor set out on a risky to try and induce strikers to commit ineptness and playing politics."27 and sleepless twenty-four-hour jour­ acts ofviolence.22 The union also asked While the mayor of Council Bluffs ney to Omaha. The trip, made in rain that the police and detective agency maintained peace by ordering street­ and fog, involved three airplanes and not interfere with peaceful picketing or cars off the streets until the strike could three emergency landings. Meanwhile meetings of strikers, but John Savage, be settled, Omaha Mayor Roy Towl on the night of June 15 the first con­ 122 Omaha Tram Strike of 1935

tingent of 650 guardsmen was greeted in South Omaha by a cheering crowd "in a carnival mood." The tough­ talking commandant, Adjutant Gen­ eral H. J. Paul, warned that "sickening" and "knockout" gases would be fur­ FOR LAW AND ORDER nished guardsmen and anyone even cursing the National Guard would be arrested. The next day more than 700 The $50.000 voted for the Police Department Friday Oy memoers of the City Council who believe that law and order MUS T. prevail, additional guardsmen marched into was made necessary; Omaha, accompanied by two medical units, a hospital unit, and an ambulance First-Because the paid organizer of a belligerent Union 3J talked 268 of nearly 700 employes of the Street Railway unit. Company into quitting their jobs, and, Upon arriving in Omaha, Cochran, Second-Because a few demagogues and agitators have exhausted, unshaven, and still wearing urged by inflammatory statements that law enforcement his crumpled white linen suit, first con­ officers be defied and that courts be ignored. sulted with the managing editor of the The $50,000 appropriation was NOT a vote against oraerly union­ World-Herald, Walter Christenson.32 ism- was NOT a vote in favor of the Street Railway Company. Then the governor set up command headquarters at the Paxton Hotel, It Was a Vote for Law and Order. where for four days and nights he "con­ To the extent that the $50.000 may aid in the protection of tlie street ferred with, cajoled, and threatened railway property. the Street Railway Company herewith publicly leaders on both sides."33 His first duty expresses its appreciation and gratit:.!de. and goal was to maintain peace. Second, he wanted to get the two sides together Incidentally. the Street Railway Company will make a tax payment of $84.000 to the Omaha city treasurer on July 1. This tax payment for an immediate and fair settlement. is just one example of the value of this company to Omaha, Cochran issued an ultimatum: Both sides must appoint a representative to Belligerent unionism,- spurrea on by the cunning of a well-pard an arbitration board which would meet organi zer.- is always costly and destructive if toleratea. In the ena the next day (June 17) at 10:00 a.m. The it generally results in the members of the Union losing their jobs, as governor would appoint a neutral third has happened in Omaha and as did happen a few months oefore in Los Angeles. There. the organizer who is now in 0 m a h a. calle3 a: party. A deadline of June 20 was strike in December and left the California city two months later, established for a settlement ofthe most with more than 400 members of his Union on the public charity rolls. pressing issues of reemployment of strikers, wages, and seniority so that This kind of unionism, however, is not typical of all organize(! labor normal operation of streetcars could 34 The $50,QOO is just one more expense forced upon the taxpayers of resume on the morning of June 21. Omaha by the unwarranted, unjustifiable and unreasonable street The remainder of the union's sixty­ car strike. eight demands would be negotiated later. The company was ordered to get rid of private guards immediately, but it could continue to run streetcars on the present limited basis. The National Omaha & Council Bluffs Guard would provide protection if necessary. All outside labor organizers Street Railway Co. were asked to depart so that negotia­ tions would be "conducted by Ne­ braska citizens." R. B. Armstrong, international vice-president of the March-June 1935 scrapbook of unidentified newspaper clippings, Roy Towl papers, Tram Workers Union, checked out of MS 3534, State Archives, Nebraska State Historical Society. his hotel. 35 Cochran warned strikers that he would run streetcars with troops ifthey did not agree to arbitration. All taverns 123 Nebraska History - Fall 1988

seemed to function fairly and efficiently.38 Hours before the deadline on June 20 the arbitration board produced a brief, stopgap settlement: All 268 men who went on strike April 20 would return to work on June 21 at the same wages as before the strike, effective for one year. Wages would be negotiated later. Only at the governor's and the other board members' insistence had the company agreed to consider rehir­ ing all 268 strikers; it did not want to rehire sixty-eight men whom it accused of being guilty of "depredations."39 Union members voted almost unani­ mous approval of the temporary settle­ ment the same night. By accepting Reynolds's suggestion that seniority be negotiated by a separate board, the general arbitration board sidestepped the toughest issue. For over forty-five years the rights of trainmen had been based on length of service, which governed the choice of runs, hours of work, and regularity of employment.4o The seniority board would consist of Omaha Police Chief Richard Samardick (right) had petitioned the state for assistance, Ledwith and Bowerman from the but Adjutant General H. J. Paul (left) and the National Guard did not arrive until general arbitration board plus a rep­ violence had ended. Courtesy ofJohn Savage. resentative of the working employees, who would replace Reynolds. At stake were required to close by 6:00 p.m. Speed Five company leaders, all of whom was whether strikers lost their seniority was essential. The governor knew that Cochran knew personally, visited him on the day they walked out (April 20) as he would have to call a special session to say they would not arbitrate the vital the company insisted, or whether they of the legislature - itself an expensive issues of reemployment of strikers, re­ retained it regardless of the strike (the operation - to appropriate funds for storation of their seniority, or the union's position). the troops unless arbitration could be closed shop. The governor denounced Although the two arbitration boards accomplished quickly.36 this as "partial arbitration" and an were still negotiating, newspapers At the appointed hour on June 17, attempt to make him arbitrator of the hailed Cochran as "Nebraska's strike­ union president H. N. Nelsen went to strike, a position he would not settling governor," who challenged the governor's suite to notify him that assume.37 public officials to protect the rights of the union had named Ernest Bower­ Under pressure from the governor, individuals, both strikers and business­ man, Omaha Central Labor Union sec­ the tram company named Sam W. men, as well as property rights.41 Praise retary, as its representative. Cochran's Reynolds, Omaha coal dealer, as its for his impartial intervention flowed in appointee was John J. Ledwith, Lin­ representative; Ledwith became chair­ from all over the country. From an AFL coln attorney, as the neutral member. man of the arbitration board. At the union in Missouri: "So far as we know Butthe tram company complained that request of the company Cochran this is the first time in the history of ithadn't had time to convene the board allowed some streetcars to run again labor disputes that the protesting of directors to name a negotiator. Ithad during arbitration and banned jitneys. workers have been given a square deal also prematurely advertised resump­ Peace prevailed; no one threw bricks at when an impasse had been reached." tion of full streetcar serivce that day. any of the 1,376 guardsmen. All From Florida: Itwas "so unusual to call Indignant, the governor phoned Gen­ violations of martial law were handled out the militia to force a corporation to eral Paul to order all streetcars back to by military courts which, according to arbitrate when three western gover­ the bam; he permitted jitneys to run. Omaha and Lincoln newspapers, nors just recently used their militias to 124 Omaha Tram Strike of 1935

force strikers into submission." A man wrote from Ohio that this was only the second time "a governor with back­ bone" did not "bow the knee to a cor­ poration."42 No doubt the writer was referring to Minnesota Governor Floyd B. Olson, who in 1934 called out the National Guard during a truckers' strike in Minneapolis which was settled in the union's favor. 43 Unfortunately all was not settled in the Omaha tram strike. Even as troops were leaving Omaha on June 21, the working employees - strikebreakers - were planning to thwart the negotiations. They resented the gover­ nor's demand that they relinquish their seniority, claiming that they had endured "insult, abuse, physical Remnants of burned out streetcars near Railroad Avenue during the strike's major danger, and actual injury."44 They violence. Courtesy ofJohn Savage ... (below) Upon their arrival in Omaha in mid-June chose attorney Hird Stryker to repre­ 1935 the National Guardsmen were greeted by friendly crowds. Courtesy of John sent them on the seniority board, then Savage. instructed their Employees' Protective Association strike committee "not to participate in the arbitration unless forced by the governor to do so." Stryker advised the men that if the board tried to function without their member, they should "take steps to enjoin the carrying out of any adverse finding."45 As Stryker withdrew from the board, the governor insisted that all r working employees and the company , n , . were still bound to accept the decision of the remaining two members of the seniority board.46 On June 27 the seniority board ruled in favor of the union: All 268 striking company employees should regain full seniority rights held before the April 20 strike. The next day Stryker, on behalf of 575 Employees' Protective Associa­ tion members, filed suitin federal court requesting an injunction against the company, the governor, the original arbitration board, and Adjutant General Paul to prevent the implemen­ tation of the seniority award. The suit charged that the company "bowed to the threats and demands" of Governor Cochran "under the club of martial law."47 By naming the company as a defendant, the E.P.A. could appear to be acting independently when in reality 125 Nebraska History - Fall 1988

its goals and the company's cOIncided. twenty-eight strikers who applied were pany guilty on several counts of unfair When the company on June 29 wrote not hired even as "new workers" labor practices and ordered it to rehire to strikers requesting them to return to because oftheir record with local 1002; 240 former workers within ten days and work under the provisions of the June six others died. 55 give them token restitution of up to 20 arbitration award, it gave the On July 6 the general arbitration $200 each. The board's report charged appearance of complying with the board issued its more detailed award of the company had made only the "mini­ ordered settlement. Strikers protested thirty-two decrees. The union would mum of compliance" with arbitration that they were willing to return to work get minor concessions to improve proceedings "without actually defying only under the provisions of both working conditions such as fIve-minute the governor." By ignoring the June 27 awards since the earlier ruling had not wash periods and "comfort stations." seniority award the company had acted dealt with the primary question of But the company prevailed on major arbitrarily. The company had adequate seniority.48 The governor, who felt that issues like the closed shop and wage counsel and "it knew or should have the company had misled him, charged increases, simply because the company known that it could not elect to choose that the company had "broken faith." limited the issues it was willing to arbi­ one of these void awards as the excuse "We haven't had the cooperation ofthe trate. Later, company negotiator for penalizing its striking employees," company or the present workers Reynolds recalled, "We won them all while at the same time ignoring the [E.P.A.] that I think necessary for suc­ except for a union demand for a toilet at coexisting and collateral award which cessful arbitration."49 But he urged the end of the line."56 would remove all penalty from the strikers to await the decision of the But the arbitration award was strikers.59 court - estimated optimistically to meaningless. Afraid of losing all Evidence to support Cochran's take six months. Union representative seniority rights, the union voted to con­ charge that the company had misled Bowerman recognized the familiar tinue the strike and remained re­ him also appeared in the intermediate management strategy of dragging out a markably cohesive. Its freedom of report. According to the report, com­ dispute in an effort to avoid an arbitra­ action was, in effect, paralyzed by the pany representative Reynolds had tion settlement and to discourage the lawsuit. The company contended that given the arbitration board certain union. The company hoped that the it could not address the seniority ques­ assurances about the company posi­ Wagner Act, which became law on July tion until the injunction suit was set­ tion on seniority. The board relied on 5, would, like the NIRA, be declared tled. However, the suit languished in these assurances in issuing its June 20 unconstitutional.50 Bowerman at fIrst federal court until February 27, 1937, award, but Reynolds failed to deliver. advised the strikers "to do nothing that when it was dismissed due to lack of Reynolds later recalled only that the would let down the governor." Then he prosecution by the plaintiffs, members company "let the men [the company resigned from the arbitration board, of the Employees' Protective Associa­ union] decide among themselves decrying the company's underhanded tion.57 While the strikers suffered from about seniority."60 methods and broken promises. 51 continued unemployment and urged The fInal NLRB decision from The Wagner Act replaced and the governor to do something, Cochran Washington a year later emasculated strengthened the NIRA by virtually quietly continued to search for a solu­ the fIndings in the Denham report. It outlawing company unions such as the tion to the strike. Along with Governor said that the company did not have to Employees' Protective Association Clyde Herring ofIowa and Mayor Hugh rehire the discharged workers and and by revitalizing collective bargain­ P. Finerty of Council Bluffs, Cochran found it guilty on only one count: dis­ ing by creating a new National Labor sought to make the streetcar com­ couraging organization of employees.61 Relations Board with power to deter­ pany's bridge toll-free or to secure Even though Denham had announced mine appropriate bargaining units federal funds to construct a new bridge. at the original hearings that events through board-supervised elections.52 Labor in Nebraska and Iowa favored occurring prior to the implementation On July 6, the day after the Wagner Act such action, along with some Omaha of the Wagner Act were not at issue, took effect, strikers rejected the tram retailers who wanted more Iowa much of his report seemed to be based company's latest plan, known as the business.58 on the company's relationship with the "Holland Proposal," under which they Not until the summer of 1938 did the union prior to the act's effective date. would be rehired for six months with­ National Labor Relations Board hold However, the fInal board report did not out seniority, leaving the seniority six weeks of hearings in Omaha to fInd the company guilty of violations question to the federal court.53 The determine whether the tram company for actions it had taken before July 5, company said that strikers could apply had violated the Wagner Act and 1935, since the Wagner Act could not be for reemployment only as new appli­ whether the strikers should be rehired. applied retroactively. The report cants. Six strikers did return to work in In the board's intermediate report, trial stated that the strike was not caused by 1935.54 Over the next twenty months, examiner R.N. Denham found the com­ unfair labor practices and was not pro­ 126 Omaha Tram Strike of 1935

longed by unfair labor practices prior to the passage ofthe Wagner Act. Since the company had already replaced all strikers before the act took effect, it was not obligated to reinstate them as a group and discharge employees hired before July 5, 1935.62 The Omaha tram strike of 1935 was not an isolated incident. Across the nation during the decade of the 1930s unions were challenging the long­ standing supremacy of management. Like other midwestern labor disputes of the period, the Omaha tram strike demonstrated how persistent were the entrenched patterns of management­ labor relations. The passage of federal legislation giving workers the right to organize could not by itself overcome determined resistance to unions by companies backed by the corporate (and often the political) infrastructure of the community. In the face of an ultimatum from the governor of Ne­ braska, the tram company (via the com­ pany sponsored union) brought suit in federal court, thereby gaining another opportunity to delay arbitration of union demands. Inevitably the strike was costly to all parties. The state paid nearly $35,000 for the National Guard's Omaha service, while the strike had cost the company more than a million dollars by June 1935. The strike was supremely costly on a personal level for those union members who lost their jobs.63 The tram strike is particularly Cartoonist Guy R. Spencer expressed the views ofmany Omahans in this drawing cap­ interesting because the Wagner Act tioned: "Speaking o{,Seniority Rights' - Don't Forget There Is a Paramount 'Seniority took effect while the strike was still Right' Over All." - Omaha World-Herald, June 20,1935. going on. The act made illegal many of the company's actions, but the com­ finally unionized by the CIO in 1941. and initially by the strikers; eventually pany could not be cited for them retro­ The tram strike helped demonstrate he received labor's acclaim for his hand­ actively. Even so, the National Labor that giving workers equal treatment in ling of the matter and with their sup­ Relations Board hearings "uncovered a settling labor disputes need not be a port won reelection in 1934. Some have great variety of unsavory labor prac­ political liability. In the 1934 Min­ credited Olson's performance during tices" and helped influence public opin­ neapolis truckers' strike, Governor the truckers' strike with helping stimu­ ion and the process of change. Though Floyd B. Olson had become directly late the passage of the Wagner Act. 64 the union and the governor may have involved as a mediator; eventually he Cochran also escaped political been outmaneuvered in the strike declared martial law and brought in the fallout from his use of troops in the itself, the company did not prevail in National Guard, not to break the strike tram strike. However, unlike the the long run. The tram company sold its but to serve as a sort of umpire between dynamic and controversial Olson, lucrative toll bridge in 1938 to liquidate the two sides. Olson's actions were con­ leader of Minnesota's Farmer-Labor indebtedness. The company was demned by Minneapolis newspapers Party, Democrat Cochran was per­ 127 Nebraska History - Fall 1988

Omaha Mayor Roy Towl (seated at left), Iowa Governor Clyde L. Herring (pointing to map), Nebraska Governor Robert L. Cochran (seated at center), and Council Bluffs Mayor HughP. Finerty (seated at right) met in the fall of1935 to plan a toll-free bridge spanning the Missouri. (NSHS-C663-170)

128 Omaha Tram Strike of 1935

ceived as a mild "New Dealer," who by pany intransigence and a lawsuit Railway, and Motor Coach Employees ofAmerica, Division 1002, Affiliated with the A.F. ofL., Case background and temperament was against the arbitration board's deci­ No. XVII-C-301, Intermediate Report, Novem­ sympathetic to workers and farmers. sion. Unfortunately passage of the ber 6, 1938, 11 (hereafter NLRB Intermediate His comments such as "unions are Wagner Act came too late to help the Report). 13Leighton, "Omaha, Nebraska," Part II, 315. helpful in fighting the sins ofcapitalism union in 1935. Though the tram strike OMWH, June 19, 1935. and limiting its hoggishness,"65 echoed was another setback for Omaha labor, l'Omaha City Comptroller's Audit, June 11, populist rhetoric, but they did not 1935. Cochran Papers, Series One, Folder 102. the role of the governor and the guard ISMatt Smolsky, "Streetcar Strikes of the arouse suspicion of radical tendencies, bolstered labor's cause and marked a 1930s," Omaha, February 1982. and apparently he continued to have turning point which offered hope for 16Lawrence H. Larsen and Barbara J. Cottrell, The Gate City, A History of Omaha (Pruett the support of Nebraska's business the future. Publishing, 1982),201-2. community.66 His long service as head 17George Leighton, Five Cities: The Story of of the state roads department from Their Youth and Old Age (New York: Harper, NOTES 1939),232 1923 to 1934 under both Republican INewspapers around the country carried the 18Larsen and Cottrell, The Gate City, 202; and Democratic governors had earned story of the Omaha strike. Newsweek, June 29, NLRBIntermediate Report, 77-78. There is con­ him a reputation among Nebraskans as 1935, ran a page on the strike with photographs of fusion over the number of paid union members. a burning streetcar and of the governor, Union president Nelson testified before the a steady, frugal administrator.67 equipped with goggles and a parachute, getting NLRB that the records had been lost or de­ Despite Cochran's failure to bring out of an airplane. Letters praising Cochran's stroyed during changes of officers and no record action are found in RG 1, SG 31, Robert Leroy of dues payment was available. Comparison of about an equitable settlement of the Cochran Papers, Nebraska State Historical 342 signed application cards with company tram strike, his actions did nothing to Society, Series One, Folders 102, 107 (hereafter payroll records showed thatsixty-five people had damage his image as a fair-minded, cited as Cochran Papers). paid no dues in the past six months, six could not 2For background on earlier Nebraska strikes recall when they last paid, and one was not neutral arbitrator, which undoubtedly and the changing role of the state militia, see employed in the appropriate unit. Deducting helped him win labor support for Ronald M. Gephart, "Politicians, Soldiers, and these from the 342 claimed memberships leaves reelection in 1936 and again in 1938. Strikes: The Reorganization of the Nebraska 267 members in good standing although 268 par­ In Militia and the Omaha Strike of 1882," Nebraska ticipated in the strike. The NLRB noted that "the the latter year he was one of the few History 46 (June 1965),91-120. union has at no time represented a majority ofthe Democrats to survive a major political 3George H. Mayer, Floyd B. Olson (Min­ employees within the appropriate unit." neapolis: University of Minnesota Press, 1951), 19Smolsky, "Streetcar Strikes," 22. retreat from the New Deal in Ne­ 193. 2°NLRB Intermediate Report, 20. braska.68 Meanwhile, Iowa's Demo­ 'Omaha World-Herald (morning), June 17, 21Leighton, "Omaha, Nebraska," Harper's 177 cratic governor, Nelson Kraschel, who 1935 (hereafter OMWH). (July 1938), 114. SNo doubt the Omaha and Council Bluffs 220MWH, July 13, 1938. had mobilized troops to break a strike Street Railway Company had a hand in the 230MWH, May 24, 1935; telephone interview at the May tag appliance factory in passage of the 1922 anti-picketing law. The com­ with John Savage, January 9, 1987. Police dis­ Newton, was rebuked by labor and pany's general manager was present when the persed picketers but made no arrests, according governor signed the bill. See William C. Pratt, to newspaper accounts. soundly beaten by his Republican "The Omaha Business Men's Association and 240MWH, June 14, 1935; Omaha Central opponent in the 1938 election.69 Finally the Open Shop, 1903-39," unpublished paper Labor Union to Cochran, June 16, 1935; William read atthe 1984 conference ofthe Organization of H. Brewer, President, Omaha Free Ride Associa­ in 1940 Cochran was defeated by Hugh American Historians, 16. tion to Cochran, June 17, 1935. Cochran Papers, A. Butler in the race for U.S. Senator as 6Protection turned out to be hiring 500 men " of Series One, Folder 102. Nebraska turned its back on the New doubtful character." Dennis Thavenet, "A His­ 2sThe Unionist, June 14, 1935. tory of Omaha Public Transportation" (Master's 26H. J. Phillips to Charles Steward, July 27, Deal with finality.70 Thesis, University of Omaha, 1960), 7l. 1935, Cochran Papers, Series One, Folder 102. Although Cochran called out the 7Pratt, "Omaha Business Men's Association," 270MWH, June 19, 1935. National Guard three times before 10, 14. 28Towl "contented himself with pasting 8George Leighton, "Omaha, Nebraska: The newspaper clippings aboutthe strike in his scrap­ eight months of his first term had Glory is Departed," Part II, Harpers Magazine, book," according to Larsen and Cottrell, The elapsed, he would not do so again dur­ 177 (August 1938), 326. Organizations of Gate City, 230. businessmen or industrialists were a common 290MWH, June 14, 15, 1935. Only two weeks ing the balance of his three terms as response to incipient union activity. In Min­ earlier Cochran had mobilized 248 guardsmen governor.71 His administration marks a neapolis, the "Citizens' Alliance" fought to keep after the disastrous Republican River flood. change in the National Guard's role Minneapolis an open shop town. For more on its 300MWH, June 16, 1935; Cochran Papers, role, see Lois Quam and Peter J. Rachleff, Series One, Folder 102. during periods of labor unrest. Prior to "Keeping Minneapolis an Open-Shop Town: The 3IOMWH, June 16, 1935. Troops were billeted 1935, the guard had been called out Citizens' Alliance in the 1930s," Minnesota His­ in the city auditorium, the armory, South Side primarily to break strikes. Cochran, tory 50/3 (Fall 1986), 105-17. City Hall, and Spring Lake Park. "Thavenet, "Omaha Public Transportation," 32According to Cochran's Memoirs, written perhaps following the lead of Governor 77, 8l. August 20,1962, the World-Herald photographer Olson of Minnesota, used the guard to IOElmo Bryant Phillips, "History of Street who met the governor's plane told him "Chris" Railways in Nebraska" (Ph.D. dissertation, wanted to see him. "Chris suggested a program preventviolence in an effort to promote University of Nebraska, 1944), 498-50l. designed to terminate the strike and get the a negotiated settlement of the tram llIbid., 50l. street cars running." Cochran did not elaborate; strike. Thinking a settlement was 12Before the National Labor Relations Board, presumably the program was similar to the plan 17th Region, In the Matter ofOmaha and Council he followed. What is revealing about the con­ imminent, he sent the troops home only Bluffs Street Railway Company, a Corporation, sultation is Cochran's relationship with to find his efforts frustrated by com­ and Amalgamated Association of Street, Electric newspapermen. He trusted them; they in turn, 129 Nebraska History - Fall 1988

liked and supported him. The World-Herald con­ U.S. District Court in Omaha. The lawsuit also 1967), 178-95, for documentation of the bridge tinued to support Cochran after it had turned attacked the first arbitration award even though question. away from President Roosevelt and the New Reynolds had signed it. OMWH, June 29, 1935. '9NLRB Intermediate Report, 83-86. Deal. See OMWH, November 2, 1938; Memoirs of 48NLRB Intermediate Report, 54-55. 60NLRB Intermediate Report, 40-42; tele­ Robert L. Cochran, unpublished manuscript, 49The Unionist, July 12, 1935. phone interview with Sam Reynolds, January 9, Cochran Papers, Series Sixteen, Folder 31. ,oNIRA was declared unconstitutional by the 1987. 3lNewsweek, June 29, 1935. U.S. Supreme Court in Schecter Poultry Corp. vs. 61Decisionsand Orders ofthe NLRB, Vol. XVIII, 340MWH, June 17, 1935. Radio Speech, June United States, May 1935. December 1, 1939. 1935, Cochran Papers, Series Six, Folder One. "Omaha Bee-News, July 2, 7, 1935; Ernest 62The Unionist, December 8, 1939. 3'OMWH, June 17, 18, 1935; Cochran Bowerman to Cochran, Cochran Papers, Series 630maha City Comptrollers Audit, June 11, Memoirs. One, Folder 102. 1935, Cochran Papers, Series One, Folder 102. 360MWH, June 16, 1935. It cost about $5,000 a '2William E. Leuchtenburg, Franklin D. 64Mayer, Floyd B. Olson, 221-22. According to day to maintain the guard on duty. Roosevelt and the New Deal, 1932-1940 (New Mayer, Olson got President Roosevelt to order 370MWH, June 18, 1935. Members of the York: Harper and Row, 1963), 151. the Reconstruction Finance Corporation to directors committee who called on the governor '3The plan was named for Yale Holland, a withdraw loans to banks that were financing were O. H. Barmettler, P. F. Petersen, Leo Bozell, member of Kennedy, Holland, DeLacy, and employer resistance. J. A. C. Kennedy, and W. H. Schellberg. Com­ Svoboda, general counsel to the tram company. 6'Labor Day Speech in North Platte, 1936, pany president Fred P. Hamilton was absent. NLRB Intermediate Report, 29-30. Cochran Papers, Series Six, Folder Five. 38Lincoln Journal, quoted in OMWH, June 20, "OMWH, June 21, 1935. Upon termination of 660tho DeVilbiss, to author, March 12, 1987. 1935; an OMWH editorial, June 20, 1935, noted: the strike the names of 154 strikers were removed DeVilbiss, Cochran's executive secretary, added, "Omaha was held under a military rule as gentle, from the relief rolls. "But there were times when he (Cochran) had to as courteous, as it was firm and efficient." "NLRB Intermediate Report, 60, 61. keep them (businessmen) in line." Robert Lasch, 39NLRB Intermediate Report, 41; OMWH, '6Cochran Papers, Series One, Folder 102; in a column in the July 10, 1938 Omaha World­ June 18, 1935; according to Larsen and Cottrell, telephone interview with Sam Reynolds, January Herald, described Cochran as "a man who has the settlement was "virtually dictated by the 9, 1987. been sympathetic to the general objectives of governor's representative on the arbitration '7The Unionist, November 18, 1938. liberal government without taking his feet off panel." Larsen and Cottrell, The Gate City, 203. ' 8Donald E. Renner to Cochran, August 30, the ground." 4°NLRB Intermediate Report, 7, 26. Thavenet, 1935, Cochran Papers, Series One, Folder 57; 67Cochran was a "fair-minded, conservative, "Omaha Public Transportation," 72. Thavenet, "Omaha Public Transportation," 81. and fearless public official, abundantly endowed 41See OMWH, June 24, 1935. A wire from A. F. The Iowa commissioner of conciliation and with sound judgment," according to the Omaha Buechler, editor of the Grand Island Independent, Council Bluffs Mayor Finerty thought that the World-Herald, June 18, 1935. See also OMWH echoes many others: "Public sentiment strongly only immediate solution to the strike was the editorial November 10, 1938, for the paper's upholding you." Cochran Papers, Series One, reduction of the toll on the Douglas Street bridge analysis of Cochran's re-election to a third term Folder 102. or the building of a free bridge since the tram as governor. 42Cochran Papers, Series One, Folders 102, company was not inclined to negotiate on strike 68 0MWH, August 8, November 2, 10, 1938. 107. issues as long as it was making significant profits 690MWH, August 9, 1938; Alan Jones, "The 43See Mayer, Floyd B. Olson, 184-222; Quam from bridge tolls. New Deal Comes to Iowa," in Lawrence Gelfand and Rachleff, "Citizens' Alliance"; and Thomas The efforts of Cochran and others to secure and Robert J. Neymeyer, eds., The New Deal E. Biantz, C.S.C., "Father Haas and the Min­ federal funding for construction of a free bridge Viewed from Fifty Years (Iowa State Historical neapolis Truckers' Strike of 1934," Minnesota between Omaha and Council Bluffs continually Department, The Herbert Hoover Library and History 42/ 1 (Spring 1970), 5-15. ran into snags locally or in Congress. In June the University ofIowa: The Center for the Study 440MWH, June 23, 1935. 1938, Ak-Sar-Ben purchased the toll bridge from of the Recent United States, 1983), 33-35. 45NLRB Intermediate Report, 26-27. the tram company for $2,350,000 with the inten­ 7°For a summary of the Democratic party in 460MWH, June 30, 1935. tion to use tolls to payoff the indebtedness and Nebraska, 1936-40 see James F. Pedersen and 47The case was T.J. Rubeck, et. al. as members of deed the bridge to the city. State officers, includ­ Kenneth D. Wald, Shall the People Rule?: A His­ the Employees Protective Association of the ing Cochran, considered the price too high, and tory ofthe Democratic Party in Nebraska Politics, Omaha and Council Bluffs Street Railway Com­they were displeased that their efforts to secure 1854-1972 (Lincoln: Jacob North, Inc. , 1972), pany vs. The Omaha and Council Bluffs Street funds to build a free bridge had been frustrated. 285-324. Railway Company, a corporation, RoyL. Cochran, The bridge finally became toll-free in 1947. See 71Robert L. Cochran, Memoirs, September 7, Governor of the State of Nebraska, H. J. Paul, Cochran Papers, Series One, Folders 89, 102, 199, 1962. Besides sending 248 guardsmen to McCook Adjutant General ofthe State ofNebraska, JohnJ. 308, and 428; and Arvid E. Nelson, The Ak-Sar­after the Republican River flood of 1935, Ledwith, Ernest Bowerman, and Sam W. Ben Story: A S eventy-Year History ofthe Knights Cochran ordered one company to the North Reynolds, Equity No. 1374, filed June 28,1935, in ofAk-Sar-Ben (Lincoln: Johnsen Publishing Co., Platte valley near Mitchell during an irrigation dispute in August 1935.

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