An economic history of the Indiana oolitic limestone industry

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NORTHWESTERN UNIVERSITY

AN ECONOMIC HISTORY OF THE INDIANA OOLITIC LIMESTONE INDUSTRY

A DISSERTATION SUBMITTED TO THE GRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

for the degree DOCTOR OF PHILOSOPHY

DEPARTMENT OF ECONOMICS

BY JOSEPH ALEXANDER BATCHELOR

EVANSTON, ILLINOIS AUGUST 1942

PREFACE

In recent years, there has been an increasing em­ phasis upon the writing of business history.

Viewed from

the standpoint of one interested in the training of college students for business careers, an attempt to write the history of an industry has several advantages.

In the

first place, the contact with an industry enables the teacher to appreciate the problems of the business world in a more realistic manner than can possibly be achieved through reading the results of the research of other people. From the study of an industry, many examples of concrete situations in the field of economic history or of economic theory are discovered.

These may be used to enrich class­

room discussion as well as to increase the understanding of the teacher. The Indiana limestone industry represents a unique opportunity for study.

Such records as are available are

concentrated principally within the two counties of its location, Washington, D. C., and Chicago.

However, until

recently the individual firms involved were small and the records which they kept were not very extensive.

The in­

tense competition within this small area by men who lived in daily contact with each other made them extremely wary of keeping or of disclosing information. ii

Early records of

the majority of the companies have heen destroyed, lost, or burned,

Fortunately, there were government records in

existence and some of the early pioneers of the stone in­ dustry or their sons are still living.

From these primary

sources, together with the trade and labor journals and the local newspapers, the pattern of development of the industry could be traced. This study could not have been undertaken, however, without the opportunity afforded by hundreds of conversa­ tions and conferences with many executives and workers in the industry to become familiar with its background and to clarify the understanding of its numerous problems.

The

writer owes a debt of gratitude to so many individuals now or formerly engaged in the industry that, rather than name them all individually, he must ask their permission to thank them collectively.

To Mrs. F. G. Walters, Secretary of the

Indiana Limestone Institute, however, must go a special word of acknowledgment for her many kindnesses. The writer likewise desires to express his appreciation to Dr. F. S. Deibler for his guidance in planning the study, and to Dr. Mark G. Mills of Indiana University for his constant advice, criticism, and encouragement in its execution. Many helpful suggestions have been made by the writer's colleagues at Indiana University.

The patience, tolerance

and long hours of toil of the author's wife deserve special mention. iii

TABLE OF CONTENTS LIST OF T A B L E S ...................................... LIST OF FIGURES

Page vi

..................................

xi

Chapter I. THE NATURE AND SCOPE OF

THES T U D Y ................

1

The Nature of the Product II. THE PIONEER ERA PRIOR TO 1870 .....................

10

The Discovery of Indiana Oolitie Limestone The Development of the Local Market The Technique of Production Labor The Extent of the Market Prices and Profits Summary III. THE QUARRY INDUSTRY COMES OF AGE (1871-1896)

. .

29

Influences Affecting the Demand for Building Stone Rise to Prominence of Indiana Limestone Number and Location of Quarries Railway Facilities Technological Changes Financial Organization Labor Problems Price Policies Profits Summary 17. PERIOD OF INTEGRATION OF QUARRIES AND CUT STONE MILLS (1897-1918)......................... Faetors Affecting the Demand for Building stone: Urban Concentration Fluctuations in General Building Fluctuations of Building Stone Sales Compared with those of Leading Competitors Fluctuations in Sales of the Leading Building Stones Sales of Indiana Oolitic Limestone

iv

131

Page

Chapter Promotional Activities The Influence of Railway Facilities and Tariffs on the Growth of the Indiana Stone District (1897-1918) Technological Development Labor Organization and Wage Rates Business Organization and Financial Policy Prices and Profits Factors Affecting Price Fluctuations: Q,uarry Prices and Price Policies Cut Stone Priees and Priee Policies Attempts to Stimulate the Sale of ByProducts and Other Measures for the Reduction of Waste Summary

7. THE PERIOD OF BOOM, MERGER AND OVERCAPACITY, 1919-1933 ...................................... 361 The Building Cycle, 1919-1933 Developments in Other Building Stones: Alabama and Texas Promotional Activities Transportation Facilities Technological Changes Labor Problems Business Organization and Financial Policy Price Policies Summary VI. PERIOD OF FRUSTRATION 1934-1941 ................. 592 Fluctuations in Non Residential Building Fluctuations in Sales of Facing Materials Promotional Activities Labor Organizations Transportation Facilities Machinery and Technology Priee Policies Summary VII. SUMMARY AND C O N C L U S I O N S ........................ 700 APPENDIX A. The Controversy between the Journeymen stone Cutters Association of North America and the Cut Stone Contractors Associ­ ation 1896-1919

708

APPENDIX B.

743

Allowable Cost Formula

v

LIST OF TABLES Table

Page

1. Quarries in Operation Before 1870 . . . . .

18

2. Distribution of Population in Cities of Over 25,000 Inhabitants, 1870-1890, by Groups and by A r e a s .......................

33

3. Carload Shipments of Indiana Limestone Via L. N. A. & C. Ry. from Chief Points of Origin, 1877-1881

51

4. Total Cubic Feet of Limestone Shipped Via L. N. A. & G. Ry., 1877-1881 .............

52

5. Destination of Shipments Via Monon Railway from Bedford (In Percentages of Total Carloads Shipped) ......................

53

6. Cubic Feet of Production, 1877-1896

54

7.

....

Quarries of Indiana Oolitic Limestone, 1871-1895

63

8 . Numbers of Machines Installed, 1870-1896 . .

85

9. Employment in Indiana Limestone Industry: Number of Employees by Counties for the Years 1880-1896

99

10. Average Cubic Feet Produced Per Man Employed to 1896

100

11. Distribution of Employment and Sage Rate Among 135 Workers Interviewed by the Department of Statistics of the State of Indiana in 1892

104

12. Average Daily Rates of Pay, 1 8 9 1 ............. 106 13. Comparison of Value of Sales of Total United States Building Limestone with Value of Sales of Indiana Oolitic Limestone, 1899-1918 . . . 151 14. Sales of Indiana Oolitic Limestone 1896-1918

152

15. Geographic Areas to Which Limestone was Shipped 1917-1918 from Quarries and from Mills

189

vi

Table

-Page

16. General Changes in uommodity Rates on Indiana Limestone to Representative Points . . . 193 17. Percentage of Indiana Limestone Production Produced in Lawrence County................... 256 18. Established Hourly Wage Seales — Indiana Limestone District 1900-1918, Inclusive. . . .

270

19. Indiees of Hourly Wage Rates 1900-1918 Indiana Limestone District .....................

271

20. Number of Q,uarries Belonging to Going Concerns, 1896-1918

279a

21. Stone Mills in Existence in the Indiana ......................... Stone Belt, 1896-1918

279b

22. Results of Receiverships 1896-1918

298a

...........

23. Average Prices of Classes of Indiana Limestone 1896-1918 (Per Cubic Foot) .....................

306

24. Comparison of Average Prices in Lawrence and Monroe Counties, 1908-1918 ......... .

307

25. Indiees of the Relation of Indiana Limestone and Competing Products to the Engineering News Record Index of Building Construction Costs, 1913-1918 ................................

318

26. Sales and Average Prices of Sawed, Semi­ finished and Cut Stone, 1908-1918 ..........

322a

27. Sales of By-Produet Stone, Indiana Limestone ........................... District, 1907-1918

334

28. Construction Activity, 1919-1933 by Principal Uses of Projects ......................... 366 29. 30.

Sales of Leading Faeing Materials 1919-1933- . . 371 Sales of Leading Exterior Building stone, 1919-1933 ......................................

373

31. Comparison of Prices of Leading Facing Materials by Unit Priee and by Percentages of the 1919-1933 Average Priee ...................

375

vii

Table

Page

32. Sales of Stone from the Carthage Distriet ...................................... 1913-1933

393

33. Sales of Mankato-Kasota Limestone 19161933 ..........................................

395

34. Sales of Indiana Limestone by "Producers," 1919-1933.. ......................................

398

35. Sales of Indiana Mills not Operated by Quarry Companies, 1917-1933 ..................

400

36. Volume and Value of Total Stone Sold by Indiana Stone Mills, 1921-1933. . . . . . . . .

401

37. Percentage of Total Sales of Bough Block Lime­ stone Sold by Indiana Quarries, 1921-1932 . . . 403 38. Percentages of Total Bough Block Sales by Grade of Stone 1926-1933 .....................

413

39. Commodity Bates on Indiana Limestone to Representative Points Prior to October 25, 1914, Compared with the Bates to the Same Points June, 1932 .......................

439

40. Comparison of the 1919-1922 and July 1, 1929June 30, 1930 Percentage Distributions of Sales in Cubic Feet of Indiana Limestone to the Principal Freight Rate Territories .............

443

41. Established Wage Seales Indiana Limestone Distriet 1919-1933 ..............................

471

42. Estimated Average Number of Men Employed in Indiana Dimension Stone Industry 1911-1933 . . .

509

43. Sales of Indiana Oolitic Limestone 1919-1940 . .

511

44. Average Cubic Feet of Stone Sold per Man Employed 1919-1933 ..............................

519

45. Comparison of Cubie Feet of Indiana Limestone Sold per Man Hour forked for Selected Years . .

520

46. Number of Quarries, Saw Mills, and Cut Stone Mills, 1919-1933 ................................

523

47. Proportion of Total Output Sold by Leading Producers, 1922-1925 ............

525

viii

Table

Page

48. Amount Paid for Twenty-Four Merged Companies by the Indiana Limestone Company,1926 ..........

537

49. Sales and Profit Experiences of Companies baring Bonded Debt, 1926-1933

540

50. Average Prices for Classes of Indiana Limestone Sold 1919-1933 ..................................

563

51. Net Profits of Firms Entering Indiana Lime­ stone Company Merger 1921-1925 .................

566

52. Comparison of Average Prices per Sale of Quarry Companies and Independent Stone Mills, 1919-1933 ............

568

53. Approximate Acreage of Oolitie Limestone Outcrop by C o u n t i e s .........................

569

54. Sales of By-Product Stone 1919-1933

582

55. Size of Cut Stone Jobs Sold by Two Large Indiana Producers in 1929

585

56. Construction Contracts Awarded for NonRe sidential Building F. W. Dodge Corporation (37 S t a t e s ) ...................................... 593 57. Estimated Expenditures for New Construction by Types, 1934-1938

595

58. Estimated Expenditures for New Construction in the United States by Sourees of Funds, 1925-1938

597

59. Proportion of Total Estimated Expenditures for New Public Construction Financed by Federal F u n d s ..............

598

60. Sales of Leading Facing Materials 1933-1940

. .

599

61. Sales of Building Stone in CubicFeet and in Percentages of Total Sales, 1934-1940

601

62. Comparative Prices of Facing Materials, 1934-1940

602

63. Sales of Indiana Limestone by Producers, 1934-1940

604

64. Sales of Indiana Mills not Operated by Quarry Companies and Sales of Indiana Quarry Companies .............. from Purchased Stock, 1934-1940

605

ix

Table

Page

65* Total Milled Indiana Limestone Sold byIndiana Companies, 1934-1940 ....................

607

66. illstablished Wage Scales Indiana Limestone District, 1934-1940

623

67* Average Number of Men Employed in Indiana Dimension Stone Industry,1934-1940

650

68. Average Cubic Feet of Stone Sold per Man Employed 1934-1940 ...............................

652

69. Average Cubic Feet of Stone Sold per Man Hour forked 1934-1940 .................................

653

70. Bates to Given Points Besulting from Beeent Stone Bate Cases and General Bate Increases

. •

659

71. Numbers of Certain Machines Reported by the Indiana Stone Industry in April, 1930, Com­ pared with October, 1940 ..............

666

72. Number of Quarries and Mills in Operation in Monroe County by Months January, 1931, to July, 1942 ......................................

669

73. Actual Sales of Indiana Cut Stone Mills Com­ pared to Sales if Prorated According to Productive Capacity . . . . . .................

681

74. Average Prices of Stone Sold by Indiana Producers 1934-1940

685

75. Sales and Profit Experience of Firms Having Funded Debt, 1934-1941 .........................

690

76. Direct Labor Cost and Profit per Cubic Foot Indiana Stone Companies, 1939-1941 .............

695

x

LIST OF FIGURES Figure

Page

1 . Extent of Outcrop of Indiana Oolitic L i m e s t o n e ............................... . .

6

2. Location of Principal Railroad and Quarry Districts, Indiana Limestone Belt prior to 1870 .......................................

19

3. Location of Principal Railroads and Quarry Districts, Indiana Limestone Belt, 18701896 .......................................

64

I

4. Location of Principal Railroads and Quarry Districts, Indiana Limestone Belt, 18971 9 1 8 ........................................ 177 5. Long Indices of Public and Non-Residential Buildings ................................... 135 6 . Comparison of Dollar Volume of Sales of Leading Building Materials and Long Indices of Ron-Residential Buildings, 1897-1918

137

7. Comparison of Dollar Volume of Sales of Leading Building Stones per $100,000, 1900-1918

148

8 . Per Cent of Total Dollar Value of Building Stone Sales Represented by Major Building Stones, 1900-1918

150

9. Construction Activity 1919-1938 by Principal Uses of Projects ........................... 364 10. Sales of Leading Facing Materials,1919-1940 . . 370 11. Sales of Leading Exterior Building Stones 1919-1940, Percentages of Total Sales .......

377

12. Fluctuations of Prices of Leading Facing Materials 1919-1940 Expressed as Percentages of the 1919-1933 average Price ............... 378 13. Fluctuations of Prices of Leading Stone Facing Materials 1919-1940 Expressed as Per­ centages of the 1919-1933 Average Price . . . .

379

Figure

Page

14. Sales of Indiana Limestone by Producers, 1919-1940 ................................

399

15. Map of Properties of Indiana Limestone C o m p a n y ..................................

534a

xii

1

CHAPTER I THE NATURE AND SCOPE OF THE STUDY The construction industry has long been recognized as one of the basic industries of the country.

Fluctuations in

building activity have been subjected to close scrutiny and the theoretical implications of their changes have been ex­ amined.

Such leading structural materials as steel, lumber,

and cement have attracted the study of the statistician, the economic historian, and the theoretical economist. Outside of brief passages in government publications, how­ ever, the building stone industry has attracted little at­ tention. Of the building stones, the Indiana oolitic lime­ stone has been one of the most important.

The present study

traces the changes in the Indiana oolitic limestone industry through the periods that have seemed to be the most signifi­ cant divisions of its history. The history of the industry shows five rather Y'ell defined periods:

(1) Prior to 1370, a period marked by the

pioneer stage of local markets and hand methods of production; (2) From I87O to 1896 , the period of Ytfide acceptance of the product and modernization of the quarries;

(3 ) From 1897

to 1918 , the period of the development of cut stone mills

2 and the emergence of internal conflicts within the industry; (4) From 1918 to 1933 1

period of mergers and the devel­

opment of strong overcapacity; and (5 ) 1934 to date the period of declining importance.

The study of the Indiana limestone industry reveals in miniature many of the most characteristic features of American industrial enterprise.

Illustrations are afforded

of such features as financial manipulations, railway re­ bates, impact of technological innovations, struggles to achieve unionization and the development of collective bar­ gaining, company utfiions, etc. Perhaps the most significant feature is the oppor­ tunity afforded to study the unstable equilibrium of an oligopolistic industry. of Indiana —

Centered as it is in two counties

with a product more homogeneous than the ma­

jority of raw materials and yet constantly threatened by competition with substitute materials, the Indiana limestone industry is truly one marked by the instability, overcapacity, price wars, and attempts at concerted action in respect to sales prices, labor organization, and promotional activities that are characteristic of oligopoly. have been attempts —

In addition there

some by the individual firm and others

by the industry as a whole —

to differentiate the product.

Since its emergence from the pioneer era/the industry has alternated between periods of overcapacity, price cutting, and disorganization leading to concerted action and periods

3

of prosperity when major expansions in non-residential building stimulated new investment and resulted in still greater overcapacity.

Despite these alternating phenomena,

however, the activity of the industry showed a general up­ ward trend until the early 1930's.

Although the present

situation is too near in point of time and too abnormal in respect to the demand for building materials to enable any final judgments, there are strong indications that the in­ dustry has entered a period of decline that may continue for some time.

The factors responsible for the period of secular

growth and for the beginning of decline are examined as they developed chronologically.

Each chronological period is

summarized at the end of the chapter.

This analysis leads

at the end to a tentative statement concerning the future prospects of the industry. The Nature of the Product Indiana oolitic limestone has certain physical char­ acteristics that make it superior for building purposes to most other stones.

An understanding of these characteristics

will assist materially in following the chronological story. In seeking suitable building materials, builders and contractors have desired a product that would fabricate in­ expensively and yet was possessed of wearing qualities that would enable it to weather climatic changes without disinte­ gration.

In the days when stone facings had to bear their

share of the weight of the buildings and solid masonry walls were the necessary rule, the strength of the stone was another factor of importance.

If these factors mere

present, the builder then considered its appearance.

To

what extent does Indiana limestone possess these character­ istics of workability, durability, strength, and pleasing appearance?

A brief description of the formation of the

stone will help to explain the answer. The deposits of Indiana oolitic limestone are found in Southeastern Indiana in an area that begins near Greencastle on the north and is traceable in a southeasterly di­ rection to the Ohio River near New Albany, Indiana. extent of the outcrop is indicated in Figure 1. exception of two long abandoned quarries —

The

With the

one at Salem in

Washington County and the other near Corydon in Harrison County —

the commercial production of building stone has

been from the deposits of Owen, Monroe, and Lawrence counties Indiana oolitic limestone was formed in the Leramic epoch of the Kississippian or lower Carboniferous division of geologic time — one of the later divisions of the 1 Paleozic era. The area of central and western Indiana was ■^This geological description is based upon Loughlin, G.F., "Indiana Oblitic Limestone: Relation of its Natural Features to its Commercial Grading," Bulletin 811-C, United States Geological Survey, Washington D.C., 1929 in Contri­ butions to Economic Geology. Part I, pp.116-123.Hereinafter referred to as Loughlin, Bulletin 811-C.

5 at that time covered with a shallow sea,

The Mississippian

period began with an extensive spreading of the sea, and the first half of it ended when land emerged to a wide extent. It was the next spreading of the sea in the middle part of the period that brought about the deposition of the Indiana oolitic1 limestone. flat.

The land to the east was then low and

Drainage was sluggish and contributed little coarse

sediment or siliceous sands or clay.

The sea was shallow

and contained large amounts of calcium carbonate, but except at the beginning and end of the period, it was deficient in food supply.

Hence mollusk shells of normal size were de£ posited only on the top and bottom beds. The stone, there­ fore, is almost pure calcium carbonate and except at the top or bottom of the beds is relatively free from large fossils. there periods of agitation of the waters alternated with periods of quiet, the granular or cross-bedded Indiana The Indiana building stone has become widely known as Indiana oolitic limestone. Actually, however,only a small proportion of the stone is of a true oolitic character* £ The above explanation is the so-ealled "dwarfing" theory of the nature of Indiana limestone. In other words, the particles are small and of sueh uniform size because the deficiency in food supply prevented their growth to normal size. This is a theory that has been published and generally accepted. There is another theory, however, that the uniform­ ity in size is the result of a screening process that occurred when water moved the material from the place of origin of the organisms to the place of deposition. This theory has never been published, but appears to be able to explain more satisfactorily the presence in the same matrix of certain fossils of normal size with other fossils whose size though equivalent to the first group is smaller than their normal size. This unpublished theory is the idea of Dr. J. J. Galloway of the Indiana University Department of Geology.

EXTENT

OF

I

INDIANA

FIGURE OUTCROPOF

OOLITIC

LIMESTONE

6

H O) Z

H

. cit. , p. 2, clippings from issue of May 11, 1878 . See also the Chicago Tribune, May 7, 18785 P« 3^Chicago Tribune, June 13, 1878 , p. 8 . ^Chicago Tribune. May 7 5 1878 , p. 3»

47 the transition of the Ohio Valley from a purely agricultural area to one developing important industries as well, and were not desirous of finding Indiana lagging in such a change. The building stone industry received a large share of the survey's time and attention.

The fifth annual re­

port (1878 ) contained a description of the Lawrence County quarries; the seventh (1875) those of 0?;en County; and the fifteenth (1886) those of Washington County.

In I 896 , a

comprehensive survey and report on the entire oolitic stone belt was made.

Indeed, there were few reports issued be­

tween 1873 and 1896 that did not pay tribute in some manner —

brief or extended —

to the strength, workability, and

beauty of the stone and give publicity to its widening uses. Of greater value, however, was the work done by the Geologi­ cal Survey office in furnishing individual information and assistance to architects, contractors, and quarrymen.

The

services rendered by Hr. Cox in connection with the securing of the Chicago City Eall contract are but an example of events repeated many times.

In this early, struggling, in­

dividualistic stage of the industry, the Geological Survey played one of the roles later to be assumed by a trade asso­ ciation in the industry in publicizing the architectural value and uses of the Indiana stone.

IJajor H. F. Ferry of

the firm of Perry Brothers, Ellettsville, speaking in Febru­ ary, 1893 at the peak of the industry's first great boom,

said:

uDr. John Collett, former State Geologist of Indiana,

had a larger share in the development of the stone industry of Indiana than any other m a n .11^ The other noteworthy opportunity of 1877 — Indiana State House competition —

the

began with the invitation

by the Board of State House Commissioners to submit specimens of stone.

Thirty-nine were received; twenty-two from Indiana

nine from Ohio; two each from Maine and Illinois; one each 2 from Connecticut, Missouri, New York, and Massachusetts. These samples were submitted to General Q. A. Gilmore, United States Army, Corps of Engineers, New York City, for analysis of their crushing strength and rate of absorption of moisture.

Professor Cox, reporting upon his examination

of the specimens, emphasized the superior ease and lower cost of quarrying and shaping the oolitic stone in compari­ son with the Niagara limestones.

General Gilmore's tests

had found it to be adequate in strength and resistance to disintegration.

The Commission made an extended inspection

tour of Indiana and Ohio quarries.

On July 20, 1878 , the

Commission ruled in favor of oolitic stone as the material for the superstructure of the State House and selected ^Stone, VI (February, l893)> 2 Indiana Limestone Company MS, on. cit., p. 16 . ^Board of State House Qommissioners, Sixth Quarterly Report, January 1, 1879? Indianapolis, 1879? PP* 13> 43“5l*

49 Niagara limestone from Decatur County for the foundation and basement walls.

1

The State House contractors attempted to operate their own quarry near the junction of McCormick's Creek and White River in Owen County.

Within three months of opening

early in lBBO, the contractors recognized that they could not open, develop a quarry and, at the same time, quarry good stone fast enough to build the State House on schedule. About one-quarter of the stone shipped was being rejected by the inspectors upon arrival at the building site.

After

buying some stone in Ellettsville, the contract for the re­ mainder of the stone was given late in 1880 to Voris, Norton, 2 and Company of Bedford. Thus additional impetus and pub­ licity were given to the Bedford end of the stone belt. The attention attracted by these developments began to bring results rapidly.

The marketing contacts of the

Chicago and Bedford Stone Company in the East soon brought 1

Ibid. Dr. John Collett and Professor Cox were both leading members of the State House Commission and their efforts on this occasion furnish another remarkable instance of their faith in Indiana limestone. 2 Voris, Rodgers, and Company had been formed as a partnership on November 24, 1877 as a result of the efforts of David Harrison. Hr. Harrison had first become interested in the Indiana stone field as a civil engineer employed 111 the construction of the Eonon Railway. He had become a si­ lent partner of Nathan Hall and had long sought to interest outside capital in Indiana limestone. A.C. Voris and 3.B. Voris of Louisville and R. Rodgers of Bedford were the other partners. In 1880 Fred Norton bought out Rodgers and the firm became Voris, Norton, and Company. Late in IS77 a

50 notice from that section.

Early in 1878 , an inquiry was

received by this company from F. L. Gilrner and Company, the large stone brokers of Boston, Massachusetts.^"

On April 12,

1879? the first carload of stone was shipped to New York p City, but the interest of hew York architects and con­ tractors was much more convincingly aroused by the sale of twenty-five carloads of stone from the "Blue Hole" quarry for the residence of William K. Vanderbilt, Fifth Avenue, New York, Richard M. Hunt, a r c h i t e c t . ^

4

Architectural Record,

According to the

this residence marked the beginning

quarry site was purchased west of Bedford in the heavily wooded "Dark Hollow." Shipments were begun in 1878 , John Rawle secured as Chicago agent in the same year, and 602 carloads of stone shipped in 1879 with St. Louis, Cincinnati, Louisville, and Indianapolis as their chief markets. Al­ though beginning with a very small investment, in three years' time this firm paid 100 percent dividend on the in­ vestment of the partners and in nine years had distributed $146,000 in dividends in addition to making large invest­ ments in equipment (See Johnson, op. cit.. pp. 3“ 5? Indiana Limestone Company US, pp. 3? 4, iSJ Board of State House Commissioners, Quarterly Reports. No. 11, Larch 31? 1880, P* 35 Ibid . . No. 14. December 3 b? 1880, p. 35? Ibid . ; No. 18, December 31? lBol, pp. 15-18; Stone. X (January, 1895)? 146). ^"Johnson, op. cit., p. 3 ? clipping from issue of Kay 5? 1878. 2 Ibid., clipping from issue of April 12, 1879* ^Ibid., p. 4, clipping from issue of July 28 , 1879*

4 Architectural Record. "Modern Stonework," 7 (November-December, 1895)? 193*

of an era of sumptuous town residences.

Shortly thereafter,

Mr. Hunt selected buff Indiana limestone for the Cornelius Vanderbilt residence at Newport,

"The Breakers," and blue

Indiana stone for the mansion of Ogden Goelet, at the same fashionable resort.

"Ochre Court,"

The commentator for the

Architectural Record stated:

"The stone work in these su­

perb palaces is unsurpassed.

It represents the very highest

results obtainable today."

A few years later (1&90-1895)

Mr. Hunt used buff Indiana stone in the country estate of George W. Vanderbilt, Carolina.

"Biltmore House," at Asheville, North

"Biltmore House" was modeled after a French

chateau of the period of Francis I, and was called "by far the most sumptuous home built within the last quarter of a century." The increased shipments of the crucial years, 1877“ l88l inclusive, are shown in the following table.

TABLE 3 CARLOAD SHIPMENTS OF INDIANA LIMESTONE VIA L.N.A.+C.RY. FROM CHIEF POINTS OF ORIGIN, 1877-1881*

Bedford

1877

1878

1879

1880

1881

1,510

1,940

2,100

2,400

2,900

Bloomington

10

20

25

83

205

153

123

285

4JL5____ 600

1.087

Stinesville

145

Ellettsville

412 __ 400_

T o t aIs_________ Sou rce : sources,

2 ,067__ 2,55 5 Department

2,688 __3,146 4 , 355

of G e o l o g y and N at ur al R e ­ 1832, p.

Annual R e e o r t for 1681. Indianap oli s,

31 .

Table 3 indicates that the developments of the period in question clearly confirmed Bedford in the position as the most important center in the Indiana stone belt.

By

multiplying the number of carloads by the stated average cubic feet shipped per car, an approximation may be made as to the number of cubic feet shipped via the Monon Railway. Table 4 indicates the total cubic footage per year approxi­ mated in this manner.

TABLE 4 TOTAL CUBIC FEET LIMESTONE SHIPPED VIA L.N.A.+C.RY. 1877-1381* Year

Cubic Feet

1877

339,153

1878

421,571

1879

443,520

1880

519,420

1881

718,575

4c

Source: Data calculated from the Totals of Table 2, times 165" cubic feet (the average cubic feet per car stated in Department of Geology and Natural Resources, Annual Report for 1681, Indianapolis, 1882 , p. 31)*

In presenting the data from which the preceding tables were drawn, the Geological Survey gave a table pur­ porting to show the principal destinations to which ship­ ments of oolitic limestone were made from Bedford in the

53 same five-year period.

Analysis of the figures indicates

that the percentage division between the given destinations is stated to be the same for each of the five years given. This seems beyond the scope of coincidence.

No information

was given concerning the method of constructing the table. It may be that these percentages represent the actual division for one of the five years or an average for the five-year period.

Whatever their origin, these percentages

are the only information available concerning the relative importance of market areas.

It appears plausible from

other evidence that such a distribution could have been true of the general period in question.

The percentages are

presented, therefore, in Table 5 merely as an indication of a distribution that may have some general applicability to the period in question.

TABLE 5 DESTINATION OF SHIPMENTS VIA PIOKON RAILWAY FROL: BEDFORD (IN PERCENTAGES OF TOTAL CARLOADS SHIPPED)* Destination Indianapolis Other Indiana Points

Percentage 19

6

Illinois

y?

Kentucky

11

Other Points

9

Source: Indiana Department of C-eology and N a t u r a l Resources, Eleventh Annu al Report, Indianapo1is, 1882 , p . 31 .

54 Statistics of production were not systematically gathered until the United States Geological Survey began compilation and publication of separate figures for the total cubic feet of Indiana oolitic limestone produced in 1894 . From a number of sources, however, it is possible to derive figures for some of the years between I 80I and 1894 that can be presumed to be approximately correct. these data.

Table 6 gives

For convenience, the estimates of Table 4 for

the years 1877 to 1831 are included.

TABLE 6 CUBIC FEET OF PRODUCTION, INDIANA OOLITIC LIMESTONE * /*77 twi, -

Year

Cubic Feet

1877 1878 1879 1380

339,153s" 421,571* 4 4 3 ,520* 519,420* 718,575*

1881 April, April, April, April,

April, 1882 1881 I 1882 — April, I883

1883 1884 1887 1892 1894 1895 1896

April, 1884 April, 1885

651,200** 597,109** 980,598** 869 ,o95** 2 ,360 ,000**3,814,000** 4,580,413*** 5 ,368 ,307 *** 5 ,455 ,582***

^Sources: Those figures marked (*) are derived from Indiana Department of Geology and Natural Resources, Eleventh Annual Report, Indianapolis, 1832, p. 31 . Those figures'marked (**) are derived from Annual Reports, ..opartment of Statistics^ Indianapolis, 1332-1892, passim. Those figures marked (***) are derived from the U.S. Geological Survey, mineral Resources of the U.S., 1394-1396, passim.

55 The general trend of production in Indiana revealed in Table 6 was in correspondence with the trend of production of building stone as a ■©hole.

The increased production of

building stone after 1878 suffered its first setback In 1883 . In that year, although the volume of building did not de­ cline, the sales of building stone are reported to have suf­ fered from a preference for brick and terra cotta.

Both of

these industries were entering periods of expansion.'*'

"Be­

tween I87O and I89O the brick industry developed from small scattered undertakings to a commercial enterprise of large 2 proportions." Face or pressed brick was first manufactured about mid-century, but came into more general manufacture and use about 1385.

Terra cotta had been successfully manu­

factured an the United States as early as I87O but the pro­ duct did not receive wide attention until Its use on the Long Island Historical Society Building in Brooklyn and on

3 the Produce Exchange Building in New York City about i860. By 1839-1390, terra cotta was no longer regarded as an experiment.

A single piece cost about the same as sand­

stone or limestone at prevailing prices.

When a number of

pieces exactly alike were required, they could be secured ■^Loughlin and Coons, op. cit., p. 1194. 2 Haber, op. cit., p. 25* ^ A . H . Chute, Marketing Burned Clay Products,^pp. 82-86. See also Mineral Resources of the U.S., In, I0631884, House Miscellaneous Document, no. 3^, First Session, 49 th Congrdss, Washington, 1886, p. 662.

in terra cotta cheaper than in stone unless freight differ­ entials offset the differences in price.

The advantage of

terra cotta was increased if a large portion of the work was moulded or full of ornamentation —

a factor of great

importance in this period when ornamentation of exterior walls was much more common than today. Another advantage of terra cotta was the opportunity for experimentation in color.

At first, architectural terra

cotta, like the brick of the time, was always red.

Then in

I889 -I89C, LlcKim, Mead, and V/hite, the architects, secured the development of a deep yellow or buff terra cotta.

This

development helped to make stone and terra cotta supple­ mentary as well as competing products, since terra cotta could be used for the upper walls of buildings where lower floors were faced with buff limestone.'*' This competition, plus the effects of a general industrial decline, produced another lean year in 1884.

The

year 1885 ? however, saw a revival in the demand for all major stones except the brownstones; and the period, I886 -I 89O became the "First of two conspicuously-prosperous periods for the building stone industry since statistical informap tion became available." So far as quarry districts and range of markets were concerned, the stone industry uas 3 about as extensive as it is today.-" ^Herbert Croly. "The Use of Terra Cotta in the U.S.," Architectmal Record XVTII (July, 1905)? 90-93^Loughlin and Coons, op. cit., p. 1194.

3 Ibid.

The participation of midwestern stone producers in this revival was somewhat slow in gathering volume because of a number of strikes in 1886 and 1387 among construction workers in St. Louis, Cincinnati, Milwaukee, and Chicago. Reports received by the Geological Survey indicate that the Indiana limestone was being introduced into wider and wider areas.

The chief markets for it in 1386 were reported to

be Chicago, Cincinnati, and Philadelphia.'*'

In 1887, Boston

sources stated that Bedford limestone was meeting with ”en2 couraging approbation.” By 1888, Philadelphia contractors said that Indiana limestone was the most popular stone then used in that city for ornamental work.

Atlanta, Georgia;

Oedar Rapids, Iowa; Minneapolis, Minnesota; and Kansas City, Missouri were other cities from which favorable reports were received in 1388.^ The demand for building stone was particularly notable in 1839-1891 in Chicago and New York.

The largest

market for nearly every producer had become New York state, although a few still reported Chicago.

Some of the Indiana

companies sent the bulk of their production to these two centers.^

In 1891 it was stated that eight of the ten

'Siouse Miscellaneous Document•. #42, 50th Cong. , 1st sess. , Washington, 18B 7 , P« 53^• 2 House Miscellaneous Documents #4, 50th Cong., 2nd sess., Washington, 197? P- 100.

3

Republican Progress. Bloomington, Indiana, July 23, I89O, p. 1.

68 and quarries were compelled to close.

The Llonon refused to 1 allow the E. and R. to set cars on its switches. Finally,

the Chicago and Bedford Stone Company stopped shipments over the Monon and built a connection to the E. and R.

The Llonon

sought to prevent such action by court injunction; but the 2 court ruled that the provision of 1889 was unenforceable. By 1894, the E. and R. was hauling more carloads of stone per day from Bedford than was the Monon.3 This new line provided three hundred flat cars of greater carrying capacity than any known before (70,000 lbs. rather than 60,000).

In addition to improving the service

available to the older quarries, the E. and R. gave railway connections to the Heltonville (N) and Spider Creek (L) districts shown on Figure 3* To relieve the pressure still further and to reduce rates, Bedford interests sought to induce the Ohio and Mississippi Railway (The Baltimore and 0hioK Southwestern-} Cincinnati - St. Louis division) to run a branch line north to the stone field.

Such an extension was built from the

main line at Rivervale £0 the quarries opening on Tanyard •^Republican Progress. Bloomington, Indiana, July 23 , I89O, p. 1 . ~ 2Ibid., July 3°? I89O, p. 1. (October, I89O ) , 143.

See also Stone, III

^Stone, IX (June, 1894), 6l. 4 The Bedford Mail (Weekly), XVI, no.4, July 1, 1892 .

69 Creek (Figure 2 —

0) southeast of Bedford and was extended

from that point into the city by September 22, 1893-

By

1894 , the B. and 0. S.W. was hauling about a sixth of the total stone shipments from Bedford and vicinity.”^ In the meantime, the Bedford Stone Quarries Company, a merger consummated early in 1892, decided to construct a short line from their quarries northwest of Oolitic to the E. and R. at Bedford.

On March 30 5 1892, the Bedford Belt

Railway Company was chartered. It was opened for traffic 2 on May 1, 1893* The Monon sought to obstruct construction by preventing crossings of its traffic and hindering rightof-way concessions; but the Belt Railway was upheld in the ensuing litigation by the courts.

Connection was made with

the E. and R. and subsequently with the B. and 0. S.W.

This

line served the Buff Ridge Oolitic (K) and Northeast Bedford (M) districts.^ This competitive struggle for business by the rail­ ways naturally led some of the producers to suspect that discrimination in rates was practiced. of the directors of the Monon —

The fact that some

and later the railway it­

self — were financially interested in several quarries led tosuspicion of

favoritism.

Lockhart, in 1905? felt that

^Stone. IX (June, 1894), 6l. 2Poor 1s Manual of R ailroads, AA Y J‘Joo/p.7Xl. ,t

^Bedford Mail, July 15, 1892 , XVI, no. 6; ibid., July 22, 1892", XVI, no. 7; ibid. , Aug. 5, 1892 , XVI, p. 9-

70

there was little doubt that discrimination did exist "some years ago."

T,Qne producer states that he used to get a suf­

ficient amount in rebates to run his business but that he can no longer get them."'1' One instance of rebates appears in the court records.

The Chicago and Bedford Stone Company’s

agreement with the monon stipulated that a $6 per ear rebate would be allowed on all stone shipped for the Chicago City Hall contract.

The company drew up an agreement allowing

this rebate on all stone shipped without time or place limitation; but the railway officials did not sign it.

In

November, 1890, the company attempted to enforce its interg

pretation by legal action; but to no avail.

Lockhart beg

lieved that rate discriminations had ceased by 1905.

Other

forms of discrimination were concerned with the timing of work in switch construction and in the furnishing of cars. For example, the Bodenshatz Bedford stone Company charged that the monon Railway favored the Peerless Stone Company in the completion of a quarry switch and in the furnishing of ears.

It therefore repudicated its contract with

the konon and built a switch to the s. and n. ^Lockhart, Oliver 0. The Oolitic Limestone Industry of Indiana. Indiana university Studies, IX, Bloomington, Indiana , - 5Jeptember, 1910. p. 83. 2

konroe County Circuit court, Civil Order Book n ., Docket 2069, pp. 287-293, “Chicago and Bedford Stone 'Company vs. L,,N.A., and C. Ry. Company." C7

Lockhart,

o jd .

cit., p. 84.

^Monroe County circuit Court, civil order Book I, Docket 2155, pp. 76-81, ‘‘Louisville, Lew Albany, and Chicago Hailway company vs. Bodenshatz Bedford wtone Company.1'

71

During this time, these railroad interests — especially the monon -- had been demonstrating the relative cheapness of Indiana limestone by publishing special com­ modity rates higher than the class rates to points in Central freight Association territory.

At first these rates were

for shipments to particular towns in which the Indiana pro­ ducers had received contracts; butsoon negotiations were opened by the monon

with otherrailroads for the establish­

ment of special commodity rates to all points on the lines of these forwarding railroads.

This policy was inaugurated

in 1889 and continued until July 17, 1896, when it became possible to consolidate these many individual tariffs into a general stone tariff, Consolidated Tariff III, applying to Central Freight Association Territory.1

This resulted in

a rate level three cents higher per hundredweight than the class rate level on which competitive stones were usually moved; and furnished a competitive disadvantage for Indiana stone in the territory from which the bulk of the business was derived.

That the Indiana limestone business not only

was maintained at former levels but was actually expanded under this handicap is testimony to the relative cheapness of its extraction and fabrication. went to the originating line.

The extra three cents

This three cents charge began

when the Bedford and Bloomfield Hailway and the Bedford Belt •1-File of Stone Tariffs, Chicago, Indianapolis, & Louisville Railway Company, G-eneral Offices, Chicago,

Illinois.

72 Railway were independent lines and received three cents for bringing the stone to the junction point.

When the Monon

took over the Bedford and Bloomfield narrow guage line, they added the three cents to the 6th class rate from Bedford and then generalized it to make a natural origin group in­ volving all points in the stone district.

In explaining

this situation before the Interstate Commerce Commission in later years, the railway representatives stated,

"The char­

acter of stone in Indiana districts is such that it can and does pay a higher rate than the scale basis will permit." In other words, the railways justified the rate on the grounds of the expense of the initial terminal service and the con­ tention that the commodity was one that could pay the rate and continue to move freely.^ Technological Changes Even with this improvement in railway facilities, Indiana limestone would not have become widely distributed had not costs of production been lowered by a technological revolution.

We have seen that during the previous period

the age-old hand methods of operation had characterized quarry working. write:

But by IS 96 , T. C. Hopkins was able to

"There is practically very little work done by hand

in the quarry that can be done by machinery."

2

"'"Interstate Commerce Commission, Docket 2410, "In Matter of Divisions of Joint Rates for Transport of Stone from Points in Indiana to Points in Other States, Hearings, Indianapolis, September 7? 19°9? PP» 160, 164. Typewritten, Formal Docket Files, Washington, D.C. 2 Twenty-Second Annual Report, Indiana Department of Geology and Natural Resources, Indiananolis, 1397, p. 3^9* Hereinafter referred to as Twenty-Second Annual Report.

73 The methods of removing the overburden remained much the same except that greater care was taken in blasting to prevent injury to the oolitic stone beneath.

If the cov­

ering were soil or loose rock, it was removed as far as possible by road scrapers or loaded by hand into dirt boxes which were then dumped by derrick into old quarry holes or debris piles.

If the upper surface of the stone were much

corrugated or weathered unevenly, pick and shovel were used. The removal of the oolitic stone itself changed In 1863 ? George J. Wardwell of Rutland, Vermont, 2 had invented the channeling machine. This is a small loco­ radically.

motive which runs back and forth on a portable track carry­ ing a gang of chisels coupled to an eccentric, wheel on one or both sides of the machine.^

Alternate straight and

diagonal bits are arranged in such a manner as to maintain a level bottom and push the debris from under the chisel.

4

Water is fed into the channels to make a slush with the stone dust.

This slush is then dipped from the cut or

drained off if the cut has an open end.

John hatthews and

^Twenty-Second Annual Report, p. 3 29* Lockhart, o j d . cit., p. 2 George F. Merrill, o£. cit., p. 404.

See also

3 Charles B. Milholland, hd., "nedford — Limestone Town,” Typewritten Manuscript, Federal Writers' Project. Indianapoiis, Indiana, July 12, 1939? P* 4-1* 4 Personal observation. See also Stone, 1/ (August, 1897), 111.

74

-

Sons of Ellettsville introduced the first Wardwell channeler in the Indiana stone field in 1875*^

3n 1883 , V. A. Saunders

built the first direct action channeling machine with a gang of chisels attached to an upright piston.^

The Ingersoll

and Sullivan varieties of this machine were first introduced to the Indiana stone field about I89 O.

These machines were

reported to have cut twice as fast and closer to the wall than the Wardwell but were more expensive and not so simple in action.

The relative cheapness and the greater simplic­

ity in action and management of the Wardwell machine — together with its greater familiarity to the laborer oper­ ating it —

was thought to be the reason that there were more

of the Wardwells in use in 1895 than of the other variety.^ It was estimated that the single gang machine used tow men to do the equivalent of the work of twenty-five men using hand me'thods; and that the double gang machine used three men to do the equivalent of the work of fifty men with the old technique.

The cost of channeling ran from 2sz( to 5^

per cubic foot for the narrow machines (4 1 11tf wide) or 1*3 to 3b1 per cubic foot for the wide machines (6 1 7 " wide). ^ Quarries and Mills. I (Hay, 1929), 8. 2Stone, IV (August, I89D , 111. ^Milholland, op. cit., p. 41.

4 Twenty-Second Annual Keport (1895) > P* 330.

75

Channels four feet deep could be cut for one-sixth the cost of hand labor; and six feet deep for one-eighth the cost of the same cut with hand tools.

1

The channelers of that day

made seven-foot cuts rather than the eleven-foot cuts common today.

To cut a channel fifty feel long and seven feet deep

took two days, including the moving of the machine.

O

The amount of waste rock was greatly decreased by the introduction of the channeling machine.

It is said to

have increased the output per man "at least fifteen to thirty times over hand methods." Perhaps the best index of the increase in quarry capacity in this period is indicated by the number of chan­ nelers in use in the district.

By 1881, there were twelve

machines in operation; in 1888, forty; in 1391, seventyeight; and in 1896, one hundred sixty-five (twenty-nine idle). One firm, the Hallowell Stone Company, was experi­ menting at the end of the period with a wire saw similar to those used in the slate quarries.

This device consisted of

an endless wire rope about 1500 feet long which was run across the stone using sand and water as an abrasive.

The

wire cost about 7/8 of a cent a foot and would cut about two cuts thirty by ten feet before wearing otit. 1Stone, I (July, 1888), 2

The chief

64 -65 .

Joseph Clark, Liay 10, 1940. for Ingalls Stone Company.

Former superintendent

^CiE. Nightman and O.E. Kies sling, Rock Prilling. Works Project Administration, National Research Project, Report No. E-ll, Philadelphia, Pennsylvania, February, 1940, "Mineral Technology and Output per Man Studies," p. 5o. Hereinafter referred to as Nightman and Kiessling.

76 defects in operation appeared to be a tendency for the cut to bow or curve and the frequent breakage of the wire.

The

company would not attempt to compare the cost of its usage to that of channeling.^ After channeling on four sides, the first four or five key-blocks are broken loose on the bottom by placing in one of the cuts metal slips two to four inches wide between which is driven a bull wedge of about the same width.

Sets

of these slips and wedges are set about three feet apart and the wedges tightened with a sledge hammer until the keyblock breaks at the bottom of the cut.

It is then lifted

out by use of the derrick. Once the key-blocks are removed horizontally, the other channeled cuts are quarried by drilling holes about 1 and 1/2" in diameter and six inches deep about six inches apart along the bottom of the cut.

Small slips and wedges

are inserted into these holes and the cut broken from the quarry floor by tightening the wedges with a breakers ham­ mer.

The block —

which may be very long —

is then pulled

Eleventh Annual R eport (1381), p. 335* The wire saw was first patented in 1854. It came into use first in Belgian marble quarry in 1886 and was introduced into the U.S. in the l890Ts. It did not meet with widespread accep­ tance, however. The waste of stone and the labor involved in its installation were cited as factors hindering its wider use. By 1909 W.G. Resfcwiclc stated that the majority of experimenting firms had reverted to channeling as more economical 9h&caube.:-although channeling was more costly and was economical only where there was a large and continuous output, it would do twice the work of a wire saw (HeG. Renwick, Marble and Marble Working, London, 1909, p. 36 . Quoted in Nighman and Kiessling, op., cit., p. 88).

77 over on its side by the derrick and broken into the required sizes by drilling and wedging.^ The first power drills were operated by steam.

The

earliest experimental ones date back to 1849 when J.J. Gough put a cutting tool directly on the end of a piston rod.

p

The

first power drill employed in American quarries was introduced about 1864.

The first such tool in Indiana was used

by W.W. Lowe at his quarry of Niagara limestone at 3t. Paul, Indiana some time before 1881. by 1891 and eighty-six by 1896 .^

Fifty-four were in operation Such drills of average

size were estimated to do the work of ten to twenty men using hand drills.

6

In the early 1890's, electric drills

began to be placed on the market.

They were capable of

drilling two to three inches a minute. were also being developed.

Compressed air drills

Neither electric nor compressed

air drills were in use in the Indiana field in this period. "''Description furnished by Irvin katthev/s, former quarry owner, Bloomington, Indiana, April 2, 1941. 2 Stone , IV (August, I89I) 111. 3

Nighman and Kiessling, op. cit., p. 8 l. 4 Eleventh Annual Report, p . 25• ^Twenty-Second Annual Report, pp. 3^3-344. also Nighman and kiessling, op. cit., p. 131*

See

Stone, IV (September, I 89I ) , 139? Nighman and Kiessling, op. cit. , pp. I 34-I35 . 7

Twenty-Second Annual Deport, p . 330•

7

78 Steam power for derrick operation was introduced early in this period; but as late as I89 I 5 there were still six hand-power and seven horse-power derricks in use out of a total of ninety-six .1

The steam derricks were of twenty-

to thirty-ton capacity.

Their booms would reach a working

area within a radius of one-hundred feet.

In 1896 , less

thdn one-third of the derricks were equipped with the re­ cently-introduced patent wheel devices ("bull wheel") enabling the derrick to be turned by one man.

The remainder

of the derricks were still being turned from one position to another by handpower. The location of quarry sites had become somewhat less of a rule-of-thumb process than during the pioneer period.

By I896 , it had been observed that the quarries on

high ground had more buff stone than those located on the hillsides and in the bottom of the valley.

Heavy losses,

caused by excessive waste stone encountered at locations where the stone outcropped or was nearly free of covering, had taught many operators that it might be more economical in the long run to pay a little more for stripping off the overburden and so encounter less disintegration and weath­ ering of the stone. come into use.

By this time also the core drill had

This was a hollow pipe drill enabling the

extraction of three- to four-inch cores.

The Geological

^Eleventh Annual Report , pp. 68-80. 2 Twenty-Second Annual Report , p . 331*

79 Survey noted in 1896 that the best procedure in locating a quarry would be to core drill the area to test the texture of the stone and abundance of horizontal faults, crowsfeet, pyrites, etc.

If this produced good results, then an opening

could be channeled through the bed to show its thickness and quality.

If this test turned out satisfactorily, then the

expense of building a switch and installing the operating machinery could be undertaken.

To their sorrow, some oper­

ators reversed this process —

on occasion, building sv^itches, 1 derricks, etc., before opening the quarry bed. Turning from the quarry to the mill, we find sig­ nificant improvements made in the operation of gang saws. Mechanism for the automatic feeding of sand and water to the saws was first introduced in 1885*

This enabled one

man to run tv/o gangs of saws and reduced labor required about one-half.

In addition, a thirty to forty percent

saving in sand and water was achieved by using these ma­ terials again and again.

Smoother sawing resulted from more

uniform feeding.

The saw blades, being protected by an even 2 distribution of sand under the saw, lasted longer. In 1070, twenty gangs of saY/s were operated by four firms.

By 1891 ,

there were -fifty-seven gangs installed and by 1396, there 3 were one hundred sixty-one (eighteen idle). The gang saw ''“Twenty-Second Annual Report, pp. 326-327 . ^Stone, VIII (December, 1893)5 76. 3 Twenty-Second Annual Report, p. 343 5 Seventeenth Annual Report, pp. 58-72.

80 capacity of the district —

like the channeling capacity —

considerably more than doubled between 1891 and I896 . The Romona Stone Company in 1895 installed the first diamond saw, a heavy steel blade with black diamonds set in the edge.

This saw required no abrasive and cut at a rate

of about thirty inches per hour.

The loss and wear of the

diamonds, however, made it an expensive machine to buy and keep in operation.

Its chief use was to trim or square

large blocks a foot or more in thickness.

In preparing the

usual three- to ten-inch slabs for the trade, the gang saw remained cheaper because of the greater number of cuts made at one time.-*-

The chief use for the diamond saw is in the

production of cut or finished stone.

It is used for ripping

stone to rough dimensions for the planers and jointing cut 2 stone to dimension lengths. The Romona Stone Company specialized at this time in preparing stone for bridges. In moving stone about the mill, a number of firms used derricks to transfer the stone to and from the saw gangs and planer beds. traveling cranes.

The largest mills, however, used

In either case the derrick or traveler

was generally outside the mill proper and in bad weather ^•Twenty-Second Annual Report, p. 335* p Ibid. W.F. Myers, New York City, claimed to have invented the diamond saw in 1887 . He established a Bedford plant in 1911 to cater to the limestone trade (Ad of N.F. Myers Saw and Tool Co., Stone, XXXIV (Lay, 1913)5 23). Diamond saws werejknown in Europe as early as 1373 (Rouis J. Hunter, "A Report on the Working of Stone and on Stones," in Report of the Commissioners of the United States to the International Exposition held at Vienna, 13735 R«H. Thurston, ed., IV,(Washington, D.C.,“I^7^T_ 1^).

81 the mill shut down.

The first traveler, a steam-powered

device, was installed in the Indiana district by Perry 2 Brothers of Ellettsville in 1872. By I89 I, twelve travel­ ers were in use; and by 1896 , nineteen were installed.

By

1896 the majority we re operated by electricity.3 Electricity had been introduced by the Bedford Stone Quarries Company sometime before June, I89 I to light both quarries and mills for night operations.

4

Prior to 1893 ,

however, the application of electricity was confined to fur­ nishing power for the travelers and electric light for night shifts.

The intermittent operation of the travelers plus

operation under heavy and sudden loads made the economy of electric:power early apparent.

In March, 1893, the Chicago

and Bedford Stone Company installed a generating plant to operate to provide power for its derricks, travelers, and electric lights.

The editor of Stone believed that no

quarry in the world had ever before been run by electricity. Each derrick, bank of gang saws, traveler, group of steam drills, and water pump had hitherto required a separate steam engine. •^Quarries and k ills. October, 1 9 3 P* 5*

2Ibid. ^Twenty-Second Annual Report, pp. 343-344; Seven­ teenth Annual Report, pp. £B-72; Lockhart, op. cit., p. 79. ^Stone, TV (June, I89I ) , 4. %to ne > VI (April, 1893)., 428; The Bedford ,.ail, XVI, no. 4^7 April 14, I893 .

82 The Indiana oolitic limestone industry continued in this period, as in the past, to be predominantly a quarry and saw-milling industry.

Nevertheless, a few firms began

to install semi-finishing machinery. these machines was the planer.

The most important of

The original devices for

planing stone were adapted iron planers worked by a gear and rack drive.

They could be used in preparing material

in which a smooth surface was not required (such as flagging and other paving material) but could not be used for building material.

About i860, a new planer was put on the market

with a screw drive that gave a regular motion which made it possible not only to plane smooth surfaces, but also to cut moldings of various designs by the use of different forms of cutting tools.

It was still necessary, however, to em­

ploy stonecutters to do much that the planer could not do. Small pieces could be handled more economically by hand than by mounting them on the planer.^" It appears probable that the first planer was intro­ duced in the Indiana stone field by the Hallowell Stone o Company about 1882. In 1391, thirteen planers, three jointers, and one lathe were reported.

By 1896 , twenty-five

planers and jointers and ten lathes were reported in use — principally by the larger firms.^

Jointers were used for

■'"George S. Barnett, Chapters in Machinery and Labor, Cambridge, Mass., 1926, p. 3°* ^8 tone, X (January, 1395), 121; Eleventh Annual de­ p ort, p. 27. ^Seventeenth Annual Report, pp. 68-30; Twenty-Second Annual Report, p. 344.

83 smoothing the surface of joints in heavy wall facings and lathes for turning columns and balusters.

Six of the seven

firms using these machines in 1391 were located in Bedford or the immediate vicinity .1

These early planers used more

than double the horsepower to turn out less than half the 2 production of the planers of the 1929 period. It was, of course, true that firms possessing none of these machines sometimes finished the stone by hand methods. It is reported that the first big job for which cut stone was prepared ready to set in the wall and shipped from the Indiana stone belt was the Cotton Exchange Building, New Orleans, Louisiana in 1886.

The Bedford Steam Stone Y/orks

which had the contract (1886) hired one hundred forty stone cutters and carvers to do the work. no planers.

The company possessed

Old-timers in 1929 remembered the big tent

under which the cutters' benches were placed on the company q property. An interesting statement of the reasons given by certain Indiana stone men for installing a cut stone plant was given to the editor of Stone in 1889* were:

The reasons cited

(1) The stone is easier to work as it is quarried;

(2 ) a firm located at the quarries can maintain a larger

1 o Seven teenth Annual Report, pp. 68-80. O George W. Myers, Quarries and hills, hay, 1929, P* 3 8 , ’’Planing Machines of Ye Olden Days.” ^Quarries and Mills, I (September, 1929 ), 8 .

84 plant than local dealers;

(3 ) such a firm can mechanize more

and achieve a saving of labor; and (4) no freight need be paid on waste stone.

1

Two additional factors influenced the appearance of cut stone mills in Indiana.

In the first place, the early

commodity rates made by midwestern railroads on Indiana stone had been rates on rough stone blocks.

When cut stone

began to be shipped as well, the same rates were applied to it.

Stone reported in 1889 that Indiana operators would, if

necessary, have paid higher wages for stone cutters than the wages paid in the consuming centers realizing that the saving in freight cost would more than offset the higher wage.^

In addition, the labor situation was an important

influence on the growth of the finishing branch of the in­ dustry at the quarry centers.

The journeyman stone cutter’s

local unions located in the cities that constituted the chief market for stone were opposed to the cutting of stone even by hand in any other place than in the city in which it was to be installed.

Consequently, contractors buying cut

stone from the quarries were often boycotted by stone cutters and setters.

4

On the other hand, the opposition by

^Quarries and hills, I (Sept., 1929)5 8. p Interstate Commerce Commission, formal Docket 2410, ”In the hatter of Divisions of Joint Rates for Transport of Stone from Points in Indiana to Points in Other States," Hearings, Indianapolis, Ind., Sept. 7, 1909, typewritten, p. ISO,"Formal Docket Files, Washington, D.C.

3 Stone, II (Sept., 1889), 85 . ^Ibid., p. 89.

85

the unions to the installation of machinery at the city cut stone yards was a factor cited by several mill owners as one reason for moving to the quarry districts.'*' For comparative purposes, it is useful to present a table showing the number of the most important of the ma­ chines on various dates for which figures are available.

TABLE 8 NUMBERS OF MACHINES INSTALLED, 1870-1896* Year

Channelers

1870

0

0

1881

12

1

1888

40

1891

78

1896

Power Drills

Steam Derricks 0

Travelers 0

Gang Saws

Planers * Jointers

12

0

N.A.

N.A.

12

0

N.A.

N.A.

N.A.

N.A.

N .A.

54

79

12

57

16

19

161

25

165(29 86 idle)

118(17 idle)

*Source: Indiana Department of Geolog;y and Natural Resources. Reports, 1881-1896. N.A. = Not Available. It is to be observed that the increase in mechan­ ization accompanied the increase in demand for Indiana stone in the late 1880's and in the early 1890's.

Comparison with

Table 5 (see above, p. 53) offers an interesting observation. Between 1892 and 1896 cubic footage produced increased ap­ proximately 42 per cent.

During this period channeling

•^Confidential interviews.

86 capacity increased approximately 111 percent; gang saw capacity, 181 percent; and planer and jointer capacity, ap­ proximately 56 percent.

If the statistics of production

for I89 I were available, the percentage increase of produc­ tion figures for 1896 over those of I89I would probably be even greater.

From all available evidence, it seems probable

that if this comparison were obtainable, it would be obvious that the stone boom had resulted in a greater increase in the capacity of the industry than the actual increase in production.

The figures for idle channelers and derricks

support this conclusion. One of the pioneer quarrymen of that period, Major H. F. Perry of the firm of Perry Brothers, Ellettsville, Indiana, made the following statement early in 1893 which summarizes some of the leading consequences of technological change during this period. It is within our generation that the greatest revo­ lution in quarrying and handling stone has been accom­ plished. The channeling machine, the steam drill, and the steel wire rope are the chief factors in bringing about this change. Formerly, a free bed or horizontal open seam was considered essential to the successful working of a quarry; now, the fewer seams, either horizontal or perpendicular, the better, for the simple reason that the quarryman can make all the seams he re­ quires without the least injury to the stone. Formerly, a crew of men worked long and laboriously with a hand power to lift a block of stone from the ground to the height of an ordinary flat-car. Today, steam power and wire rope lift the same to any required height with the ease and speed you would raise a bag of feathers. The result is that stone is now sold at the quarries for little more than half the price of twenty-five years ago; and, with about the same scale of wages to the

87 employees, the producer finds that his profits have not been materially lessened. Great improvements have also been made in machinery for cutting, sawing, and setting stone buildings. Freight rates have been some­ what reduced, and as a consequence of all these im­ provements, the demand for stone has increased enor­ mously.

Financial Organization The bulk of the quarries opened in the l870‘s were operated under the traditional pioneer hand-powered methods 2 of production described in the previous chapter. The ma­ jority of the smaller quarries were not exclusively building stone quarries, but derived a considerable part of their income from the sale of stone for foundations, bridge piers, monument bases, flagging, and curbing. operated them were all —

The firms that

with the exception of the Chicago

and Bedford Stone Company previously mentioned — proprietorships or partnerships.-^

individual

They were usually handi­

capped by the lack of working capital.

The V/hite River

Stone and Lime Company, for example, suffered foreclosure in 1879 tor a note of $2,174. 5 0 . As some of the more ^Stone, VI (February, 1893) 5 238 . 2 Fifth Annual Report; Seventh Annual Report: lleventh Annual,.,R.0pop~bj ^Records of Incorporation, Secretary of State, Indi­ anapolis; Kisce11aneous " R e c o r d s County Recorder 1s Office, Owen, L'0nroe, and Lawrence Counties. Indiana law required all corporations to be listed of record in these two loca­ tions. Search of these various files does not reveal any incorporations of these firms. All references to them in newspaper files, State Geological Reports, etc. speak of them as individual proprietorships or partnerships. ^Owen County Circuit Court, Civil Order r-ook, XVI (Kay,10, 1879)5 PP* 101-103.

88

successful firms began to use the new device of the channel­ ing machine for cutting out quarry blocks, a number of these small firms found their capital inadequate to purchase the new equipment and suspended operations. A channeler of that 1 day cost $6000. Some quarry openings of the pioneer type were abandoned because it was considered impossible to conp tinue production with pioneer methods. In a few cases, the openings proved to have been made in such poor deposits that the percentage of recovery of merchantable stone was too low for profitable operations.^ On the other hand, certain firms made the transition with success —

notably the Ellettsville firms of John Kat-

thews and Sons and Perry Brothers. contracts —

A number of profitable

large-sized for that time —

were handled by

them in the crucial years with such good management and excellent workmanship that by steady reinvestment in the business they were able to obtain adequate working capital. One such example was the contract for the Marion County Courthouse at Indianapolis, Indiana handled by the two firms jointly in 1872.

4

¥oris, Rodgers, and Company of

Bedford likewise began with traditional methods (1877) but ^Bloomington Even ing World, May 25", 1922, p. 1, In­ terview with Fred Matthews, son of John Matthews who intro­ duced the first channeling machine. p

Eleventh Annual Report., pp. 345-346 . 3 Ibid.

4

Record of the County Commissioners. Marion County, Indiana, XII, ”287”

by 1880 had made the transition successfully.

It was com­

monly said in that day that a minimum of 85> 000 to $ 10,000 was required to open a quarry under the new conditions. Rodgers, and Company furnish an example of what could be done.

Starting with an initial investment of $7,000, in

three years the company dividends had amounted to that sum. In nine years, this firm not only purchased a complete set of the new equipment but also distributed $146,000 to its stockholders.^

The Voris, Rodgers, and Company firm repre­

sents the only instance in the 1870 's, with the exception of the Chicago and Bedford Stone Companies' New England stock­ holders previously mentioned, of the entrance of outside

Two of the partners, A. C. Voris and 2 S. B. Voris moved from Louisville. persons and capital.

The period from 1880-1888 brought significant changes The greater part of the new firms adopted the corporate form of business organization at the outset, and some of the re­ mainder switched to this form of organization after a few years of operation.

Authorized capital stock ranged from

$20,000 to $ 125 ?000 ; but in the greater number of instances, either a considerable portion was retained as treasury stock or only a percentage of the face value of the shares was ■^Stone, X (January, 1895)> 146. 2 Ibid. The former was a lawyer, the latter a rail­ way conductor, and neither had had any previous connection with the stone business.

paid in cash.

Expansion of operations was then financed

through the sale of the unissued stock or the calling in of further payments on the shares. Ordinarily, the shares 2 issued were non-assessable. In the case of a number of the smaller companies, advances secured by promissory notes were often made by one or more of the promoters.^

In quite a few

cases, the land was wholly or partially paid for by stock.4' In a few instances, the promoter v/as the farmer who owned the land; in others, local merchants, manufacturers, lawyfirs or stone brokers.

Sometimes these promoters sought pro­

moters* profits by the old device of over-valuation of the land.

In many cases, profitable operations and reinvest­

ment of earnings increased the value of the property to its book valuation; but in some instances —

particularly those

in which the stockholders were impatient for returns —

this

overcapitalization was a cause of financial distress when working capital was depleted by its withdrawal as dividends. ^Miscellaneous R ecords. Recorder's Offices, Owen, Monroe, and Lawrence Counties; Annual Reports of Domestic and Foreign Corporations, Secretary of State, Indianapolis, Indiana; Circuit Court Records — Civil Cases, Lawrence, , Monro and Owen Counties. 2 n Lockhart, op. cit., p. ol. •^See, for example, Docket 2973 5 Lawrence Circuit Court, Civil Court Records, VIIQ'!144. a

.

kor example, Ibid. and Docket 2275? Lawrence Cir­ cuit Court, Civil Court Records. V, 334 .

^See, for example, Stone, VII (July, 1893)? 128-129 (Bedford Stone Quarries Company!; Lockhart, op. cit,, p. 8l.

91

The stockholders and officials of many of the com­ panies of the 1880-1888 period were from outside the stone belt. —

Many were attracted from neighboring towns and cities

especially Terre Haute, Indianapolis, and Louisville.1

Some of these companies were opened to get out the stone for an important contract and then continued when operations 2 proved profitable. Several of the companies grew out of the completion of the Chicago City Hall contracts.

The combination of

eastern stone companies that had operated the Chicago and Bedford Stone Company sold the !'Blue Hole” quarry east of Bedford (1885) to Bedford men who continued to operate under the same name, and assigned their leases of the Dark Hollow and Baalbec quarries to the Hinsdale Doyle Granite Company (1881).3

It is of interest to note that two of the eastern

granite companies continued to advance funds to the Hinsdale Doyle firm.

Tomlinson and Reed, the Chicago contractors who

had had the City Hall cut stone contract, opened their own

1

For example: Terre Haute Stone 'works, Terre Haute, Indiana; Charles Bppinghausen, Terre Haute, Indiana; Iloosier Stone Company, New Albany and Louisville, Kentucky; The Bed­ ford Stone Company, Indianapolis; Bedford Oolitic Stone Com­ pany, Greene County, Indiana; Romona Oolitic Stone Company, Indianapolis; Louisville and Bedford Stone Company, Louis­ ville; and the Dark Hollow Stone Company, Louisville. 2

For example: The Terre Haute Stone Company opened to furnish stone for the Terre Haute Courthouse. 3 Office,

M iscellaneous Re cords. Lawrence County Re co rd er 1s III, 229*

92 quarry northwest of Bedford, at Reed's Station, incorpor­ ating as the Bedford Quarry Company in 1883 ."*" ■Some investment came from Ohio interests —

the most

notable example being the quarry opened in 1886 by J. S. Nichols and associates near Plarrodsburg.

This concern was

taken over in 1887 by the Cleveland Stone Company, a recent merger of the Ohio sandstone interests.

Local men were

financially interested in most of these companies; moreover, as in previous periods, certain firms were launched in this period with local capital alone.^

Such firms started in a

modest way. The years IS 89 -I895 saw the number of quarries in the Indiana stone belt more than double.^ companies were incorporated —

Indeed, many

especially in I89O-I89 I —

that owned no land and yet maintained a legal existence. Some of these were stock promotion schemes; others had planned to be active but were stopped by the depression. Some were organized to preempt certain combinations of company names thought desirable for advertising purposes.

4

^•Monroe County Citizen, IV, no. 2 , December 10, 1885* 2 Crim, Duncan, and Company (1885); the Bedford Steam Stone Works (1886); and Cosner and Norton (1888). 3$ee Table f, below, p.43. 4 Lockhart, o j d . cit., pp. 81-82; Twenty-Second Annual Report, p. 250.

93

Among the companies actually put into operation ap­ proximately forty percent were principally promoted and 1 financed by local interests. In several instances, such ventures represented the launching into the stone business on his own account of a man who had gained a reputation as quarry superintendent for 2 one of the older companies. Local men of capital — manu­ facturers, merchants, lawyers —

were often willing and able

to assist such a man with stock purchases and loans.

In

some cases he was allotted an interest in the business as part of his compensation,

is evident that the business

enterprises of Bedford and Bloomington were creating a sur­ plus of funds that men sought to invest outside of the activities by which such funds had been accumulated.

The

owners of Wicks Department Store and of the Showers Brothers Furniture Factory of Bloomington, for example, invested in several stone enterprises.

It is interesting to note also

that in the northern end of the stone belt several of the smaller companies obtained their working capital from loans from the local building and loan associations.^ ^Estimation made from the examination of their an­ nual reports to the Secretary of State and from entries in the miscellaneous Records of the counties concerned relating to these companies. p For example, Henry Henley was the active manager for a number of enterprises backed by W. W . dicks, J.D. and W. N. Showers and other Bloomington men. ^See, for example, konroe County, Civil Order Book, p. 375 , Docket 3093, North Bedford Stone Company.

94

The majority of the newly organized companies were strongly connected through their officers and major stock­ holders with other regions.

Chicago was the headquarters

and point of origin for approximately one-half of these firms.

Louisville was the next most important residence of

promoters, with Indianapolis third.

The authorized cap­

italization of these companies promoted by outside interests was usually much higher than that of the locally organized firms; but the majority of companies of both types usually obtained only one-fifth to one-third of the nominal amount in actual paid-in capital.^

Only a few of these new companies

were not incorporated. As the productive capacity of individual companies expanded, a number of these firms resorted to the issuance of mortgage bonds to secure long term capital.

Short term

mortgage-secured notes were often given to secure loans obtained to purchase equipment or to enable the completion of contracts. The earliest known instance of mortgage bond issue was the $90,000 issue by the Hinsdale Doyle Granite Company in I883 —

really a mortgage-secured advance of capital

funds by two of the associated eastern granite companies -the Bodwell Granite Company and the Hallowell Granite Company. ^Estimated by the method described, 2 Lawrence County, mortgage R e c o r d , IX, 3^2.

2

95

In the early '90's, there were two examples of large scale bond issue.

The Dark Hollow Stone Company of Bedford sold

its property in I89O to the Dark Hollow Quarry Company, pro­ moted by a combination of Louisville bankers.

In this in­

stance, the Kentucky Trust Company of Louisville was made trustee for a thirty-year six percent issue of three hundred thousand dollars secured by a first mortgage and to be re­ tired by semi-annual payments of $ 5?000 to a sinking fund — the only example of a sinking fund provision in this period.^ In 1891 William T. Breyfogle of Louisville and vi. C. Winstandley of New Albany and Bedford organized the first merger of the Indiana stone field.

The newly organized

Bedford Stone quarries Company purchased the Hoosier Stone Company, the Bedford Oolitic Stone Company, and the Louis­ ville and Bedford Stone Company.

For these companies the

promoters paid $ 1 ,000,000 in shares of stock of the new company, and executed a $ 5C 0,000 nominal value mortgage bond issue with the Jennings Trust Company of Chicago as trustee.

Stockholders of the old companies received first

mortgage bonds of the new companfije-s with the understanding that William T. Breyfogle had the right to purchase these bonds for $ 200 ,000 .^

1 Lawrence County, Mortgage Record, XIV, 129* ^Ibid., XV, 491. See also Lawrence County Circuit Court, Civil Order Books, V, Dockets 223$, p. 3 8 ? 5 anC 2440, p. 500.

96 As the depression years appeared, a number of the smaller stone companies borrowed on mortgage notes from individuals who were in most instances prominent stock­ holders or occasionally contractors interested in the com­ pletion of certain contracts.

In some instances more

capital was needed to retain essential equipment bought on time payment contracts.

Attempts in some of these cases to

collect portions of capital stock not fully paid up met with indifferent success.

A few of the smaller companies issued,

through Chicago investment agencies or local financiers or banks, bonds or mortgage notes for amounts ranging up to 330,000.

These companies found it necessary to pay seven

or eight percent interest rather than six percent, and the agreements did not provide for sinking funds.^ The experience with these securities during the de­ pression of 1893 an& its aftermath was an unhappy one.

The

companies thus burdened with fixed obligations had little time to accumulate reserves before the years of depression and foreclosures resulted.

Usually the properties were

reorganized and operations continued under new management. In the smaller number of cases in which operations ceased completely, poor and unfavorable deposits of stone were generally added to the factors of inadequate working capital and poor management.

Despite the unfavorableness of this

"''Lawrence County, Mortgage Record, XIV-XX, rassim.

97

experience, subsequent events indicated that two precedents had been set:

(1) The issue of first mortgage bonds for the

medium-sized and larger stone companies became a frequent practice;

(2) Smaller firms showed a tendency to avoid such

means of raising funds. It can be seen, therefore, that the change from in­ dividual or partnership methods of organization to the

cor­

porate form was influenced by the necessity for greater capital occasioned by the change from primitive to mechanical quarrying methods and by the increased volume of business resulting from the construction boom of the l 880 's and early 1890 1s.

(Dimension or building stone then represented in

some cases for the first time the greater proportions of the business of the average Indiana quarry.)

As the transition

to the mechanized quarry occurred, the necessity of raising capital for the installation of new equipment and methods brought the investment of local capital surpluses; but, in addition, occasioned the entrance of outside capital — especially from the neighboring urban centers of Louisville, Indianapolis, and Terre Haute, and from the thriving midwestern metropolis, Chicago.

As the expansion of demand

reached the proportions of a boom between 1389 and 1893 ? the financing of these enterprises in many cases took on a more speculative character; and a number of the promotional schemes characteristic of American corporate finance in this period was used, especially the overvaluation of assets.

98

During this period, the practice of issuing mortgage bonds was adopted by two classes of organizations (1) The large company or merger promoted by financial and banking inter­ ests;

(2 ) The small firm that had been promoted by outside

individuals or groups seeking avenues of investment for their surplus capital funds and hiring local quarrymen as resident managers.

The experience of the depression years

disclosed two primary difficulties with these financial methods:

(1) The device of calling for the additional pay­

ments on subscribed but only partially paid-in stock failed to provide additional capital when it was urgently needed; (2) Mortgage bond issues with their fixed obligations proved dangerous methods of raising capital funds in an industry so sensitive to business fluctuations.

It is to be noted,

however, that not all the firms in the industry appreciated the dangers attached to these methods and we shall find some recourse to them in future periods. Labor Problems It does not appear that the improved methods of pro­ duction lessened the total number of men employed in the in­ dustry.

The decreased manpower necessary to produce a cubic

foot of stone was more than offset by the expansion of produc­ tion.

Employment statistics are available only for those

years in which the Indiana Geological Survey or the Indiana Department of Statistics compiled them. shown in Table 9*

These figures are

o ri h ■v & 3 ar ft

U n iv e rs ity Library

99 TABLE 9 EMPLOYMENT IN INDIANA LIMESTONE INDUSTRY: NUMBER OF EMPLOYEES BY COUNTIES FOR THE YEARS I88O-I896 Year

Lawrence

Peak-18701880

Monroe

Owen

vlashington

Total

340*

26 5*

231*

35 *

871

1881

225*

153*

200*

35*

604

1885

295**

200**

20**

12 ?**

620

607 ***

180***

l6 5* * *

1891

1867

1892

921z

365 z

20z

X

1306

1895

825y

897y

X

X

1722

X

1476

1896

689 y XX 787y x— Included in Lawrence County xx— Included in Monroe County

Sources: Those figures marked * are derived from the Eleventh Annual Report, pp. 25-26; those marked ** are derived from First Biennial R eport, Indiana Department of Statistics, Indianapolis, iBSb, p . 81; those marked *** are derived frora the Seventeenth Annual Report, pp. 68-80; those marked z are derived frora the Third Biennial Report Indiana Department of Statistics, Indianapolis, 1^93 5 P* 198; those marked y are derived from the Twenty-Second Annual Report, p . 344.

By comparing the total number of men employed as revealed in Table 9 with the total cubic feet of production given in Table 6 , we find that the number of cubic feet produced per man employed steadily increased from an average of 859 cubic feet per man in l88l to an average of 3 ^795 cubic feet per man employed in 1896 .

If the same average

100 cubic feet of production per man employed could have been achieved in l 88l and other factors remained the same, the output of 1881 could have been produced by 140 men; or to put this statement in reverse, the output of 1896 would have required 6,386 men at the 1881 volume of output per man.

The difference reflects principally the gain in pro­

ductivity achieved through mechanization and increased efficiency per worker; and reflects as well an increase in the average number of days employed per year from approxi­ mately 273 to 292.'*'

TABLE 10 AVERAGE CUBIC FEET PRODUCED PER MAN EMPLOYED* Year

Cubic Feet

1881

859

1892

2997

1895

3117

1896

3795

Source: Total men employed as given in Table 9 divided into the total cubic feet of production as given in Table 6 for the respective years ■^The figure for 1880 is computed from the Eleventh Annual Report, pp. 26- 27 . The 1891 figure is given in the Fourth B iennial Report, Department of Statistics, Indianappolis, 1S 9S, p. 202. While this comparison is made for the sake of completeness, it should be pointed out that the I896 figure of average number of days employed seems un­ reasonably high in view of the seasonal nature of the quarry business and the relatively small number of cut stone mills at that time.

101 To make the comparison in another way, we find that in 1881 the 604 men worked approximately 1,973?704 hours to produce 718,575 cubic feet, or .363 cubic feet per man hour; whereas, in 1895? 1?722 men worked approximately 5 ?368,307 man hours to produce 7,048,240 cubic feet, or I .31 cubic 1 feet per man hour, or 3*6 times as much. Prom the standpoint of the employer perhaps the chief problem concerning labor was one of procurement.

When

the rapid expansion of the late 1880 's came, the number of the native farmers who had furnished the chief source of labor supply in the pioneer period proved inadequate to meet the demand.

Many of the new employees were farmers

frora the neighboring townships and counties.

In addition,

some migrants came from Kentucky and Tennessee.

The normal

scarcity of labor sometimes resulted in the employment of foreign-born. workmen —

David Reed brought in the first of these

twenty Italians —

to work in his quarry and

mill near R eed’s Station about 1882.

Other foreigners

brought to the region in the course of railway construction became quarry workers when construction ended.

The greater

number were Italians, bht there were some Hungarians, 2 Greeks, and Slavs. Most of these foreigners were employed ^This comparison is only approximate. It uses the average length of the working day and. the average number of days worked per year and does not represent actual number of man hours worked. The actual man hours are unobtainable. 2 Lockhart, op>. cit. , pp. 96-97*

102 in the lower grades of unskilled labor.

1

The stone cutters

were for the most part itinerants and very few firms em­ ployed such labor continuously.

Among these cutters, a

small number of English, Scotch, and V/elsh, as well as northern Italians, became permanent residents of the Indiana district. Under conditions in which a great deal of the labor required was relatively unskilled in character,and in which most of the wuarries were isolated in country areas while relatively few finishing mills were, it is not surprising to find that only the most skilled trade of all — journeyman stone cutters —

had formed a union.

the Soon after

the Chicago and Bedford Stone Company began operations, on April 12, 1879? a Bedford local of the stone cutters' union was organized.

Not until after 1895 did the stone cutters

in other regions of the Indiana stone belt organize local unions.

The Bedford local union was not recognized as a

branch or affiliate of the J.S.C. of N.A.

The union did

not obtain recognition nor collective bargaining agreements from its employers.

Strikes were not common, although

Maurice Thompson erred in saying in the Geological Report for I 892 that they were unknown,^

The were infrequent, of

1Charles B. Kilholland, Editor, or, cit., p. 32. 21 Ibid ~ 11. See also Johnson, op. cit., clipping of March 19 Seventeenth Annual Report , p . 12

10$ short duration, and often not successful.

The stone cutters

local at Bedford was reported to have raised its wages from

1 $1.50 to $2.00 per day in 1879 by strikes ; and its pressure is said to have been responsible for the increase from $2.50

0

per day (maximum in 1884) to $3.00 per day by 1889 .

One

instance is known of a strike to protest the discharge of a non-union man.^

In another case workmen struck with the

demand that they be paid bi-weekly rather than once a month Information concerning the rates of pay during this period is very meager. of labor —

Ve know that the most skilled type

the stone cutter —

received $1.50 per day.

5

in the old hand quarries had

By 1884 stone cutters v/ere ob­

taining $2.50 per day and quarrymen from $1.25 to $1.40. Between 1885 add 1888, the stone cutters' union had raised £ wages to $3.00 and by 1892 to $3»50 per day. In the latter year, the Department of Statistics interviewed 135 workmen of the 1,306 reported for the oolitic stone belt and obtained the wage statistics reported in Table 11. ^Milholland, o j d . cit. , 9 Bedford Mail. July 3, q ■^Indiana Department of Report for 1887. Indianapolis,

p. 11.

1892 , XVI, no. 5* Statistics, Second Biennial 1888, pp. 408-40$.

4 Republican Progress. Bloomington, hay 10, 1893* 5 Milholland, up. cit., p. 11 . ^Bedford hail. July 8 , 1892, XVI, no. 5*

104 TABLE 11

DISTRIBUTION OF EMPLOYMENT AND WAGE RATE( ri AMONG 135 WORKERS INTERVIEWED BY THE DEPARTMENT OF STATISTICS OF THE STATE OF INDIANA IN 1892 * Range of Daily Wage

Average Daily Wage

Sup er intendent Foreman Bosses Engineers Stone Cutters

$5.50 Ml.65-4. 50 $1.75-2.50 $1 .50- 2.75 33.50

35.50 ^2.57 $ 2.12 31.90 33.50

31722 3 744 3 636 3 559 31050

1 15 2 13 2

Blacksmiths Sawyers Scabbiers Derrick Men Channelers

$ 1 .25- 2.50 $1.40-2.50 $1.40-1.70 $1.40-2.00 $1 .40-2 .50

32.06 31.71 31.60 31.57 $1.95

3 $ $ 3 3

624 486 442 443 552

4 13 l6 16 15

Steam Drillers Hand Drillers Flaner Operators Laborers Unclassified

$1 .50- 2.00 $1.00-1.75 $ 2 .00- 2.50 31.25-1.60 $1.40-3.00

$1.68 31.38 32.19 21.44 32.12

$ 3 8 3 3

474 382 657 418 623

11 3

Ah T^e of

4

1 7 11 2 2 7 3 1 3

Labor

Average . Yearly Earnings

J\/i/AQ£H

/tyew

4

10 10

Source: Third Biennial. Report. Indiana Department of Statistics, Indianapolis, IB 92 , p 192.

Although the men interviewed in obtaining the data of Table 11 represent a very small sample of workers in each occupation, the relative status of the annual earnings of the various trades is substantially similar to those ob­ tained by Lockhart a decade later in a sample embracing onethird of the workers of the district.

It seems likely,

therefore, that the sample, though small, is fairly repre­ sentative at least for ranges of daily pay and annual earnings.

There was considerable variation in the daily

105 rates paid by different firms.

From the average length of

time reported that the men had worked for the same employer it does not appear that this variation was producing a great deal of mobility between plants —

a factor that was

doubtless associated with the difficulties involved in reaching the quarries.

Many of the companies, including

almost all of the larger ones, owned houses near the quarries, whmchoth&y rented to their employees.

The remainder of the

workmen rode to and from their work on accommodation trains run morning and evening by the railroads.

A decade later

Lockhart observed that the quarries located farther away from towns usually paid somewhat higher rates of wages."1" Personal preferences for particular employers, companies, quarries, or neighborhoods doubtless operated to induce some workers to stay with one company at slightly less than the competitive wages. The same Department of Statistics report (1892) con­ tained tables giving the range of pay for unskilled and for skilled workers for each quarry in Lawrence and Monroe counties.

A summary is presented in Table 12.

It is apparent that for all categories of labor except the most unskilled variety used in the largest quar­ ries, Lawrence County quarries paid slightly higher wages for unskilled labor and considerably higher wages for skilled labor.

A substantial part of the latter difference is the

106

result of the greater importance of cut stone mills with their skilled trades in Lawrence County and the greater prevalence of absentee ownership with the superintendents’ wages being included in the data given.

Even if these

facts are all taken into consideration, however, it seems to have been the case that Lav/rence County firms paid slightly higher wages for each category of skilled as well as unskilled labor.

It seems also apparent that the smaller

quarries did not pay, as a usual thing, as good wages as the larger ones.

Perhaps this results from the fact that

most of these small firms were new companies just getting started.

TABLE 12 AVERAGE DAILY RATES 0? FAY, 1891* _ Unskilled__ Average Average Minimum Kaximuin Quarries Hiring 100 or more men Lawrence Co. Konroe Co.

0 .93

01.66

- —

- —

Skilled Average Average Minimum Maximum

32.12

03.80

01.76 01.47

03.45 ;>2.67

Quarries Hiring 50-99 m e n

Lawrence Co. Monroe Co. Quarries Hiring Under 50 Men Lawrence Co. Monroe Co.

01.25

01.58

01.26

OI.45

$1.24 01.20

$1.41

01.51

Source: Fourth Biennial Report, Indiana Departnent .ianapolis, Indiana, I892. Computed from Statistics, Indianapolis, I892 of Statistics, Table, pp. 190-199

107 With the sdvent of the depression of 1893, the be­ ginning of the year 1894 brought wage reductions — as a result, perhaps, of price cutting.

chiefly

Firms located in

the newly opened Hunter Valley district near Bloomington imposed a uniform six percent cut, reputed to have been the first concerted action in such matters.’1' This action was followed by reductions on the part of a number of quarries located elsewhere, but a few of the larger Lawrence County 2 firms did not follow suit. It does not appear that the men resisted such procedure by any united action. Figures given in the 1895 report of the Department of Statistics indicate that skilled workers suffered the greatest declines in daily rates of pay in comparison with 1892 rates.

This feature of the data doubtless reflects in

part the shut-down of cut stone mills and the consequent exclusion of figures for the most skilled type of labor from the 1895 report. Ho further reductions in wages were made during the

1895 season; in fact, one firm at Romona raised wage rates 12 1/2 percent.

Lawrence County quarries still paid

slightly higher wages for the lower categories of labor than the majority of those located in Monroe County; but the disparity in wages was no longer so great in higher ^Bedford Mail, March 9? 1894, XVII, no. 43 . Gee also Stone, IX (April"," 1894 ) , 478 . 2 Bedford Mail. April 27? 1894, XVII, no. 50.

103 brackets of skilled labor.

The quarries around Elletts-

ville and Stinesville worked approximately the same number of days as in 1892; those at Bedford about a month less; and those at Bloomington, Sanders, and Romona (newer areas to the stone business) from, a month to a month and a half less.^

Annual earnings, therefore, must have suffered more

seriously from the consequences of the depression at these newest quarry centers.

To quote Lockhart,

It might seem that the annual earnings of the workmen in the limestone industry would scarcely be sufficient to keep them above the want line, nor indeed would they be if the conditions of life were not un­ usual. For the environment of the workers is still essentially rural. Many live in small cottages built on land belonging to the oroducer who employs them, even those who live in towns may be said to lead a rural life, since the towns are small. Neither Bloom­ ington nor Bedford, the largest towns in the oolitic district, boasted a population of more than eight thousand. Under such conditions the cost of living is relatively low, and what would be a starvation?wage in the city may afford a comfortable living here.

Price Policies At the beginning of this period (I87O), the price of random rough blocks had been quoted at 35^ per cubic foot.

The panic of 1873 brought a reduction of ?jz( per cubic

foot in this base price.

The rapid expansion in demand in

I877-I 878 and the introduction of the channeling machine Twenty-Second Annual Report, p .

344-.

2

Lockhart, op>. cit., p. 97 (190?) ♦

109

occasioned a further decline of another and 25# remained 1 the usual charge until 1890. No organized effort seems to have been made during these years to establish a uniform scale of prices.

To quote Lockhart further,

-'what uniformity

there was resulted from general concensus rather than from definite agreements."

As Chamberlain suggests, the sta­

bility of prices may have been produced on the fear of each producer of possible undesirable consequences that might be set in motion by a change. Any one seller may be perfectly aware of his own indirect influence upon the price but uncertain how many of his competitors are aware of theirs. He will then be in doubt as to the effectiveness of his own foresight in maintaining the price and therefore in doubt as to whether he should lower it or maintain it. If numbers are fairly small, anyone seller can be certain that his incursions upon others by a price cut will be large enough to cause them to follow suit; and therefore no one will cut.3 Under these circumstances, if the producer is at least breaking even, his tendency would doubtless be to maintain the erice rather than lower it.

A strong presump­

tion that‘most producers were at least breaking even is afforded by the circumstance that the only firms dropping Lockhart, op. cit., p. 87; 12nd Annual Report, Indiana Department of Geology and Natural Resources, Indi­ anapolis, 1907, p. 353* Hereinafter referred to as ThirtySecond Annual Report. ^Lockhart, op. cit., p.

87

.

^Edward Chamberlin, The Theory of IJononolistic Com­ petition, Cambridge, 1935? P* 52.

out of business In these dozen years were small firms that found themselves unable to obtain additional capital to change to the new methods of quarrying. With the great increases in production that ensued in 1889-1891 > the base price began to drop and by I89 O quotations on prime rough blocks fell as low as 15# per cubic foot.^

After several years of price fluctuation,

attempts at price stabilization (discussed below) brought some improvement in base prices in I893~l895 ? hut the break down of these attempts brought base prices as low as 9# to 13»

Year

U. S. Total

1^99

$5 , 17 5 , 15 s 4 , 330,706 5 , 209,3 10 5 , 5 6 3 , 0 s1* 4,931,24-1 4 , 573,760 5 , 312,123 5 , 092,631 4,530,226 4,566,522 4,307,263 5 , 2 7 2 ,0 2 4 4,721,300 5 , 051,396

1900 1901 1902 1903

1904 1905 1906

1907 190 S 1909 1910

1911 1912

1913 1914 1915 1916

1917 191S

Source:

5 , 3 9 6 ,8 5 4 4,056,201 4,533,205 4,115,366 2,266,654

Ind. Oolitic

■#1 , too , 354 1 , 639,925 1 , 727,4 74 1,647,399 1,643,974 1,576,139 2,393,975 2 , 622,305 2 , 321,392 2,379,049 2,479,520 3,166,704 3 , 000,723 3,417,242 3,037,747 2,171,215 2,933,427 2,493,576 3 , 261,107 1,320,167

Percentage Col. 2 of Col 1

27.-6

37.9 34.3

2 9 .6 3 1 .6

35.9 45.1 51.^ 50.7 52.1 51.6 60.1

63 .6 6S.S 6S.5

55.7 72.3

7 6 .1

79.2 so. 3

Mineral Resources of the United States, United States Geological Survey, passim. 1S99-191S.

152 It will be noticed in Table 13 that with the excep­ tion of the years 1901-1902 and 1914 the value of Indiana dolitie limestone either gained in comparison with the value of all limestone produced or almost held its own.

It is not

possible to determine whether the gains in value were accom­ panied by like gains in the relative quantity of total lime­ stone sales represented by the sales of Indiana oolitic. Quantity figures for all types of limestone are not available prior to 1916. Although statistics of the quantity of total building limestone sold were not collected until 1916, the statistics of Quantity of Indiana oolitic limestone sold are available throughout the period 1896-1918.

Table 14 represents the

sales of Indiana oolitic limestone from 1896-1918. It eould be possible that the gain in percentage of value of all limestone produced represented by Indiana oolitic limestone reflected the increase in average price of Indiana stone {see Column 4, Table 1 4 ) that was produced by the in­ creasing quantity of Indiana stone fabricated at the quarry centers.

This would be true if there were no corresponding

tendency for the fabrication of other limestones to move toward the quarry centers.

.From external knowledge of the conditions

at quarry eenters it appears likely that this is the case to some degree and that eolumn 3, Table 13, may overestimate the growth in importance of Indiana limestone,

rhat the over­

estimation is not too great, however, seems likely when we dis­ cover that in 1916-1918, the years for which quantity data are

153 available for both Indiana and all other limestones, Indiana production ranked 77.17s 78.2%, and 73.9% of the quantity of all limestone produced, as compared with 76.1%, 79.27), and 80.3% respectively of the value of all limestone produced. TABLE 14 SALES OF INDIANA OOLITIC LIMESTONE, 1896-1918*

Year

Estimated No. of Quarries Owned by Coins Concerns

Total Cubic Feet sold

Value

Average Price per Uu. Foot

1896 1897 1898 1899 1900

43 33 32 32 32

5,466,589 5,382,589 5,630,046 7,128,121 7,035,000

f1,209,632 1,344,158 1,389,204 1,400,854 1,639,985

f0.224 .249 .246 .196 .233

1901 1902 1903 1904 1905

34 36 35 32 35

7,400,820 6,774,445 6,521,445 6,812,845 8,465,188

1,787,474 1,647,399 1,576,139 1,643,974 2,393,975

.241 .244 .241 .244 .283

1906 1907 1908 1909 1910

33 36 33 36 41

9,282,004 7,489,027 8,347,093 9,411,871 9,738,808

2,622,805 2,321,892 2,379,040 2,479,520 3,166,704

.282 .31 .285 .263 .325

1911 1912 1913 1914 1915

36 35 37 34 34

9,528,442 10,442,304 9,010,672 7,929,006 8,685,213

3,000,728 3,447,242 -3,087,747 2,171,215 2,933,427

.315 .33 .34 .274 .338

1916 1917 1918

35 35 35

8,545,534 6,774,674 2,701,745

3,493,765 3,261,107 1,800,167

.409 .48 .674

*Souree: For eolumn one, see below, Table 18. Columns two and three are from Mineral Resources of the Paired States, passim. Column four is calculated from columns two and three. Promotional Activities Promotional activities affecting the fluctuations in sales of Indiana oolitic limestone included those of individual

1^4 producers, of the political representatives of the stone districts, and of a promotional association. At the beginning of this period (1896) the Indiana quarry industry was still in the depression phase of the building cycle that had begun with 1 8 9 2 .

In I 8 9 6 not a

single quarry was running as much as half time .1

In 1 8 9 7

only approximately 2 / 3 of the quarries equipped with

2 machinery were running.

The Spanish American War caused

the cancellation of some contracts early in 1 8 9 8 .^

Late in

I 8 9 9 the demand began to increase, particularly from the big eastern cities, but prices remained at the low levels of preceding years.

Labor disputes among the Chicago building

trades injured sales in 1 9 0 0 .^ During these lean years several Indiana producers — especially John R. Walsh, the Chicago banker who was in control of the Bedford Quarries Company,, the largest Company of that period —

began the practice of bringing prominent stone

dealers from the leading consuming centers of the East and Middle West and other persons influential in determining building needs on all-expenses-paid excursion tours of the Indiana quarries.^

Among the dealers who then visited Bedford

B e d f o r d Weekly M a i l , V. Ill, No. 51 (October 9 , 1912). 2 Stone,

XXVIII (January, 190^), 5 9 1 .

^Bloomington Republican Progress. May

u

I8 9 8 .

fX.u,

Mineral Resources,_1900, p. 786. “

'

A

^Bedford Weekly M a i l , V. XXVII, No. 2 5 , Nov. 28, I 8 9 S.

155 were several men who later moved their cut stone establish­ ments to that city. With the new century the largest companies, e.g., the Bedford Quarries Company, the Consolidated Stone Company, and the Perry Matthews Buskirk Stone Company, began to establish their main offices in some large city — Chicago.

usually

New York sales offices were also opened by the

larger companies.

Such companies as these began to have

some traveling salesmen to call upon cut stone contractors, general contractors,

and architects.

The majority of the

companies, however, relied as in the previous period upon stone brokers.

Such brokers were located in the large con­

suming centers, especially in Chicago. Bedford-Bloomington area.

A few were in the

Upon receiving news that a contract

for stone was to be let, such a broker distributed specifica­ tions to the various companies —

usually several —

with

whom he had contacts and then received their bids. A broker 1 was paid on a commission basis. Gradually, however, the number of firms making direct contact with their customers in­ creased. As business revived at the turn of the century, many producers conscientiously sought to widen the areas to which they sold in order that they might be less injuriously affected by unfavorable local conditions —

as many had been injured

^Lockhart, op. cit., pp. 82-83; Interviews with former employees of these companies.

156 for example by the slump in Chicago after the World's Fair or by the New York building trades strike in 1903 .

Some of

the companies made it a policy to cultivate the smaller markets and avoided the east, believing that they thus would be less affected by industrial conditions*^*

As an example

of this increasing interest in more distant markets, a pro­ posal was made in 1910 to have the larger stone companies establish a stone yard in El Paso as a distributing center for the entire Southwest.

Railway rates to this area were

based on combinations of rates at the Memphis and New Orleans gateways — petition.

rates depressed by the influence of water com­ In the period 1905 —191^ several companies also

established branch offices in St. Louis, New York, Cleveland, 2 and Montreal and Toronto. There is evidence of wider use of Indiana Oolitic limestone for government buildings.

In 18>99 Congress appro­

priated $10,000,000 for public buildings.

The general custom

of the Federal Government had been to use granite in the larger public buildings in the principal cities of the country and white marble as the structural material for buildings in Washington, D.

0*2

When local and state public buildings are

considered in addition to federal buildings, the role of ^Lockhart, o p . cit.. p. 2 3 . ^Interviews with former salesmen of these companies. 3stone, XXIII (December, 1901), 536; Ibid.. XXIV (June, 1902J, 5 6 6 . See the Bedford Daily Mail, V. Ill, No. 2 3 5 , March 4, 1S99*

157 Indiana limestone had been more significant. Indiana limestone for public buildings — federal —

The use of

especially

was not accomplished, however, without strenuous

promotional efforts by Indiana producers, often with the aid of their senators and congressmen. Early in 1901, for example, a controversy arose over the proposed use of granite in the Indianapolis, Indiana Federal Building.

Reports circulated in the press that

officials were supposed to have said the Indiana stone was spongy and unfit for such use.

Indiana stone producers, con­

gressmen, and senators immediately began to bring pressure to bear to secure the use of Indiana Oolitic limestone.

The

Indiana legislature passed a resolution protesting the use of any other material.

The granite bid amounted to $1,4-30,000;

the limestone bid was $1,207,900. chosen.^

Indiana limestone was

During the course of the controversy the Supervising

Architect in the Treasury Department

seemed unconvinced of

the suitability of Indiana stone for

such a structure. Several

years later in 1905, John Knox Taylor, the Supervising Archi­ tect, was quoted as saying that granite and marble were superior to limestone for such uses.As evidence, the tion of the United States Treasury building

condi­

Was cited. Indiana

stone men were quick to point out that this building was not •^Bedford Daily M ail. V. IX, No. 200, January 24-, 1901; Ibid., No. 202), February 3 , 1 9 OI; Ibid., V. X, No. 2 2 3 , Feb­ ruary 17, 1902; Ibid., No. 224-, February IS, 1902; Ibid., No. 242, March 11, 1902; Ibid., No. 261, April 2, 1902; Ibid., No. 262, March 3 , 1902; Ibid., No. 263, March 10, 1 9 0 2 . See also Stone, XXIV, No. 6 TJune, 1 9 0 2 ), 5 6 6 .

158 of Indiana Oolitic stone but of magnesium limestone from n Seneca, Virginia. Such controversies seemed to call additional atten­ tion to Indiana stone.

In the meantime, federal, state, and

local government buildings were being built of Indiana stone. In November, 1398 the contract for the Administration Build­ ing at Ellis Island was secured —

150,000 cubic feet of stone

and said to be the largest contract for Indiana stone to that p time. In February, 1399 the Bedford Quarry Company secured a contract for stone for the Norfolk Navy Yard.^

In 1905 the

contract for the walls of the inner court of the House of Representatives Office Building was obtained (by the Con­ solidated Stone Company) and in the following year a similar h. contract for the Senate Office Building. In 1 9 1 1 contract for the Bureau of Printing and Engraving, Washington, D. C. was awarded to Indiana limestone —

the first government

building in Washington to be constructed of this material. White marble and granite had been the chief building stones used in Washington.

This award was made, however, only over

^Bedford Weekly M a i l , V. XXIX, No. 1, May 5> 1905* The Indiana editor ascribed Taylor's attitude to the defeat of his proposal of granite for the Indianapolis post office. ^Bedford Weekly M a i l .V. XXII, No. ^Bedford Weekly Mai l ,V. XXII, No.

December 2, 1393. 39,

Feb. 3 , 1 3 9 9 .

^Bedford Weekly Mai l ,V. XIII, No. 177* March 20, 1905; Ibid., V. XXVIII, No. 4 7 . The Consolidated Stone Company had mailed a sample of stone weighing 34-0 pounds to the House of Represent at ives.

159 strong opposition.

Secretary of the Treasury McVeagh

claimed that Indiana limestone could not he obtained speedily enough and that freight rates were too high .1

Nevertheless,

the building was awarded to Indiana limestone. It was during the course of the attempts to get this contract that the industry hired its first promotional repre­ sentative.

On June 8 , 1 9 1 1 the Bedford Stone Olub appointed

a committee to develop promotional work and empowered it to make assessments and to obtain the financial co-operation of Bloomington companies.

The amount of $10,000 per year was p appropriated to maintain a representative in Washington. As a result of these and other controversies, the Supervising Architect of the Procurement Division, United

States Treasury, in October, 1915, announced a new system for determining the material to be used in selecting stone for the facing of post offices.

Post offices were to be classed ac­

cording to their gross receipts.

Those having over $300,000

receipts might have marble or granite facings;

$ 6 0 , 0 0 0 to

$800,000, limestone or sandstone facings; $1 5 , 0 0 0 to $6 0 ,0 0 0 , brick with stone or terra cotta trim; and those with less than $15,000 receipts, brick with little stone or terra cotta.

It

1St o n e . XXXII (September, 1911), ^ 7 ; Ibid.. XXXIII (March, 1912), 1 5 0 . See also Bloomington Evening World. January 18, 1912. 2 Memorandum: Activities of the various associations of the Indiana limestone industry, typewritten, January 3, I 9 3 6 , p. 5* Mrs. E. 0. Walters, Secretary, Indiana Limestone Institute, Bedford, Indiana. Hereinafter referred to as E. C. Walters, Stone Association.

l6o was also announced that the lowest bids would he honored regardless of sentiment for using local materials .1

Strong

protests were filed against this system by granite workers and quarry owners who objected that many buildings of the 2 second class had formerly been constructed of granite. Indiana quarrymen and their Washington representative used these rules to fight aggressively for contracts for public buildings.

In September, 1915 a 60,000 cubic feet

order for the Department of the Interior Building was secured.^ In February, 1916 we find them protesting through their con­ gressmen that the rule pronounced in 1 9 1 5 had been violated in that sandstone had been specified for several public buildings even though the bids submitted for Indiana limestone were lower.

U.

In August, 1 9 1 6 the contract for the new Federal Building at Portland, Oregon specified Indiana limestone at a price $2 6 , 6 0 7 lower than the next lowest bid because of price cuts by Indiana stone companies.

Representative Cox

and Senator Taggart had served notice that unless the contract was awarded to the lowest bidder they would demand a Con1 Stone,

XXXVI (October, 1915), 527-523.

2 Ibid.,

XXXVII (February, 1 9 1 6 ), 3 7 .

?Ibid. . JCXXVI (September, 1 9 1 5 ), ^ 7 . oomington Evening World. February 1, 1 9 1 6 .

161 gressional investigation.1

And then in May, 1913, the op­

position of the office of Supervising Architect to Indiana Oolitic limestone seemed symbolically broken when the con­ tract for the very Annex to the Treasury Department itself 2 specified Indiana limestone. Uor had local government buildings been neglected. In 1905 the Kentucky State Capitol was built of Indiana limestone at a cost of $103,695 less than if Kentucky Bowling Creen stone had been used.'*'

An advertisement of the Indiana

Quarries Company on the front cover of the March, 1917, Stone, boasted that 200 or more courthouses had been built of Indiana, Oolitic stone.

ji

In February, 1913, it was stated that

of all the courthouses and public buildings built in Indiana in the last twenty years were constructed of Indiana l i m e s t o n e . 5 As a background for the beginning of associated efforts at promotional activities in the Indiana district in 191^, let us sketch the highlights of the fluctuations of prosperity in the Indiana district, 1900-191^.

The revival that began to

^Bedford Weekly Mail, V. XL, ho. 11, August 25, 1916. 2Stone, XXXIX (May, 1913), 233.

.

^Bedford Weekly Mail, V. XXIX, No. 15, August 11,

1905

^Stone, XXXVIII, March, 1917, front cover.

5Ibid., XXXIV (February, 1913), 36.

162 be felt in 1 $ 9 9 brought further improvements in 1 9 0 0 - 1 9 0 3 . By 1901 all mills and quarries were reported working at full capacity and overtime work was established by many .1

The

opening of the Indiana Stone Railway gave access to a new stone district near Clear Creek, Indiana, and a number of new quarries were opened in 1 9 0 2 - 3 .

Prices, however, did

not rise and, as we shall see below, labor troubles ensued 2 in 1 9 0 3 to put a temporary check on new openings. In the year 1 9 0 ^ the bulk of business proved to be small orders,-'* but the years 1 9 0 5 - 6 saw a business that approached close to capacity operations again.

Unlike most

of the other building stones the chief effects of the finan­ cial panic of 1 9 0 7 were felt in that year and by the middle of 190$ most firms were working full time once more.^ these years the Bedford Stone Club — to deal with labor troubles — activities.

During

organized originally

began to undertake promotional

In addition to the maintenance of a Washington

representative, a booklet,

"Bedford Stone, Its History, Pro­

duction, and Popularity," was issued and distributed to the c trade. Business continued good to and through the year 1912. With 1913> however, orders for new business were getting •^Bedford Daily M a i l , March 26, 1901. 2 Ibid..

June 5 , 1 9 0 3 .

^Rock Products, VII (August 5 , 1 9 0 7 ), 33* ^|bid., VI (September 5 , 1 9 0 6 ), 5Ibid.,

19•

VII (June 5 , 1903), 2 7 .

^Stone. XXIV (January, 1 9 IO), 23*

163 short.

Collections "became difficult and a number of mills

and quarries reduced working forces.^"

To cope with this

situation the industry had at hand the newly arranged Indiana Limestone Quarrymen’s Association, incorporated January 20, 2 1913* The association had 1 7 members, including all the larger quarry companies.

Activities for the first year of

its existence appear to have "been slight, but early in entered a more active phase.

IJlk

Plans were ms.de in February

and March for a campaign of publicity and national adver­ tising.

A Chicago advertising agency,

Crosby-Chicago, was

called into consultation and a series of booklets advertising the merits of Indiana limestone were designed and p u b l i s h e d . 3 In co-operation with the United States Bureau of Mines, moving pictures were made of the operations of both quarries and mills.

These pictures were shown at the Mining

Building at the Panama Exhibition at San Francisco in 1915a to architects and architectural schools, and in numerous k other places. Regular advertisements began to be run in the 5 trade’s periodical, St one.^ The advent of the War, however, 1Stone, XXVII (June, 1913), 31. ^Bedford Daily M ail. V. XX, No. 3 2 , January 2 5 , 1 9 1 3 . ^Bloomington Evening; World, July 3* 191^^Bedford Daily M a i l . V. XXXVI, No. 3 7 , July

1913.

^Stone. XXXI (October, 1 9 1 6 ), 515• ^ne ^he adver­ tisements stated that a souvenir paper weight would be mailed upon request. Such requests came in at the rate of 75 to 100 per day and no preparation had been made for handling them. Such weights showed various types of stone facing (Walters, Stone Association, p. 5 ).

164 caused the postponement of plans to develop a field staff to undertake promotional work with architects, etc.^ In the annual report of the Secretary of the Association for the year 1 9 1 7

2

evidence was presented that the

Association was paying particular attention to the promotion of other grades of stone than standard huff.

The industry

had recognized four grades of stone: No. 1, No. 2, Coarse and Mixed (hoth gray and buff in color).

Dr. G. F. Loughlin

of the Geological Survey suggested the renaming of these as select, standard, rustic, and variegated.

When representa­

tives of the Association showed samples of Rustic and Varie­ gated stone to architects, they were delighted and asked where the industry had been keeping this material.

They had

been shown the identical samples before but had not been interested in material designated Coarse and Mixed.^

A good

deal of attention was being paid to insuring that dressed Indiana stone was given careful treatment at the building site. Research along this general line was inaugurated in 1 9 1 7 at the Bureau of Standards.

The Association recommended the use

of lime mortar instead of cement mortar and stated that painting the surface of the stone drove stains out to the face. Sand blasting as a means of cleaning was not favored for the ^Interview with H. S. Brightley, former secretary of the Indiana Limestone Quarrymen's Association, April 10, 1940. 2Stone, XXXIX (February, 1913), 32. ^E. C. Walters, Stone Association, p. 6.

16? reason that such treatment tore away the film of chemical material held in suspension by quarry sap and made more opportunity for disintegration .1 The Association at that time was seeking to meet the competition of brick by developing limestone brick. basic size 1 2 ” by

was to be prepared.

A

Other standard

sizes to allow geometrical designs for alternate courses and use with burnt brick were to be developed.

The advent of

the War caused these plans to be neglected .2 When the decline in stone sales came with the advent of war, efforts began to be made by the Indiana stone pro­ ducers to seek wartime contracts to offset the loss of ordinary business* On March 7> 191$3 a committee representing the Indiana Limestone Qyarrymen’s Association, the Bedford Stone Club, and the Bedford Chamber of Commerce appeared before the Indiana Congressional delegation in Washington to seek assist­ ance for the Indiana stone industry.

It was stated that the

industry was operating at 2 5 % of its normal capacity, with not over 1,000 men at work. normally employed.

Between lf,500 and 5,000 men had been

The winter inventories of the raw material

usually converted into cash by the early spring business were still on hand.

A number of the working men had left the

district but quite a few remained and were subsisting largely 1 E.

0. Walters, Stone Association, p. 6 .

2 Ibid.

166 upon charity.

Store credit, the usual main— stay of these

men through periods of unemployment, was then "being can­ celled.

On Mardh 1 1 the delegates met Secretary McAdoo and

protested against stone being classed as non-essential rather than simply being assigned a place on the priority list.

The

use of fuel by non-essential industries was being curtailed* The Secretary explained that the real criteria governing the curtailment of building operations was the shortage of steel.

The only specific reference made by the Secretary

to undesirable building operations at this time was in reference to the building of homes.

An inquiry was also made

concerning the effect of the creation of the Capital Issues Committee.

Secretary McAdoo stated that the functions of

this committee were purely aadvisory and that there was nothing compulsory about its recommendations .1 On July 19, 191S, at the call of the bar Industries Board, representatives of the stone industry and other con­ tracting trades met in New York City to organize a tar Service 2 Committee. Soon Washington representatives of the War Department visited Bloomington and Bedford and examined the equipment facilities of the stone mills to determine the extent to which they could be adapted to wartime needs. Indiana Congressmen, the State Chamber of Commerce, and other such agencies brought considerable pressure to bear in St one cutter *s Journal. XXXIII (April, 1913), 2 Ibid.

(October, 1913), 3.

167 Washington to seek to obtain contracts for the Indiana district.

It was discovered that the stone-planing machines,

with some slight changes in tool steel, could readily be adapted to the planing of iron castings for gun carriages for 155 &n(3- 75 millimeter guns.

Accordingly, experiments

were conducted in August in the Indiana mills under the supervision of War Department officials and proved to be satisfactory enough that several of the larger companies were awarded contracts for the planing of such castings.1 Operap tions were begun in September, 191 $. A War Service Committee of the Bedford Stone Club handled the distribution of forgings among the plants.

When news of this order reached the dis­

trict, the Bedford Stone Club received many applications for membership from firms which had previously refused to affiliate.^ As can be seem from the date, the Armistice was signed before a great volume of production could be turned out.

As a matter

of fact, the small plants located in the Indiana stone district that bought waste stone at 1 5 < p a ton for use as agricultural fertilizer and flux for glass making benefited more from the wartime needs than did the building stone industry itself.

The

demand for waste stone to serve as furnace flux in steel making likewise was considerably increased.

^Bloomington Evening; World. August 19, 1913. 2Stonecutter1s Journal. XXXIII (October, 1913), 13. ^E. C. Walters, Stone Association, p.

168 In summarizing the preceding section dealing with the factors affecting the demand for Indiana limestone as building stone, it may be noted that we have considered the influence of (l) urban concentration, (2 ) fluctuations in the volume of construction of buildings — non-residential buildings,

(3 ) fluctuations in the sales

of leading competing materials — and other building stones,

particularly

concrete, cls.y products

(^) promotional activities under­

taken by Indiana producers as individual organizations and as groups.

Both the growing number of medium-sized and large

cities and the per capita growth of national income during these years favored the use of a product that is, after all, a more expensive building material than the wood and brick that furnished the staple materials of earlier years. The available figures for the volume and value of non-residential building supported the belief that there was an upward trend in building operations between 1396-1913. Comparison of the value of building stone sold with the value of concrete, face brick, enamel brick, and terra cotta indicate, however, that competing products gained more from this increase in building operations than did building stone.

This fact

was traced on the one hand to technological improvements and on the other to an aggressive sales and promotional policy. However, Indiana limestone did not show the downward or stationary trends characteristic of other building stones. The quantity of Indiana limestone sold shows an upward trent

169 from 1397-1912 (interrupted by set-backs in 1 9 0 2 -^ and in 1907-3).

From 1912-1913 the trend was downward, although

not severely so until the war years.

During the years

1S99-1913 the value of Indiana Oolitic limestone sold repre­ sented an increasing percentage of the value of United States limestone sold for building purposes.

Although in part this

represents the increasing percentage of Indiana stone fabri­ cated at the quarry center, it tends to indicate that Indiana limestone improved its position in the building stone industry. From 1912 through 1918 Indiana limestone suffered from the general deterioration of the position of building stone, al­ though not as much as did marble or sandstone.

This relative

gain may be attributed to the way in which the Indiana inter­ ests began associated activities to check their declines* THE INFLUENCE OF RAILWAY FACILITIES AND TARIFFS ON THE GROWTH OF THE INDIANA STONE DISTRICT 1397-1913 The availability of railway facilities and the char­ acter of railway tariffs influenced the nature of the develop­ ment of the Indiana limestone industry in two major ways in this period.

In the first place, the rivalry of competing

carriers contributed to the opening of new fields within the district, to the expansion of capacity of certain companies that were owned by railway managements, and to the expansion of other companies that were able —

especially in the early

170 part of the period —

to obtain rebates of railway rates.

In the second place, the extension of commodity rates and the maintenance of the same rates for dressed as for rough stone facilitated the growth of cut stone mills in the Indiana, district.' When news came to the Indiana Oolitic limestone district of the construction through Lawrence Oounty and Evansville and Richmond, Indiana, of the Bedford branch of the B. & 0. Railway, it was predicted that the Monon railway would seek to encourage quarries in Monroe County .1

During

most of the 1390*8, however, the Monon (or the Louisville, New Albany, and Chicago Railway Company) was in financial difficulties.

A receiver was appointed in August, 1396, and

on July 1, 1397#

reorganized property became the Chicago,

Indianapolis, and Louisville Railway C o m p a n y . F o r some time various promoters had been kt work seeking to interest the Monon management in new construction that would open stone lands in areas south and west of Bloomington, Monroe County, Indiana. In the 1396 report of the Indiana Department of R e p u b l i c a n Progress. Bloomington, Indiana, June 1390. 2 J.

A. Hilton, 0£. cit., pp.

k-12.

^Bedford Daily M ai l . V. XXIII, No. 2^-, October 20, I 8 9 9 . Prominent among these promoters was Mr. John Crafton, a fiormer railway conductor who had acquired large holdings of land in the above areas during the depression years. Mr. Grafton had interested David Reed of Bedford and Chicago in opening the first quarry south of Bloomington in Monroe Co., near Sanders, Indiana, in 1333. (See !5$g«>S).

171 Geology and Natural Resources, T. C. Hopkins had summarized the results of core drilling and surface observations in this area and left the impression that the prospects of good -1 quarries in this section were decidedly promising. The Monon Railway Company had an additional incentive for railway construction through this territory.

Between

Harrodsburg and Clear Creek, Indiana, there was a very steep grade on the main line of the railway at Smithville, Indiana. A single engine had been able to pull only 1 3 to 1 5 loaded cars at this point of the line.

From the point of view of

railway operating economy, therefore, a relocation of the main line of traffic was advisable.

With such a background,

the Indiana Stone Railroad was incorporated January 7 # 1 8 9 8 .^ Upon spur tracks from this line, nine quarries were opened between 1 8 9 9 and 1 9 1 8 and three cut-stone plants and five sawmills were established.

Other new quarries and mills

opened in Monroe County between I8 9 6 and 1918 were located on Monon switches.

These included two new mills and three

new quarries near Stinesville, three quarries and four mills ^Twenty-fifth Annual Report (I8 9 7 ), pp» 373 b 7(.. ^Bedford Weekly Mai l . V. XXIII, No. 9, July 7, I 8 9 9 . ^ Stone, XVII (October, 1 8 9 8 ), 3 7 2 . Poorts Manual of Railroads for 1910. New York, 1911, p. 74-1. Its board of directors were all directors or employees of the Monon with the exception of W. W. Wicks. Mr. Wicks was a Bloomington department store owner who had been very active in the promo­ tion of the local stone industry. All capital stock was owned by the Monon, and the parent company received a 9 9 year lease on the new line. Approximately 10 miles long, this cut-off was opened for traffic on September 1, 1899# and used for the main-line traffic from that date.

172 near Ellettsville, six new mills in Bloomington, two new quarries in the Hunter Valley District, one new quarry near the couthern city-limits of Bloomington, Indiana, and three new quarries and three new mills in the Sanders district. The development of Monroe County quarries, however, was not to he left to the Monon alone. Railroad was to participate.

The Illinois Central

Many schemes had been pro­

posed for an east-west railway line through Monroe county, but without success.

On September 1 5 , 1S99, however, the

Indianapolis Southern Railway was chartered with the ob­ jective of linking Indianapolis directly with the Indiana 1 coal fields at Sullivan, Indiana. Financial difficulties

2 delayed the beginning of construction until September, 1 9 0 3 . In 1 9 0 5 and 1906 the Indianapolis Southern had proposed to build a spur into southern Monroe county, west of the new Monon main line.

In July, 1906, however, this plan was

abandoned in favor of a cooperative agreement with the Monon to share in traffic originated on Monon switches.-'*

Large

^P o o r ^ Manual of Railroads for 1911. New York, 1912, p. SS 7 . ^Bedford Daily M a i l . V. XII, No. 100, September 21, I 9 O 3 . Before construction was completed, plans were changed to provide for connection with the Illinois Central line from Effingham, Illinois to Switz City, Indiana, at the latter point. Effective July 1, 1906, the two lines came under the same management and under the control of the Illinois Central. On May 6 , 1911, the property was sold under foreclosure and was bought by the Illinois Central for two and one-half million dollars. ^Bloomington Evening World, July 10, 1 9 0 6 .

173 quantities of stone land in this section had passed from the hands of the original owners to those of speculative "buyers. Prominent among these holders of land were the Oliver family of South Bend, Indiana, the manufacturers of agricultural implements, and Michael Edgeworth,

cut-stone dealer from

Kankakee, Illinois, Shortly after the Illinois Central acquired full control of the Indianapolis Southern in 1911* the spur pro­ ject was revised,1

A line known as the Bloomington Southern

Railway, S.S3 miles long, extending past Clear Creek to the quarries near Victor, Indiana, was in operation by June 3 0 , 1914.

By I 9 1 S three new quarries, one sawmill, and two cut2 stone plants were located on this line. In Lawrence County new railway construction was also

undertaken.

The Cleveland Stone Company, the largest firm

in the Ohio sandstone district, had abandoned as unprofitable its limestone quarry north of Harrodsburg, Indiana, and sought a new location,*^

The IS 9 6 report of the Indiana Geological

Survey had reported the outcrop on Fishing Creek as "One of k the most promising in the Oolitic belt." This creek flows into White River (from the south) some 1*1 miles southeast of Bedford.

The Cleveland Stone Company incorporated the ^Bedford Daily M ai l . V. XXVIII, No. 22g, September 9>

I 9 II. 2 Ibid.. V. XXX, No. ikQ, May 3 1 , 1 9 1 3 . The Illinois Central sent geologists to proppect this new area. ^Twenty-fifth Annual Report, Ojd. cit., p. 375* W

,

p. 3 9 ^

174 American Quarries Company in Indiana and purchased in its name 300 acres near Stonington on Fishing Creek.

On March

16, 1901> 'fcks Bedford Stone Railway Company was incorporated to build a switch from Rivervale, Indiana, on the B. & 0. Railway, to the quarry —

a distance of 2 . 9 6 miles.

was opened in June of the same year .1

Service

Extensive operations

were begun, but the quarry proved to be unprofitable because 2 of excessive waste and was abandoned in 1 9 0 3 . An extensive mill had been constructed at this site, however, and was used until 1914- to mill stone obtained from the P. M. & B. Stone Company.

The latter company had been purchased by the

Cleveland Stone Company in December, 1 9 0 3 *^ One other short line railroad was constructed in Lawrence county known as the Bedford and Wallner Railway.

It

was chartered November 2 7 , 1905, to give connections for the Bedford Stone and. Construction Company’s quarries, 2 .S5 miles northeast of Bedford.

li

Although the builders of the road

attempted to get other quarries located along this line, none were obtained.

Connection was made with the Bedford branch

of the B. & 0 . and two small stone mills in addition to the Bedford Stone and Construction Company mill were located near the junction point* ■^Poor’s Manual of Railways for 1910. New York, 1 9 H , p. 6 2 9 . ^Indiana Limestone Company Manuscript, Oja. cit.. p. 11. ^Interstate Commerce Commission, Docket 24-10, "In the Matter of Divisions of Joint Rates for Transportation of Stone from Points in Indiana to Points in other States," Indianapolis, Indiana, Sept. 7 , I 9 O 9 , p. IS. Typewritten, Formal Docket Files, Washington, D. C.

175 The greatest change in railway service in Lawrence county, however, was the result, not of a new construction, hut of reorganization of the old Evansville and Richmond Railway Company, an east-west line through Bedford.

This

road had been one of the enterprises of David liackey of Evansville, Indiana.

When financial difficulties came in

1396 and 1 2 9 7 * however, Mackey was unable to make satis­ factory arrangements to retain control.'*'

For a time it

appeared that the Pennsylvania Railroad Company might 2 purchase it, but the property was sold under foreclosure on March 2 3 , 1297, and bought for the bondholders who organized the Evansville and Richmond Railway Company.

In

December, 1297, the name was changed to the Southern Indiana Railway Company.*'*

Chief of the bondholders and president of

the new company was John R. Walsh, the Chicago banker who had recently obtained the Bedford Quarries Company and the Bedford Belt Railway Company.

Inasmuch as the Monon Railway

had organized the Consolidated Stone Company in 129*+ &ad purchased the P. M. & B. Stone Company in 1292, & battle now Ll loomed for control of the quarry business. ^Bedford Daily M a i l . V. V, No. lcO, December 7 , 1 2 9 6 . 2 Ibid.

^Poor *s Manual of Railways. 1292, New York, 1299, pp. 1 2 0 - 1 2 1 .

11,

Republican Progress, Bloomington, Indiana, January 1296.

176 Walsh's associates later said that the motive for the acquisition of the Evansville and Richmond Railway was the action of the Monon and the B. & 0. Railway.^- This forced the Bedford Quarries Company to pay for their own. switching or hauling to the connecting lines.

Soon after

Walsh came into control, the Southern Indiana Railway was extended to Linton, Indiana, at which point an Illinois Central Railway connection was obtained, and by September, 1900, the Southern Indiana tracks reached Terre Haute, Indiana.

Thus an outlet independent of the B. & 0. or the

Monon was obtained, and the Belt line received a division of the freight rates to pay for the switching at the quarries. Walsh then began to develop the industry along the line of ? the Southern Indiana Railway Company.- Four new mills and three new quarries were obtained along the line of the Southern Indiana or the Bedford Belt Railway.

In addition,

connections were made with six new mills that were served by the Monon. The Monon Railway, however, was not without new quarries and mills in Lawrence county.

Nine new quarries

and 1 3 new mills appeared on Monon switches in Lawrence county during these years.

Of these mills, six also had con­

nections with the Southern Indiana. •^Indiana Limestone Company Manuscript, Oja. cit., p p . 10—11. 2 Ibid., p. 11.

M O N O N R.R. v fO CHICAG O (C 2 0 0 M I.) OWEN

COUNTY

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^Thirty— Second Annual Report, op . cit.. p. 453. loanee, o p . cit., p« 24.

216 cutting and carving of stone "beyond the processes already described was accomplished by the hand hammer and chisel.

By

I 9O 7 one or two companies had introduced compression air or pneumatic tools to replace the mallet and chisel.1 191^1-j according to Dr. Mance,

By

"Pneumatic appliances are in

use in all of the more up-to-date mills and the use of the hand hammer in carving limestone has almost entirely disappeared."

2

Thirty-four air compressors were in use in 1914.

"•5

As we shall see in discussing the labor problems of this period,

stone cutters and carvers vigorously resisted the

introduction of these tools.

Dr. Mance estimated that in

1914 the use of pneumatic tools had reduced the cost of cutting and carving to less than l/4 of the cost when hand 2i methods were employed. One of the most important problems in the Indiana stone district during these years was the effort to achieve a reduction in the cost of power. made a study,

In 1914 Dr. G. C. Mance

"Power Economy and the Utilization of Waste ih

the Quarry Industry in Southern Indiana.5

a

summary of his

^Thirty-Second Annual Report, op_. c i t . . p. 3^3*

P Mance, o p . cit.„ p. IS. ^Ibid. , p. 24. A few companies were using steamdriven compressors. The majority, however, in 1914 had turned to single-stage electric power-driven compressors in the belief that they were more economical of power. ^Ibid. , p. 19 . ^ Indiana University Studies. IV, Bloomington, Indiana, March, 1917•

2X7 findings will serve to indicate the degree of progress that had been achieved along this line "by 1914-. Dr. Mance reported that the largest source of loss or waste in the production of building stone seemed to he losses "incident to the production and use of p o w e r T h e s e losses were attributed to one or more of the following causes: inefficient power plant machinery, obsolete machinery.

out-of-date methods, and

2

At the beginning of the period,

individual steam power

plants furnished the motive power for quarry and mill machinery either through or by the generation of electricity.

These

plants were often located in poorly constructed sheds or in lean-tos at the side of the mill.

Consequently, losses were

suffered from exposure to dirt, weather damage, or malicious destruction that destroyed or reduced the life of the machinery.

Only a few power plants were constructed of fire­

proof material and serious fires were rather frequent. Observing the power of machinery itself,

it was dis­

covered that many of the boilers in use in 1914- had passed the age at which they could be used most economically. addition, the boilers were often overloaded,

In

improperly

and inefficiently cleaned and serviced, and wastefully fired. The wages to firemen in the Indiana stone district were in-

^Indiana University Studies, IV, Bloomington, M a r c h , 1 91? j P* 5&*

2Ibid. 5lbid., pp. 57-53*

Indiana,

218 sufficient to attract experienced and competent men.

The

steam lines were usually not protected by covering and occasioned a serious loss of power between the boilers and the engines.^* The engines in use in the quarries were usually older types of Atlas engines and in most cases were in poor condition. weather.

They were often inadequately protected from the

o By 191*4- a marked tendency had appeared for quarrymen

to replace the steam engines used on quarry derricks with electric motors.

This concentration of the power in one

large unit had achieved a marked saving over the costs of operating individual small steam engines for each derrick. The short haul on Indiana coal reduced the freight

charges

.

to such a point that the better grades of coal from the eastern mines could not compete in the Indiana district and perhaps in part for this reason coal handling in the stone district was very wasteful.

This was true not only of the

methods of firing but also of handling in storage and plant movement.

It was estimated b y Dr. Mance that a quarry

utilizing four channelere, a stripping pump, and two derricks could save 10 per cent of the power costs by using motors rather than steam unit s.^

^“Indiana University Studies. IV, Bloomington, March, 1917* P P • 59-60. p Ibid., p. 62.

^Ibid., pp. 7B-S 7 .

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220 of such an arrangement had started in the beginning of the period.

As early as 18>99 several mills located in northeast

Bedford had purchased power from the power plant of the Southern Indiana Railway shop located upon adjacent ground.

In 1909 and 1910 the Bedford Stone Club discussed a proposal to build such a central power plant as a joint venture. Early in 1910 a small hydroelectric power plant was erected at Williams, Indiana, located on White River 10 miles west of Bedford.

Dr. Mance in his study stated:

The use of water power as the solution of the power problem in the stone belt is out of the question. The only available water power is the White River at Williams, Indiana, and this power site is already in use. The amount of power that can be developed at this point is given in the 35th Annual Report of the Indiana Depart­ ment of Geology and Natural Resources Ip . 52) as 352 horse power. This is not enough power to assist mater­ ially in the quarry power plant s.-*A steam power plant, however, was constructed at this site in conjunction with the hydroelectric development and by February, 1912, this plant was furnishing power to operate a number of the quarries and mills in the region of Bedford.^ In 1913 power lines were constructed through Oolitic to the quarry districts in southern Monroe county and by the begin­ ning of 191^, Bloomington, Indiana, had been reached with a 22,000 volt transmission line. %ance,

A 11,000 volt line was con-

o p . c it ., p. 112.

^Bloomington Evening World, February 27 , 1912 .

221 structed from Bloomington to Ellettsville to serve the stone mills located at In

the

latter point.^

May of 1914 the company operating these facili­

ties, the Southern Indiana Power Company, was purchased by the Midwest Utilities Company and assigned to its subsidiary, p the Interstate Public Service Company. A number of the more progressive producers began to purchase power from this company, but the majority of stone companies continued to generate their own power until the early 1920’s. In rates with

July, 1914, the new company prepared to file

new

the Indiana Public Service Commission. The

Bedford Stone Club appointed a committee to confer with t he company.

Yuhen no satisfaction was received at their first

conference, the Club adopted a resolution appointing a com­ mittee to inquire into the desirability of establishing a central power plant.

A further conference, however, brought

such a satisfactory adjustment that the issue was dropped. Service, however,

continued to be subject to interruptions,

failure of power,

and rate increases.

On November

6,

1915*

an Indianapolis electrical engineer, D. J. Angus, was retained to handle a protest against rate increases filed November 1. In the latter part of 1917*

Power Company petitioned the

Public Service Commission of Indiana for a 25/fc surcharge.

The

^•Bedford Weekly M a i l . XXXVI, ho. 40, July 25 , 1913. ^Bedford Daily M a i l . XXI, No. 1^2, Hay 29, 1914. B. Stimson, Manager, Public Service Company of Indiana, Blo om ­ ington, Indiana, August 2S, 194-1.

222 Bedford Stone Club was successful in preventing this increase. It appears evident from the preceding survey that a number of stone plants were gradually adopting improved methods during this period but that a significant lag existed between the development of improved techniques and their adoption as common practices in the industry.

The fact that

more attention was being paid to the adoption of such im­ proved practices between 191*4- and 1920 was undoubtedly a reflection of the declining demand for building stone and the increasing competitive pressure in these years.

LABOR ORGANIZATION AND WAGE RATES During the period

to 191$ the operators of the

Indiana stone district experienced their first serious labor difficulties.

The issues involved in these controversies

embraced more comprehensive questions than attempts upon the part of the various classes of labor to obtain the recogni­ tion of their unions by the employers and the negotiation of collective bargaining agreements.

The effortfe to obtain

collective bargaining agreements were complicated by the antagonisms within the ranks of both laborers and employers that resulted from the increasing centralization of cut stone production at the quarry sites and led to efforts on the part of the stone cutters’ union to assist the non-quarry-owning local cut-stone contractors*

^Walters,

Further complications arose

Stone Associations, p. *4-.

223 from the rapid adoption of new technological improvements, especially the planing machines,

in the effort to meet the

competition afforded by terra cotta and artificial stone. During the course of the period the Journeymen Stone Cutters made a vigorous attempt first

to prohibit use of the planing

machine, then to prevent the spread of its use, and, finally to control the conditions under which it should be used. The most serious difficulties occurred between the employers and the Journeymen Stone Cutters Association of North America. the various

In order to appreciate the significance of

controversies between the Indiana stone cutters*

locals and their employers,

it is advisable to examine the

struggle between the. cutters and the

contractors on a national

scale and to trace the evolution of the policy of the Journey­ men Stone Cutters Association of North America in their efforts to prevent the diminution of their work as the result of the introduction of the planing machine and the threat of rival unions.^

The national union, ordinarily known as the General

Union or more briefly as the G. U., had been organized in 12GS. The weakness of this organization has been well stated by Professor Barnett. During the period under review the governing body of the General Union between conventions held at ir­ regular intervals was an executive board, which was called together only in grave emergencies. The only beneficiary feature of the national union was a death

■*-A detailed account of this conflict is presented in Appendix A.

224 benefit of from $50 $150 according to length of membership. Until 1913 strike benefits were paid only after being voted on by the branches. The annual dues of the national union until 1913 were only 250 per month, and in any considerable strike the funds were soon exhausted. The local organizations of stone cutters frequently severed their connection with the national union, which was powerless to restrain them. It was the rule rather than the exception for the local bodies in the largest cities to maintain their independence of the General Union.1 The struggle between the General Union and the stone contractors began with the introduction of the planing machines.

In 1900 there were between 20,000 and 25,000

stone cutters in the United States.

Barnett estimates that

by 1915 probably one-half of the stone cutters had been dis­ placed from the trade as a result of the planer, diamond saw, and other labor-saving devices.

The General Union

made a vigorous attempt, beginning in Chicago in 1099, to prevent the introduction of the planing machine, or to legis­ late it out of existence where it had been introduced by refusing to work upon it or upon stone that had been cut by it.

This attempt upon their part brought about the formation

of a 'National Cut Stone Contractors1 Association (19014-) that vigorously opposed all restrictions upon the use of machinery. Efforts by the stone cutters to enlist the aid of stone setters or local stone contractors likewise failed.

The General Union

then attempted to control the conditions under which the planing machine could be used; to regulate the number of hours ^Barnett, op,, cit. , PP- 35-36-

225 that the planing machine could he operated, and to secure the employment of stone cutters to operate the planing machines.

The union not only failed to obtain these ob­

jectives but

found itself opposed by a vigorous riva,l or

dual union (1905) with a policy of no restrictions upon the use of machinery and with the active support of the employers1 association.

A number of clashes occurred between the two

groups in which neither side won a clear-cut advantage. Assisted by the fear of the employers of the effect of labor controversies upon the demand for stone in comparison with substitute products, the General Union eventually carried on ■successful negotiations for an agreement with the employers* association (1913) by which the rival or dual union was ab­ sorbed and restrictions upon the use of the planing machines were abandoned. tration without

Further disputes were to be settled by arbi­ strikes.

The union then turned its attention

to three new developments:

first, the establishment of rules

prohibiting the shipment of cut stone in quantities below a prescribed minimum from the quarry centers to the local con­ suming centers;

second, an effort to organize the operators

of stone-cutting machihery,

especially the planermen, and to

bring these organizations under the control of the General Union;

and third, &n attempt first to control and finally to

abolish the use of the air hammer on the grounds that it was injurious to the w o r k e r ’s health.

The center of action on

each of these three issues was the Indiana stone district.

226 Having concluded an offensive and defensive alliance (See Appendix A, pp. 723-724, and note 1 , p. 724) with the Briek Layers, Masons, and Plasterers International Union (1913) by the terms of which the brick layers were conceded the set­ ting of stone in exterior walls, the locals of the stone cutters union now made agreements with the brick layers* locals by the

terms of which the brick layers would refuse

to set in the

wall any cut stone cut at the quarry and

shipped into the city in excess of a specified minimum number of cubic feet, usually 6,000 cubic feet.

The employers

decided to recognize these restrictions until their legality was determined and instituted suits for the purpose of deter­ mining the legal status of such restrictions.

It seems to

have been the understanding of the parties to the agreement negotiated between Union in 1918 abrogated.

the Contractors Association and the General

that the restrictive agreements were thereby

However, as we shall see later, such agreements

continued to be in use and in force and the disposition of this controversy had not been made by the end of 1918. (Appendix A, pp. 729-730, 731-734, 739-740). The General Union also began to promote the develop­ ment of planermen*s organizations, bringing under their con­ trol several sueh organizations in the Indiana stone district that had formerly been affiliated directly with the American Federation of Labor. Bedford, Indiana.

Opposition was encountered to this policy in

The employers* association took the attitude

227 that such efforts were in violation of the agreement by which the controversy over the planing machine had been terminated. of 1918.

This issue was still undecided at the close

(See Appendix A, pp. 726-729, 734).

The union had been stimulated to oppose the air hammer by vigorous protests originating from members in the Indiana stone district.

The protest against the use of the

pneumatic air hammer was not made upon the basis that it reduced the amount of work available for stone cutters, but rather upon the grounds that its use produced a partial paralysis of the hands and arms and was injurious to the health of the workers.

The employers 1 association had agreed

to investigate the manner in which this tool was used.

In­

dependent investigation had been made by the United States i

Public Health Service, the bureau of Labor Statistics, and physicians of the United States Army.

These independent in­

vestigations agreed that there were certain disagreeable con­ sequences of the use of the planing machine that could be remedied by improvements in its construction.

The union

leaders, however, were not satisfied; the men were still urging the abolition of the air hammer, and this issue like­ wise had not been settled by the end of 1918.

ISee Appendix

A, pp. 730-731, 735-738). With this background of the relations upon the nation­ al scale between the Journeymen Stone Cutters* and Contractors* Associations in mind, the next problem is to describe the

228 development of employer-employee relations in the Indiana stone district. not

Prior to 1900 labor organizations were

common in the Indiana stone district.

Until 1900 all

of the stone cutters’ unions in the Indiana stone district were local organizations unaffiliated with the General U n i o n .1 Late in I 896 or early in 1897 the quarry men formed local unions.

These unions, however, were not recognized by the

employers and, indeed, there is no evidence that such recog-

2 nit ion was asked at this time.

At this period the Indiana

stone district was at a low ebb, prices having fallen to as little as 10 to 12 cents per cubic foot for rough blocks. Wage rates, however, had not been reduced, although a con­ siderable number of cases of unemployment were reported.^ In February, 189$, the Bedford local stone cutters’ union began agitation to reduce the hours of labor per day from 10 to 8 hours, the wages per hour remaining the same. This was stated to be a movement to increase the number of men employed or in other words to spread the available work li among the members of the local unions. When the quantity of stone demanded began to increase in I 899, the average price per

cubic foot increased from 19*6 cents per cubic foot in

1899 to 23-3 cents in 1901 and 2^.4- cents in 1902.

(See Table

^Stone Putters Jo ur n a l , V (September, I 897), 7 .

0

^Republican P r o gr es s, Bloomington, Indiana, February 9, I 897. See also Lockhart, 0£. cit.. p. 10*1-. ^Stone, V (November, I 896), 5 3 ^ 5 3 5 . ^“Stone Gutters J ou r n a l . V (October, IS 97), 12.

229 14, p. 152).

At the same time, however, wage rates for all

classes of lahor except cutters, planers, and seabblers do not seem to have been increased. About 1900 the American Federation of Labor sent organizers into the Indiana stone district who began to organize other classes of labor than the stone cutters.

These

were organized as federal labor unions, holding their char­ ters direetly from the American Federation of Labor.^

In

addition to these federal labor unions the engineers of the stone industry belonged to the Local No. 196 of the Inter­ national Union of Stationary Steam Engineers.

It is to be

noticed that these unions existed only in the Bedford section of the Indiana stone belt.

It will be recalled that the

stone companies in the Bedford district were larger than those in Monroe county and that they were likely to be run by superintendents representing absentee owners.

The majority

of workers in the stone industries, however, were contained in the lesser skilled occupations and did not belong to any

2 of these unions. The first signs of actual labor unrest occurred in 1899. ■^These unions comprised: (1) Federal Labor Union, No. including the following classes of labor — car blockers, hookers, wire sawyers, rubbers, bankers, drillers, and steam drill runners; (2) the Planermen's Union, Noi 10604; (3) the Stone Sawyers Union, No. 10103 (June, 1899); (4) the ^uarrymen's Protective Union, No. 10183 (1897). These organizations were not mutually exclusive. The Federal Labor Union took in some employees of other industries as well as some classes of quarry workers which the Quarrymen*s Protective union was ad­ mitting to membership. 6866,

2

L. P. McCormick and B. F. Schmidt, Fourth Biennial Report, Indiana Labor Commission, Indianapolis, 1904, p. 47.

230 The stone planers* union, organized in June, 1699, requested an increase in pay from 25 cents an hour to

J>0 cents

an hour

for a ten-hour working day, with a maximum overtime of two hours s.t 4-5 cents per hour.

At that time there were only

4-4- planing machines in use in the Bedford area.

The employers

refused the demand and quickly trained new men to operate the machines.

The weakness of the bargaining position of the

planermen was thus revealed. On August 1, 1902, the sawyers at the Hoosier Mill of the Bedford Quarries Company, located at Oolitic, walked out on strike.

Indiana,

Within a few days the remainder of this

company(b employees in their three giills, some 35O in all, went out in sympathy with the sawyers.

The strike likewise

spread to the Robin Roost Quarries (Oolitic, Indiana) of the Bedford-Indiana Stone Company.

A considerable disparity of

wages had existed prior to this time even for the same classes of labor.

Wages for sawyers had ranged from 14- cents per hour

to 16£ cents per hour.

The

company had sought to establish

a uniform rate of l6j cents per hour.

In addition to this

issue the company had sought to establish a new method of handling the noon hour which was viewed by the men as a wage

2 cut. ^-Bedford Weekly M a i l . V. VIII, Ho. 7 7 j. Sept. 1, 1699* ^Prior to this time the men had worked straight through the noon hour, eating lunch as they could. The company now pro­ posed to divide the men in staggered relays, giving each group 30 minutes without pay for their lunch hour. The men complain­ ed that the action of the company amounted to a 10 cents an hour cut for head sawyers and a cent per hour cut for all assistant sawyers. McCormick and Schmidt, Third Biennial Report of the Indiana Labor Comm.. 1901-2. pp. 111-116.

231 A representative of the Indiana Labor Commission met with the representatives of the strikers and the company. An agreement was reached to restore all but two of the men to their former positions, to keep the wages of sawyers at lgj cents per hour and to close down the mills for 30 minutes each during the noon hour —

a proposal that would result

in

a 3/^ cent per day increase.'1’ This episode seems to have been significant primarily in illustrating the lack of uni­ formity in wage scales, the growing desire of the men to organize for collective bargaining purposes, and the fact that organization had not proceeded as yet to the point where the unions were in a strong enough position to make an issue of their request for the closed shop*

2

■^Scarcely had work been resumed, 12 days after the strike began, when word was sent to the Labor Commission rep­ resentative that the strike had been reopened. The men had struck after working 10 hours, alleging that the company had failed to keep its agreement and demanding reinstatement of all the day shift planermen who had struck in sympathy with the sawyers, the employment of nothing but union men, and an agreement by the company not to discharge union men except after a hearing by representatives of the union and the company. At first the company refused to deal with the working men in this second strike, but finally employers and employees were brought together. Just prior to the occurrence of the strike the company had discontinued its night shift. It appeared that the renewed difficulty had occurred because the oompany had reinstated an equal number of men from both the night and the day force and would hire the remainder when business warranted. The workers then withdrew their former demands and accepted the company’s original proposition and resumed work on August 25* ^McCormick and Schmidt, Third Biennial Report of the Indiana Labor Commission. 1 9 0 1 - 1 9 0 2 , Indianapolis, 1902, pp. Ill-lib. See also Bedford Daily M a i l , XI, No. 59 , August 6 , 1902; Stone, V (July. 1902). 6l: Bedford D a i l y h a i l . XI, No. 73 (August 22, 1902).

232 A much more serious strike occurred the next spring. Like the preceding one, this strike was in Lawrence County, but instead of involving one or two companies, practically all of the quarries and mills in the Lawrence County section of the Indiana limestone district were closed from May 1, 1903, to June 29 of the same year.

Prior to 1903 the wages

paid by the different stone-producing companies for the same kind of work had varied widely.^ Chapter III, above).

(See Table 11, p. 104,

The isolation of the quarries had been

an important contributing factor in this situation.

The forma­

tion of the unions had given the working men a more accurate knowledge of the extent of variation. 2 to propose uniform wage scales.

They therefore began

In view of the number of unions requesting a uniform wage scale, the employers formed an association and, on April 17, 1903, submitted a scheme for a complete revision of wage scales affecting sawyers, traveler.': , runners, hookers, car bloekers, drill runners, seabblers, and common laborers.

The

Federal Labor Union, acting on behalf of all of the organ^MeCormick and Schmidt, Fourth Biennial Report, o p . cit.. p. 48.

2

Ibid. The sawyers' union was the first to seek a change in this situation. The wage rates for head sawyers had varied from 2 0 to 26-§- cents per hour and for assistant saw­ yers from 15 to 22§ cents per hour. On January 1 , 1903, there­ fore, the sawyers' union asked for a uniform scale of wages for all sawyers in the Bedford district. The wage scales requested for sawyers were as follows: head sawyers, 25 cents per hour; second sawyers, 2 0 cents; assistant sawyers, 18£- cents, on April 9, 1903, the Federal Labor Union proposed a uniform scale.

233 zations,

submitted a counter-proposal asking a scale of

wages to take effect May 1st which was approximately cents per hour higher than those proposed by the employers. On April 29 the P l a ne rm en ’s Union made similar proposals. The Federal Labor U n i o n ’s proposal was rejected by the em­ ployers and on the first of May members of these organiza­ tions struck and practically all the mills and quarries in the Bedford'district were

closed down.

On May

the Sta­

tionary Engineers requested a new scale and on May IS the Quarrymen’s Protective Union not only requested a new scale of wages but also asked for recognition and the closed shop. At approximately the same time the channeler runners, an un­ organised group, likew/ise requested an advance in wages. The proposed wage scales were usually not above the maximum rates paid by many companies but were higher than the average prevailing rates.

These scales proposed wage in­

creases ranging from one to five cents an hour above the 1900 level, with 2j cents increases for most classes of labor. The employers association agreed not to make any settlement except as a group and not to deal with the labor organizations as committees. the

The superintendents of many of

companies owned by absentee owners stated that they were

under instructions from their owners not to deal directly with labor committees but stated that they recognized the right of the men to organize if they so desired and would not in any case interfere with such organisation and would concede other

234 working men the right to get into these organizations all non-union men about the quarries.

The employers continued

to refuse to meet representatives of the union and stated that they would in no circumstances recognize organized labor, but agreed to meet as individuals their individual employees or committees derived from a list of names pro­ posed by the employers.

This proposal the workers rejected

on the grounds that the employer's list was drawn largely from non-union men. At this stage the State Labor Commission found it necessary to attend strike negotiations elsewhere.

During

their absence a series of public mass meetings were held, inspired by townsmen unconnected with the stone industry. Unfortunately, at these meetings antagonism between the parties was deepened by charges that the stone operators were making fabulous profits.

The owners vigorously denied

this and said that operating expenses were increasing.

Among

the factors mentioned as producing such increases in ex­ penses were the increasing use of terra cotta,

sandstone and

metal building fronts, the entrance into the industry of several new firms whose owners were bidding for business at very low prices,

increases in the price of materials used, and

the necessity in view of the increasing intensity of competi­ tion of supplanting old machinery with new at increased prices. As a result of these meetings the operators refused for some time to continue further negotiations.

23? Gal Wyatt, a general organizer of the American Federation of Labor, attempted to carry on negotiations in the absence of the labor commissioners but without success.

Finally, the Bedford Commercial Club, an organi­

zation of local businessmen, succeeded in bringing together on June 10 representatives of the Commercial Club, the unions, and the labor commissioners.

The next day the

operators were persuaded to attend the sessions and it was agreed that each operator would confer with the committee­ man representing his own employees.

As a result of such

individual conferences the union eventually voted in favor of accepting a scale of wages that was approximately the scale proposed by the employers on April 17 , 1903.

Work was

resumed on Monday, June 29* 1903> w ith all the striking workers reemployed except two men. activities occurred on either side.

No violence or belligerent Union and non-union men

appeared to work in harmony throughout the strike. In appraising the results of the strike it appears that in general the wage rates were slightly raised.

Of the

22g sawyers, planermen, hookers, and traveler runners involved, the wages of 1^7 were increased, those of 22 were decreased, and those of 59^ including

who were already getting the

rate demanded, remained the same —

averaging an advance of

•^McCormick and Schmidt, Fourth Biennial Report, o p . cit. , pp. 4£-6l. See also Lockhart, ojo. cit. t pp." 10^4-107. Lockhart used the Fourth Biennial Report of the Indiana Labor Commission in his account but supplemented it by interviews with employers and workmen.

236 1 about 1 cent per hour for these classes of labor.

The

employers had been careful to avoid all appearances of recognizing the unions but soon thereafter consented to the appointment of a shop steward for each firm whose duty it should be to collect the dues from the union members and employees and to try to settle differences arising between the men and their employers.

2

The functions of the shop

steward, however, quickly became less important than they had been expected to be and a tendency d e v e l o p e d ^ © feel that the central labor union organized at Bedford while the strike was in progress should be the means of arbitrating disputes. The strike does not appear to have produced any significant increases in the number of members of the union. Lockhart stated in 1905: "Results of the strike upon the union spirit appear to have been rather discouraging."^ Some of the men involved in the strike turned to the northern end of the district for employment and when the strike was ended a number of them remained there.

On the other hand,

some migration from the northern end of the district to the Bedford section occurred after the tetrike had been settled, partly as a result of the slightly higher wages secured.

■1

It-

McCormick and Schmidt, Fourth Biennial Report, op.

c i t ., p. 60.

^Lockhart, op. cit., pp. 1Q&-1Q9* 3Ibid.

^Ibid. , p. 10g.

237 The majority of customers of the companies involved in this dispute appear to have insisted upon prompt deliveries in fulfillment of contracts only in a few cases of emergency. Most companies are reported to have had clauses in their contracts which allowed them to escape payment of damages for non-fulfillment of contract.'1' Some of the orders that Bedford companies could not fill were given to Monroe County firms and in 1905 Lockhart Believed that some of this business was still being retained by these northern producers.

2

One of the most significant results from the point of view of labor of the strike was that in this section of the stone district the inequalities in wage scales in different establishments had been removed. 3

it appears likely that many

of the employers were disposed to agree to a uniform scale of wages in the hope that this might prove to be some assist­ ance in reducing the extent of price cutting engaged in by some of the newer and smaller firms.

From the point of view

of the internal competitive problem of the Indiana stone district this strike was likewise very significant because it •^Indianapolis hews. May 9, 1903* op. cit.. p. 109.

Quoted in Lockhart,

^Lockhart, op. cit., p. 109. ^It appears that in some few cases Bloomington workers were promised that they would receive whatever scale would be agreed upon at Bedford. This did not result in raising their pay for the reason that they were already receiving as much or more than the Bedford employees obtained. (Bloomington Evening World, X, No. 3 . June 1 2, 1903). In some other cases it did result in some increases at Bloomington.

238 proved to be the stimulus that brought into being the Bedford Stone Club.

This organization of employers remained in exis­

tence until 1 9 2 6 .

As we shall see, eventually this Club

extended its membership throughout the Indiana stone belt and became the organization for handling railway traffic problems, pricing problems, and many promotional activities in addition to its use in dealing with labor disputes. On September 13, 1905, about 60 engineers and machin­ ists employed at the Bedford Quarries Company struck because of the discharge of a machinist for an infraction of the com­ pany’s rules.

This strike was called by the local men without

consultation with their national union.

New men were put in

their places and work proceeded without interruption.

Few of

these men succeeded in regaining their jobs, as new men were quickly trained.

1

In the meantime the local Indiana stone district’s branches of the Journeymen Stone Cutters Association of North America had become involved in the national organization’s opposition to the use of the planing machine.

In January,

1900 the executive board of the General Union had called upon these stone cutters at the quarry centers to refuse to do the necessary handwork on planed stone or even in some cases to strike against the planing of the stone.

It was this issue

that first brought the Indiana locals into the struggle. ^•Bedford Weekly Mail, XXIX, No. 2 0 , September 15, I9O5*

239 In 1896 Indiana stone operators had possessed only 17 planing machines and a number of these machines had been employed only in the preparation of massive stone blocks for bridges.

Shortly thereafter, as indicated in Table 2 1 , the

number of cut stone mills in the Indiana stone district began to increase.

In a number of cases these mills had been moved

from such consuming centers as Chicago or New York to the Indiana district.

One of the reasons cited by these opera­

tors for their change in location was the desire to escape the restrictions upon the use of the planers. III, p. 85).

ISee Chapter

The majority of these cut-stone mills located

in Bedford. Until 1900 all of the stone cutters locals of the Indiana stone district were not affiliated with the General Union.

In 1900 the Bloomington, Stinesville Iincluding

Homona and Bllettsville in its jurisdiction ) and Bedford local stone cutters unions, all applied for charters from the 2 General Union. The executive board of the General union accepted the applications of Bloomington and otinesville but delayed the acceptance of Bedford for several years on the ground that the Bedford local did not cooperate in preventing the shipment of planer-cut stone to the places where there were no planers. The Bedford charter was finally granted late 3 in 1902. shortly thereafter the Dugan stone Company of ^Stone, XV (September, 1897J, 7. ^Stonecutters Journal. XIII (April, 1900), 4. 3 Ibid.,

XVII (January, 1903), 4.

240 Bedford, received the contract for the cutting of stone for the Fine Arts Building of the St. Louis World's Fair.

The

St. Louis union demanded that the stone "be cut by hand in St. Louis.

They were supported in this demand by the St.

Louis Building Trades Council, a very powerful organization that could have tied up the construction of the Fair to a very serious extent.

The St. Louis Stone Cutters Union went

on strike in December, 1902.1

Late in the summer of 19O3

the executive board of the General Union ordered the Bedford local to stop cutting stone upon this order under penalty 2 of losing their charter. Under this double pressure the Dugan Company was forced to transfer the remainder of the cutting to St. Louis.

Many cases are found in the pages of

the Stone Cutters Journal in which various locals of the Central Union complained that stone was being cut in Bedford for their localities.

In replying to these complaints members

of the Bedford local pointed out that there were now about as many planermen in Bedford as stone cutters, that these men had been organized since June, 1899 > that many jobs were shipped from Bedford on which the labor of stone cutters was not required, and that it was therefore very difficult for them to control the shipment of planer-cut stone under these circumstances.

In many cases they insisted that they were

•^Stonecutters Journal, XVII (January, 1903), 8, 17. See also Bedford Daily Mail, XXVII, Ho. 27, November J , 19021 2St onecutters Journal. XVII (November, 1903), 6-7. ^Ibid. . XVII (April, 1903), 9 .

241 unable to find out where the stone was to be used.^At this point the situation became complicated by the entrance into the Bedford section of the Indiana stone district of the dual union controversy in the stone cutters’ trade.

One of the firms that had recently opened a mill

in the Indiana stone district was William Bradley < 3s Sons of Brooklyn, New York.

This firm was one of the largest

eastern stone-contracting establishments and had succeeded in obtaining so many large contracts at once, Grand Central Station, New York City, for example, was among them, that they had opened a Bedford branch to facilitate speedy hand­ ling of such contracts.

In their Long Island plant they had

employed members of the National Society of Stone Glitters, the "No. 2 " or dual union.

To their Bedford plant they had brought

a foreman who was a member of the dual union.

The Journey­

men Stone Cutters Association insisted that this foreman become a member of their union.

As a result, a strike was

called and Bradley brought in members of the dual union from 2 Brooklyn to replace the strikers. Bradley & Sons Company issued a statement to the public, stating: We have become tired of sister branches (of the General Union) not located here stating that their branches had passed a law that cut stone shouldn't be shipped into their town or jurisdiction and as our old •^Stonecutters Journal, XVII (April, I9O3), 9 * ^Bedford Weekly Mail, XXIX, No. 44, March 2 , 1906.

242 men refused to work, giving as their reason the fact that we did not permit our foreman to take out a card in their union. We have decided to employ the same union as employed in our New York plant, one which recognizes the right of the planermen to maintain an organization and one which recognizes the right of the employer to ship stone when and where he pleases.

This occurred in February, 1906.

It was charged by the General

Union that the president of Bradley & Sons Company in the pre­ vious October had asked four members to withdraw and ask a charter from the National Stone Cutters Society.

Among the

National Stone Cutters Society men imported into Bedford were the president and five members of the executive committee of the National Stone Cutters Society.

2

These circumstances

contributed dedidedly to making the General Union men believe that a determined drive was about t 0 be launched to wipe out their locals in the Indiana stone district.

The General Union,

therefore, began to consider the possibility of enlisting the planermen*s assistance in combating the dual union.

The

planermen*s organization, it seemed, might listen to a pro­ posal for an offensive and defensive alliance in view of the fact that they had failed to gain a request for an eight-hour day in July, 1903^ and were currently asking for an increase ^Bedford Weekly Mail, XXIX, No. 45, march 6, 1906. 2 Ibid.

3 Ibid., XXVII, No. 1 0 , July 1 0, 19O3. Shortly after the settlement of the 1903 strike discussed above the Bed­ ford planermen requested an eight-hour day beginning July 6, I9O3. It was stated by the operators that the stone cutters viewed a shorter working day for the planermen as a means of increasing their own work and were encouraging the planermen in this request. The planermen were divided upon, the advisa­ bility of striking. The employers showed no disposition to grant the request and no disturbance occurred.

243 in wages .1

On January 13, 1905> planermen of the Bedford sec­ tion of the stone district requested an increase of wages from

cents to 30 cents per hour. 2

At the time of the

settlement of the strike of 1903 some of the Bedford planer­ men had heen getting more than the amount provided in the new scale.

They had agreed to a reduction in order to make

the scale uniform and secure a compromise settlement with the employers.

In requesting the increase in 1905, however,

they stated that they had believed the 1903 settlement to he a temporary one and had understood that in the near future there would he a readjustment, in which the reductions would he restored, to meet the scale paid at competitive points. Bloomington planermen, for example, received from 35 cents to cents per hour; Louisville, 37J cents per hour for a ninehour day; hew York City,

cents per hour for an eight-hour day;

Evansville, 40 cents per hour for an eight-hour day; Chicago, 1

tej- cents per hour for an eight-hour day.

2

The employers

denied any such understanding hut two businessmen members of the Bedford Commercial Club who had taken part in the 1903 settlement upheld the men’s version.

The Union stated that

it had deferred its request because of the unfavorable general conditions in the industry in 1905.

They expressed a willing-

^vlcCormick and V.oerner, Fifth Biennial Report, Indiana Labor Commission, 1905-6, Indianapolis, 1907 > P* ^Ibid., pp. 79~&3 .

244 ness to discuss what the wage should he.

A second reason

advanced for the request was the existence of the tendency to speed up the operation of the planers hy increasing the differential on the pulleys and hy installing more powerful engines.

In 1902 the average cutting speed of the planers

had heen 22 feet per minute.

By this time some of them

were cutting 3& feet per minute.

In addition, many mills

had replaced steam travelers hy electric machines which could do 50 per cent more work than the steam travelers of the same tonnage.

An additional reason was offered in the

increased costs of living in the stone district. Approximately four weeks after the strike or walk-out at the Bradley Company, the General Union Stone Cutters asked the Bedford planermen's organization for an offensive and defensive alliance, with the following provisions:^" 1.

Each organization was to retain its autonomy without interference of wages, hours, finances, and apprenticeships.

2.

Disputes were to he settled hy a joint executive committee of three members each.

3.

If one strikes or is locked out, the other will do everything in his power to aid even to the point of a sympathetic strike.

i|-.

The planermen would agree not to plane or turn stone for dual stone unions and the cutters would agree not to cut stone planed hy scaholed planermen.

^iicOormick and boerner, 0£*

cit. , pp. dp-do.

245 5*

This agreement should not he cancelled except after six months notice.

The planermen were inclined to agree but decided to consult the national officers of the American Federation of Labor.

The first proposition presented no disagreement, the

second proposition presented the difficulty of the deciding voice in the tie.

Upon this issue it was agreed that the

executive committee could select a seventh party. proposal was a real stumbling-block.

The third

Neither organization

would pay strike benefits to its members if called out on a sympathetic strike.

In addition, the planermen believed that

their letters to the employers requesting a wage increase constituted a. tentative agreement not to strike before April 1. Mr. F. Frank Hamies, president of the Journeymen Stone Clutters Association of north America, stated that he did not view the matter in this way and that his organization "never relinquished the right to break a contract when it seemed best to do so." The planermen asked if the alliance could be made effective April 1st. immediately.

President Hannes said that it must be effective The planermen's committee was inclined to stress

the fact that, although they had had an organisation for some years, an alliance had never been proposed until the stone cutters were in trouble. ^McCormick and boerner, on. cit.,

246 The proposed agreement was put up to a vote of the members of the planermen*s union and approved by a vote of 4 to 1 with the proviso that the agreement must be approved by the executive boards of both organizations.

Many of the

planermen were inclined to feel that the stone cutters’ proposition was made for purely selfish reasons and that any agreement with them would be valueless in view of their opinion of the value of an agreement with the employers. However, the minds of many other planermen were inflamed and they determined to strike.^

The State Labor Commissioners

attempted to negotiate with the employers and were informed that the employers refused to grant the increase in wages, to receive the workmen, or to recognize the union.

The com­

missioners urged the planermen to postpone their strike to allow further negotiations but to no avail. men were soon replaced.

The striking

Eventually some of them returned to

work at the old wages with the sanction of their organiza­ tion, but most of them obtained employment at other points 2 where higher wages prevailed. Thus the ease with which machine men could be trained for the stone industry was demon­ strated once age.in. By September, 1909, three companies in Bedford were employing members of the National Society of Stone Cutters, the ^McCormick and boerner, l o c . cit.

2 Ibid.

247 dual union .1

About this time the General Union made an

offer to the National Society members to admit the latter as members before November 1, 1909, without initiation fee, 2 by payment of one month’s per capita tax. Amalgamation was going on rapidly, when the employers posted a notice that after December 1 in some cases and January 1 in others five more stone mills would use National Society men ex­ clusively. at all

The General Union called out all stone cutters where the companies were members of the Stone

Contractors Association, although four of these companies had refused to post the offensive notices.

One hundred and

twenty-five stone cutters and ten stone mills were involved.

3

The Indiana State Labor Commissioners tried to get men to return to work in the four mills that had not posted these notices, but the majority of the strikers refused to agree unless the offensive notices were withdrawn from all the mills.^ ^In addition to E. F. Giberson and Company, the suc­ cessors to William Bradley & Son, the Kenry Struble Cut Stone Company which had emigrated from Chicago in 1906 and the J. P. Fait Company, formerly of Springfield, Massachusetts, emoloyed members of the dual union. (Stone Cutters Journal, XXIII (September, 1909), 13).

2 Ibid., XXIII (September, 1909 ), 4-.

3o. F. Uoerner and H. H. Slough, Seventh Biennial Report for 1909-10, Indiana Labor Commission, Indianapolis, 1911 , p. 78 . 4

Ibid.

248 On November 10, 1909*

was reported that 6 stone mills

were in operation using National Society Stone Cutters, while four mills (normally employing about 60 stone cutters) were idle and reported to be willing to take back their old workers at the old wage but determined to use other men if higher wage rates were demanded .1 About two weeks after the strike began, the stone cutters were joined by the planermen, hookers and travelers, sawyers, blacksmiths, and mill laborers, thereby effectively closing the mills and increasing the total of men on strike to around 500.

The occasion seems to have been the intro­

duction of men to replace the strikers.

It appears that a

number of members of the National Society joined in the p strike. The operators declared at a conference with the business men of the Citizens'

Committee, late in November,

1909 , that the striking stone cutters would not receive any consideration, but that the other craftsmen who had walked out in sympathy might be taken back if they would make satis­ factory proposals.^

The Citizens'

Committee proved to be un­

able to persuade the operators to confer with a committee of •^Bedford Daily Ma i l , XVII, No. 12 7 , November 10, 1903 . On November 11, 1909, three of these four firms wrote to the chairman of the General Union Conference Committee that unless their striking employees returned to work by November 16, they would employ members of the National Society. (Stone Cutters Journal, XXIV (January, 1910), 21!-). 2St one Cutters Journal, XXIII (December, 1909 ), 21. ^Bloomington Evening world, November 27 , 1909; St one Cutters Journal, XXIV (January, 19IQ), 23 .

249 General Union men.^

The contest continued without either

side gaining any appreciable advantage, the mills attempt­ ing to work shorthanded and the strikers picketing the mills, until on December 5 , 1909 , a carload of stone workers Y/as 2 brought in from Chicago. This action almost precipitated a riot and the sheriff appealed to Governor Marshall to send the militia.

The Gover­

nor refused the send the troops, informing both parties that they would be responsible for any violence and damages.^

The

strikers succeeded in getting most of the imported men, many k

of whom had been brought in from Chicago, to leave town.

The

stone cutters of Ellettsville, Indiana, 30 miles north of Bedford on the Monon Railway, Y/ould call Bedford on phone when they saw a trainload of men passing,5 thus enabling the Bed­ ford stone cutters to meet them at the station.

A number of

strikers were soon arrested and charged with contempt of court for violation of this injunction.

The State Labor Commissioners

finally persuaded the operators to stop the wholesale impor­ tation of men.

The operators then tried to fill the mills

^•Bloomington Evening World, December 2, 1909* p

woerner and Slough, op. cit., p.

^Bloomington Evening horld, December g>, 1909 . W o e r n e r and Slough,

ojd.

cit . , p. 79*

^Lawrence Circuit Court, Civil Order Book 2 2 , Docket 6 S 53 , November 30, 1909, "Furst-Kerber Cut Stone Company et al. vs. Joseph Evans et al.," pp.

2?0 gradually and without exciting the strikers.

This policy

produced results satisfactory to the operators.^" The president and a number of members of the General Union were arrested and charged with contempt of court for distributing strike benefits among those mill men who had struck in sympathy with the stone cutters and had no union of their own to assist them.

The American Federation of

Labor sent a national organizer into Bedford to aid the stone cutters and report on the condition of the strike.

The Nation­

al Building Trades Council pledged aid to the strikers throughp out the country. Early in January, 1910, the Bedford Stone Club an­ nounced a scale of wages for all classes of labor except stone cutters, involving increases from one to four cents per hour, effective March 1, 1910.^

A committee of mill workers issued

a statement saying that they would prefer to be a party to con­ tracts involving their welfare and pointing out that this was the first "annual" meeting in seven years to fix wage scales. No general advance in wages had occurred since 1903 and they ■^The operators obtained a temporary injunction on November J>0} 1909* This was a sweeping document restraining the stone cutters from interfering with the operation of business by interference with employees by violence or by a show of force likely to intimidate them — either at or near the place of business of the company, the boarding houses, or lodging of the employees, or the railway .station depots; from organizing any boycotts against any firms dealing with the strike breakers; and from raising funds by assessment from either the National Union or its local Bedford branch for the purpose of hiring or bribing of the employees not to work for the stone company. (Ibid.) 2St one cutters Journal, XXIV (January, 1910), 2. ^Bedford Daily M ai l , XVII, No. 172 , January 13 , 1910.

251 did not propose to accept one now at the cost of their unions* In addition, they objected to the first clause in the consti­ tution of the Bedford Stone Club.

This clause read "to regu­

late wages, determine who are worthy of employment and make it possible for us to employ whomsoever we see fit without let or hindrance from any labor union."

The employees charged

that in accordance with this clause the Stone Club circulated blacklists of workers.'1’ On January 15 , 1910* 't;he operators and the National Society of Stone Cutters signed a two-year working agreement effective on that date, enacting a triple scale of wages at $^.00 , $4-.50, and |5*00 per day for various classes of stone cutters.

Most of the cutters were to be p classed in the $^.00 bracket. Representatives of the General Union Stone Cutters

sought to present their case before the meeting of the National Cut Stone Contractors Association in Chicago, January IS and

19 , but were refused admission to the convention.

The General

Union representatives had pointed to the fact that at its recent Milwaukee convention their organization had eliminated all opposition to the introduction and use of machinery and the shipment of cut stone.

They proposed that a joint confer­

ence be arranged to eliminate the difficulties and that in each town in which the two unions existed both present organ^Bedford Daily Mail. XVII, No. 172 , January 13 , 1910. The Club did maintain an employment bureau which may have had the same effect. (halters, Stone Association, p. 4).

2 Ibid. , XVII, No. 175 , January 17 , 1910 .

2^2 izations should disband and form a new organization as the General Union local.

These proposals were refused hy the

contractors at their convention.-^- The Bedford Trade and Lahor Council then hegan to send out letters asking local building trade councils to get the good will of contractors in each town and to ask them to refuse to use stone cut hy National Society Stone Cutters.

This letter named four cut-

stone firms located in Bedford that were still employing 2 General Union men. In March, 1910, the strike spread to the cut stone mills located at Oolitic, Indiana, as a result of shipment of stone hy these companies to Bedford mills involved in the strike.

The mill workers at Oolitic demanded recognition of

their union and the stoppage of shipment of stone to the Bed­ ford mills affected hy the strike.-'*

Hill workers at the P. M.

& B. Company plant at Stonington, Indiana, ?i/ere soon involved and, on March 26, 1910, that company’s quarries at Oolitic were shut down hy the operators, throwing 1,000 men out of lL

employment.

At the hearing on the injunction cases 9 Bedford mill operators testified that they had invested the total of ^ 7 ^5 aOOO in their mills and that at the time of the strike they had

^Bedford Daily M a i l . XVII, No. 17-j, January 20, 1910. ^ Stonecutters Jourhal, XXIV (February, 1910), 23 . ^Bedford Daily Mail, XVII, Ho. 220, March 19 , 19 IO. ^T b i d . , XXXIII, llo. 22, March 25 , 1910.

253 $640,000 in incomplete contracts. The injunction against the stone workers was made permanent March 2, 1910, against of rnost active of 2 the strikers. Early in April, 1910, Henry Struble, secretary-treasurer of the National Cut Stone Contractors Asso­ ciation, stated that most of the jobs at the mills had been filled and that only 75

100 jobs were available for such

of the strikers as desired to come back to work.

He also

stated that the operators were willing to meet a committee composed solely of sympathy strikers.^

By March, 1910, the

General Union’s funds were reported to have given out.^- By the middle of April the major it 3?- of men were back at work in Oolitic and Stonington.

Early in May the General Union Stone

Cutters finally advised the other mill workers to return to work "since they had done all they could and idleness availed them nothing."^

The majority of sympathy strikers had been

replaced by men who were beginning to learn the trade, but since business was improving, the greater number of them found employment upon night shifts.^

During the course of

this strike, organisation began to spread to the northern end ^Bedford Daily M a i l . XVII, No. 23 , March 2, 1°10. 2Ibid. ^Ibid., XVII, No. 24-0, April 2, 1910. ^Stonecutters Journal. XXIV (March, 1$10), 2. ^Bedford Daily M a i l , XVII, No. 265 , May 6, 1910. ^Ibid.

2?4 of tile district.

Some of the General Union stone cutters

out on strike Imd found employment in Monroe County. In March, 1910, fourteen companies of Bloomington and vicinity organised a new stone blub, the Indiana Oolitic l Stone Club of Bloomington. This organization had several purposes; one was to deal with the new trade unions appear­ ing in the northern end of the stone district and another was to promote Monroe County stone and to combat the im­ pression created by the earlier prominence of Bedford and Lawrence County that stone from Monroe County was not Oolitic stone of the same high grade as that to be found in the older area. In order to prevent the strike from spreading into the northern section, the operators of Bloomington, Ellettsville, and Stinesville had yielded to a request from the Journeymen Stone Cutters Union to increase their wages from 1^.00 to

P er duy*

This wage increase applied also to

the mills in Bedford that hired General Union stone cutters.1" It appea.rs very likely that one of the significant results of this strike and of the wage increase was to accelerate the introduction of planing machines in the Indiana district to replace as much as possible the work performed by the stone cutters.

It will be remembered that in 1907 there were 10 7

planing machines in use in the Indiana field and by Ibl^^•Bedford Daily M a i l . XVII, Bo. ‘-Ibid., XVII, ho. 299 , Apr. 29 Evening World, May 3, 191°; Bedford Me 2 o, May 6 , 1910.

c

ch 16 , 1910

255 during the same period the number of out stone mills increased from 35 to 42.

(See Table 21).

Perhaps in consequence of

these trends an effort was made early in January, 1910, to gather all of the mill workers possible in the Indiana stone district into the American federation of Labor.

The first

tangible result of this attempt was the organization of a union of stone planermen in Bloomington in the first week of January.

It was later charged by the stonecutters that the

men responsible for the organization of this union lost their 2 jobs and that little activity ensued for the next few years. The difficulties resulting from the strike do not appear to have substantially reduced the total volume of busi­ ness done in the Indiana stone district.

The years 1909 and

1910 exceeded all preceding years in the cubic feet of stone produced.

There does seem to have been some temporary gain in

the relative position of the operators in Monroe County in com­ parison with those of Lawrence County as a result of these dis­ turbances.

That this gain did not become a permanent one, how­

ever, is revealed by the figures of Table 17, indicating the percentages of total Indiana limestone production produced in Lawrence County from 1908 to 1918. ^Bedford baily M a i l . XVII, No. 167, January 7, 1910.

2

Stonecutters Journal. XXVII (January, 1913), 16.

256 TABLE 19# PERCENTAGE OF INDIANA LIMESTONE PRODUCTION PRODUCED IN LAURENCE COUNTY

Year

Rough

1903 1 1909 1910 1911 1912 1913 1914 1915 1916 1917 191 s

6^ .1

Dressed.

56.9 61.3 52.6 6 6 .3 7 1 .6

71-5 6 ^ .1

70.0 6 ^ .6 66 .6 66.6 66.3 63 .O 7 1 .4

53.^ 63 *6

53-1

63.6 61. & 9O .3

73-1

Source: Mineral Yearbooks, 190&-191S, passim.

The years 19 H

and 1912 passed without serious labor

difficulties in the Indiana stone belt.

Eleven cut stone

firms in Bedford, comprising the Bedford Stone Club, an organ­ ization which included all the larger companies, continued to hire members of the Dual Union, the National Society of Stone Cutters, and in November, 1911, 'the H u b

signed a new working

agreement with this organization for a period of two years.^ The firms in Monroe County continued to hire members of the General Union, the Journeymen Stone Cutters Association of North America. Early in January, 1913 , the Journeymen Stone Cutters !St o n e . XXXII (November, I 911 J, 600.

257 Association held a convention in Indianapolis.

At this

time Article Four of the constitution of the Association was changed to read as follows: Members shall consist of journeymen stone cutters, stone carvers, stone setters, bridge and curb setters and all men operating stone-cutting machinery. In April, 1913, the president of the General Union gave notice that,

...on and after May 1, 1913, the members of the J. S. C. A. of N. A. will absolutely refuse to cut, set or fit any Bedford stone that is produced by any firm op e r a t i n g ^ stone plant in what is known as the stone belt (Indiana) that does not employ members of our Association. A short time later, on July 5, 1913, came the signing of an agreement by representatives of the General Union, the Dual Union, and the Cut Stone Contractors. 724-725).

(See Appendix A, pp.

By the terms of this agreement the General Union

absorbed the National society of Stone Cutters.

Just prior

to this time, on June 4, 1913, the Indiana cut stone com­ panies had signed a five-year contract with the General Union3 and early in August the members of the dual union were initiated 4 into the General Union. It was agreed at the conference ^Stonecutters Journal. XXVII (January, 1913), 16. ^I b i d .. XXVII (May, 1913J, 3. At the same time the Stonecutters Journal began to publish on its front cover lists of the Indiana firms not employing General Union men. 3Bedford Weekly M a i l . XXXVI, No. 43, August 15, 1913. ^Stonecutters Journal, XXVII (September, 1913), 4.

258 between the executive boards of the Contractors and the General Union on August 22, 1913 j that the men concerned should continue under the wages, hours, etb. then in effect until January 1, 1914, at which time new rates of pay might be considered.'*' Shortly after the problem of dual unionism had thus been eliminated from the Indiana stone district, steps were taken to bring closer coordination of the stone unions within the Indiana field and to spread the scope of collective bar­ gaining to a district-wide basis.

Early in October, 1913a

Bloomington sent out a call to the stone cutters of the remainder of the district to meet in Bloomington, October 12,

1913 *

At this meeting the Oolitic Belt Conference was organ­

ized.

These unions then asked their employers for 62y cents

per hour for stone cutters, with Saturday half holiday, and 2 75 cents for carvers. The Bedford employers, however, in­ sisted on $4.00 a day instead of #5.00, and the question went to arbitration.2

By the terms of the agreement, #4.60 per day

was to be paid from January 12, 1914, to July 1, 1914, and $4.00 from June 50 , 1914, to January 12, 1915* a uniform rate for all employees. shop.

Recognition was also given to the closed

All differences were to be arbitrated without cessation

^Stonecutters Journal, XXVII (September, 1 91 3) j 12>• 2 Ibid. , XXVIII(November, 1913)* 9* ?Ibid. , XXVIII (December, 1913). 7*

259 of work.^*

The same agreement was signed by the Monroe County

branches of the General Union with the Monroe County Cut Stone 2 Operators Association. Thus, for the first time, uniform wages for stone cutters were established throughout the Indiana stone belt. The next issue to arise vans concerned with the attempt of the General Union to control the mill employees.

In Febru-

ary, 1915* ‘tiie constitution of the General Union was amended by the addition to Article 9

the following provision:

Planermen, macliinemen and curb cutters locals may affiliate with this Association under the present working conditions. The rules governing affiliations shall be mutually agreed upon by the local seeking affiliation and a committee of three representing the General Union, two of whom shall be from the nearest local,3 To formulate an incentive for such organizations to affiliate speedily, an initiation fee of $2.50 was to be charged if such affiliation took place before July 1, 1915* 1st one cut t ers J ournal. XXVIII (December, IFlp), 7* An g— hour day and 42-hour week were provided, carvers when working by the day were to receive a dollar more per day than cutters, wages were to be paid by cash or check every two weeks, the right of the employer to contract carving was recog­ nized by the union, the employers agreed to furnish air hammers and tools for the same, no workers should be discrim­ inated against because of any duties as a union committee mem­ ber or shop steward and the number of apprentices was to be limited as follows: one apprentice to five or less members employed; two apprentices if over five and less than fifteen members; three if over fifteen and less than twenty-one; and four if over twenty-one members employed.

2 Ibid.. XXIX (February, 1914-), 5^Ibid., XXX (February, 1515), 6l.

260 and $20 thereafter.

The convention thus took the initial

steps to favor the union of all workers in the stone in­ dustry under the General Union and asked the aid of the American Federation of Labor in accomplishing this objective.^" On April lg, 1915* a planermen's local at Bloomington was given a charter of affiliation with the General Union.2 At approximately the same time an affiliated planermen's local was organized at Stinesville, Indiana.3

The Bedford

planermen had held a charter from the American Federation of Labor and had obtained a five-year agreement from the Bedford Stone Club specifying 35 cents per hour (^+0 cents when em­ ployed upon circular planers).

The rumor spread among the

planermen that the stone cutters' General Union was seeking to displace them and put their own members in as operators of stone-working machinery.

The officers of the General Union

asked the American Federation of Labor to revoke the charter granted to the Bedford planermen and the American Federation of Labor instructed the Bedford local to turn their charter 1l over to the General Union. The employers claimed that the granting of charters by the General Union to the planermen violated the terms of their agreement with the Association.

5

•^Stonecutters Journal, XXX (February, 1315)5 6l.

2 Jbid., XXX (April, 1315)* 5* ^Ibid., XXXI (July, 1915 )5 5* ^Ibid., XXXI (May, 1915)*. 5-6. The B l o o m i n g t o n m il ls had shut down early in May over th e issue, but the n a t i o n a l president of the General U n i o n o r d e r e d the men ba ck to w o r k next day. 5 m ,

xxxi (June, 1915)5 5-

This Tissue was compromised, at the Niagara Falls meeting of the Executive Committee of the two organizations, August yi and September 1 , 1915*

accordance with this agreement,

in October of 1915 the officers of the General Union found it necessary to instruct the Bloomington and Stinesville planermen to eliminate from their organization all men not operating stone-cutting machinery.

The Bloomington planer-

m e n ’s local had taken in not only planermen, sawyers, etc., but also car blockers, traveler operators, hookers and mill laborers .1 In February, 1916, the General Union president was informed by the three planermen locals in the Indiana stone district that the employers would not recognize them nor the the Niagara Falls compromise over their working rules.

One

of the provisions of these working rules provided that work should cease at 3:00 on Saturday.

Upon being instructed by

the General Union president to abide by these requirements regardless of the orders of their employers, the planermen quit Saturday at 3:00 p. m.

On Konday they were told that

they had no work, since they had struck on Saturday. every mill in the Indiana stone district was affected.

Nearly The

Union officials believed that the employers' objectives were to obtain from the Bloomington, Ellettsville, and Stinesville planermen locals an agreement similar to the one existing in

262 Bedford.

For several years the planermen et Bedford had had

a chs.rter from the American Federation of Labor and had sought in vain to obtain recognition from their employers. The executive board of the General Union had granted Bedford planermen a charter in the fall of 1913*

This charter, how­

ever, was held up by the national president because there was as yet no provision in the Union constitution regarding machine men and the convention was soon to occur.

When the General

Union had chartered planermen locals in the northern end of the Indiana, stone belt, however, the Bedford employers ha.d made a five-year agreement with the Bedford planermen organ­ ization.^- After the Bedford employers persuaded nearly all cut stone employers of the Indiana district to join the Bed­ ford Stone Club, a circular was sent to all the mills by the Bedford Stone Club requesting that all men operating stoneworking machinery join the American Federation of Labor and comply with the rules of the Bedford five-year agreement. three northern planermen locals refused.

The

The national presi­

dent of the General Union revoked the charter of the Bedford planermen1s local unless all members agreed to transfer to the Genre,1 Union and abide by its working rules.

2

The Bedford men then incorporated under the lews of the State of Indiana the International Association of Stone •^Stonecutters J o u r n a l . XXXI (B a r c h , 1916),

2 Ibid.

4— p •

263 Planermen.

The American Federation of Labor refused to treat

with this organization and told them that they giust come to terms with the General Union.1

This independent union, how­

ever, entered into an agreement with the Bedford employers to fulfill the old five-year agreement.

They announced that

their policy would include a no-strike agreement, no affilia­ tion with any other organization, and a program of active expansion through the remainder of the Indiana stone district.^ This organization was evidently a reflection of the distrust of the General Union on the part of the operators and a cer­ tain number of the men.

After several meetings between the

mill operators and the union officials, the matter was finally arranged in the national headquarters of the Brick Layers between the executive board of the union and the committee of the Contractors' Association.

At this meeting it was mutually

agreed to recognize the three northern planermen locals as members of the General. Union and to adjust the differences in working rules according to the procedure prescribed by the international agreement between the two organizations. The Bloomington, Stinesville, and Ellettsville planerand machinemen locals had requested an agreement from the stone operators providing for a 10-hour day and a ^-hour week; 4-5 cents an hour for all operators of lathes, shapers, 1 St one cut ters, J our nal, XXXI (March, 1916 ), *4— 5 * ‘-Ibicl.

See also Stone, XXXVII (February, 191S), 9^»

^st one cut t er s Journal, XXXI (March, 1916 ), ^4— 5 .

264 planers and circular diamond saws; and 55 cents an hour for operators of circular planers and headers.

(Their wages at

that time were 35 cents and 4-0 cents respectively.) tration without

Arbi­

cessation of work was provided and a number

of detailed facts were Included specifying the sort of work the planer and machinemen might be required to do .1

The

employers would not accept the wage terms and the issue went to arbitration.

The final result was that a three-year

agreement was negotiated with a

cent per hour raise for

the first IB months and a 2 g cent additional raise for the next 12> months.

Operators of circular planers would receive

5 cents an hour extra. 2 for overtime.

Time and one-half was to be allowed

On October 3> 1916, local Union No. 196, engineers and traveler runners, struck.

This began in Bedford and

spread to Bloomington in sympathetic strikes.

The objective

of the strike was to seek recognition of their union by the employers.

The local organization of this union had. evi-

dently been in continuous existence since before 19OO but had ■7 never been recognized by the employers."' Other classes of labor, including planermen, sawyers and stone cutters, went out in sympathy.

The operators notified the unions striking

in sympathy that they were breaking the terms of their agree-

^Stone cutters Journal, XXXI (February, 1916 ), 11. ^Ibid., XXXI (May, 1916 ), 5* ^Ibid., XXXI (November, 1916 ), 6 .

26? ments with them.

The union officials called the operators'

attention to Section 5

agreement, which stated that

"The General Union is not disbarred from carrying out any affiliation that it may have with other organizations" and also to clause 85, which deplores the open shop.

The execu­

tive board of the National Cut Stone Contractors Association met in Detroit, October 13 , l^.

The union officials tried

to get contractors to recognize the engineers at this session. The contractors refused to agree and ashed the executive board of the Union to meet with them to consider not only the status of this controversy but also to interpret "the spirit of the agreement 11 as it affects any other labor organ­ ization with which the General Union was affiliated .1

When

the operators promised to arbitrate the question with the hoisting engineers, the union officials advised the stone p

cutters and planermen to return to work. In October, 1916 , proposals were made by the Oolitic Belt Conference to the Contractors asking for 70 cents per hour from January 12 , 1917 *

^7

^2 , 191$* and a sliding

scale of wages for apprentices beginning e.t 75 cents per day, increasing 25 cents each 6 months till the end of three years, then increasing 50 cents the first 6 months of the fourth year and an additional one dollar in the last 6 months of the fourth year.

The proposal contained a clause stating

1St one cu tters J o u r n a l . XXXI (November, 1Q16), 6 . ^Bedford

We e k l y hail, XVI,

No.

4l, O c t o b e r 20, 1916 .

266 that no electric air hammer should be used on or after Janu­ ary 12, 1917 *

When the agreement was ratified, the wage

rate was placed at 672" cents per hour.

The Bedford Stone

Club refused to discuss the prohibition of the air hammer on the ground that this was an international issue and could not be handled as a local question.

The local agreement,

therefore, simply provided for the time being that the em­ ployers should furnish such tools.1 During these months there were five or six occasions upon which work ceased in the Indiana district for brief periods of time.

In each case the stoppage originated with

the local organizations and the national officers of the union ordered a return to work,

then the two executive boards

met October 26-2$, 1916, they recommended that the Bedford Stone Club and the Oolitic Belt Conference hold monthly rneet2 ings at which they might adjust such differences. On February 13 , 1916, the stone cutters were awarded an increase in wages from 67a' cents to 75 cents per hour.

A

number of cutters had left the Indiana stone district to work at the Hog Island Navy Yard —

a factor that was doubtless 3 an aid in obtaining the increase.^ In September, 1913, some of the firms of the Indiana stone belt received contracts for the planing of steel gun

1Stonecutters Journal, XXXI (October, 1916 ), 9“10*

2 Ibid. , XXXI (December, 1916), 10. ^Ibid., XXXIII (April, 1913), 6 .

267 carriages for war work.

An agreement was negotiated con­

cerning the wages to be paid upon such war work.^

This

agreement applied only to the planermen locals of Stinesville, Ellettsville, and Bloomington.

These organizations

were thus recognized as members of the Oolitic Belt Con­ ference.

A number of attempts were ma.de from time to time

by various other crafts —

mill workers, sawyers, crane

runners and blacksmiths, to organize and obtain recognition of their unions, but the members of the Bedford Stone Club did not recognize any of them.

During the World bar while

the Government contracts were in process, the blacksmiths struck and asked recognition of their union and higher wages. A government conciliator was sent and a wage increase wns granted but not the recognition of the union.

Crane runners p organized several times, but were never recognized. During the years I9O 3-I 91G quarry employees were in­ volved in very few labor disturbances.

One factor that per­

haps accounts for this fact is that channeler runners, drill 1st one cut t ers J ournal, XXXI11 (December, 1913), 6. For planermen so engagedTTo” cents per hour should be paid from September 1st to October 31st, with a 10-hour day and time and. one-half for overtime; from November 1st, l^iG, to March 31 > 1919, 62f cents per hour for an 3-hour day. Exist­ ing employees were to be given preference as apprentices on steel work. Apprentice wages were to be 37b cents per hour, 10-hour day till October 31 and 40 cents per hour with an 3-hour day from November 1 to ...arch 1. Advances above these schedules might be made whenever a rating committee composed of two employers and two journeymen planermen representatives deemed the applicant competent. In case of a war-time necessity it was agreed that day crews would work 11 hours a day 6 ^ hours a week, and night crews 12 hours a night and a 60-hour week. p

ha.lters, Stone Associations, p.

268 runners, breakers, and laborers, although receiving smaller wage rates per hour than planermen or sawyers, nevertheless received increases in rates in 1903 and in 19IO that repre­ sented greater percentage increases over the average wages per hour paid in 19OO than did the latter.

(See Table 19)*

No reference is found to any further activity on the part of the quarry unions that had existed in the Bedford section of the Indiana stone belt in 1903*

The only strikes that are

reported occurred sporadically in the years I 907-I 9IO.

They

reveal an important reason for the wage incresses of 1910 in addition to the desire to influence the sympathetic strikers to desert the stone cutters.

Unskilled labor around

the quarries had become scarce in these years —

as indeed it

was in the country as a whole. Hence several different at­ tempts were made to import immigrant labor to do the heavy manual labor tasks.

The relative prosperity of farmers and

the construction boom of these years had produced a shortage of native laborers.

In eadh case the native quarrymen staged

demonstrations, occasionally of a violent nature, against the immigrants, and the majority of such workers soon left the stone district.

These demonstrations were not by unions but

were spontaneous in nature.'*' In August, 191^-i the American Federation of Labor sent an organiser into the Bedford district to attempt to organ-

^Interviews with quarry workers.

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272 factor of significant importance in the increases from 1916 to 191S.

It must be remembered, however, that the number

of cutters used in proportion to the amount of stone turned out was constantly being diminished as the planer and the diamond saws did more of the work formerly done by the stone cutter’s mallet and chisels,

whereas at the beginning of

this period the planing machine was unknown, by 1920 only

2/3 as much stone was being handled by the cutters as by the planing machine. The planermen and blacksmiths benefited the most from the war contracts, obviously because their crafts were those most essential to the steel planing then carried on.

It will

be remembered that the blacksmiths threatened a strike at this time. Another significant feature is the percentage in­ creases obtained by common labor in both the mills e/nd the quarries.

This is partly a reflection of the fact that these

workers were paid very little at the outset of the period, and were perhaps being brought more into line with the other trades as time went on.

In addition, it is also partly a

result of the scarcity of such common labor.

('See page

)

Although this scarcity had been noticeable in the Indiana stone district since about 1906 , it became particularly important in the war years.

Another factor that may have

affected the wages paid to this class of workers was the

273 desire to prevent waste through careless handling of stone in the quarry.

In 191^ Dr. Mance had stated:

Most of the operations in the quarry are per­ formed by unskilled labor because the quarry work is much less desirable than the mill work. As a result, the quarry labor is underpaid and careless. The channeler, the drill, and the scabbling machine each cause soi$e waste; and if the work is not well done, the irregular breaking of the blocks will repre­ sent another important source of waste .± It will be noticed that the crafts that shared the least in the geners.l increase in wages were the traveler runners and the sawyers.

The traveler runners started the

period with wages comparable with those of the planermen, but failed to share proportionately in the increases ob­ tained not only by the planermen but by all other varieties of mill workers from 1911 on.

One of the most interesting

features exhibited was the ability of the channeler runners to get increases in wage rates that prior to the war-time period were second only to the stone cutters'.

This is prob­

ably explained by their importance as the most skilled type of workers in the quarry, and was probably an influential factor in preventing labor disturbances from involving this class of workers. Unfortunately, no figures are available concerning the man hours of employment or the average number of workers employed during this period.

The Geological Survey conducted

■^Mance, op. cit., p. 67.

274 its annual review of quarry accidents during those years, but unfortunately did not separate man hour figures for dimension stone quarries from those for crushed stone quar­ ries.

it is impossible, therefore, to calculate annual earn­

ings of quarryment for these years,

it is likewise diffi­

cult to achieve any true comparison of labor costs with those available elsewhere.

Neither the u-eological survey

nor the Census of Manufacturers presents a breakdown of figures that would enable such comparisons to be made,

in

the early years of the period the Indiana Department of Statistics gathered material indicating the average number of employees and the average number of days worked.

These

compilations ceased to be made, however, in 1902, and the only comparable information obtainable for later years were the estimates made by Dr. Mance in 1914.

At that time, 1106

men produced 7,929,000 cubic feet, or an average of 7,150 cubic feet per man.

This compared with an average of 4,047

cubic feet per man in 1898, when 1,391 men produced an out­ put of 5,630,046 cubic feet.'*' krom a comparison of Table 18 and Table 23, it ap­ pears likely that the hourly wage rates in the Indiana stone district did not go up as rapidly during the war years as did the price of stone.

Un the other hand, during the years

preceding 1917, there is some evidence to indicate that, al1Mance, 0 £. (jit., p. 22; Indiana Department of StatistieSj Seventh Biennial Beport. Indianapolis, 1899, p. 211.

275 though wage rates were stable from 1900 to 19Q 3 > ^ 9^3

1910 , and 1911 to the fall of 1916 , hourly wage rates did increase by amounts proportionately greater than increases in the price of stone.

It will be noticed, however, that

in the years in which wage increases occurred (for example, 190;>, 1910 * an& 1916 ) the average price of stone in each case increased several cents. from the circumstances that we know concerning the conditions in the industry in the early years it might be possible that reduction in other cost factors per unit some­ what offset the increased wage rates; but it appears rather improbable that this was true in 1916 , a year in which the Indiana industry was complaining of the intensity of compe­ tition, the growing cost of supplies, and the difficulties in promoting a volume business.

The price increases of 1917-13,

although proportionately greater than the increase in hourly wage rates, were probably offset by increased labor costs caused by declining operations and increased costs of fuel and supplies.

The relative rigidity of wage rates in the

Indiana district, therefore, may have contributed to an in­ crease in the profitability of the industry in the years prior to 1912 , but does not appear likely to have done so from 1912 to 1913. In reviewing the development of the labor union organ­ ization in the Indiana stone district, it is evident that by

1913 collective bargaining between the cut stone contractors

276 and the most skilled classes of laborers employed in the stone mills had been brought to a point from which recession to individual bargaining agreements was highly improbable. The machinery had been set up by means of which annual col­ lective bargaining agreements were negotiated between the employers and those classes of labor cutting stone or opera­ ting stone-cutting machinery upon a district-wide basis.

Al­

though a few mills did not belong to the Bedford Stone Club and hance were not parties to these agreements, it had become the custom for such mills to sign with their workers at the terms agreed upon by the Oolitic Belt Conference.

A strong

factor in persuading the employers of the advisability of taking such uniform action was probably the hope that the achievement of uniformity in such an important factor in costs would lessen the extent and severity of price cutting. From the employer's point of view an important achieve­ ment of the period was the breaking down of union opposition to the use of the planing machine.

It is apparent, however,

that this did not mean that all controversies over the use of machinery were at an end.

The stone cutters transferred their

grievances to the use of the air hammer, and it was clean: that at the earliest favorable opportunity in the future this issue would become a serious one.

Barnett has estimated that be­

tween 1900 and 1915 probably one-half of the stone cutters of 1

the country had been displaced from the trade. ^Barnett, o£.

cit., p.

277 The Journeymen Stone Cutters Association in their desire to obtain the maximum amount of employment for their members had become involved in the competitive struggle be­ tween the integrated quarry cut stone contracting firms located in the quarry district and the local cut stone con­ tracting firms located in the consuming centers and dependent largely upon independent quarry firms for their raw material. be have seen that within this period attempts on the part of the stone cutters to protect the business of the local contractors by attempting to prevent the shipment of planer-cut stone had broken down almost completely.

with

the relinquishing of the right to set stone to the Brick Layers, basons, and Flasterers Union and the formation of an alliance with this organization, we have found that the attempt to favor the local cut stone contractor shifted to the compromise basis of seeking to preserve for the local con­ tractors all of the smaller contracts below a specified figure. Temporarily these agreements were being honored by the em­ ployers, but it appeared evident that the issue had not been settled, and that the integrated producers would not continue to accept such a restriction upon their market if at any tine the balance of power should shift. As we shall see in the section on prices and. profits, these restrictions upon the ability of Indiana producers to accept email contracts in the most important markets became effective just at the very period when the industry was enter­ ing a stage of declining sales and general unprofit ability.

278 In view of these circumstances, it was inevitable that the temporary acceptance of these restrictions should prove to be only a truce. The reader will have observed that in the early part of this period

attempts were made toorganize the quarry

ers as well as

the mill workers into unions.

work­

It will be

noticed, however, that these organizations were never recog­ nized by the employers and that there is no evidence of their exerting any influence upon weges, hours, or other working con­ ditions except at the time cf the strike of 1^01.

Successful

recognition of the unskilled group of mill laborers and of all classes of

quarry workers leading to the

development of

the collecting

bargaining procedures in ooth branches of the

industry was not to be developed until a leter date.

279 BUSINESS QkGA.iI2AT10h A D FL.A.CIT.L l-'QLICY

An examination

of

the

m e r c e r s , and

reorganizations

1897

discloses

to

191 S

e n t r a n c e s , wi t.nra;/c.is, tue.t o c c u r r e d

inf or...at ion

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the un ders t a n d i n o f

the f in a n c i a l ana p r i c e

the

a n d of

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presented going

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co n c e r n s

ne w q u a r r i e s number crow in'—n•

opened

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is

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we

effects

end of 1896 en de d

—

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1900.

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190G-19C9, of

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the

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in T a b l e

not

of

1 \m Cm0C-i1d o ne d is indicat ed .

resented mills

An

of tue per iod .

trie cut st one

cut stone

to

policies

of q u a r r i e s

(or old q u a r r i e s

and

duration

in du s t r y .

number

for e a c u y e a r

of q u a r r i e s

•_•

X © of

the

ears,

over by r e a s on s

on u n t i l to f i n d

throughout

tne

279a

TABLE 3L© NUMBER OP QUARRIES BELONGING TO GOIi!G CONCERNS 1896 -1918 Year

Number New Or Reopened

1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1915 1914 1915 1916 1917 1918

1 1 0 1 2 5 2 2 1 3 4 2 0 3 6 0 0 2 1 2 1 0 0

Number Abandoned

Numb er by Going

6 6 6 1 2 3 0 3 4 1 3 1 3 0 1 5 I 0 4 2 0 0 0

43 38 32 32 32 34 36 35 32 34 35 36 33 36 41 36 35 37 34 34 35 35 35

Sources: Annual Report, Department of Geology and Mineral Resources, 1907', Indi anapoli s, Indiana^ 19 OB, passim. Mance, Grover C., Power Economy and the Utilization of Waste in the Quarry Industry of Southern Indiana, Indiana“University Studies, V , TV,~Study No. 35, Bloomington, Indiana, March 1917, passim. Bedford Daily Mail, 1896-1918, passim. Bloomington Evening World, 18S6-1918, passim. M i s c e 1 1 an eo us

R e c o r d s , R e c o r d e r ’s Offices,

Lawrence and y.onroe counties, pasdjn.

Deed Records, Recorder's Offices, Lawrence and Monroe counties, passim.

279b TABLE 2 $

STONE HILLS IN EXISTENCE IN THE INDIANA STONE BELT 1896-1916 Year

Saw Hills

1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918

7 7 7 7 7 8 10 13 15 16 16 16 16 17 15 17 17 17 14 13 14 12 12

Sources:

Cut Stone 10 10 12 14 15 17 20 22 25 26 30 35 32 35 37 38 39 43 42 40 40 37 36

Annual Report.Department of G-eology and Mineral Resources, 1907, I'ndiana'p'ol'is', indiana, 1908, Fas sliii. Hance, Grover C., power Economy and the Utilization of Waste in the Quarry Industry or Southern Inuiana, Indiana University Studies, V. IV," Study No." 35” Bloomington, Indiana, March 1S17, Passim. Bedford Daily Hail, passim. Bloomington Evening World, Passim. Miscellaneous Records', ITecord'er* s Office, Lawrence and Monroe Counties, Passim. Deed Records, Recorder's Office, Lawrence and Monroe Counties, Passim.

280 the first sub-period,

Durinr-- these years only three new

quarries were opened. The greater proportion of tne quarries abandoned in these years were abandoned by companies which nad opened several quarries in the immediately preceding veers and 2 abandoned all but the most efficient in these "ears. Several cases occurred in which a transfer of ownersnig through sale or foreclosure took place.

In the bulk of

tnese cases the transfer of ownersnip represented a trans­ fer of property in financial distress into the hands of persons with stronger financial backing; but several were sales of firms in good condition wnose owners were offered a price they felt they could not refuse.

Tue P. if. & B.

Stone Company, for example, was sold for $300,000 to tne

One of t h e s e r e p r e s e n t e d an a t t e mp t by U n i c a g o p e o p l e p r e v i o u s l y u n a c q u a i n t e d wi t h the stone bus in es s to o p e n q u a rr ie s in the ill- fa te d T a n y a r d Creek d i s t r i c t s o u t h e a s t of B ed fo rd. Tne o t her two r e p r e s e n t e d i n v e s t m e n t in a n t i c i p a t i o n of the c o n s t r u c t i o n of the I n d i a n a Stone R a i l w a y into the C l ea r Creel' di st ri ct of Llonroe county. The r e f e r e n c e s to the c om p a n i e s mentioned in tni.s sec ti on as examples of the various conditions are tue r e s u l t of compilations d e r i v e d from examination of tue o f f i c i a l r e ­ cords: Civil O r d e r Bool:, iiortgage R e c o rds, De ed R e c o r ds, sheriff's Sale R e c o r d s , a n d m i s c e l l a n e ous r ec or ds of Owen, konroe and L a w r e n c e counties, 1387-1811., pass i...: R e cord s of I n c o r p o r a t i o n of D o m e s t i c and F o r e i g n C o r p o r a t i o n s , Secretary of State , I n d i a n a p o l i s , Ind iana ; a t o n e , L.n87-181 , passim; B e d f o r d D a i l y m a i l, lc87-191,s, p a s s i m . The R e p u b l i c a n P r o g r e s s , B l o o u i n g t o n , I n d i a n a , 1 - 9 7 - 1 9 C O , massin; the B l o o m i n g t o n T e l e p h o n e , 1 S_ 2- 191 ._•...3 Ci o /-. St on e C o m p a n y 1s mi l l in 1 04, tne Peerless atone Cc...pnn;. k r.u.r: in 1907, and the inactive p r o p e r t y of tne old 3te.ndr.rd a t on e C o m p a n y in 1914. In 1905 J o h n R o a d i e - pure.-ased t..e atinesv i l l e Stone C o m pa n y ' s u^ll s ana pu..i i xes .

284 h o w ev e r,

the hot

sactions Company

of

resulting

firms s/ere of :..edium size.

a merger but

one

the p e r i o d was

fo r $ 6 0 0 , 0 0 0

by

of

the

the m o s t sale

important

of tue P.

tr a n ­

L . Cz B.

trie L o n on Rail?/a— to the

Stone

Cleveland

1 Stone

Company

interests

in 1903.

in the

the B e d f o r d

Consolidated

Q u ar ri es

Company were

at

The L o n o n R a i l w a y

tnat

Company time

atone and

the

tue

three

retained

Co..many.

The

Consolidated la rgest

its

P.

L. h E.

Stone

Indiana

quarry

producers• The years number

of

cut

1900-1909 were

stone mills

in the

the y e a r s I n di an a

in w h i c h

district

the

grew

the

m o s t rapid ly . The y e a r s only a few n e w

1 91 0- 1 9 1 8

i n cl u s i v e were

q u a r r i e s we r e

o u a r r i e s were

o p e n e d bv firms

which desired

to co ntrol

opened.

a period

The m a j o r i t y

in w.iich of new

o n e r a t i n y cut stone m i l l s

2 instances

in w .icn n e w

their

qu a r r y

ra w m a t e r i a l ♦

In the

c o mp a n i e s u n a f f i l i a t e d w i t h

1

It wi l l be r e m e m b e r e d tin t the la t t e r firm w a s the lar ge st c o m p a n y in tne O h i o s a n d s t o n e f i eld a nd had tried u n s u c c e s s f u l l y to d e v e l o p an I n d i a n a l im es to ne q u a r r y ne ar Ha r rods bu rg 1 8 8 9 - 1 8 9 3 . J o h n R. Walsh, owner of tne B e d ­ ford Quarr ie s Com._ any and the a o u t n e r n I n d i a n a Re.i 1 way Coi.ipany's action, in r e t a l i a t i o n p u r c n a s e d t.,e Ohi o Quarries C ■mo armV at L o r a in , Oil i o * J. *

O

, . , °i*or e x a m p l e , suc.i firi..s as tne h i r s t h e r d e r atone Company, the E. F. G i b e r s o n Stone Com pa ny and the Ingalls St one C o ...p a n y ♦

285 cut

stone .-wills app ea re d,

t.ie;;

/ere 3 .-all in size,

and

pronoted 1arc sly by local capital. Se v e r a l to

i mp or t nt ..nr a r e

increase a c e n t r a l i z a t i o n .

tnat r e s u l t e d

contributed

Ainone

t-.e tende.-c.

tne .cost i.ueortant f ir...s

f r o m wnes e mergers v/ere tne

1 G oupa n y ,

to

Indiana

Q u ar ri es

2 W* N .

McMillan a t on e Company,

Inpalls

Stone

sort ant v/C ! lie a c q u i s i t i o n of tne Eedby its clii' f competitor, the C l e v e l a n d P • mL. at one Co...parrp, ov/ner of the P. * ^ B. Stone Co...na :,j t and If. h B. B . and tie B e d f o r d Q m x r i e s the m e r g e r of the P. It. p r o p e r t i e s into a s u b seit dr~-iiary a r y :no' m o w n as the I n d ia na Q u a r r i e s Conroany (1910). The B edford Q u a r r i e s Co mp a n y .nc be con Be Qua: ies w a e n i t, !. W a l s h iVa s C .Othe n a t i o n a l b a n k i n g laws lavas and sentenced, to t.n F e d e r a l p e n i t e n t i a r y at L e a v e nj.1 w ./oorrLii t h .• m T.*e 1..I Chi ca go C l e a r i n p house, .en out ime o.j. » in tr yi ng to s traig.iten af fa irs of h a l s . h s t..ree C h i c a g o b a n k s , took over the B e d f o r d Qu a r r i e s Co;..pan (1900). The stone c o m p a n y thus beca.-e s e p a r a t e d in o w n e r s h i p and m a n a g e m e n t from tne B e d f o r d Bel t R a i l w a y and the S o u t h e r n I n d i a n a R a i l w a y Co...pany. The la tter v;as r e o r g a n i z e d as the Cnicago, Terre haute, and S o u t h - E a s t e r n Re.ii’.vay Co. 7hat~ ev er f i n a n c i a l a d v a n t a g e s nad a c c r u e d th ro u g h the r a i l w a y c o m p a n y ’s ability to _;e t f a v o r a b l e div is io ns of freirnt r at es on sto.u fro;., other roads tnus vunisned. To finc.i.ce the t r a n s a c t i o n of 191C, £1, 5CC, 000 in 5 p e r cent bonds v/ere issued, of w h i c h y3S2,CCC were e x ch a n g e d f o r o u t ­ s t a n d i n g bonds of the B e d f o r d Quarries Co m p a n y . S h o r tl y t h e r e a f t e r (March, 1511) Walsh 1s f o r m e r a s s o c i a t e s boug.it the C o n s o l i d a t e d S t o n e Company f r o m the L.onon R a i l w a y for 03 7 5 , 0 0 0 . .

2

In 191 0 the R e e d Stone C o mp an y was i n c o r p o r a t e d and a b s o r b e d tne in ter es t s of the Indiana Cut 3to.se Com pa ny ( B e d f o r d mill). The M o r t o n R e e d Stone C o m p a n y (Oolitic mill) , the .idew Y o r k Bedford Quarries Comp any (Sanders quarr" ) and the O o l i t i c Stone C o m p a n y of India/.a (Sanders g u n m -} . T he se c o m p a n i e s n a d a l r e a d y b e e n ow ned by a c l o s v l y associate. g ro uD of stock h o l d e r s and who f o u n d if d e si r a b l e to raise additional capital• In 1915 tne R e e d 3sone Co...pany we n t into r e c e i v e r s h i p and v/as p u r c h a s e d - the 7. ibch i l l an Stone C o m p a n y . The M c M i l l a n Co-.pany had also v c y i r e d t.ie S t a n d a r d St one Company (quarry) in 1517, and fro. _ 1 to low. ,- q .led an iim-ortnnt f i n a n c i a l interest m t..e Greece: '.. otc..Co.

286 1

2

Company ,

3

Sh e a and Co nn el ly ,

the h a t i o n a l

Stone

Company,

A and

the U n i t e d In

I n d i a n a Stone

tne

Company.

n ex t y e a r a f t e r

for each quarry

is a v a i la bl e,

1893

for wriicn the

in 1814,

c o n c e n t r a t i o n n a d b e e n reduc ed .

tne

In 1914

ou tput

extremes

the

of

largest

f i rm

produced

1 ,200,000 cubic feet (roughly 6,000 carloads,

the

had b e e n the

cars

largest firm produced

same

800,000

t o g e t h e r p r o d u c e d 20.7 p e r as

co m p a r e d

largest

size

firms

in 1898.

The

in 1893.)

cubi c

cent

to 4-6.12 per cent

as

of

six

oi

feet.

Thes e

the to tal

the

total

lamest

The

next two firms

out ,ut of 181 4

, or

f i rm s

if

the

two

in the

1

_i.

hew Yo rk,

In 1811 C. C. I n g a l l s and a s s o c i a t e s from B i n g h a m p t o n , nad o pe ne d a cut stone pie in D s u i or d hno ;n £ S au r 3 thi s fir m man-:* s e u.arry at Son s Cut S t o n e h ill Comm a rcnae ed. and mill at C o 1 itic iiS.o.

1

‘G t r .ii/

-•Ail '. h n

.t. U * -*■

Indiana. ^ I n 1904 T/illiam B r a d l e y and Son has. b u i l t a cut stone mi l l at B e d f o r d . In 19CS this mi l l was a c q u i r e d by IS. F. G i b e r s on h Company. Tne ne x t p e a r E. F. G i b e r s o n a n d Company a c q u i r e d a q ua rr y at C o x ton, Indiana, s o u t n w e s t of B e d f o r d . In October, 18C9 S n e a and Donnell';, and Co.,.many m e r g e d as tne Shea, D o n n e l l y a n d G i v e r s o n Co m p a n y . Givers on r e t i r e d in 1817 a n d tne name b e c a m e Snea, Donnell;; G Comgan;r again.

cut

3 In 1813 the lie.tional Stone Comx ih 0 c .il y Ll j. ‘ C - i c\ £ s t o n e mill of the S o u t h Side Stone Co mpany o* Dio 'aington.

A In 181 3 the U n i t e d India.:.a St n.e Co. yar n too.: over the Ge o r g e W. H e n l e y stone C:..._,r...; (quarry anJ. ...ill), the F u l w i d e r B e d f o r d Q u a r r i e s C o m pa ny (quarry), and t..e qu a r r y lan d of the C r o w n Stone Co m p a n y .

287 district produced 43.9 per

cent

of

the

total

ou tu ut

and

tne

1 remaining As

53.1

per

an a d d i t i o n a l

tue figu re s

cent was

ev id enc e

availatle

the morion R a i l w a y

a nd the

cent of all

h a d be en d at io ns tne

by

of

in the Table

the

end of

largest fo r

h i g h mopes

of

that

of exp an si on . pu t f o l l o w e d

and

the

tne P.

Co m p a n y

1,1. h B.

over

thot Stone

45.5 per 2

sh ip ped

or m e r g e r s

time,

these

the

the y e a r s

stone

In e a c h

stone

ISC'S snow

some

fi gu res in tne

all

stone

Comparison

of Table

vears

out-put— years

inf lu x

h o wev er ,

the

in the

capital

investment

in wnicii the n u m b e r were

that

of more

r a t h e r than the

that

and c o n s o l i ­

district

19 w i t h

of new

th t f o l l o w e d

tnat began w i t h

i n d us tr y nad e n t e r e d

case,

firms

indica te

acquisition

increases

increasing the

of

nearly

firms.

show s i g n i f i c a n t

se v e r a l y e a r s

and Ju ne

St one

in ex is t e n c e

that

s ni pme nt s

forms,

operations

of ne w

c o n c e n t r a ti on ,

firms were

p r o b l e m was

already

14 shows

tne

of

snijoped over tne Ilonon Railway.

s u c h companies,

launching

cuarries

was

ca rl oa ds

financial

firms

two

°0 o t h e r f i r m s .

anon;'

extent

tne t o t a l

period

in e x i s t e n c e

quarry

chief

for

tne

Consolidated

tne

Since

of

between January

in tha.t s i x - m o n t h s Company

s c a t t e r ed

a n o t n e r era

decline

of new c o m p a n i e s

into

in o u t ­ the

in dus try

ch e ck ed.

1i^ance, Op ♦ Ci t . , p. 09 *Docket .1410, on. c i t . , E x h i b i t 1, "T ota l Carl ads of a t o n e H a n d l e d the Idonon R a i l w a y January 1, to Ju.m 20 1 S Q 9 , 11 In te r s t a t e C o m m e r c e Commission, F o r m a l Docket Files, bfcshingt on, D. C.

288 lauch of was

traceable

an d

tne

Tne

trends

in tne

the

to the m e r g e r

acquisition just

extremes

stone

merg er s

of

throw

The a c q u i s i t i o n

tue

leaders.

sales.

Larg e

by

cut ston e

mills•

li.ynt u p o n the d e c r e a s e

of q u a r r y

output b e t w e e n

of qu arr ies

firms .ana the

by

v i g or ou s

considerable number

of

7/as bound to reduce t..e iu-

of i.iedium-sized f irms

porta.ice of volume

also

o u tp u t

existing companies

roperties

of c o n c e n t r a t i o n

contractor

of row gn st one

of a l r e a d y

of q u a r r y

described

189G and 1914. cut

centralisation

The "''ear 1914 was p r o d u c e r s m ay

marked

a loo/

.*ave s u f f e r e d ...ore

tn a n sma 11 f i rm s . The

t h ir d period,

fluctuation did not,

in w h i c h tne

ho wever,

sizes

total

greatly

preceding period. ou tp ut

191G-1S 18 ,

p e r mill,

b ut some

is a f f o r d e d

by the

employed

5 1 -7 5 men;

135

men;

17 mills,

are

the

figures

between

of

of Citft stone

mill s

m a x i m u m fi gure

of

iudic-.ting tne

a v a i l a b le

for

1914

In tna t y e a r one

IOC m e n each;

2 5 - 5 0 men;

s n ow in g

and

six mills,

2D m i l l s , 25

1 m e n or less.

Evidently

tae

oi

rox o rt io n

firms branch

nad of

appeared

tne in

a tendency

mo jqI tne

to wa rd an

01.tpu o pr o a u c e a g;

cut

stone

t.ie industry.

H l a n c e , O n . C i t . , pp. 23-24

tue

of tneir r e l a t i v e

in e a c h mill.

two mills,

a period

av ai l a b l e

indication

the n u m b e r of m e n e m p l o y e d mill

number

ex c e e d

Ho f i g u r e s

was

iucr

a*

one

j.ar

0.3 ./ell as the q a

289 Several s tone number

end of

nChilians

of

consolidations

the b u s i n e s s

companies acquii’ed

or ..er' er:

affected

du r i a n tnis period,

owned

several

t.ie hiills of

mills.

Doyle

tooh

Ee df or d,

Co. .ipany was

St one

C o m p a n y ; snd

a c q u i r e d by

established

Lawrence

in Monroe

county.

The

seen,

b e l o n g i n g to

tne McLaren, Consolidated

tne B l o o m i n g t o n

the H o a d l e y

Stone

c o u n t y and

great majority

bought Cut Stone

be t w e e n

those

of

In diana-

Company.

may7 be n o t e d

A striking difference mills

over

and T h o m p s o n & Sa ndy mills;

the Du pan Cut

a

t.ie C r o w n and heed. Stone

urc.iased th ose

Ing al ls

that

As we hav e

C o m p a n i e s ; Sn ea -r

'

int er es ts .

merger that w o u l d the

of

firms w e r e

Tne

too

C. C. In gall and A r t h u r Sciiwartzenbach of the Ingall Stone C o m p a n y n a d com e f r o m Bi n g h a m p t o n , h e w Yor.:; Ja me s H c L a r e n and Sons fro m Brooklyn; E. F. G i b e r s o n a n a 7/ill i am B r a d l e y an d Sons fr o m Lo n g Island; H e n r y Struble fr o m Chicago; tne D u g a n Cut Ston e C o m pa ny f r o m St. Louis; J. B. F a i t and Co mpany f r o m Sprin gf ie ld , M a s s a c h u s e t t s ; W i l l i a m M c M i l l a n and Sons fr o m Chicago; Shea and D o n n e l l y and C o m p a n y f r o m Boston,

2 mpany,

""Examples w o u l d i n c lu de the C o n s o l i d a t e d Stone C o ­ and the B e d f o r d Stone a nd C o n s t r u c t i o n Com/, a n y .

^For example, the Jo h n A. Rowe Cut Stone Company, the I m p e r i a l Stone Company, the Reed S t o n e C o m p a n y interests, the H o o s i e r Cu t Stone Company, the Stone City Cut Stone Co m p a n y , the B r o o k s - C u r t i s Stone Compan-r, the B e d f o r d Sawed Stone C o m p a n y , the mo rill Cut Stone Company, tne Leaf ord Cu t S t o n e C omp any .

291 excessive

and

bne p r e s s

tnat

an $ d , u C

the n a t t e r was

Means

to be u s e d

stock.

finanelal

b a c k er s

It v/as r e p o r t e d of tne

in

sc-.eme p r o p o s e d

,00 0 c omp a n y . A new

gan

the

drop pe d.

of f i n a n c i n g

in tnis period,

Such stock usually

per

cent f o r

a fen

per

cent

many

for

in ter est

charges

of of

the tne

the

the

bore

Indiana

issuance

interest

larger

stone

s m a l l e r firms.

be­

of p r e f e r r e d

at tne

companies,

belt

rate

6

of

as n i g h as S

Occasionally,

of su c u p r e f e r r e d stock were

tire

uoon a

2 cumulative nowever,

oasis.

was The

the p o l i c y

This

far more w i d e l y majority

that had

the f o r m a t i o n

tne

of f u r t h e r

use d

be e n u s e d

cap it al

of

of r a i s i n g

of c o m p a n i e s

authorizing more

migiit a ri se

mean s

for a d d i t i o n a l Quantities

of

af ter tne

in both c o u n t i e s

than was

funds,

v7orld War*

in tne pr e v i o u s

s to ck

c om pa ny

capital

followed

period

a c t u a l l y sold

in or der that any n ee ds

c a pi ta l c ou ld

stock.

of at tnat

be net by the

In e x a m i n i n g

the

sale

records

Be df o r d We e k ly Ifal 1, V. 39, IIo. 34, F e b r u a r y 4, 19 IS; B l o o m i n g t o n B veiling 7 or I d , F e b r u a r y 5, 1916 and F e b r u a ry 4 , 1 9 1 S .

O

A m o n g the f i r m s tnat issued p r e f e r r e d stock v/ere Ifatners St one C o m p a n y , the C o n s o l i d a t e d atone Company, the iiational stone Co mpany, tne Bloo...ington-wediora Stone Company, ohea and D o n n e l l y an d C o m p a n y , the C e n t r a l O o l i t i c Sto ne C o m p a n y , J a m e s H. ilolan an d S o n s , A. J. T h o m p s o n Stone C o m p a n y , s t e r l i n g O o l i t i c stone Company, Imperial s t o n e cwg, the I n d i a n a L i m e s t o n e Co m p a n y (Ingalls), and th LicLaren and Sons Stone Company.

292 of

i n c o r p o r a .ion of tnes e

tnat ing of

tne

lean y e a r s

following

companies

to

sell

Indiana District reflects found

of 1907

apparent and

follow­

c o m m o n stock.

succes

tnan

1

Tnese

t.ie s i m i l a r

1893-97.

T.ie c a p i t a l i z a t i o n

we

panic

additional

e ff o r t s m e t w i t h m u c h g r e a t e r attermpts of

tne

it b e c o m e s

3'e a r of 1912 p r o d u c e d effo rts by ar.ite a fev;

the p e a k these

companies,

in considerin:

of tne

the

the

stone

same

type

output.

companies

in tne

of d i s t r i b u t i o n that

Considering

tue

2 approximately this

period,

80 co mp a n i e s sl i g h t l y

capitalization fourth

of

approximately

tween $100,000 italization

tnan 40 p e r cen t of t h e n nad a

than $50,000;

of $ 2 0 0 , 0 0 0

i n te re st

21 p e r

and $199,000;

eq ual n u m b e r ha d of

less

d ur in g

e.pproximately

one-

of them ha d a c a p i t a l i z a t i o n b e t w e e n $ 5 0 , 0 0 0 and

$99,000;

is

l ess

th a t v/ere in e x i s t e n c e

cent,

7 1/2 g a r cent h ad

to $ 499,000;

a capitalization

to n o t e

a capitalization

that all

be­

a cap­

an d a p p r o x i n a t e l y

of over $ 5 0 0 , 0 0 0 .

of tne

an It

firms v/itii c a p i t a l

N o t a b l e exam pl es of this include tue C o n s o l i d a t e d atone C o m p a n y , the N a t i o n a l S t o n e C o m p a n y , L a t t h e w s Brot~er: Stone Company, B l o o m i n g t o n - B e d f o r d stone Company, U n i t e d India.ia stone Co...pany, the B e d f o r d stone and C o n s t r u c t i o n Company, and the H o o s i e r Cut Stone C o m p a n y .

p

‘“'This n u m b e r includes all tne co...games in business e x i s t e n c e d u r i n g tnis p e r i o d w i t h the e x c e p t i o n of t.-ose s p e c u l a t i v e e n t e r p r i s e s tnat se em n o v e r to na v e a c t u a l l y e n g a g e d in the p r o d u c t i o n of stone. ° r..iscellaneous R e c o r d s , Owen, Lev? re nee a n d ...onroo counties; R e c o r d s of I n co rp or at io n, Sec etar;. of Btr.te, Ind ia.ui :ol is , India.ia.

293 of $ 5 0 0 , 0 0 0 or

over ha d

ford

or o t h e r p a r t s

said

in g e n e r a l

L a w re n c e

of L a w r e n c e

that

county

their p r i n c i p a l p r o p e r t i e s

even

fi nns

s ho w e d

remembered

in tne p r e v i o u s

companies

t h ir d

of

the

issued for

figures

e a c h of

number this

all

tne

of the

it

one

exception,

all

of

ana

smaller

Stone

tne

companies

Co mp an y)

Consolidated stoc k

(and

and

p e r i o d h a d be c o m e

a u t h o r i z e d stock. l at t e r pa rt

amendment

to

oi

smaller

Stone

stock

tne

by-laws

In a s u b s t a n t i a l p o r t i o n i s s u e d was p r e f e r r e d

am ou nt in

of

ouocx.

po s s i b l e

of st ood

this period.

that

of

the

c o n ta in s

From

tnese

(with

Consolidated

is cued u s u a l l y

of cases

or more instan ces

tne

cases

by

a ft er

total

to wa rd

t.*e

Is lb -- i n rocincsu oui

authorized tne

tne end

of tne

lo r ado.i sional ce.g _ sal increasing

one-

In trie ...ealum-sized

a c t u a l 1;

cent

tne

C o m p a n y ) is sued virtual!

in the m a j o r i t y SC p e r

is n o t

comp ani es.

in t.ie case Oi

to

trie la rg er c o m p a n i e s

There v/ere a few

i irms

It

of

and a s u b s t a n ti al

of tne p e r i o d — p a r t i c u l a r l y

wnicii tne n e e d

one-fifth

op er at in g

authorized.

tne amount

gradually

po rit y

act ual

companies

that

It v/ill he

the

only

tne

s l i g h t l y nig ner

to o b t a i n a sample

largest

c om pa ni es

to

capitalization.

is a p p a r e n t

the c a p i t a l

increased of the

issued

of tne m e d i u n - s i z e d and

sam ple

period

it na y be

corwoc nies X

county.

indie;-tiny the

is p o s s i b l e , howe ve r,

virtually

of Llonroe

nad actually

t'neir a u t h o r i z e d

to o b t a i n

It

those

a tendency

than

stone

In de ed

for m e d i u m - s i z e d

capitalizations tn at

county.

in B e d ­

now

stock.

...toe:,

294 In e x a m i n i n g number we r e

of

utilized

perioQ. tne

i ns ta nc es

the m o r t g a g e in w.iic.

in the .years

In the

mag o r it y

result

oi

tne

tne m e r g e r

ox

several

the

itio na l

quarry

as

land.

mortgage

lc57-l&ld

of c a s e s

purchase

s m a l l e r firms,

re cords wo

o^

property

we re

evidently

of

tne

first

finance

tne

of

,urc iase

or

in tne

tne r e s u l t

of

tne p u r c h a s e

commonly handled

side

of tne

stone

prominent part

Company,

Sa vings B a n k Bank,

one

Bank

The

of

Among

of Chicago,

might

the

tnese

or the p u r c h a s e

of

other f ir us

to tne

of

conds

issuance

in vi ew

w i t n b ond

tue

issues

the

of

o.

issued

to

out­

a:.a

The P e o p l e s

Sav in gs

Comp any

an d Tr ust

of

Chicago.

a r r a n g i n g ..uor'ora

for

fv.nrr

co.se

tne A n e r i c ;n

size

tue

tne sa-satic-factor

hark hollow

tnat

w... ic.._ toon

su bs t a n t i a l funds

and

issues

C hi ca go T i t l e

c om pa ni es of

(usually

In tne

located

Company,

Trust

to ra ise

price — p a r t i c u l a r l y

fine

Ci ti zen s

C e n tr al

ask w h y

banks

of

add­

lo ans

ne e ds .

tue banks we

or

p e rs on al

co m p a n i a s- - s u ca

or more

of E v a n s v i l l e , The

of

cases

to secure

ital

Cleveland Trust

an d

of

i s s u es -- th os e

in s u c n financing,

Cleveland, One

by

district.

T r u s t an d S a v in g s Trust

such b o n d

is su ed as

ca.se of some

on the

iven

t e rm ca

or m e r g e r

were

were

co.i:,£i;y by a n o t h e r

In a si..oiler n u m b e r

of

issues

in tne p r e c e d i n g

companiest

for s n o r t e r

a larger

bond

tnes e bonds

one

c o m p a n i e s we re

cl ass

se cu red th; n

i n v o l v i n g s...all c o m p a n i e s ) m o r t g a g e s real

fin d

Coupon

resor ted

arc

ase

experien ce ,.uf f..,

295 Bedford

Stone

Quarries

i irst p l a c e , in will mortgage

records

purcua.se

or m e r g e r

of s u b s t a n t i a l ranging

su c h

banks that

the

banks

ferred

for

ha t

an examination

issues we

tine

trus t

and

it e a s i e r

associated witn Railway

Quarries

the P.

to b o n d

issues

issued s u c h

by

the

bond

exception,

already

securities

as

successful

companies

issues

to

words

the

be r e m e m b e r e d in t.-io re­

B a n k , '(me C. T ru st

tue

Tim

v/itu one issuau.ce

oi

In di an a

o.

p r e c e d i n g period,

years

not

of d e p r e s s i o n

confronted

v/it.i se veral

by a serious

s n o r t l y after

t.^eir

..ost

istrict.

U u-

tnese

unlike the is cues of tue earl;

were

t u es e

bes t-nanugeo., a m stone

'(mat

ossicle

behind

co mp a n i e s

I ♦ h L.

c om pa ni es

by c o m p a n i e s

an d

stone

and s av in .s

issues v/ere mad e them;

and

t.,an of p r e ­

Consolidated

in the tm

rc...se,

C o m p an y v/ere closely

were,

before

cormtr"-

a nd p e r n a p s p r e d i s p o s e d

'(m.-. largest,

tue b o n d is sues

tue

cases

Su c u surns

it m u s t

associations.

mown

among

to fi n a n c e

tne e x a m p l e

C i ti ze ns

r es pe c t i v e l y , t h es e

large

St one

tne

to c u s t o m e r s -./no v/ere

Ch ic a g o n a t i o n a l

(the ifon o n ) , and

of Cl e v e la nd ,

set

Co..,. any,

If. & B.

the

of

In a d d i t i o n

companies w u i c h

of

s e c t i o n of

to d i s p o s e

In the

but a few

of r e t r o p o l i t & n banks

c o m p an ie s.

tne l a r g e

arranged

e in all

or c o m m o n s t o c k - - p a r t ic u l a r l y or

19 C ’s.

early

to $ 1 ,50 0 , 0 0 0 In amount.

services

C o m p a n y , and

like

bond

of compa ni es

size

f o un d

in tno

seen i r o n ,

tnat the

g a r d — the B e d f o r d

Bank

be

from $100,000

required

Company

ears

of suc ce ss 'fC'

y . i h c emu

s ranee,

v, the long

296 A larger number of these issues b e g a n to contain s p e c i i i c a t ions

in tue

indenture

The $ 1 0 0 , 0 0 0 m o r t g a g e

executed

to p r ot ec t

aside

b o n d holder.

bg 3. F . G i b e r s on and

Company to tne Cleveland T r u s t Co m a n y , for example,

the

September 1, 1S1C,

contained a p r o v i s i o n r e q u i r i n g to bo set

quarterly a sinking

merchantable

st one

fund

snipped,-

of 5p' p e r

an a m o u n t

cubic

tnat

foot

of

C d.n 0 w/cl3

in no

1 to be u n d e r $ 1,000 a y e a r . Tne

P. II. do B.

$250,000

to

February

10,

sin ki ng

the

fund,

in any

is sued

Co,..pan;/,

the A m e r i c a n T r u s t 1898,

was

O

in orde r

t h a t was

in de nt ur e Bank

for

of Ch icago

to b u i l d up

semi-annually with

in an a m o u n t

one y e a r

in an

and Savings

required,

to d e p o s i t

its n e t e a r n i n g s exceed

Stone

its

a

trustee

no t , now ever, to

10 p e r cent of the p r i n c i p a l of all

bonds.

several companies , nov/ever, na d their -bond:; issued u p o n a se ri al

basis,

a certain number

of

bonds

to mat ur e

3 oac.x year.

The

se e m to nave

contained neither

retirement

majority

of

tnese the

indentures,

however,

s i n k i n g fund n o r

serial

features.

^•m o r t g a g e

R e c o r d , Lawrence

^Ifortgage R e c o r d , L a w r e n c e

c o u n t y , V.

14,

p.

183.

County,

£3, p.

35C.

V.

^Examples of s u c n a r r a n g e m e n t s wer e a f f o r d e d b; the mortgage e x e c u t e d by the Re e d Stone C o m p a n y , to tne C h i c a g o Title and T r u s t Company, Hay 5, 191C, and b; the mortgage ex­ ecuted by Sh e a a n d Do n n e l l y to the executor of tne G eo rge Doyl; estate, September 30, 1909. hortgwge Record, Lawrence county, V.

14,

p*

125

and V.

45,

p.

94.

297 In tne purchase

case

p ri ce

term c a p i t a l man;.' cases st anc es , In L o n r o e

of stone

funds,

lands,

the

loans

given as

s e c u r i t y for

or as s e c u r i t y appear

the

for s .outer

to nave

;een made

in

1 -cal b a n k s , or in a s m a l l e r n u m b e r of in­

by

by

of m o r t g a g e s

individual

co unt y,

stockholders

in t m s

as

or local

capitalists.

in the p r e c e d i n g period,

bu i 1d i n g a n d

1 oa n as s D e l a t i o n s a p p e a r to nave

,een active

in f i n a n c i n g

sone

small

ston e

owned

an d m a n a g e d b;

rates

o f te n

ram

cor.; anies,

local

as h i g u as

men.

On

3 per

cent.

particularly

in tne

unused

land for f u t u r e

st one

compani es , uade

both

i n s ta nc e

local

especially su cn

loans

sales,

I n d ia na

i n t er es t

In several,

of p r o m o t e r s life

cases,

vno w e r e or fire

an d n a t i o n a l l y

co mp a n i e s

molding

insura nce

known firms,

advances. a number

issues

made

retiring

of

considerable

the

amount

Co mpan'g, for $250, O CC

the large c o m p a n i e s tnat is s u e d bon d progress

during

in c i r c u l a t i o n .

Tue

this period,

in

Cons olid

stone

rich nod a u t h o r i z e d a rond

on A p r i l

2,

1 9 OC

but ..ad actuc.il..

issued

ted

issue

of

$2 2G,C0C,

with the principal and i n t e r e s t s guaranteed ey t.ie C. I. Railway, m

gradual

amounts

had

aid

off

me

issue

s;

L.

m y

1 2,

1S11.

Bedford

The

Cleveland

Qu ar ri es

Cornu any

Stone

Co m a n y ,

in If 10,

in g u r c m s i m ,

t.ie

.1, 5C0, CCC

G

issued

^■idoody ’s, Idanua 1 of Inve s tments : hew York, 19l3L» p.3©fc

o.

Indr.s t r ia 1 s ,

er

298 cent bonas , ana by the end of 1 C 1C nad reduced t ais m..cunt 1 to y l , 0 b w , 0 0 0 . tne He e d

On Is

S to ne

on b o n d e d

Company,

indebtedness

any

in 1915

f or

the *p*• a y m e n t s

serial the

company

the to

found

bonds.

assumed

the

carry.

st ates

different .•osition

requirements

a p p o i n ted ana

the H e e d t h eir

parts,

of

ana

j.

Son,

in If 19

w..icu firm Several

burden

In w h i c h

their

its f I O C ,3 C O G

ts

Company.

i n t er es t

Company

(1915),

this p e r i o d

of

too n e a v y

bondholders

in ve s t m e n t

(19 3),

inclu ded

tne B l o o m i n g t o n -

tne Ohio

of f i rm s

f i r m s

of

went

tnese

that w e n t

of ca p i t a l .

s o l d was

of

one

or

Oolitic

cour t

cases the

exceptrons

a

In

reveals

tne

found

records

is a f f o r d e d

receivership

below

of firms

reca ivers.iip.

t..is table

In m s t

mwo

The

into

firms

into

considerably

ore

a number

difficulties.

Inspection

tne re

Heed. Co.s.v-

and Xwr in ci _ .al r _n o n

of sue., c o m p a n i e s

Quarries

Compan;

The

c.surges

stone

(1 S I 7).

in f i n a n c i a l

short

of

coi.n;

fi ned

,;eriod ♦

tnis

to V?. hclfillan and

cor.rpauias f o u n d

curing

the

sold

to ;..eet its

un-.-.ble to i.,eet tne

r e c e i v e r was

a l l , or s u b s t a n t i a l

Co n p a n y

21

du r i n g

indebtedness

B e d f o r d a t on e

t.re 1 r er stone

in te re st

Instances

the U n i t e d

of

failed

it self of

A

was

smaller

lost

one

were

•'•l.oodv* s, llanual of Inv e s t m e n ts : fork, 1911, 17*2

tnat

survey

of

2JL*

tnat tne n a g o r i t y un dou tte dig

ca_ ital

t nis

re v e a l

Table

st ock

ar.tnorized ca to

tn e m s e l v e s

very

rc t u a l l y

X. o c. _L

ru 1e •

I.-dwstr ials ,

298a o ^ O o

03

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Pi

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Pl o

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to

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LO

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o

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ft © rft Ir",| 1— “1

f t -p -p Pi

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id © p Cd

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Pl o

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ft 1—1 o

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ft

o © ft Pl ,o ft p

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i—1 o CO

£> 03 1—1 CO CD

ft

o

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299 properties

concerned

sane

property)

only

So one m i l l s «

abandoned and continued tnat

It sere

S we r e

5 of

c o v e r any t ni n e

cases

fro..;

This

tne p a y m e n t

usually

20 cases

it

of

the a s s e t s

that f a i l e d total number

did

coup a n y .

It w i l l

tne

tneir

rougn

It wil l

tne mil l

stone

of f i r m s

to

6 v/ere

In addition to

re­

of

a n '7 s a t i s f a c t o r y tnat m.s

tne tnat

,.ill co... anise

be t t e r r e c o r d

quarry tnese

companies. conpanies

fr o m n e i g h b o r i n g some of

tnsir

quarry

icr ye st

ask fo r a r e c e i v e r s h i p too m u c h

t.u.t tne n u m b e r of c o m p a n i e s

approximately

in ope rat

properties

be noticed,

The n u m b e r

c o m p a n y nad b e e n

se n o t i c e d

constituted

in this ue r i o d .

fact

often constituted

of

o^

th a n did

to tne

4 owning

stockholders

snow a s o u s w a n t

creditors

tne

Tne r e c o v e r "7 b "7 cr ed i t o r s

is to be n o t e d

attributable

are

All oi' tne mill

owners.

and w n i c h v/ere p r o n e

dissipated.

quarries,

reorganised.

tue

tut

companies, wnicu

before

on pin;

too lev/ to p e r m i t

obtained

creditors

1 and

It q u a r r y p r o p er ti es ,

into r e c e i v e r s h i p

n a y be

number

6 p e r cent to 10C p e r cent.

..eneralization,

for

the

t.ie

iron

is p e r h a p s

that w e n t

Of

companies

o p e r a t i o n u n d e r new

in only

ranged

( p r op er ti es

on

22 p e r cent of tne

in tne

tnese

India., a d i s t r i c t

firms

se ve r a l

co..;uanies

1 voluntaril" went out of b u s i n e s s w i t h o u t receivers..:.;.. 1 A m o n g s u c h fim.s w e r e the E l o o u i n ton „marries any, The E a gl e Stone Company, tne Jo.uison-hatthews Stone Coi.v.a n y , the E l l e t t s v i l l e P e r r y Qu a r r i e s Company, the D i - e l a n d P e rn " Company, tne R u n y a n ato n e Un.yang, the honr oe Qu ..rriss uomp€uiy > one fts.. a.ill o.._ B e d f o r d Blue Stone Company, the G o o d a l l Cut Stone Co;.v a n y , and the h o r r i l l Cut at one Co...pa..y.

Con-

a very

snort

t i n e , and

n ot p r o p i t i o u s up

t n ei r

as

tne 1 irms

f i rm s

for

th a t w e n t

that v/ent into

number

into

o bv iou s in the wa s

that

the

district

Secretary

of

o f f e r e d some ,..r, R i c h t e r preferred were

tue

th a n

Indiana

adv ic e

tue

of ope rat i

Conduct,

to note

total

tne

eituer Frcm

it

capital

is

invested

difficulties

both

of

the

experiences

tnat R.

ii. Richter,

Q u a r r y m e n *s Asso c iation,

bo nd

in Ja.nuo.ry 191...

issues a n d

cunvLtive

_ or co mp u l s o r y

retirement

tne s u s c e p t i b i l i t y Eoiiu in te res t

uiunt Lean sacrifice times

of

of f i n a n c i n g

fluctuations.

s at

of

these fir/.-s

res ul ts

stocks w i t n p r o v i s i o n s

feared,

tna t v/ent

f r o m b u s i n e s s.

of

Limestone

tnat

Tal:inr tue

one-thi rd .

on m e t h o d s

believed

s er io us

this p e r i o d

the total

is p e r t i n e n t

to v i o l e n t

m e n t s , he

of

as

wound

firms

in s u c h f i n a n c i a l

objectionable because

industry

ment

less

it

and the

bC pe r c e n t

capitalization

summarizing

this period,

receiversiii]j«

or w i t h d r e w

i n v o l v ed

considerably

of t.:eir bu sin ess ,

in o p e r a t i o n d u r i n g

tne p r o p o r t i o n

Before of

turoipc

circumstances \ i a ^

a n y t h i n _ like

receivership

receivership

i n s p e c t i o n of

losses

approximately

of c o m p a n i e s

that

continuance

a ff ai rs w i t h o u t

out of b us in e ss ,

v/ent

tne

deciding

v/uen m e

in vol vin g

needs

o_

o..e

•^R. If. Richter, "Stone and Po li ci es o_ a f1 S t o n e , XXX VI I, (January, 1 17), 27-23.

o

'hue

require­ curtail­ .am e t

301 situation hand,

c a l l e d for

it m i g n t

regardless Stone sol d

of

company to s m al l

extension

be n e c e s s a r y valu e

for

he war ned ,

accounting methods

business

the

quarries

q u a rr ie s

s iz ed

souewnr.t,

but

scale

by

firms Isit

this

Indiana

tne

that tne

tne

tne

extension

the

late

adopted

in

had p r o ­

qu ar ry

end oi SC's,

by

tne

T e expansion

t o g e t h e r wi th available

stone

centralization

2.1 c.u a p o n - t ?n w.*j.c.-

of open­

by new

rail­

tne

ope..-

in. .igrated

nunoer

nigh

the

di st ri ct ,

tnat na d

a considorable

reduced

o_

c o n c e n t r a t i o n very

made

cut stone f irms an d

and

operations

of

tne period.

s e c t i o ns

in tne

in tne

o b ta in ab le

in the

business

se v e r a l years,

in new

Indiana, field,

medium

indicated

ou tp ut

mad e

b e g i n n i n g of

in the n e x t

tahen

tne stone

the p r i c e - c u t t i n g p o l i c i e s

ro ad c o n s t r u c t i o n

the

been

th r o u g h l a r g e r

Company,

additional

obtained.

should be

the e c o n o m i e s

Tne c u r t a i l e d

Quarries

in deed at

be

be

ran id p r o d u c t i o n

.forces a s s o c i a t e d w i t h and

the marhet.

an d f r o m w n o m ea s i l y

into n o n ey

B l en te r,

too

other

of e q u ip me nt .

a n i g h c o n c e n t r a t i o n of

Bedford

force

account

it has

available market

together with

demoralising

the dei^letion of

economic

in dus try .

ing of

of

section

quarry p r o d u c t i o n

ing of

proper

and o b s o l e s c e n c e

In this

the

c o u l d no t

On tne

i n ve n t o r y

s t a t e d hr.

q u i c k re tu r n s

F in all y,

duced

of

in ve st o r s w h o m i g n t

if n ec e s s a r y ,

of the

op e r a t i o n s .

c o n ve rt

s n o u l d not,

cap ital,

o p e r a t i o n of

to

at tue r i s h

stocks

in t ue ir de sir e

depreciation

of

into

o_ ner .ers of of p r o d u c t i o n

302 la rge

companies

ou tpu t s oons

still

produced

produced

by tne

c-.s ./ell as

ins

mrr^

in tl.e p r e v i o u s

to e x p a n d stock.

is p e r h a p s

improvement in

by

the

tne

in tue

...is indue

was

ac.-ieveu

com pa ni es

.no

total

cut

• in

tuis

soup..it

1;/ t.ie sale of a d d i t i o n a l cariital

attributable

bu si ne ss

oi

in p a r t

co n d i t i o n s ,

to tue

g e n e ra l

and in p a r t to tne

fact

the i n d u s t r y was b e t t e r k n o w n and b e t t e r r e g a r d e d

that and

bra...c.^ o_

period

cent

ayoearea

of success

tueir o p e r a t i o n s

Tiiis

uC p e r

l a r g e r fi rms

A greater degree tnan

over

that a n u m b e r of firms

dividends. in this

Preferred

period

it e a s i e r

as we l l

by a n u m b e r

to a t t r a c t

v/ere k n o w n to nave as

c o m m o n stoc k w a s

of mediu m-s ized

investnent

pa id good issued

firms w h i c h f o u n d

in this n a t t e r .

This ueans

of f i n a n c i n g was more c o m m o n l y u s e d by c o n c e r n s m a n a g e d principally

cy tue l o c a l

s to ck w i t n i n i

-rr o r'

i*iOV3Q

i “o Jr ■'g

l i l L rJ

tne

tL/. 1c? i

state

o

S

- *!* O

y/h w ’ v

in ter est s wno

a..d by se ve ral

distributed

tne ir

co,.v an ies '.v.^ick nad

v' v"'fVi " 1* Oi 1"Il ^ h y c, t J^C, ,/ 2 0 11C 3 ^ c. .m O «

Jl x U r n

C O U i l ' j 1'

J.

L 1 i:tS

in g e n e r a l were c a p i t a l i z e d for s o m e w h a t uig...er ai.hunts t h a n tuose f irm s

to

o_

Monroe

increase are

fitability

fo r most

take

number

account of

bond

do ubt les s

of

The

tue ir c a p i t a l

the p e r i o d

to

county.

durin^. the

fir...s,

opportunities

the nrec ed in;r period.

a good ...any

la tte r p a r t

t.ie

ratuer

In di ana

.a ■orit*

o_

of

pro­

tnan a -..scire

for expo -s ion.

w e r e made by In

of

a r e f i e c t i o u of declin in g

of tnese

issues

efforts

- ir.n

h Icrr er t..a.. i._

c a "•es t u i bond

303 issues were

tne

ano th er ,

of

or

P n ..s ion

tnese

in the

of

susceptibility by

in the

the

u

denlstion

solescence through

Ox

of

ha v e b e e n sm all

In n e a r l y

recovered

l it tl e

the of

creditors

recovered

of

o± ca

firn.s, itai

some

o.

sales

in fon.i of

i s s u e s , and

to e m p h a s i z e

tne

methods

depreciation

Tne m c yo ri tg

of

tno

been paid tnan

a n

..e cess it' of

ob­

of fir-.as t.x.- t went

in t/xis p e r i o d are

seen

to

o p e r a t i n g wit., i n a d e q u a t e these

less

cases,

t..an naif.

stockholders

oo an even

o.. t.:em,

Ixcey’ o in tn

very p o o r

e n t e r p r i s e s wer e and

tne

in at leant half

wiicn e n c o u n t e r e d

t..esc f a i l i n g

Tee perce..tags nercexxtags

all

o.

fluctuations

acc ou nt in-

and tne

or n o t h i n . a n a

quarry companies

of stone,

in t h ei r

enterprises

recog­

cycle.

beginning

receiverships

ca p i t a l .

because

to wide

soma

ca w i t a l f i n a n c i n g

of b o n a

eq u i p m e n t .

financial

of

tne r e t i r e m e n t

t.ie stone

by

or of sx-

p e r i o d , we f i n

o_ m a k i n g

attention

1 —■

company

e n e r a l , ...ore s u c c e s s ­

desirability

ug n w e r e

i

in

buildiry

some

of w a v i n g m o r e

one

la.xc. or e cy. j..r.ieix c •

s e em s to ha v e

to the

of

co.ya.-ios

da ng e r o u s

industry

attention

stone

v/ere,

was

for

the

sev er al

t.*at any s o r t

regular provision of

yurchase

tne precedin,

of the

preceding years

oi

issues

ch arges

changes

more

tne

uiiiiel o m r r

industry

involving fixed

caused

squ i

bon d

than tn ose

nition

of

tne m e r g e r

ou yi ng

Although ful

r es u l t

i: s u n 11;

re;seer

i n v e r' er in w..e s n.se

case

deposits seer

: sued.

do..ree, tno

_..u ss -r

^ .r

304 either vent

t h r o u g h r e c e i vers..ip or

voluntaril,

of b u s i n e s s

during

not

a ver y

Indiana

stone

cap it al

ments

in m i ll s

tnrougnout

of

ou ts ide

during

these

ap p e a r

and

quarries

c o u n t r y , and

investment 'ears v/ero

in Ixxdiana bg

s t o c k by o l d e r

India..a rnd n e a r b y

b u s in es s

tne

states.

sale

to have

the f l u c t u a t i n g

the Cinio 3ao.ds t o.-a d..strict,

in t...e cut s tone

the

an d p r e f e r r e d

so urces

district

from

been engaged

of

'errs does

hi^.x p e r c e n t a g e » c o n s i d e r i n g

Tiie c h ie f

of

tnese

'.vent out

r_ature

in tne tne entranc;

tne

invest­

f ir:..s t.m t

i.i c o n s u m i n g

of a d d i t i o n a l

co mp a n i e s

to many

been

.0a .arize t;

co...mon

residents

305 PRICES AJD PROFITS During the years IC 96-I 9IS, we are fortunate in having available more adequate stat 1stical information than was avail­ able in preceding periods.

Price infornot ion, however, has

certain unfortunate gaps and ine.dequacies that render difficult the interpretation of the trends of the period.

These diffi­

culties are particularly serious in the case of the various degrees of fabrication of Indiana limestone and in the cases of the prices of coiapeting stones.

Table 23 presents the aver­

age prices of various categories of Indiana, limestone as far as available.

Beginning with 0xiO year IQOo, i.-S v>colOx5Icul

Survey separated figures of sales of rough blocks from those of the sales of sawed, semi-finished, and cut stone. year 1916 the basis of classification nag changed.

In the Sawed

and semi-fini shed stone were now included with rough blocks and cut stone was presented alone*

306 TABLE 23 AVERAGE PRICES OF CLASSES OF FEDIAEA LIRESTOLE 1896-1913 (PER CUBIC FOOT) Year

All Classes

I 896 1097 1S93 1S99

$0,224 .211-9 .214-6 .230 .241

1900 1901 1902 1901 1904 19.05

1906 1907 1900 1909 1910 1911 1912

Rough Blocks

Cut

.207 .267 .200 .302 .299 .209 •31 Oo lc «cop

.263 .325 .315 •33

$0,209 77( *Py

.190 .10 .205

•44 .46 •L' l77

.201 .21 .215

.516

1913 1914 1915

.34 .274 — ?*7rft

.160

1916

.409 .40

.234 .325 .377

1917 191O

Sawed L Bead-Finished

.674

0 p. -7

.47 •575 .523 .460

(Included in Rough Blocks)

(included) ( i n ) (Sawed ) 4 ■ ( oemi— ) (Finished; ~7rr—?

Source : mineral Res ources of the United States, U.

pH O

10 CM pH 00 to CO GO •*•*** U0 04 pH CM CM O o to CM • « « CM pH rH U 0 /e - 1 G 03/ j u !Lu j.U.1- .± om 1 taking this turn. it is not on record, however, that any concrete actions were taken by this Association.

By Ifl'r,

however, it had become customary to recognize in the price structure three gre.des of stone: (l) A1 or the finest grained buff or blue, (2) trade buff or blue,

coarser grained and sell­

ing usually at about 57' less oer cubic foot than the first grade, and. (3 ) mixed stone part buff and part blue, selling at a price 5 to 10 cents below the price of trade stone .*2

Here

again the rough allocation of joint coats on the principle of charging according to the relative demands was recognised. The tiew York City market had proved to ce the -most list o ne , kXVII (April, I 9O 7 ), U p . ‘umrnce,

cit., g . _Lt~u♦

338 difficult to educate to the uce of the coarser grained var­ ieties of stone.'*’ A typical argument advanced for the use of trade stone is the following passage from Dr. .iance: Another method of utilizing much of the rougher block stone would be to use the poorer grades of stone in the upper parts of buildings. The wee?ring and last­ ing qualities of this stone are equal to those of the better grades and the only reason for its rejection is the fact that its appearance is not as attractive as that of the better grades. If the lower parts of the build­ ing were furnished in the fine grades of stone and the higher stories were made of the poorer grades, the cost of the building would be materially lessened without lowering its d-urability or in any way impairing its ap­ pearance. Ho person at street level can distinguish the grade of stone used in the second story of a building.^ Another difficulty that presented itself was traceable to the fact that quarry men often sent out selected stone as samples and in many cases, indeed in most cases, were unable to furnish any large amount of stone sufficiently siinilar to the cample submitted.

This practice caused much dissatisfact ion on the

part of purchasers, and another source of loss through rejec­ tion of stone at the building site .*'1 The Indiana Limestone Quarrymen1s Association from the outset was very much interested in the problem of the grading of Indiana limestone.

One of its first activities was the

study of a proposal for the analysis of this problem.

Because

the Federal Government purchssed large cuantities of Indiana

. i i u n e e ,

i h l *

C x i i . ,

2 Ibid. , p. 121 . 3lbid., p. 120.

P

®

li-.o«

339 stone for use in Federal building, early in 1917 it became possible to arrange a cooperative study by the Supervising Architect's Office of the Treasury Department, the United States Geological Survey of the Department of the Interior, the Bureau of Standards of the Department of Commerce, and the In­ diana Limestone Quarrymen's Association.

Ur. G. F. Lougnlin

of the United States Geological Survey, nr. D . b. Kessler of the Bureau of Standards, and ^essrs. Packard and Roberts of the Supervising Architect's Office examined samples from most of the quarries in the Bedford-Bloomington district, and super­ vised tests of physical qualities of the stone at the Bureau of Standards.^ As a result, the Indiana quarrymen's Association late in 1917 adopted a new system of grading. Select Buff Statuary —

Grade AA was to be

extra fine and uniform groin, especially

adapted for carving; grades A and D-Select buff or grry (for­ merly called blue) respectively (formerly referred to as A1 grade) of stone "of generally fine and uniform grain, with a minimum of conspicuous glass spots or seams, shell holes or other irregularities"; Grades B and E - Standard buff or gray respectively (formerly named lumber 2 or Trade Stone) of less fine and uniform grain but not coarse 0 rained, with only a fas glass spots, shell holes, and other irregularit ies; Grade 0 and EE - Rustic buff or gray (formerly described as Coarse : -d rarely sold) coarse grained, usually with

340 shell holes, or glass spots cud. other irregularities; Grades F and G - Vuriege.ted (formerly called Lined) buff end gray of select and standard quality respectively, A and B, but with a mixture of colors.

similar to Grades

Special .radec o*

Kj W 'J.ib

recognised were Grade H, special hard; Grade I, Indiana Traver­ tine, a cellular buff stone too coarse grained for Grade 0; Grade J, Old Gothic, unselected as to color and. texture, but for the most part fairly coarse groined (some pieces may have markings that distinguish them from the other grades but do not affect their smoothness); Grade IC, short length sawed strip stone produced, from a mixture of short mill blocks either less than six feet in length or of such irregular shapes that rectangular slabs exceeding that length cannot be obtained from them.'*' In the attempt to use these grades, considerable var­ iation in their application by quarrymen developed.

In the

quarries of the Indiana stone district it was not the ordinary practice to distinguish between Grades AA end. Grade A.

The

price of AA stone was made somewhat higher so cover the addi­ tional costs of careful selection.

Indeed, only a sms.ll per­

centage could meet the specification for Grade AA.

quarrymen

advised, its use only where it was to be viewed at very close p range." A few quarries contained e cousid.eramle percentage of Grades A and D (or select stone) as well as Grades : or I (or standard stone).

Others had little in si0Lt e-cc-t '"■rums _

*}

■‘•Loughl IL-— ,2^^** Cl I'• J

2 lbid, , p. 191 .

)

'~G b- >-L.• -mS

341 and E or C and EE (rustic).1

Dr. Loughlin found that "the

variation in the opinion of quarrynen as to the limitations of standard grade is, if anything, more marked than it is 2 of Grade A and A A ." Dr. Loughlin1s summary report on the grading investi­ gation emphasized that the general tendency in the market to regard the gray stone as inferior to the Duff stone was not based upon scientific fact.

Indeed, the select gray stone

proved to have a slight superiority in physical properties over 7 all the other grades of Indiana limestone.-'' This circumstance mas in accord with the differences in origin between the buff and gray stone.

Bo long as the oolitic limestone remained

below ground water level, there was entirely a gray or "blue" color.

This color is censed by the presence of finely divided

black bituminous matter accompanied by a very small quantity of the yellow iron disulphide pyrite.

Above the ground mater level

this coloring matter has been oxidized, to a brown color, vkich represents the coloring metter of the buff stone.

The oxida­

tion of the pyrite produced a little lea eking of the calcium carbonate fro.., the grains cub matrix of the stone.

As a result,

the gray stone is slightly stronger, slightly less porous, ar.d slightly heavier than the buff stone. cal properties, however, are too ; ^Loughlin, op. cut., p. 19^. 2Ibid. 2lbid., p. 132.

T

342 raercially and the choice between them becomes one of taste rather than physical properties.1

there the oolitic stone

has been protected by heavier coverings of Uitcbell lime­ stone, the proportion of gray stone bedomes greeter.

..here

the rock coverin0 is thick and its contact with the oolitic stone is tight and impervious, buff stone is limited to the vicinity of fractures or mud seams along which the descending water penetrated.

Thus it was of increasing importance to p cultivate the taste of pur chasers for the gray stone. Dr.

Loughlin stated in his report: The district, of course, still has a long period of life, but the supply of certain grades of stone is far from inexhaustible and soiue quarry companies will sooner or later be confronted with the problem of determining how long their present properties will last and where equally good undeveloped ground may be located..^

Ae early as 1917-1913 it was being recognized that a change in demand which would or might promote variegated, rustic, and old. gothic stone would, increase the life of the district as well as promote the fortunes of individual companies. A large part of the stone wasted because of the physi­ cal condition.of uhe stone deposit was irrecoverable as build­ ing stone,

borne small part of the v.aste cm-ilcl be avoided if

the cuaxry suoerintendent and ledge foremen 'were skilled in 1Loughlin,

ogm

c it ., pp. lkl~l-r2.

2lbid., pp. 1^2—Ibp. ^Jbid., p • 1 ^*3•

343 laying out the floors of the quarry and the direction of the cuts in order to get the largest number of perfect blocks. With the growth of cut stone mills in the Indiana stone dis­ tricts, some of the misshapen, irregular, or small-sized pieces (known as "culls" to the quarrymen) could be sold to the local mills.

These pieces had rarely been shippted to mills

located elsewhere in view of the heavy freight charges in pro­ portion to their recoverable footage.

Such cull blocks sold

for less per cubic foot than standard-sized blocks, sometimes 1 for 507c of she value of standard blocks. The remainder of this type of waste stone and the stone dust wasted in the third or fourth types of waste must be recovered by use not as build­ ing stone but in such uses as ground limestone for agricultural fertilizer or glass manufacture, in the production of lime or cement, as road met Ed, flux for steel furnaces, or for crushed rock concrete.^

One of the grave difficulties, however, in

promoting such uses is that the hitchell limestones of the over­ burden —

and indeed many other varieties of limestone found in

abundance throughout the kiddle best —

are just as useful as

the waste oolitic stone for these purposes.

In the case of

road metal and railway ballast, the greater hardness of the overburden makes it superior to the softer oolitic stone.*' A f e w a t t e m p t s w e r e made to u t i l i z e th e to

operate

a Portland

cement

plant.

In

1dpi, the Portlr rid

^•Intervi ew s wi th st one op er at or s • 'ifance, op. cit., u. Ill "(Ibid., pp. 1&9-190*

quarry '.rote

Cement Company of Utah, on the recommendation of the Indiana State ideologist, had tests mode to determine the suitability of the Bedford stone for such purposes.'

Various other parties

did likewise, but no other action resulted until the Bedford Cement Company was organized in 1$00 by Minnesota and Uichigan investors and purchased a large tract of lend near Bedford.2 The industry at that time was at a stage in which large-scale operation was becoming necessary to achieve a profitable basis. This enterprise was reorganized as the midland Cement Company and, after failure of several attempts to raise more capital, v»as reorganized again as the United Btates Cement Company. firm ceased operations 'in December,

1909 .^

The

The company ob­

tained its stone, however, from its own quarry and bought littl from the building stone quarries.

Dr. nance cited as the prin­

cipal reasons for the failure to utilise quarry waste: (l) the difficulty of collecting the waste stone at a central plant; and (2) the cost of breaking up the quarry waste into forms suitable for use in the crushing machines.

Ke stated that the

cost of utilizing quarry waste had seen estimated by engineers in nearly every instance as above the costs of quarrying stone ii directly for such uses with high explosives.*1" Hence, cement plants purchased quarry waste only on rare occasions.

345 Several firms were established in the Indiana lime­ stone belt which purchased by-products of the stone industry to grind for sale as agricultural fertilisers for acid soils and as flux in the manufacture of glass.

The first of such

firms was established at Ellettsville, ^onroe County,1 and in lb!2 a, similar concern, the Stone Products Company, was 2 established at Oolitic in the Lawrence County area. Doth of these firms crushed stone for use as agricultural limestone and as glass end steel flux.

In August, 1913, the Perry Gwens

Stone Company of Ellettsville began to grind agricultural lime•3

stone.*'

The stone mills sold their waste products to these

firms at the price of lpp per ton.

At this

0 ime

the charge

for moving cars in the stone belt when the product was t o be rehandled was |2.00 per car; hence the cost of such waste stone delivered at the crusher was about 2Gp per ton.

If

So serious

a problem was the accumulation of waste that many companies would willingly contract to give away their waste if the con­ tracting company would promise to take cere of the entire out­ put.

dance estimated the consumption of stone of the two com­

panies, in 1314-, however, at only 13,000 cubic feet.5 Throughout the period, waste stone was ship,eel to Gary ^Gtone , AhXI (February, 1910), 93. hance, 00 » ALA-—*^ P* kpp* *7 ^bloomington Evening borld, August g* 13'TG,

op. cit i^anc0 , pjo. ext., p. ^Ibid. , p. 11b.

11 pi

346 and Chicago for use as flux by the steel mills.

As in the

case of the stone sold for agricultural limestone, the stone companies received

159

a ton for this stone loaded on the cars.

instances are known of companies giving the waste stone

Indeed,

to the railroads and even loading the Material free of charge if the railroads w ould remove it . 1

Early in 1903, the Illinois

Steel Company purchased a number of acres of stone land near Stinesville v;ith an idea of quarrying the stone for furnace flux.

However, the company soon decided that it was cheeper

to purchase quarry waste at 10 to 15# per ton than to quarry o

it themselves.*"

The discovery of deposits of stone in southern

Michigan that could he brought to the Calumet area by a water haul was another factor of importance in the change. T. C. Hopkins in his report on the Indiana stone in­ dustry in the Twenty-First Annual Report of the Indiana Depart­ ment of Geology and Natural Resources (I&96 ) gave the follow­ ing analysis of the reasons for the failure to develop the use of lime: The reason that more of it has not been burnt may be due to a number of causes,, as follows: (l) freight rates, the cost of bringing in the coal and shipping the lime; a prejudice in the local markets against rich lime; (3 ) want of a large market — as they are situated in the midst of the Mississippi Valley, major deposits of limestone are on all sides; (l!-) the lack of some enter­ prising person to push the business into prominence, as all the iatone dealers are interested in the business of ( 2 )

-1 nance, ojd. cit ., p. If4. ^ d t o n e , XXXI (October, 1910), 5-3

building stone and not lime,^ Dr. dance,

commenting in 1914 upon this report, pointed

out that not 8,11 of these reasons were still effective.

Frei b - n-

rates were lower than they had been; the development of the process of hydrating line at the manufacturing plants had made hot lime safe and easy to handle and therefore removed much of the prejudice againgt rich limes; Ohio dolomitic limes, infer­ ior to Indiana lime in the hydrated form, were then being used in Indiana, Illinois, and Michigan at higher freight rates than would be required for the Indiana limes to reach such mar' Lets.

Mance, therefore, came to the conclusion that the real

reason holding bach the development of lime production was the lethargy of the operators.c

At that time there was only one

plant in operation in the southern Indiana district. plant was located at the P.

& B. quarries.

This

It hod been

separately owned by the Ohio and ..estern Lime Company, a Bed­ ford firm, from 1394- to 1914-.

In 1914 it was purchased by the

Indiana quarries Company, the owner of the P. a*. & B. Quarries and the largest quarry producers in the Indiana quarry d istric At that time it had a yearly output of about 22^,200 bushels o. lime, consuming about 270,000 cubic feet of stone.3 The 'amount of short tons sold for by-product uses was ^Twenty-First Annual Report, Indiana Departm put r-v G eology and Hat ural Re sour ce s, p . 33 7 * ‘hdance, Ojj. cit., pp. Io9-*1703jbid., p. 171 .

348 higher in I 916-I 7-IS than in the majority of previous years. It is probable that the Ion volume of stone sold for build­ ing purposes in 19 IS in comparison with the quantity of stone sold for other uses represents an increase in the inventory of the stock piles in addition to an increasing recovery of waste products.

The demand for certain waste products was

tremendously stimulated by wartime needs.

The most conspic­

uous case was the need of limestone for flux in steel making. Table 19 does not appear to indicate any significant' trend toward the recovery of an increasing percentage of waste stone for by-product uses.

If, however, the campaign launched by

the Indians- Limestone Quarry men1s Association to promote the sale of standard, variegated, and rustic stone, and to encour­ age the sales of gray stone as well as buff had begun to pro­ duce any results, such results would be reflected in a decrease in the amouht of waste from the solid cut. In view of all the facts presented, what conclusions are warranted concerning the profitability of the stone in­ dustry in this period?

Only a few companies still exist with

records -oing back into this period.

Determination of the

issue by examination of company records is impossible. Information concerning the profits me.de by stone com­ panies is available then only by inference.

From statements

made by operators, from the number of additional companies being formed, from the degree to which established companies a-ooe&r to have been expanding through reinvestment of earnings

and from the receivership record, it e/co ears likely/ that from 1897 ^0 1900 only a few companies made profits.

In the years

1901 through 1912 , with the exception of the year 1907- 8 , it appears probe hie from such evidence that the majority 01 com­ panies made what they considered to be profits.

In view of

the fact tha.t many companies tool: either no account or an in­ adequate account of such items as depletion of the quarries, depreciation of equipment, interest on capital invested, etc., we may question whether real net profits existed for these firms.

Several companies are reported to have paid regular

dividends throughout this period, in some cases ranging as high as 150 per cent.'*'

The years 1313 through 19I 0 , however,

do not appear to have been as prifitable.

In support of this

belief we may cite not only the growing number of complaints in the trade journals concerning the status of the industry but the much more important evidence of the efforts made by firms that were not expanding to raise add it ional funds.

State­

ments were made by several operators during this period to the effect that very little or no profits were seing made.

In 191m,

Dr. hance stated: within the last few years competition has become so keen tha.t the operators are at present confronted with the alternative" of decreasing the cost of ow.ty/’JO giving up the more diet ant markets .1 c.

^Interviews v.ith company officials.

350 Scovell, Wellington & Company in its cost survey of a number of the leading cut stone firms stated that practically no firms were found to be making profits between 1916 and 1918,1 The Indiana quarries Company, the only firm for which pub­ lished statements ere available for any portion of this period, reported profits in December 31, 191 2, of ^ 5 , 0 0 0 ; $295,932; 1914, $130,4-85; and 1915 , $77,954.

1313,

ho further

balance sheets were published and no dividends were paid after O October 1 , 1914.*" Operators not only usually spoke publicly of the period as one of cut-throat

competition, but also at­

tempted to reduce the percentage of loss through waste and inefficiency,

Evidently this was a period of adjustment. SUMMARY

with the recovery from the panic of I 893 , building con­ struction entered a period in which the general tendency for non-residential construction snowed an upward trend until the advent of the t.orld bar.

It is apparent, however, that the

building stone industry did not participate as extensively in this trend as did its competing products, especially cement and the better varieties of brick.

In analysing the various divis­

ions of the building stone industry, v;e die cower that the sale of sandstone was the most severely injured by the development ■^Department of J u s ti ce , Indiana _i„.crtone I.. s u m m a r y an d Reference In Re;-yard to fi le cf fed e ral Tm.u.-,;

222r ssr 011, m jpyr Lmen u ox un c vi c0 , c.-id nriG—t Limestone Inv est igat i o n , p. 5. 'Poor, Manual of Industr ials, l^l/, p • f-5

351 of competing products, that marble was influenced adversely in the latter half of the period, but that granite and lime­ stone were the least affected.

Indiana limestone sales fol­

lowed an upward trend until 1912 and then declined gradually until the war years of 1917-1913 brought a precipitous drop in sales.

The percentage of the total value of sales of

building stone represented by the value of the sales of In­ diana limestone showed a rather consistent upward trend until the war years. Among the factors which contributed to the increasing sales of Indiana limestone in the early part of the period was the adoption of more aggressive sales policies by Indiana com­ panies.

The larger firms ceased to rely primarily upon brokers

to obtain sales of their products, and began to send their personal representatives to call upon the local cut stone con­ tractors, the architects, or buildin 0 owners who might be pur­ chasers of stone.

This practice was inaugurated by John E.

Walsh, the Chicago banker who took over the Bedford quarries Company.

To meet this competition many of the other large

firms installed offices in Chicago, New York, and other lead­ ing eastern and Midwestern cities.

In addition, both indi­

vidual quarrymen and groups of quarrymen used extensively tho assistance of their political representatives to obtain con­ tracts for governmental buildings. The fact th/t the chief railways traversing the Indiana stone oclt wenx

into tne quarry business ^0

o.

e u.c presu .c

353 uheir traffic contributed a great deal to the aggressivene s of Indiana producers.

'Cut—throat competition between these

rs.ilv;ay-quarry interests forced prices to low levels in the early 1300 's and furnished the incentive to attempts to secure reduced railway rates and the widening of the market area in which Indiana, limestone had become significant as a. building material.

There were also instances in which stone companies

with railway affiliations benefited through favorable divisions of rates to their railway.

The fact that the very companies

that were growing the most rapidly during the early part of this period were the ones that obtained such advantages indicates that this may have been at least one factor in their growth. Other companies are said to have obtained substantial rebates. Associated with this question of freight rates is the stimulus that was offered to the movement into the Indiana stone district of cut

stone mills by the retention of the same

rates upon a shipment of cut stone thet had bean developed upon rough stone shipments.

This factor, together with the desire

to escape the labor difficulties that had become prevelent in the leading construction centers and the attraction offered bywage rates for the operators of stone-working machinery that were in the early years lower than those to be found in the leading construction centers, brought the migrat ion into the Indiana district of a number of cut stone contractors from i.ow York, Massachusetts, Illinois, etc., a of cut stone mills by local capital

353 During these same years both the quarries and mills were affected by technological changes.

In the case of the

quarries these improvements consisted primarily of an in­ crease in the efficiency of the operations and a reduction in the original cost of the basic tools and met hoc! s originated in the preceding period.

The chief innovation came with the

gradual introduction of electric power for certain operations. In the mills the developments consisted primarily of the intro­ duction and improvement of the principal stone-working machines particularly the planer, the diamond saw, and the air hammer• The amount of hand work involved in stone cutting was &reatly reduced and man// contracts, especially those which did not involve ornamentation or carving, could not be fulfilled, with the use of very/ little hand labor.

As a consequence, it seems

probable that the labor cost per cubic foot of producing the various grades of stone was being reduced in the errly years of the period.

This appears oil the more likely in view of

the fact that prior to 1916 wage rates in the Indiana district remained rather stable over rather long periods of time; for example, those prevailing in 1903 continued to prevail until 1310, and those granted in 1910 were in force until Iglf.

It

is difficult to compare labor costs of Indiana cut stone mills with those of mills located elsewhere.

when these competing

mills were working upon other stones, their unit labor costs were affected by the fact that all the principal competing stones of the period —

even the other limestones —

were

354 harder to cut and saw and therefore took more time for the various operations.

lien the competing mills worked on In­

diana limestone, it is evident from their complaints and from their tendency to stress competitive stones that many of them were at a. cost disadvantage.

This may have been the

result In part of differences in labor costs.

'we know that

early in the period the wage rates in the principal midwestern cities for the various classes of stone-working labor were higher than those being paid in Indiana.

In view of the

higher cost of living in the larger cities, it seems probable that they continued to be somewhat higher.

It is, of course,

true that the cut stone mills in the consuming centers had other disadvantages, particularly their inability to use ir­ regular or misshapen "cull 11 blocks and the necessity of pay­ ment of freight on stone that would be wasted in fabrication. Another factor in the reduction of cost per unit of producing stone during the period prior to the war years was the increasing centralization of production and the growing percentage of total volume of production furnished by the larger producers.

In the absence of figures of the actual

costs of production,

it is perhaps reasonable to presume that

these companies were hole to secure economies in operation that were unattainable by a number of their smaller competitor; For example, the company that operutec. a numoer o± q u a n y

open­

ings not only saved through the purchase of supplies in larger quantities, but was often able to fulfill demands for stone

355 of a particular grade or size with less additional expense than the firm dependent upon only one opening. These larger companies began to take the initiative in establishing the prices for rough block and semi-finished stone.

During the earliest years of the period, from I897

through 1901 , cut-throat competition among these larger pro­ ducers was the rule,

horny of the smaller operators found it

difficult to continue to operate and certain iy to expand operations at the price levels resulting from this struggle. From 1902 to 1912, however,

it appears that the volume of

business was sufficient for the larger firms to operate at e, sat isf act ory level of capacity and even to expand that capacity.

During this period of lessened price competition,

smaller firms appeared better able to survive than in the pre­ vious period.

The prices originated by the larger firms ap­

peared to have been high enough to allow all but the most in­ efficient operators and those companies unfortunate enough to open very poor deposits of stone to survive. The Indiana stone district, therefore, from II 97 through 1912 appeared to be able to ^aintcd,n or even improve its competitive position because of the following principal factors: first, technological improvements and economies of larger scale operations were achieved in signifleant propor­ tions; second, the favorable freight rate structure originated at the end of the preceding period v.as extended into mo,, arras, mode to nrevail for cut stone as well as rouga

r “1

.V- -

Ij

356 prior to 1906 may hove offered certain discriminatory advan­ tages to certain large producers, notedly those ov;ned by railway companies; third, a more aggressive sales policy t:c.s undertaken by the industry; and fourth, there is reason to believe that labor costs of the Indians, firms compared to their advantage v.lth those of their principal competitive companies* From 1912 to the end of the period, honever, the sales of Indiana limestone do not seem to have maintained the levels reached in the preceding years.

Although the percentage of

the value of total sales of building stone represented by the value of sales of Indiana limestone continued to increase until the war years, Indiana limestone, like all building stone sales,

suffered from the competition of substitutes.

Fewer of the non-residential buildings that were constructed appear to have been the type in which stone was commonly used. Face brick and concrete appear to have gained at the expense of stone.

The greater proportion of che volume of non-

res identic! building of these years, particularly after the outbreak of the World ..ur, seemed to be concerned with sme! 1 orders or with that type of manufacturing rash :r tha.i commer­ cial enterprise in the construction os. chose structures steel, brick, glass,

cement, or a:

u J.M

jm

vltlm

3 b g *1 L' jP 2- f u v, v b £? g>

J

d'bt. ct

much more important In a d u i oion giff iculties

ostween

^0 one

u.l oa^s, cu«

su one

w oe lon^, u-**i --wn—

!■.

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357 men So one Cutters Association had led many architects, ouTid­ ing owners, and contractors to experiment to an increasing degree with substitutes for stone in order to avoid costly delays in construction.

The aggressive promotional campaigns

that the various groups in the cement and clay products in­ dustries began to conduct were launched at a very timely period. The increasing centralization of cut stone mills at the quarries had decreased the business of the local cut stone contractors to such an extent that many of them, embittered by the loss of their largest end best contracts to Indiana, pro­ ducers,

ceased to push end promote Indiana limestone for the

many small orders for sills, lintels, and other trimmings that, taken as a whole, had represented the majority of the demand for stone. The Indiana cut stone mills were affected by the cir­ cumstance that although the majority of cut stone orders of these years were for small amounts, the Journeymen Stone Cutters, with the aid of the setters of stone, had forced temporary recognition of a policy that restricted the cut stone sales by Indian.a proG-ucers m

nanm or one louding ui^.r.ets m

oiw.eis

larger than a specified minimum of cubic femb. After the outbreak of the wan in burope, thn congest_o~ upon the railways proved to oe a serious drawn.c^ to types of building products thumb ran wo uo cranspor'

■J

V-vWm d

able distances in oontrc.st to mouse producos w...use _u*oc..>.coro.. was more decentralised,

tiih the entrance ~i

u .- o

w-umcou *tmt

358 into the world war, greater difficulty was encountered both in the t r an sport at ion of fuel and supplies and in the move­ ment of the finished product.

Sales of Indiana stone de­

creased to a volume loner than any since 1337. To offset these unfavorable trends, the industry took a number of steps both as individual firms end through group action.

There was an increase in the intensity with which

firms sought to develop more efficient machinery and in the rapidity with which such improved machinery was installed in order to reduce the volume of work done by hand or with ob­ solete machinery.

Some firms, both quarry and mill companies,

began to seek to obtain economies of integration by invest­ ment in both branches of the industry. In addition to individual economies, savings through group action were now vigorously sought.

Efforts on the part

of labor to resist the more extensive use of machinery and to obtain union recognition or increased wages were met by united opposition.

Representatives of the bedford Stone Club pre­

sented the cut

stone m ill’s point of view at freight rate hear­

ings and were sometimes opposed by Indiana quarrymen.

A pro­

motional association was formed to conduct -avert icir.0 and pro­ motional campaigns in behalf of Indiana limestone.

An effort

was begun to reduce the amount of waste in uhe industry both by making more use of by-products and cy the promotion of the sales of less-desired varieties of stone —

0ray as well as

buff, variegated in color, and the coarser and less uniformly

359 grained stones.

In the cut stone division of the industry,

and to some extent in the quarry section, increased attention was paid to the proper determination of costs. producers began to exchange price lists.

Quarry

The cod stone opera­

tors formed the Bedford Stone Club Auxiliary.

This organiza­

tion promoted a bid-filing arrangement that was intended to prevent cut-throat competition and the taking of bids at less than cost figures.

As a result of these activities and of the

increases in wages found necessary to hold labor, prices of rough blocks and of more finished products tended to become more uniform throughout the Indiana district and in relation to the general movement of building costs to move unfavorably to the movement of prices of leading competitive products. As a result of the price situation and of the general lack cf demand for stone buildings,

Indiana cut stone producers sought

to obtain the adaptation of their machinery to war orders.

A

few months prior to the end of the conflict some of the mills obtained steel-planing orders.

Although several firms are

said to have improved their financial position measurably through such contracts, the v.ar ended before the majority of firms could be greatly affected. From the preceding summary, it is evident that the Indiana, limestone industry in IQlf had once ucu i ' de- oust rated that, despite the fact that this stone possessed certain in­ herent advantages over other stones for ouilbing pur msec, there were also certain factors in the situation t nri

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332 How did the various exterior building stones compare in their participation in the sales of this period? Table 30 shows their sales in cubie feet 1919-1933 and as percentages of the total exterior building stone sales. Figure 11 gives a graphic comparison of the percentages of the total building stone sales represented by each of the major types of stone.

For the sake of convenience,

the graph is continued until 1940 in order that the depression period may be compared with the 1920's. The relative prices of facing materials are pertinent to interpreting the changes in their sales.

Table 31 com­

pares the changes in prices of the chief facing materials to the changes in price of Indiana limestone.

The actual

prices are shown in Seetion A, ©Section B expresses the prices in percentages of their respective 1919-1933 average prices.

Figure 12 is the graph of Section A, Table 31 and

Figure 13 expresses graphically the data of Seetion B, Table 31.

Both figures are carried through 1940 to enable comparison

of the depression years with the 1920's.

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FIGURE 14 INDIANA LIMESTONE I9 I9 H 9 4 0

1932

BY

(933

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PR O D U C ER S

1937

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(939

1940

399

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402 It is apparent that figures for 1919 and 1920 cannot be obtained since the sawed and semifinished out­ put of quarry companies was classed with rough blocks in these years.

Nor can the figures for sawed, semi­

finished, and cut stone be separated for 1921 and 1922 since mill company figures were not separated until 1923. A comparison of Tables 3^f and

reveals that the

"independent mills" not owned by quarry companies did not suffer declining sales of cut stone from the depression until 1931.

This point will be discussed when the effects

of merger in the district are presented in a later section. It is possible to gain an idea of the percentage of the total rough blocks of limestone sold that represented sales of Indiana limestone.

Similar percentages for sales

of sawed and semifinished limestone and of out limestone are not possible to calculate.

Comparison of the total

amounts of sawed and semifinished and cut stone sold by Indiand quarries and mills and the total United States fig­ ures reported by the Geological Survey and Bureau of Mines reveal the absurdity that the former is often bigger than the latter.

This is due to the faet that the Geological

Survey and Bureau of Mines have not collected data on the stone milled by cut stone contractors not located at the quarry centers.

Unfortunately, the Census of Manufactures

does not present data on the cut stone industry sufficiently

403 broken down by kind of stone or degree of fabrication to enable comparable national totals to be compared with the Indiana figures. Sales of rough blocks, however, can be compared after 1920.

Table 3JF presents the percentage of the total

cubic feet of rough blocks of all limestone sold that was sold from Indiana quarries and the percentage of the total value of all limestone represented by such sales. TABLE 39 PERCENTAGE OJ TOTAL SALES OJ ROUGH BLOGK LIMESTONE SOLD BY INDIANA QUARRIES 1921-1932*

Year 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932

Cubic Jeet

Value

91.63$ 97.42 95.25 91.67 90.22 93.28 91.47 86.50 86.32 87.77 89.53 89.51

88.20$ 94.79 94.00 88.63 84.94 91.49 90.32 87.50 77.57 80.22 81.14 82.17

*Souree: Computed from Mineral Resources of the United States. 1919-1931. passim A decline in the percentage of rough blocks of limestone reported sold by the Bureau of Mines does not

404 necessarily mean a relative increase in the production and sales of other limestone quarry districts.

It might also

mean that more of the Indiana limestone quarried was being sold by the quarry companies as sawed, semifinished, or cut stone.

This we know to have been the case*

To give the percentages of the total limestone sales of sawed, semifinished, and cut stone reported by the Bureau of Mines represented by the sales of Indiana lime­ stone by producers could be misleading,

stfhen the amounts

sold by Indiana stone mills not operated by quarry com­ panies is added to the amount sold by firms operating both quarries and mills ( the "producers" of the Bureau of Mines tables ), the resulting totals are larger than the totals for the entire eountry in many years.

Hence,

it is evident that the Bureau of Mines summary limestone tables do not eontain the sales of any of the "independent" cut stone contractors of the country that do not own quarries. The Census of Manufacturers does not break down its reports on cut stone mills to show the amounts of various kinds of stone fabricated.

It is impossible, therefore,

to ascertain the total cubic feet of any stone cut in the United States.

The Bureau of Mines figures represent the

amounts cut at the quarry centers by the quarry owners. The Census of Manufactures contains these figures in addition to the amounts cut elsewhere, but does not break down the figures to show the degree of fabrication.

405 Promotional A co n s i d e r a b l e sales

of

proportion

In d i a n a limest on e

1 9 1 9 - 1 9 3 3 s h o u l d go industry.

Early

tion i n c r e a s e d

Activities of

in the

tiie credit f o r

early p o r t i o n

to tiie p r o m o t i o n a l

in 1919,

its dues

the

from

of

activities

Indiana Limestone 1/2 / p e r

cubic

the

in c r e a s i n g

the p e r i o d sjDonsered by the

Q u a r r y m e n ’s A s s o c i a ­

foot s n i p p e d

to 3/

1 per cubic

foot

an ac tive

c a m p a i g n was

Indiana

shipped.

limesto ne .

tra in ed

in p r o m o t i o n a l di rec tor

of tne A s s o c i a t i o n

in 1919.

group was

of

draftsm en.

increas ed

trudget t.ius afforded,

b e g u n for the p r o m o t i o n

e n g a g e d as

c o m po se d

the

A technically

who h a d b e e n e n g a g e d i n d us tr y was

With

three

At the h e i g h t

of

of

A field

in tne

clay p r od uc ts

A r c h i t e c t s ’ Serv ice

staff w a s

m e n who were

of

::r c h i t e c t an d d r a f t s m a n

activities the

of all v a r i e t i e s

so o n added.

experienced

This

atone

the A s s o c i a t i o n ’s a c ti vit ies

Bu re au

m e n and this

staff

2 had been expanded the c ou nt ry

to a group

to as sis t

t ec hn i c a l pro bl em s Brr 1920 service 3 and Toronto.

tion. An

architects

involved

bur ea us

Three m a i n

linos

Tiie first line

i n v e st ig at io n

and co nt ra c to rs

in the use

of

f i e l d m e n t our ed

in s o l v i n g

of ac ti on de alt

in New York,

directly w i t h

staff

f o r m e r m e m b e r of B o a r d 26, 1942

(February, 1996), 79

Chicowo,

tne A s s o c i a ­

t.:e architect.

of F. Vi/. Do d~e

op. cit., p. 6

the

stone worl: in c o ns tr uc ti on .

of p r o m o t i o n we re f oil w e d by

c o n d u c t e d by the

°Stone, XLI,

Thes e

h ad be en e s t a b l i s h e d

I r v i n S. La t thews, B l oo min gto n, Indiana, Larcn

O Walters,

of ei ght men.

Cornornti on

of D i r e c t o r s , ILfA,

406 in 1S23 r e v e a l e d p r e c e d i n g pear, c/ere p l a n n e d

that of the p r o j e c t s 59.4;^ of t h e .n u m b e r

by a r c h i t e c t s

and

reported

to t h e n for the

of b u s i n e s s

tha t

b u il d i n g s

these p r o j e c t s

reported

connrised

82.9^

1 of the

total

value

by the s e c r e t a r y limestone

of su c n b u i l d i n g s

rep or te d.

of the A s s o c i a t i o n that

industrv* s d ir e c t

ove r

It was 95a

estimated

of the

sales w e n t to b u i l d i n g s

Indiana

designed

by

2 a r ch it ec ts .

The

the m a j o r i t y

assistance

of a r c h i t ec ts .

not

to p r o m o t e

the p r o d u c t

the

la rgo r c o m p a n i e s

any

thei r r e c o m m e n d a t i o n s . architect ious

stone was nature.

and co lors

company,

ad v a n t a g e s

by p r o b l e m s

entrance

to see

called u p o n by

the

architect

any

of b e i n g to as si st

assured

to

tnc

in the

the v a r ­

sale

of

in

of fice

of

men who solution

treatment

To d e v e l o p

tno.t any

of

salesme n.

service

of

of

to the

technical

in the — p r eJp .a r a t i o n

fo r tne c o n t r a c t o r s .

the arc hi t e c ts w e r e al ways

the

ord in ar y

to su ggest ne w m e t h od s

on o c c a s i o n to aid

of stone

in w h at ways

c o u l d obtain

reputation

f ic a t i o n s and p l a ns

t h r o u g h the n a t u r e

essentially

the

eroduct,* and ev e n A

and not to give

and e f f i c i e n t use

refuse

in s t r u c t i o n s

to seek to d e m o n s t r a t e

bu ilt up

of t ec hn ic al problems,

g i ven c ar ef ul

an d to d i s c o v e r

f i el d agents

They c a r e f u l l y

fi eld m e n was w e l c o m e d by

one

They w e r e

ma n y arciiitects wh o w o u l d

c ou ld be

of any

special

being hampered The

these

Th e y were

the mo s t e f f e c t i v e

grades

of

of the

of sJ. ued-

this function,

information

obtained

in

o the cou rse

of s u c h c o n s u l t a t i o n s w o u l d be

treated

as

co nf i d e n t i a l .

^T. 3. Holden, "The A r c h i t e c t as a F a c t o r in the G'ous t r a c t i o n Industry", A r m i t.ectural Record, LIII, (April, 19 23), 375

iana,

2H. April

S. Brightly, 20, 1941

3 Ibid

f o r m e r secretary,

ILbA,

B l oo mi n g t o n ,

Ind­

The were

we ll

Eureau,

ob je c t i v e s

set f o r t h

H.

of

the A s s o c i a t i o n ' s

in May,

S. Bri gh tl y ,

1925

by

appeal

the d i r e c t o r

in a n a d d r e s s

before

to tae a r c h i t e c t

of

the

its

service

International

Cut

1 Stone Mr.

Contractors

Brightly

and Q ua r r y m e n ' s

st at ed

that mo s t

g i n e e r i n g ha nd boohs w h e n stone was most

of the

of the

t r e a t e d chi ef ly

as

th at many a r c h i t e c t s

by i m p o s i n g

"u n w a r r a n t e d an d

the

technical

st ud i e s

information specify, for the

to

detail,

and

specific purpose

the

the

making

stone.

therefore,

third,

fourth,

to make

ava il ab le

that fair

assured

Record

delivery

clear

it k n o w n that

and

resulting

of

bids the

of

program

the p r o d u c t

for

the

g o o d or s t a n d a r d

employing

we re

to

to conv in ce

the p r o d u c t

that eq ui t a b l e

and re as o n a b l e

to make

of

As

in a p e a r a n c e ;

to te ach w h a t was

the material;

and fifth,

the

to seek

and v a r i e t y

economy a nd fit ne ss

safe

or costl y

it easy f o r th e m

first

- the p r o p e r methods

times;

give

The p r o m o t i o n a l

co n s t r u c t i o n p r a c t i c e

and

to p l a y

constructional an d

Hence

co n t r a c t o r s .

s t r u c t u r a l and p h y s i c a l merits

in mind;

at a time

m a t e r i a l a nd w h e n

s ou ght

cut stone

to do

weathering qualities,

to str ess

b ef or e

and e n ­

un d e v e l o pe d.

and en gi n e e r s

form,

an d us e n a t u r a l

of the

its durability,

relatively

for the a r c h i t e c t s , etc.

i n d u s t r y was p l a n n ed ,

the a r c h i t e c t s

second,

o b l ig ed

them in u s a b l e

time,

of t e n u n r e a s o n a b l e , w a s t e f u l

on q ua rr y p r o d u c e r s in dustry was

that

in a r c h i t e c t u r a l

a soli d m a s o n r y

we r e

it was fe lt

a re s u l t

data

At

h a d be e n p r e p a r e d many y e ar s

i m p o r t a n t qu a r r i e s

requirements"

Association.

or e r e c t i n g

c o m p e t i t i o n was

ob ta in ab le

industries'

at all

frci lit iss

as requir ed.

*H. S. Brightly, "The H r it ten wo rd as a P e r m a n e n t R e fe r e n c e in P r o m o t i o n a l Work", Stone, XLVI, (May, 1925), 2..B-297

>**-409 Cl osely allied with the first type of promotion were the contacts made witii architectural schools.

Arrangements were made

with such schools to give lectures that would fit into their curricula.

The "sales talk" type of lecture was carefully avoided.

Films and lantern slides were prepared to assist in tne presentation n JL

by illustrating points in the adaptability and treatment of stone. The second main line of promotion was directed by the Association towards its relations with the cut stone trade.

Over

sixty-five percent of the industries' product at that time went to the user through the cut stone trade.

The field men were instructed

to aid the local cut stone contractor in his contacts with the architects in his locality.

The maintenance of friendly relations

with the local cut stone contractor was made a major objective of 2 the Association. To aid the field staff in its work with these two groups, the Association assembled a master file of records of various treat­ ments accorded Indiana stone in tne buildings In wnicn it had been utilized.

These records consisted of photographs, plans, and

specifications.

Booklets were prepared presenting sample plans for

various types of buildings indicating tne adaptability of stn.e to the perticule r structure concerned - for example, bank buildings, 3

hospitals, etc. ■4i. S. Brigiitly, "The Written Word as a Permanent Keferenc: Record in Promotional Work", atone, XLVI, (hay, 1925), 294-297 2 Ibid 3Ibid

410 The public.

thir d

Both

type

of p r o m o t i o n

di rec t and space

It was

de em ed more

the bu lk

de si r a b l e

of the f i e l d m e n and to p u b l i s h

that w o u l d m e a n more

constituted

group mo s t

decisions

of

the types

of b u i l d i n g

Thus,

the

builders

fo r example,

magazines local

ch u r c h b u i l d i n g

c o m mi tt ee s

its m on ey

into

and pr ie s t s rather

end, this

the a c t i v i t i e s

li te rat ur e - de tail selected

dieatele

that

the vital

public,

i n st it ut io na l,

the m a j o r mar ke ts

thought p r e f e r a b l e

to min is te rs

genera l

to this

in a f f e c t i n g

commercial,

that c o n s t i t u t e d

it was

that went

the

hie

used

to fi n a n c e

to the

influential of

of

informative

and data s hee ts the

to r e a c h

a d v e r t i s i n g was

b ut the A s s o c i a t i o n did not p u t channel.

sough t

fo r s tone.

to ad ve r t i s e

in the

and m i g h t be use d

by

than to ad ve r t i s e

in oop-

colors

of stone,

1 ula r magazines. In the p r o m o t i o n it has

al r ea dy be en

in p e r s u a d i n g

question,

all

and grades

that d i f f i c u l t i e s were

a nd eve n tne

architects,

encountered

that

of equal d u r a b i l i t y and quality.

it was- arran ged fo r p h y s i c a l

the B u r e a u of S t a n d a r ds . co nt ac ts w i t h

the va rious

i nd ic a t e d

the public,

and grades were this

of

F r o m 1917 u n t i l

the B u r e a u

and for

sev er al

tests

these colors

To

settle

to be made

at

19.27 the A s s o c i a t i o n h a d "ears

maintains:,

a

2 r e s e a r c h engineer Indiana that

limestone we re

there was

stone.

there.

As a result,

det ermined.

no d i f f e r e n c e

Differences

the p h y s i c a l pr o d u c t s

T h ese

tests e s t a b l i s n e d

in d u r a b i l i t y b e t w e e n

in the p h y s i c a l _ p r o p e r t i e s

oi

the

of

cl early

rag; and. buff vc,r i ous

grades

of stone v/ere found bu t were n o t of se ri o u s

Record

bi. S. Brightly, "The W r i t t e n word as a P e r m a n e n t Referenc: in P r o m o t i o n a l Work", S t o n e , X L V I (may, 1925), 292- 297

2

E. C. Walters, op. cit., p. o

con seq ue nc e* *

411 The

"R ust ic"

a li ttl e

or G r a d e

C stone was

l o w er an d a p e r c e n t a g e

the S e l e c t co mm en de d

or S t a n d a r d st ones the

found

to have

of a b s o r p t i o n

of G r a d e s A ana

a crus.iin, s t r en gt h

a little hi.„ner tna n B.

Dr. L o ug h 1 in r e ­

f o l l o w i n g uses:

"These d i f f e r e n c e s in p h y s i c a l p r o p e r t i e s are too small to be of serious c on se qu en ce , but so far as they go the y are in k e e p i n g w i t h the s u g g e s t i o n to use s e l e c t stone in the mo s t c l o s e l y ob s e r ve d parts of a b u i l d i n g n e a r s t r e e t level, s t a n d a r d stone t h r o u g h o u t the r e m a i n d e r of the l o we r stories, and coarse-grained tone in tne u p p e r s t o r i e s . " ! "The d if f e r e n c e s in c r u s h i n g strength, p e r c e n t a g e of a b ­ sorption, and rel at ed p h y s i c a l p r op e r t i e s are too small to be ve r y s i g n i f i c a n t co mm e r c i a l l y , tut as ther C* i1 Cv b e e n in tne past some t e n d e n c y to re g a r d tne gray stone as in f e r i o r to the buff stone it is w o r t h while to call p a r t i c u l a r -attention to the s l i g h t s u p e r i o r i t y in p h y s i c a l p r o p e r t i e s of t.:e select gra'r -'tone over all other rrades of I n d i a n a O o l i t i c l i m e ­ stone. "2 With

scientific

gray an d v a r i e g a t e d coarser stone

varieties

to mak e

launched

tr end

was

of stone

significant

It w i l l

to

to pr om o t e

ca mp a i g n s

on the

Select Buff

■'‘Lougiil in, ^ I b i d , p.

tne buff

that

stone

tne

and

the A s s o c i a t i o n

tne d e v e l o p m e n t

of these

the y e a r s w h e n the

ca l l e d for c o lo r and v a r i a t i o n

joint

cane at an a p p r o p r i a t e

cost p r i n c i p l e were va ri et ie s.

s o l d at 80p' p er

op.

c i t . , p.

foot

195

in

time.

established

S t a n d a r d -5iZeu

cubic

the

to f i n e - g r a i n e d

differences,

h r t these were

B u l l e t i n 811-C, 199

as

to p r o m o t e

therefore,

th.ese o n c e - d i s c a r d e d

for example,

durable

c o m m er ci al

Such campaigns,

tne p r o p o s i t i o n

not en o u g h i n f e r i o r

be r e c a l l e d

differentials

support

as

of a r c h i t e c t u r a l f a s n i o n

texture. Price

stone

advertising

products.

data

(Lay,

^loc..s, 1923)

412 and Select Gray at 70£; Standard Buff tO • to

o o

• o o H O O • o o rH o o • o o 1—1

a

a

•

05 02

LO

o o rH

CO i—1 CO CO CD P • a a co CO i—1

02 05 • CO 02

CO

o o

•H O

Pi

existence

428 ILQA classification had. been followed its application had not been uniform,

Consequently, the Institute sought to secure some agree­

ment and made a study of the methods of grading then prevailing. In their recommendations the distinction between Select and Standard Variegated was abandoned.

Special hard buff and gray were classed

separately with the same textural limitations as select stone; Indiana travertine was merged with Rustic and Old Gothic, and restrictions regarding shell holes, glass spots and streaks were in some cases made more severe and in some cases more tolerant 1 than before. The divergence of interests in the industry, however, led to the formation in 1930 of an additional association, Stone Association of Indiana.

tne Building

Sixteen of the "independent" com­

panies of the district, with a quarry capacity approximately onehalf the capacity of the district joined the Association.

Seventy-

five percent of their output was being sold to the local stone trade as contrasted with the merger wnich was selling an increas2 ing proportion of t.ieir output directly. This organization hoped to repeat the program of tne Indiana Limestone Quarrymeni*" Association.

The former director of the ILQA was secured to head

the new group and two field men were engaged.

Starting as it did

at a time when the decline in sales was beginning, nov/ever, this hi Uniform Classification and Grading", at 191G), pp. 753-755. See also Lougnlin, note da. There are many special tr.de companies still use the name "Travertin of stone. 284-2S5. ^Stone, XLI, (Lay, 1930), 204 1930), 3G 2G and 11ills, II, (September, 1S30),

See also Quarries

439 association never possessed dues-paying membership By 1952 had to

its f i e l d

tact

a c t i vi t ie s

the

of

its p r e d e c e s s o r .

d w i n d l e d f r o m s i xt ee n

become n e g l i g i b l e . the po int

tne b u d g e t

and

active p r o m o t i o n a l

The a c t i v i t i e s secretary ,/

to twelve

of

of tne

Its

to six.

ca mp ai gn s

Association dwindled

the A s s o c i a t i o n and xo a r t - t i n e

1 s t e n o g r a p h e r be ca m e

the only

employees.

In t h e i r p r o m o t i o n a l work, had not

neglected government

appropriated $45,000,000

the

Lidia..a li mes ton e

buildings.

In 1915

tne Co n g r e s s nad

for new G o v e r n m e n t bu il di ng s

c r e a t e d the Pub li c B u i l d i n g s

of c o n s t r u c t i o n and the

c o n s t r u c t i o n of m o s t continued

to pay

particularly ernment which

severe

Elliott

in new n ew

sums

fo r c e d

opening

1

H.

S.

scattered

the

be c a m e

of Congress

D u r i n 0 tnis Congress,

A number conditions

in a n u m b e r (1923),

C h a i r m a n of

on P u b l i c Bu ild ing s

that i n d i v i d u a l me m b e r s

buildings

of Columbia.

of the S S t h Congre ss

of C o n n e r s v i l l e , Indiana,

buildings.

of tne w a r p r e v e n t e d

to oper ate u n der

di vi s i o n s were

R e p r e s e n t a t i v e 1s C om mi t te e f o un d

tne ri s i n g

The F ed er al G o v e r n m e n t 4 in renta ls. The c o n g e s t i o n was

in the Di st ri ct

d e p a r t m e n t s we r e

W i t h the

ad ve n t

but

of C o l u m b i a .

the bu il din gs.

out large

t h e i r v ar io us

ings.

of

and had

C o m m i s s i o n for the D i s t r i c t

A n u m b e r of si tes for pos toff ices were purcnased, cost

interests

President

R i c h a r d k, the house

Coolidge

_ Brightly,

Interview,

April

20,

1941

«“7

Second

he

reco.-.-.euc

in the D i s t r i c t of C o l u m b i a to t.ie a...ount of jut, CO

C o n g r e s s i o n a l R e c o r d , V. 35, pt. 3, SC tn Congress, Session, p 7 ~ 2 4 4 8 ^ (Senator A s h h u r s t - Arizona)

o

of

for $ 2 3 C , 0 C C , C 0 0

p Second

in

of b u i l d ­

ana G r o u n d s •

nad as ked

of g o v ­

I b i d , p.

2454,

^-Congressional Session, p. 61,

(Senator

Smoot - U t a h )

R e c o r d . V. 56, pt. 1, 5 0 t h Co:, ress (.Senator F l e t c n e r - Fl ori da) ^ *

,C'

430 a sum to be spent over a five year period.

The sentiment of

Congress at that time appeared to be such that it would be impossible to get the much-needed Washington buildings unless at the same time some appropriations were made for the rest of tiie country.

Hence Elliott and Representative Walter

lUagee of New York drafted a bill authorizing tne expenditures of $50,000,000 in Washington, D. C. and $100,000,000 in the States and Territories.

The Secretary of the Treasury was

to select the building sites and determine the character and cost of the buildings and send his recommendations to the Director of the Budget.

The Budget Bureau would in turn

submit the proposals to the House Committee on Appropriations and the usual legislative procedure would be followed.

This

bill was introduced early in December, 1924, passed tne House but died in the Senate.

In the 69th Congress, the bill was

reintroduced by Representative Elliott with $15,000,000 added to increase the limit of cost on the buildings authorized by the act of march 4, 1913.

It became a law on Llay 25, 192S.

An amendment was added restricting the location of buildings in the city of Washington to a specified area.

Consequently

the Washington construction was delayed until an additional appropriation of $25,000,000 for the purchase of tne land in tnis area was finally approved January 13, 192c.

On Feb­

ruary 24, 19 28, the act of 1926 was amended to authorize an additional $100,000,000.

Ten million of this -was to be spent

annually in the District of Columbia and $25,000,000 in the

States

an d T e r r i t o r i e s .

propriated

for an A n n e x

D e c e m b e r 20, ed.

19 2 9

to

10,

to tne House

the new

On M a r c h 31,

added

On J a n u a r y

Supreme

1929 funds we r e

Of f i c e

Building,

Court B u i l d i n g was

ap­

arid on authoriz­

19 3 0 an a p p r o p r i a t i o n of $ 2 3 0 , 0 0 0 , 0 0 0 was

the p u b l i c

buildings

funds.

Tnis made

of $ 5 9 0 , 8 9 0 , 0 0 0 of wnicri $ 2 2 7 , 8 9 0 , 0 0 0 wa s

a total

amount

for tne D i s t r i c t

of

1 Columbia. This p r o g r a m w o u l d cave stone

trade

during normal

made p a r t i c i p a t i o n Tne

Indiana

degree. years the

times.

The

ad ve nt

in it of e v e n g r e a t e r

limestone producers

In 1930

b e e n of great

it was

did

e s ti m a t e d

f a c i n g of wnicri was

by more

b e t w e e n 1900 a n d 19 3 0 s ho we d

only six of

that

ha d no s u c h bui ld in gs .

listed w e r e sylvania, consin.

g r o up ed

Ohio,

in tne

N e w York,

If T e xa s

is a d de d

tee

of these

Ninety-nine

states Iowa,

n ad

I n d ia na L i m e s t o n e

iana L i m e s t o n e trim h a d be e n used 2 3 number. A bulletin l i s t i n g 225

states

to

of

to the

depression to

an

tnem.

important

in the p r e c e d i n g fifty

over two h u n d r e d arid f i f t y p o s t o f f i c e s

en t i r e

of tne

im po rt an ce

take p a r t

tnat

interest

and

tnat

tnan double b ui ld in gs

on

Indiana,

Michigan,

been erected,

tnat erected

tne

forty-eight

the

bu il d i n g s

Illinois,

Missouri,

to tal becomes

I nd­

and

Penn­ Wis­

one h u n d r e d and

f ifteen.

Se c o n d

-^C o n g r e s s i o n a l R e c o r d , V. Session, pp. 1 0 3 0 5 - 1 0 3 0 8

72,

pt.

10,

o.mp'ass,

^ B u l l e t i n 5 , "Biggest U. S. G o v e r n m e n t Euiluiiu. P r o ­ gram in H i s t o r y A u t h o r i z e d and C o n s t r u c t i o n st- rted", In di ana L i m e s t o n e Company, Bedford, Indiana, M a r c a 133C,

433 A spirited debate took pl ac e in tke Congressional committee rooms be for e Indiana l i m e s t o n e was s p e c i f i e d for the famous Federal Triancle in Washington, D. C.

The combined

cost

that

of

the

buildings

in this

croup - a croup

in c lu de d

the Department of Commerce, Department of Labor, Department of Justice,

Bureau

of Inter nal Beve nu e,

Intersta te

Commerce

Commission, Post Office Department Annex,

the Archives Duild1 ing a nd the A p e x b u i l d i n g - was $ 6 5 , 9 5 1 , 4 3 3 * 6 4 * In this

group for example, qu ir ed

the

2000 c a r l o a d s

terstate

Co m m e r c e

of

D e p a r t m e n t of Commerce li me sto ne

and

b u i l d i n g re ­

the P o s t - Of fi ce , I n ­

C o m m i s s i o n and D e p a r t m e n t

of L a b o r build-

8 ings ano th er of

20 0 0 carloads.

the c o u n t r y b e g a n to

The y p o i n t e d Chairman

of

to the fac t

ury

L e a d e r of

James E.

in charge

the

e x e rc is e m aj or

and G r o u n d s

of

of the P r o c u r e m e n t Division, Many

industry we re

l i m e s t o n e' s

Co mmi tte e

Secretary

of

still

and that

the T r e a s ­

F e r r y K.

of the p r o m i n e n t

Heath,

leaders

le a d i n g R e p u b l i c a n s .

of s u p e r i o r p o l i t i c a l

cause

"monopoly".

Senate was I n d i a n a ’s se ni or se n ­

Wa t s o n . The A s s i s t a n t

Indiana stone

regions

that R e p r e s e n t a t i v e E l l i o t t was

was a n a t i v e - b o r n Hoosier. the

m en from o t h e r

talk of an I n d i a n a l im es to ne

the H ou se B u i l d i n g s

the M a j o r i t y ator,

Stone

i nf lu en ce was 3 success.

•^•C o n g r e s s i o n a l R e c o r d , V. Congre ss, Second Session, p. 6479

30,

yd.

regarded

of

Tne as a

6 , Seventy-Fourth

^ lb i d , p. 6869 ^ C o n g r e s s i o n a l R e c o r d , V. 76, p t . 2, 72nd Congress, Se co nd Session, p.' 1163. Qu ota tio n fr o m a Clipping fr o m St. Claud, Mi nn eso ta, Da ily Times, D e c e m b e r 16, 1S52.

433 This mean

that

On M a y ury,

complaint

they a a d

26,

1S62,

Indiana,

stated

s t r uc te d u n d e r into f i v e

u s e d for

1) B r i c k gra nit e

of

is a local

of buildings;

tne

same

cases

fa ced wi th

stone

co n ­

n ita

trim of l im es to ne the

granite

tne

a v a i la bl e

- 5$ of

t^e of

f ac ed

- used

in some

an d where

ma r b l e

is quarr ied

and 5) Gr a n i t e

- 2% of

stone used

ed b e t w e e n 5 - 1 0$ of

total

number

fou nd at io ns

the l a r g e r and some o_

of buil din gs;

the

Wa sh in gt on ,

-

sm aller

t o t a l ; 3) S a n d s t o n e fa ced - us ed wh ere

4) Ma rbl e

as mar ble

of cost for

Treas­

tart had been

or m a r b l e - 6 2 $ of

sandstone

el ab o r a t e b u i l d i n g s total n u m b e r

of tne

A r t n u r Gr ee nw oo d,

buildings

2 ) Limestone faced

- 30%

Secretary

public b u i l d i n g u r o g ra m c o u l d be d iv id ed

the m a j o r i t y of

bu il d i n g s there

the

did not

the b u i l d i n g prog ra m.

Assistant

that tne p u b l i c

cases

of b u i l d i n g s ;

Lov/man,

to R e p r e s e n t a t i v e

classes:

or in a few

ot aer stone d i s t r i c t s

been e x c l u d e d f r o m

S.

in a l e t t e r

fr o m tne

tne

me

total,

ma rb le

-

more

1% of the

f ced - used

tne total number.

in the facing,

total n u m b e r

On

tne basis

granite' was

15 - 20$,

in the

estimat­

sandstone

1 13 - 20%,

and l i m e s t o n e

On at least between r oo ms

the r iv al

Uiid was made

one

stone tne

b e t w e e n 55 and 65$. occasion in ter est s subject

of

the

behind-the-scenes

eme rg ed from debate

tne

on the

struggle

com;.: it tee

floor

of

2 Congres s.

Early

in march,

123C

•^C o n g r e s s ional R e c o r d , V. F i r s t Session, pp. ll751 - 11752

it was pr o p o s e d

75,

lot. 11,

turn, t the

7 2nd Congr:

^Congress ional R e c o r d , V. 72, pt. 5, 71st S e c o n d Session, M a r c n 1-- , l^oO, p p « j j -u — oo44

Corn re;

434 appropriation be

increased

be

used

a

f or a n e w B o s t o n P o s t o f i i c e fr o m $ 6 , 0 0 0 , 0 0 0

throughout

limestone

desi red

to 5 6 , 7 5 0 , 0 0 0

ins te ad of gr a n i t e

superstructure.

the f o l l o w i n g arg ume nts : g ra ni t e

M a ss ac hu se t t s,

and Fe d e r a l

The

in o r d e r

proponents

were p r e s e n t e d

the M a y o r of Boston,

that granite

for the l o w e r floors of

1) that tne p e o p l e

- a pp ea ls

Building

gra ni te

and

used

of New E n g l a n d

fr o m the G o v e r n o r

the Le gis lat ur e,

of

etc.;

2 ) that the use of gran ite would give more eniplojmient and that N e w E n g l a n d ha d

b ee n ha rd er hit

the c o u n t r y -

stated

it was

that

wo u l d re qu i r e m o r e h a n d l a bo r limestone;

o)

was

Survey,

that o r d i n a r i l y coloration, longer,

gran ite was

w e a t h e r e d more

and was

less

that l i m e s t o n e

fr om m a n y finally w o u l d be

M a r c h 18,

states

Dr.

1930, not as

evenly,

susceptible

came fro... only

processed to the rigors

limestone,

a point

G. F. Loughlin, in w h i c h Dr. liable

state, as 38,

United

States

L o u g h l i n stated

ac ti o n of f r o s t

to co rr o s i o n

- v a r i o u s l y stated

that

to st ain and d i s ­

withstood

one

of

of granite

be more su it ed

than w o u l d

s u p p o r t e d by a l e t t e r fro m

Geological

4)

climate

the p r o d u c t i o n

than w o u l d m ac hi ne

that gr an ite w o u l d

of the N e w E n g l a n d

than other sect io ns

hiafc limestone;

but 25,

gra ni te etc.;

came

and

5 ) that a c o m b i n a t i o n of the two stones in one b u i l d i n g artistically Against

po nents p o i n t e d I n d i a n a also,

these

in ap pr op r i a t e. ar gum ent s,

out tnat

and

that

the

there was

cut stone

In d i a n a

limestone

mu ch u n e m p l o y m e n t

mills

pro­

in

fabricating r o u 0h

435 Indiana

lim es to ne

prominent

were

arcnitects

building without

lo ca te d

nad

combined

f e e l i n g tne

if sucii a p r e c e d e n t were ings w o u l d be bility

producers one

to be

in Boston,

out

I n d i a n a st on e

a monopoly Aside

more

however,

pe rh a p s

that

tne p o i n t

tnere were

it c o ul d be

more rap id ly

th a n

the

ten

that

build­ possi­

cities.

a number

the

same

of

"mono;. oly"

c he ap ly f a b r i c a t e d

character. cheap ne ss

mm

ana

e x p e ns iv e

in s m a l l e r

d i s t r i c t and

f r o m tne re l a t i v e

in the

inartistic,

tnuc c u r t a i l i n _

that

of c o m m e r ci al

tnat many

two m a t e r i a l s

other b u i l d i n g s

it was p o i n t e d

in tne

states;

of g e o g r a p h i c l o c a t i o n of a material

and n ot

fact

set

the

re s u l t

elsewhere,

of b u i l d i n g m a n y

In a d d i t i o n

was

demanded

in nan;

of

the

...: terial,

.-ad cae nos o Wei r.iL was

f a b r i c a t e d and f u r n i s h e r

to the

tne

job

other m a t e r i a l s - s p e e d i n g uo c o n s t r u c t i o n

^1 mo ntns

and e v e n The

-ears

limestone

Federal

Building

in 1933

the hew Y o r k

to gr an i t e the fac t

on larg e people

pu b l i c

buildings.

did not always win.

e v e n t u a iiy v/as aw arded City

by S e c r e t a r y

that this

Courthouse

of

Tne

to gr cUii u0

and P o s t o f f i c e

the T r e a s u r y O g d e n M i ll s

increased

the

cost

Boston

0 ar 1^/" was

all ot te d

despite

of the b u i l d i n g by

2 $454,0 00 . In tne meantime,

tne

Journeyman

iation of N o r t h A m e r i c a h a d p e r s u a d e r

1Q u a r ries

J a n u a ry

Stone

the

Cutters

annual

convs.„tion

and M i l l s , I , ( A p r i l , 1 i30),

"B l o o m i n g t o n E v e n i n g Y o r l d , 13, 1933

§. V.

Assoc­

7, n.

436 of

the A m e r i c a n F e d e r a t i o n of L a b o r

proposing to rel ie ve

that all s t on e unemployment

to pa ss

a resolution

u s e d on F e d e r a l B u i l d i n g p r o j e c t s be p r e p a r e d

in the

1 c a li ti es w he re

1 the b u i l d i n g s w e r e The p o i n t stone

was w e l l

to be

erected.

of v i e w

summarized

of

o pp on en ts

of the use

of

lime­

in a joint r e s o l u t i o n o ff er ed by

s e n a t o r S c h a 11 of M i n n e s o t a seventy-second

the

in the

Second S e s s i o n

of the

Congress:

"Whereas, it is de si ra bl e to secure for all F e d e r a l m e m o r i a l s or buildings, a p e r m a n e n t d i g n i t y and l a s t i n g b e a u t y in k e e p i n g w i t h the c h a r a c t e r and s t a b i l i t y of our in s t i t u t i o n s of g o v e r n m e n t , and "Whereas, b u i l d i n g stones of h i g h e s t qua li ty are a v a i l a b l e in h a l f the states of tne Union, s c a t t e r e d from Ma in e to C a l i f o r n i a and f r o m M i n n e s o t a to Texas, a nd "Whereas, the e x t e n s i v e use of soft stones in re c e n t fe d e r a l c o n s t r u c t i o n has r e s u l t e d in undue ad va nt ag e to th at indu s try, ana " W h e r e a s , it is the g e n er al o p i n i o n that a w i de r use of tne s o - c a l l e d h a r d stones w h i c h are l a r g e l y f a b r i c a t e d by h a n d labor w i l l gr ea t l y ex te nd tne bene fi ts of F ed er al c o n s t r u c t i o n to u n e m p l o y e d w o r k m e n and t n e i r families, "Therefore, be it resolved, that in the s e l e c t i o n of the m a t e r i a l s f o r tne e x t e r i o r w a l l s o, all m e m o r i a l s and p u b l i c b u i l d i n g s e r e c t e d by the U n i t e d states, p r e f e r e n c e shall be given, ex cept w h e r e otherw ise p r o v i d e d by the act m a k i n g the a p p r o p r i a t i o n for the e r e c t i o n of any ou c h b u i l d ­ ing, ana e xc ep t w h er e by re a s o n of p u r e l y local c o nd i t i o n s the i n t e r e s t s of the g o v e r n m e n t wi l l not permit, to granite a n d / o r marble, n o t w i t h s t a n d i n g that such mater ials nay cost more if s u c h excess of cost be. not u n r e a s o n a b 1e • '*2 The p r o m o t i o n a l p r o g r a m t.m.t ha d w o r m e d so w e l _ ea rl y p a r t

of this p e r i o d

effectiveness the

even b ef or e

thus b e g a n tne

to dwindie

depr es si on .

in the

in scope

It was

and

fortunate

for

industry that in the e a rl y y e a r s of the d e p r e s s i o n the

governmental

a g e n c i e s , e s p e cia ll y

tne Federal

3-Stonecutters. J o u r n a l , XLVI,

2C o n g r e s s i o n a 1 s e c o n d s e ss io n,

o* 116 o

h e c

o r d , V.

_;overh 1918 was still farther substantially raised by the general increases of August 26, 1920.

For

example, the commodity rate of 35(^ per 100 lbs. to New York was increased to

4$j£9

the rate to Chicago raised from

14d

to

19.5^> the rate to Washington D.C. from 35^ to 46irf, the rate to Houston, Texas, 39^ to 52jtf. 1 approximately 40 percent.

These increases averaged

This level of rates was voluntarily reduced by the carriers on July 25, 1921.

Practically all rough stone rates

within the Central Freight Association Territory, Eastern Trunk Line Territory, New England Territory, and to East Canada were reduced by removing the advance of August 26, I92O except for ciation and

56

per 100 lbs. in the Central Freight Asso­ 100 lbs. on the rate to New York and the

Eastern points based on the New York rates.

2

These rates

^Interstate Commerce Commission, Reports. LXVTII,

735* 2Ibld.

439 then continued to prevail as the general level of rates until 1933*

Despite the decreases of 1921, the rates of

the 1920*s were, in general, substantially above the rates before the general advances began in 1914,

Table 3f com­

pares rates to representative points prior to October 25j 1914 with the rates to the same points in 19335 and shows that the 1932 rates were from 40 to 80 percent higher than the rates prior to October 25> 1914.

TABLE 3? COMMODITY BATES ON INDIANA LIMESTONE TO REPRESENTATIVE POINTS PRIOR TO OCT.2?, 1914 COMPARED WITH THE RATES TO THE SAME POINTS JUNE, 1932* City New York Boston Philadelphia Pittsburg Cleveland Cincinnati Louisville Detroit Chicago St. Louis Atlanta New Orleans Washington, D.C. Buffalo Houston, Texas

Prior to Oct.25? 1914*

286 30

26 18 15

June, 1932 40*? 42 38 24

22

6

14

5

11.5 22

12 11 10

21 21 25 18 367

17.5 17*5

28 26

25*5 47

Indianapolis 7 12.5 ♦ Sources: Compiled from rates given in stone cases in Interstate Commerce Commission, Reports. Particular ref­ erence was made to CC , 6* ff.x CLtxmr, 3 ff.: CLVI1 ,78 5 ff.| CLXXXIII, 601 ff.; CLIX, 333 ff .5 LXXXIX, 428 ff.: XLVTI, 254 ff.S and XLI, 321 ff. See also Quarries and Mille. II

(August, 1931) >

440 There is ample testimony to the effect that the Indiana building stone rates continued to be the highest of stone commodity rate structures#! To this effect testified numerous witnesses at the freight rate hearings, for example, B. Iff# Angell, Traffic Manager, Rockwood Alabama Stone Company; W. A. Knight, Pittsburgh Cfct Stone Company, Louisville, Ken­ tucky; and C. C# HAne,General Counsel Chicago, Indianapolis, and Louisville Railway.

Bedford, for example, at 248 miles

from Chicago, had a rate of 17*5#> whereas Amherst, Ohio, at 310 miles, was charged 14.5^; Mankato, Minnesota, 415 miles, 13*5#; St. Cloud, Minnesota, 464 miles, l6 Hearings. April 14, 1913* P»3* Interstate Commence Commission, Reports. XXXIV, 390 (Rates on Stone and Marble from Chicago and Peoria); XXXVII, 254 (A Scholl Co. et al vs. B. + G. S.W. R.R. Co; CXIII, 460 (Consolidated Cut Sonte Co., et al vs. Atchison Topeka and Santa Fe Ry. Co. et al).

446 equalize commercial advantages; and that any showing of reasons for a spread must be based on a showing of inherent differences in transportation characteristics.^- Then in the James O 'Meara et al v. B. + 0. R.R. et al case on May 12,

192?, a definite effort was made by the complainants to base their request for a spread upon the transportation charac­ teristics of rough versus dressed stone.

This became a bit­

terly fought test case with railroads and the Indiana stone people alike realizing that the precedent here set would determine future policy.

O'Meara definitely stated that he

desired "tariff equality, not competitive equality"5 and stated that if he obtained rates equalizing tariffs per cubic foot on rough and dressed stone, the Indiana district 2 mills would still have economies that he could not obtain. John Edgeworth, of the Victor Oolitic Stone Company, a firm operating a quarry and saw mill but not a cut stone business in the Indiana district, intervened in support of O'Meara.

The Indiana cut stone interests, through the Bed­

ford Stone Club, intervened in opposition to the proposal. In the course of the hearing their representative stated that they were primarily Interested in preventing an increase in cut stone rates which might increase the relative price against terra cotta and cast stone.^ ^Interstate Commerce Commission Reports. LXXXIX, 429 (C.H. Young et al vs. C.I. + L. Ry.Co. et al)5 CXVIII, 72 (Cuthbert Cut Stone Co. v. St.Louls-San Francisco Ry.Co.et al). ^Interstate Commerce Commission, James O'Meara et al v. B.+ 0 .R.R.Co. et al, Hearings, typewritten, Oct.27, 1927, p. 313.

p* 439.

447 O'Meara asked that rough stone rate be made 24^ and that the dressed stone rate be retained at Indiana to Baltimore, Maryland).

yi£

(Bedford,

In the first hearings,

the testimony emphasized that it required more labor and time to load dressed than rough stone; and that cars of rough stone loaded to their marked capacity, but cars of dressed stone loaded to 15 to 40 percent less.

Dressed

stone4 therefore, would produce approximately 30j£ less revenue to the carrier if the rough and dressed stone rates are the same.

It was claimed that there was a waste of 10

percent in squaring up the rough stone and cutting it to the sizes neeessary to manufacture the finished product and a waste of 25 percent in dressing the finished stone.

On the

grounds that the complainants in this case were not merely seeking to avoid payment of freight on waste but were seeking a difference in rates between rough and dressed stone commensuaate with the difference in transportation conditions of the two kinds of stone, the Commission ordered the rate to be 3^

on rough stone and 37^ on dressed.^

Both sides filed exceptions to this report.

O'Meara

asked for a rate of 21^ on rough and scabbled blocks, 2 on slabs, and 37/rf for dressed stone.2

All parties concerned

petitioned for a rehearing; and the case was reopened with new hearings on May 12-15* 1930 to obtain additional facts

^Interstate Commerce Commission, Reports. CLVII, 785-795. 2Ibid.. CLXXXIII, 7-

448 as to waste, value, weight, and weight density of the pro­ duct*

No testimony was to be admitted concerning the com­

petition between local cut stone contractors and Bedford mills; but nevertheless, the record contains much concerning the relative efficiency Of the mills at the two locations in the utilisation of waste.^

After this rehearing, the

Indiana stone interests filed petition to have the case re* opened on all Issues saying that the evidence already sub­ mitted was still incomplete.

This was ordered June 30,

1930> and a third hearing was helf October 15*20, 1930 in Washington.

In these subsequent hearings, OfMeara and his

supporters sought to show that even at the newly-ordered rates a disadvantage still remained to the local cut stone contractor.

Bedford witnesses now asked the correction of

the original figures to allow for the dunnage or packing material.

It was brought out that block or sawed stone

sells as the cube obtainable from the three minimum outside dimensions.

Thus the buyer pays for the largest perfectly

rectangular piece that can be secured from this block.

Cut

stone on the other hand is sold as the cube obtained by multiplying the three maximum outside dimensions, giving the measurement of the smallest perfectly rectangular piece of stone from which a piece of dressed stone could be ob­ tained.

The difference in the methods of measurement is the

Interstate Commerce Commission, Docket 19656, James O'Meara at al vs* B.+ 0* R.R* et al, Hearings* May 12-14, 1930, p. 585*

449 reason the weights of block, sawed, and cut stone differ from the weight of a perfect cube of stone*

Henee the

representatives of Indiana mills and city mills often seemed to contradict one another since the former always spoke of waste as the waste in cubic feet while the latter always Spoke of waste in pounds.

The 10 percent waste in squaring

and the 25 percent additional waste in dressing stone re­ ferred to by O'Meara were wastes in pounds.

Bedford people

stressed that a part of the cutaway stone could be reclaimed and that efficient methods of sawing enabled the use, offset the freight cost, of many of the Irregular pieces that made up the 25 percent waste.

Due to the method of measurement,

this procedure often enabled the sale of more cubic feet than originally paid for in the block.

O'Meara replied that

he too practiced such methods of sawing where possible, but that waste in pounds still existed and freight had to be paid on those pounds.

Although some pieces could be sold as

random ashlar, the availability of local stones with greater color range in Baltimore and Washington virtually eliminated •i

the market for this type of sale in those cities. The Commission, however, reiterated its statement that it could not base its findings on commercial aspects of the case except as they were reflected in transportation characteristics of the commodity and stated that the Indiana stone people were correct in their contention that the rela­ tionship of the rates involved should not be based on the

^Ibid.. Report of Examiner, April 16, 1931* pp. 2-22.

450 amount of the waste In the dressing of stone since this would lead to considerations of the relative efficiencies of the mills.

Taking into consideration only the transporta­

tion characteristics and making the allowance for dunnage, it was concluded that the spread should be narrowed from

li

to In his report o n the last hearings, the Examiner

conceded that Bedford rates to Washington and Baltimore were on a much higher level than the rates on comparable com­ modities in official territory.^ decision in the case stated:

The Commission in its final

"The fact that Bedford stone

is unique is not a justification for requiring its users to bear a portion of the transportation burden greatly in excess of that borne by shippers and receivers of higher valued articles of similar transportation characteristics.

But in

view of the unique character of Bedford stone, the importance to the Monon or revenue derived therefrom, and the fact that gathering expenses at origin are much heavier than on other traffic, stone traffic might reasonably bear relatively higher rates than commodities which are affected by the existence of competitive conditions, and which are subject to lower terminal expenses. XIbid..

pp.

28- 29.

2Ibld.. p. 28. ^Interstate Commerce Commission, Reports. CLXXXIII,

451 This case became indeed the precedent that had been predicted.

Within the next ten months, three cases had been

decided on the basis of the O'Meara ease involving the rates to Chicago, St. Louis, and Kansas City.X

The same ratio

between rough and dressed stone was kept in authorizing the spreads in these eases.

Hough stone was made 86.5 percent

of the rate on cut stone.

Following this}, applications for

creation of a spread in rates to specific points came so rapidly that the carriers themselves proposed general terri­ torial rate changes.

In the Southwest, the carriers, the

Southwestern Class Scale Revision having just occurred, pro­ posed to eancel all carload commodity rates on stone within and to the Southwest and permit the class scale rates of the Southwestern revision case to apply.

In another case,

carriers proposed revision of carloads and L.C.L. rates on stone within Southern territory and between Southern and other territories where class rates were prescribed in the Southern.

Rates to, from, and within Carolina territory

were also in question.

All these rates plus the rates pre­

scribed in the cases mentioned above were suspended and the Consolidated Stone Case scheduled to consider the revision of stone rates as a whole.

2

Cast stone was also included.

^Interstate Commerce Commission, Reports. CLXXXIII,

601 (Edward Bowenkamp et al v. B.+ 0. R.R. Co. et al); CLXXXV, 590 (J. S. Docket 35S9 j Stone from Bedford to Chi­ cago, Illinois); CMC, 221 (Builders Association of Kansas City Museum, Inc. vs. Chieago Burlington and Quincy R.R. Co.).

2Ibid.. CC, 65.

453 In handling this case a large volume of testimony was received*

Hearings were held in Hew England, the South,

and the Midwest to give all producers concerned a chance to appear. Many conflicts of interest were revealed.

The first

problem to be considered was the groups into which the com­ modity was to be classified for commodity rates* ferent groups were generally proposed:

Pour dif­

(1) Rough-bhugh blo&s

and pieces sawed or rough chipped on four sides or less; (2) dressed stone - sawed or rough chipped on more than four sides but not carved, lettered, polished, or traced; (3 ) carved - carved, lettered, polished, or traced stone; (4) paving - curbing, flagging, and paving .1

Outside of certain

Indiana interests who desired lower rates on rough blocks than on sawed slabs, a request that was not approved, the chief interest of the Indiana group was first, to defeat the proposals of the Natural Granite Commission that the thick­ ness of the slab should make a difference between groups one and two and to put polished granite in the dressed group; and, secondly, to secure rates on cast stone that would be comparable to rates on competing natural stone.

The Indiana

limestone people testified that plain faced cast stone blocks as they eame from the mould —

although proposed for

group one, rough stone rates and although they had had such

1

Interstate Commerce Commission, Reports. CC, 74.

453 a classification since 191? —

competed with natural stones

finished on six sides and were used for the same purposes* They also stated that cast stone with monumental design can fee moulded and placed in the dressed group (2), although natural stone must fee carved and hence is in group 3*

In

this request, the limestone people succeeded in convincing the Commission and plain-faced cast stone if ready to set was ordered placed in group 2 and if moulded with design was placed in group 3 * The second issue to fee considered concerned the gen­ eral level of rates.

Indiana limestone interests still had

the highest general level of commodity rates. desired an equalization.

They naturally

Other stone producers did not de­

sire the level of their rates pulled up to the Indiana lime­ stone level*

Carriers were generally proposing to raise

the Indiana limestone rates and then bring the remainder of the stone rate structure east of the Rockies to the level of the increased Indiana limestone rates.

The expense of

originating the limestone traffic, a factor that had always been relied upon by railways to justify higher rates for limestone, was believed by the Commission to be overestimated by the railroads.

Any such expenses of origin were stated

by then to be true as a rule of all stone quarries and not peculiar to limestone.

The Commission ruled that that was

no reason for the limestone rates being higher than other rates and said that, although it was probably true that

454 limestone could bear higher rates than other varieties of stone and still move, other attributes such as value, car loading, and the volume of movement all favored a low level of rates —

especially with the paucity of construction

projects and the necessity for economy in those undertaken. Consequently, the same level of rates on all stones within the same rate territories was ordered.^The levels of rates prescribed in the various territories were related to the first class in the following

2

percentages t Paving

Roueh

Dressed

Carved

Official Territory

20

22.?

27-5

35

To,from, and Within Southern Territory

15

17*?

22.?

30

Within and To Southwest

15

17.5

22.?

30

Official Territory to W. Trunk Line So. Missouri

17-5

20

25

30

This level of rates in general represented keeping the rough stone rates near the same levels except in the southwest and in rates to New England and Trunk Line terri­ tory where they would be somewhat lowered.

The resulting

rates would be higher on rough stone in and from the south. ^Interstate Commerce Commission, Reports. CC, 90-92, The Bedford Stone Club proposed a scale of rates that would nave narrowed the spread or reversed it at distant points — an attempt to spread their market area* The Commission, how­ ever, refused to recognize any such scale.

2Ibid.. pp. 129-130.

455 One of the commissioners dissented on the grounds that this latter fact plus the 5 percent spread put a premium on fab­ ricating stone in Official Territory as compared with the same prices in the South. Although Indiana limestone interests protested vigorously, the 86.5 percent spread between rough and dressed stone established in the 0*Meara case was not adhered to in the Consolidated Stone Case.

Reference to the percentages

prescribed above shows that rough stone rates were now 81.5 percent,

77*7

percent, and 80 percent respectively.

This

was not the 70 percent asked by the local cut stone con­ tractors, but the Commission again commented that unless warranted by transportation conditions they could not attempt to equalize the charges on a cubie foot basis.1

The order

of the Consolidated Stone case did not go into effect until July 25, 1934. Inquiry among the stone producers in Indiana as to the effect of this spread of rates between rough and dressed stone has brought the opinion that the effect has been neg­ ligible.

This has been due primarily to the continued

drastic reduction in stone prices within the Indiana district —

a reduction which has made even the spread granted in the

Consolidated Stone case little protection to the local cut stone contractor.2 ^Interstate Commerce Commission, Reports. CC, 96 . 2

Personal interviews.

456 The beginning of the shipment of stone by truck occurred near the end of this period.

Two local trucking

firms, finding their regular volume of business dropping rapidly, approached several stone companies to seek busi­ ness as contract carriers.

The majority of shipments

were sent to locations within a radius of 200 miles.

The

shipment of stone by truck, however, did not attain signi­ ficant proportions until the next period.

Technological Changes F o r mos t 1919-1933,

operations,

in p r e v i o u s y e a r s •

consisted

of r e f i n e m e n t

k n o v m tools

and

The mo s t

s t r i p p i n g op e r a t i o n s . in cases

wh ere

improvements

one

stripping

o v e r b u r d e n was

bu rd en

to st rip

ho we ve r,

than had b e e n u s u a l

in the

One m e t h o d of o v e r c o m i n g

v ol v e d

of h y d r a u l i c

g r e a t e r depths.

Powder

of b l a s t i n g

to the O o l i t i c

stone

drill h ol es was to l e s s e n

dynamite

the

companies

that w ou ld

us ed

of

the

ove rb ur de n.

in­

to m u c h

to devise

of

injury

The b o t t o m

to a depth

thus

over­

of tne p r e ­

drilling

h e l p e d some firms

in tne blast,

facilities

di s a d v a n t a g e

of

impact and

roci:

depth of

l e s s e n the da ng e r

tne

to be

loose

qu a r r i e s

capable

in the

the new q u a r r i e s

this

ta mp ed do wn w i t h sand spread

ca rt r i d g e s

dr ill s

beneath

of

h ad a g r e a t e r

vious pe ri o d. the use

continued

a pp ro pr ia te

A considerable proportion

in this period,

feet

•reviously-

c.ianges came

dirt and

a v a i l a b l e as v/ell as

op ened

the

chan ges

in the

of the bi gg est

Hydraulic

the

w a t e r was

for d r a i n a g e ,

a method

im po rt an t

h a d bee n

an d machines. In the quarry

and w h e r e

in the p e r i o d

u t i l i z e d ma ch i n e r y ’./nose basic p r i n c i p l e s

developed

used

b o t h quarry and mill

of

of seve ral

th ir ty p e r c e n t

bag

f r a c t u r i n g and

1 d i s p l a c i n g the

ove rb ur de n.

Some

by us inn m e n v/ith snovels an d

firms

then r e m o v e d

t e a m s ; others

tne m a t e r i a l

introduced

,o::er

2 shovels

to c le an up

■k). 0.

tne quarry

Rollins,

floor.

So

Victor Oolitic

2 Ibid, See also Wylie,

D. G.,

*-i3

c 1e an e d up a

Stone o p

Company,

. c i t ., p.

23

L a r c h 7,

458 space dump

big e n o u g h bo xes

to

in tais

by b u l l d o z e r

chann el

out

opening,

tractors,

and

t.ie key blocks

pushed

the

debris

then e m p t i e d

and

tuen pl ac ed

into

the boxes

the dump boxes

by

1 derricks.

The

latter method proved

The

improvement

la tt e r p a r t wi d t h w a s

of the

h e a v i e r cl amp was The a dd ed w e i g h t a mor e

This

to 8'

used of

change

4"

this

continued.

a b ou t

to f a s t e n

f o r c e f u l blow.

out of m a n g a n e s e

in c h a n n e l i n g m a c h i n e s

previous period

i n c re a s e d

to be nu c n faster.

clamp

1920.

the

chisels

enabled

In addition,

At

the

Tne

to the

r e d uc ed

in the

2"

the same

t*xe cl a m p s

substantially

G«

chis els

steel or f o r g e d steel r a t h e r

in m a t e r i a l

begun

time

a

machine. to strike

began

to be made

than cast steel. br e a k a g e

of

the

2 clamps

and a v o i d e d

iana L i m e s t o n e steam

m u c h loss

of

time

in qu a r r y i n g .

Q u a r r y m e n ’s A s s o c i a t i o n

c h a n ne le rs

d e l i v e r e d 150 st ro k e s

e s ti m a t e d

The

I nd ­

in 1923

that

pe r minute w h i l e

tne

el e c t r i c m a c h i n e p r o d u c e d a rate b e t w e e n 1 5 0 - 2 0 0 st rokes pe r 3 minute. The i n t r o d u c t i o n of the new e l e ct ri c c h an ne le rs or the

c o n v e r s i o n of

widtns,

however,

old style

c o n t i n u e d to be

is i l l u s t r a t e d by the fact Co mpany wa s

formed

c om oa nv e o s s e s s e d

two h u n d r e d

Leo Bohn,

st eam c h a n n e l e r s

a gradual

that w h e n

as a m e r g e r

^Rollins,

2

narrow

of

tne

to w i d e r

o p e r at io n.

This

Indi ana L i m e s t o n e

24 firms

in 1925,

tne n e w

c h a n n e l i n g m a c h i n e s , only

ten

1 oc . c 11 . Be d f o r d F o u n d r y

5 , 1941 o D. G-. ’.7ylie,

o? . c i t .,

and L a c n i n e r y Co.,

Jun.

459 of w h i c h w e r e interested out

of

tne n e w

in e l e v e n

electric

of tne

conducted

Quarry

to

tests w i t h

compare

number

of squ are

tinu ous

fee t

operations

electric

co...u .area w i t h 37

u n d e r test

c o n d i ti on s

for n o r m a l

quarry

for

cent of

the

at

the

but

its Dar k various

tyjees

a gr ea ter

also more c o n ­ The new

old tvrxpe n a r r o w

These

figures

type

wera

electric obtained

c o n s i d e r e d avera ges

The nev/ e l e c t r i c s

time

equ ip me nt .

feet pe r cu t t i n g no ur us

sh o u l d no t be

ope ra ti on s.

of

These

Bedford Foundry

electric.

the

channelers. and

that sold

only smowed

c u t t i n g hour

of 55 square

sqX uar e feet

the

in July 1926

type

be e n

within a year.

the aid of

test not

for the new

and 4-0 fo r tne s t e a m

cu tt i n g 71 ne r

This

cut p e r

cut an ave ra ge

c on ian ie s

the p r o d u c t i v i t y

of c h a n n e l i n g m a c h i n e s .

who nod

the mo s t u p - t o - d a t e

and Idachine ry C o m p a n y for a m o n t h Hollow

Persons

the b u sin es s

naturally purchased

The m e r g e r

1

twenty-four

to tne m e r g e r r e e n t e r e d

new f i r m s

type.

co m p a r e d w i t h

were

in actual

67 p e r c en t

for

2 the

old style

a result the n ew

the type

e l e c t r i c and 62 % for

tne s t ea m m a c h i n e s .

I n d i a n a L i m e s t o ne electric

C o m p a n v pur ch as ed 3 channelers.

As

ten more

of

■^■District C ou rt of tne U n i t e d States, S o u t h e r n D i s t r i c t of Indiana, I n d i a n a p o l i s Division, Do cket 1 3 4 C (In E q u i t y ', "Cl eve lan d Trust C o m p a n y et al vs. I n d i a n a L im es to ne C om pa ny etc.,'1 R e p o r t of Alb ert Ward, spe ci al m a s t e r in Cho-icery, F i n d i n g s of Fact'1, Hea rin gs, N o v e m b e r 12, 1S32

2 June

5,

Leo 1241

Sonn,

3Rev ort

Bedford Foundry

of A l b e r t

d,

and n a c n i n e r y

loc.

cit.

Company,

In tne late periment witn m a c nines to cut

1920's,

the use

in tne

I nd ia na

of wire

quarry ♦

The

saws

quarrymen began

to repla.ce c n a n n e l i n g

idea of u s i n g a m o v i n ^ r/ire rope

stone had b e e n p a t e n t e d as ea rly as

practical

use

seeu.s to nave

to e x ­

be en

in 1S86

1054*

Its

first

in a B e l g i a n M a r b l e

1 qu ar ry and a b o u t As v/e have

se e n

United

st ate s

in the

late

1926

190 0 some

its use

be ca me

att em pt s we re

in e a r l i e r years,

1920's

the U n i t e d

general

--e.de to use

but

in c o o p e r a t i o n w i t h

slate

of Mines

q u a r r y m e n and

it

Contine nt.

in tne

it f ir st became

in the P e n n s y l v a n i a

States B u r e a u

on the

significant

quarries.

In

p u r c h a s e d a wire

began

its o p e r a t i o n

saw

in a

2 P e n n s y l v a n i a slate I nd ia na u n t i l ed v/ire rope 1/8

a bo ut

in

grooved p u l l e y .

wire

is ne pt

circuit.

open ends At

tne

l o w e r sheave

saw

two s t ra nd s

consists

and 800

t e n s i o n ca rri age s

drills the

20 to 36

inches

d e s i r e d cut St eel

the

placed

with a

strands

pass Tne

in tne rope

in d i a m e t e r

and s o m e ­

if there

are Set

to

inlength.

of tne cyar ry.

are b o r e d

stand ar ds

strand­

a b ou t 3/16

to 2 4 0 0 feet

the d r i v i n g pulley,

in

of a three

are used)

to tne d es ir ed pa rts

av ai lab le.

top of

w a t e r are

From

taut by

w h a t d e e p e r than

The

did not b e g i n

is s u p p l i e d by an e l e c t r i c mo tor

shea ves

Core

Experiments

diameter

The d r i v i n g p o w e r

guide

1931.

(sometimes

of an inch

over

quarry.

are no

in tne h o l e .

tne

s t a nd ar d

a sh ea ve

carries

that

w o r k s up

and d o w n

the standard. Sa n d and

fed u n d e r

the wi r e

as

it moves

ac ross

the wire

toa

the stone

at

461 1 a sp ee d of a b o u t experiments M ap le H i l l

thousand

feet per mi nu te.

b e g a n at the B l o o m i n g t o n L i m e s t o n e Quarry,

of the B u r e a u the wire

one

u n d er

of M ine s.

the

At this

sav; a v e r a g e d a b o u t

ber of s qu ar e

s u p e r v i s i o n of J. time,

that about

the w a s t e

o c c as io ne d

tw o - t h i rd s

and th a t

the

that

cost per

Mr.

in the pr oc es s

incurred w i t h cubic

B. N e w s o m

the

that

times

c u t t i n g h o u r as

ta i n e d w i t h the c h a n n e l i n g m a ch in e.

Company,

it a p p e a r e d

two and one ha l f

feet per actual

In 1931

the n u m ­

c o u l d be ob­

News ora b e l i e v e d of c u t t i n g was c h a n n e l i n g machine,

foot of m e r c h a n t a b l e

stone was

2 perhaps

hal f

that of

ap p e a r to h a v e of the fa c t

been

that

obtainable with

the

o l de r method.

These

over - optimistic,

tne

average n u m b e r

figures

particularly

of square

the c h a n n e l i n g mac hi ne

seems

in view

feet p e r hou r to nave

been

u n d e r e s t i m a t e d , an d the r e s u l t s w i t h tne wi r e saw be t t e r 3 than average. D i f f i c u l t i e s w e r e e n c o u n t e r e d f r o m the loss of

time

occasioned

and so me t i me s of

the

by the s ti ck in g

the wire, saw w a s

1

still

breakage of

of

the wire

the wire.

By

1933,

in the e x p e r i m e n t a l

“N i g h m a n a n d Kiessling, s e r v a t i o n of w r i t e r .

p.

89.

in the

cut

tne use

stage

Also p e r s o n a l

in the

ob­

B. Newsom, HThe R e s u l t s of Wire Saw Tests at M a pl e Hil l Quarry, B l o o m i n g t o n L i m e s t o n e Company. Jul y - August, 1931," S t o n e , LIII, (April, 1932), 1 9 0 - 1 9 2 ^Tiie judgments here given are based on d i s c u s s i o n with e x e c u t i v e s of v i r t u a l l y all c om pa ni es that nave sou nt to use wir e saws.

462 Indiana stone district.

Several otner firms had begun to

experiment with it but many still insisted that the channel­ ing machine was superior in cost per unit of stone produced. As one operator put it, "Under test conditions, you make every condition just right and tnen run tne test - under normal operations you have many interruptions to combat." We shall see in Chapter VI that much more extensive experi­ ments nave been made since 1933.

Incidentally, where wire

saws were used, the scabbling of quarry blocks could be done by setting the blocks in the path of the wire. Drilling operations in the quarry do not appear to have been characterized by any new types of drills to pre­ pare holes for the use of steel wedges, "plugs," inserted in strips of iron, "fenHers" for the breaking of quarry blocks.

The early lS20’s, however, saw the replacement

of the majority of the old steam drills by the compressed air drills that had been introduced by the end of the pre­ vious period.

0. Bowles estimated that four six to eight 1 ifach holes could be drilled in a minute (1934). One other significant change took place in the quarry.

The increase in the volume of production in tne early h O s together with the change to larger size quarry blocks and the increase in capitalisation of many of tne stone companies

■^Oliver Bowles, op. cit., p. 52

V'-

I

463 brought the installation of many more of tne new and im­ proved atdel derricks.

The fact that such a derrick to­

gether with its operating unit cost about six thousand 1. dollars nad kept the change from being too rapid. In the mill

many

improvements were made.

As the

previous chapter indicated, the increase in the size of standard quarry blocks, brought with it a change in the size of the gang saws.

This change was Still going on in

the early years of this period.

About this time tne fly­

wheel was made heavier to withstand the reciprocating motion and to enable the saw blades to hit the abrasive on the stone 2 a heavier blow. The gang saws were speeded up from 80 to 85 strokes per minute to 95 to 105 strokes.

The vertical

arms that move the frame in which the saw blades are mounted were make a little shorter.

This increased tne speed and

gave the blades a lift off the stone at the end of the stroke in such a manner as to enable the cutting abrasive 3 to get in under the blade. Shortly after the World War, a new type of abrasive was introduced, chat from the lead mines of Missouri.

Prior to this silica sand from Ottawa,

Illinois, had been the most used abrasive.

The freignt

■^Leo aohn, Interview, Bedford Foundry and Machinery Company, June 5, 1942 ^Ibid. ^I-Iarold Rowland, Mill Superintendent, Shawnee atone Company, May 27, 1942

rates from Ottawa raised and the increase served as an in­ centive to change.

Chat cuts much faster tnan silica sand

but leaves the stone with a rougher surface.

Sand there­

fore continued to be used where the sawed stone went right into the wall.

Where the stone was to be planed, however,

chat sawed stone became common. came to be used in sawing.

About 1927-192S, steel shot

In this case the blades are

notched on the lower edge and used in a straight-line dragsaw frame.

They do not swing up at the end of tne stroke

since to do so would allow the shot to escape.

This was

an inovation in the type of finish produced rather than in the speed of sawing.

As a result of all these changes, the

cutting speed of the gangs was increased from 8 to 12 cubic feet per hour to 20 to 50 cubic feet an hour. 1 figure was, of course, rarely attained.

The maximum

The improvement in the use of the diamond saw begun in the previous period, continued in the post-War years.

Gradual changes brought the cutting speed for the

splint-tooth diamond saw up to 18 incnes per minute.

Then

in 1928 a new type of tooth was developed known as tne ripjoint tooth.

In this the diamonds are cast in the metal

■^Mill Foreman, Shawnee Stone Company, May 27, 194 2. Where figures are obtained from a stone man, tney are check­ ed with representatives of other companies to eliminate any exceptional cases.

f

465 of the tooth, protruding by tne desired amount.

This tooth

had a longer life., about 8000 sawing nours, than tne splinttooth and enabled another increase in the speed and smooth­ ness of the cut*

The maximum speed possible in jointing

(an operation, it will be remembered that is speedier than ripping - see Ch. IV, p. 372. ) was increased to 46 inches per minute.

The average speed, however, would be

srhaps

SO to 30 inches per minute.

On rip saws it was est.ii.iated 1 that tne speed was increased by perhaps one-fourth. Improvements were also made in the means of mounting tne

saws - especially the rip saw.

Tne stone wos placed on

firmer beds - sometimes old planer beds set in concrete to prevent movement and the blade itself was mounted in a 2 firmer fashion. This gave a much truer cut. Another gain came from loading the saws to greater capacity.

In

the early days of the diamond say, 72” blades had been com.-on. It is said that in many cases this large blade would be seen sawing only 8 ”' to 12" incues of stone.

As new saws

were purchased and as 4" became the usual wall veneer, the stone mills installed 36 to 60" blades and endeavored to use them more to capacity.

^•Victor Allbright, President Iieyers Diamond baw O’o^panjr, Bedford Indiana, June 5, 1941 2Haro Id Row 1and, loc. cit. ^Victor Allbright, loc. cit.

466 Planing macnines likewise were improved.

The changes

of tne preceding period were still in process in tne early years of this ]3eriod.

By 1S31 the direct motor driven

planers were operating at a rate ox 25 to 45 feet oer minute 1 for the movement of the planer bed. In addition the operat­ ing efficiency was increased by the improvement in tool steel reducing the feed resistance.

I.Iethods were developed

0f brazing a strip of high-speed steel onto the end of the cutting tool and thus it was unnecessary to have tne whole 2 tool made of the expensive high-speed steel. In tne early years of this period, milling macnines were introduced into the Indiana stone district.

This machine

consists primarily of a rotating lead capable ox moving horizontally or vertically and carrying tools by wnicn stone may be cut in irregular patterns.

It is used primarily

for roughing out ornamental work, cutting of tracery, cut­ ting of "dentil" work in cornices, taking out deep recesses o or outlining lettering or intricate patterns. Only those companies that took considerable quantities of ornamental work, paneling, etc. found it economical to machine.

.urchase this

It couud also be used for the fluting of columns,

^■John mchilian, "Old and hew Production methods in Cut Stone Plants", Stone, LII, (January, 1931), 30 ^Leo Solin, loc. cit. ^Bowles, op. cit. 59. loc. cit.

Rate from interview Leo aohn,

467 and 'accomplished this ten times as rapidly as it could 1

be done by hand methods. •The finishing of cut stone in this period, 19191933, was done almost exclusively by tne ar

hammer.

The

old mallet and ohisel were used- infrequently, even in the carving of intricate and elaborate work.

Furthermore the

improvements in the diamond saw and the planing machine left less work"in finishing up cut stone for tne stone cutter to do. Certain specialized machines were occasionally used by some companies.

There were several varieties of machines

that were essentially buffers oi* surfacing machines used on those occasional contracts in which the specification called 8 for a polished or rubbed surface. About 1927 or 1928 a small portable carborundum saw operated by compressed air and capable of being used by the stone cutter by hand was introduced.

This proved a very valuable addition to the

cutting yard, enabling small cuts to be made rapidly. Lathe work also represented a considerable advance over nand methods.

By this period, a 28' column could be

done in a latne in three days - by hand metnods it nad required six weeks.

^Stone , LI,

Small balisters could be cut by car-

(April, 1930), 341

^John MeMi11I n , loc. cit.

468 borundum wheel exit as a negative of the pattern desired if many pieces of one pattern were desired.

Such a wheel could

cut a two-foot baluster in 15 minutes, a task that had re1 quired 12 hours for a stone-cutter. The great majority of the stone companies in 1919 continued to generate their own power or a large proportion of their power requirements.

In general, only those mills

in the towns and a few of the more conveniently located quarries had connected with the power system.

Late in

1920, the Indiana Public Service Commission authorized an increase in rates for the quarries and mills of the stone district.

Despite this increase, however, the heavier

volume of stone business in the years 1920-1926 brought a 2 gradual transition to the purchasing of power. The Indiana Limestone Company, having been organized as a merger of twenty-four companies 11926;, adopted the policy of purchas­ ing all of its power.

Officials of the eompamy estimated

that the change produced a saving of one eent per kilowatt hour over the cost that had been incurred when a substantial part of the power had been generated in the company's own plants.

Later several rate decreases occurred —

for large companies,

particularly

karly in 1931, the power company adjusted

its rates to place a premium on continuous operation and night shifts.

By 1933 only two companies still generated a portion

of their own power. "Si. Bowland, loc. cit. 2 Interviews, Public Service Company of Indiana officials.

469

Labor Problems It will be recalled that the previous period (18971918) had come to a close with three unsettled issues between the employers and employees:

(l) the dispute

over the use of the air hammer; (2 ) the attempt of labor to exclude Indiana cut stone mills from small contracts in the consuming centers; and (3) the efforts of the stone cutters union to absorb or control the machine men of the industry.

As the year 1919 opened, an

"armed truce" seemed in force on all these questions. 3?he depression oecas&dned by the war had temporarily caused such a truce to be expedient to both parties. With the revival of business in the early post-war period, however, all of these issues became active once more •

They became so entangled one with another, how­

ever, and so complicated by the series of disputes over wages, hours, and recognition of unions produced by the rising cost of living of the post-war period that it is difficult to follow each issue separately.

A

discussion of the strikes of 1919 and 1920 is there­ fore given first in order

that

it may

be seen

470 how these events contributed to mutual antagonism and altered the naturfe eft&hen&otmfeibdn of the issues mentioned.

It will

be found that there was not one but a series of strikes con­ trary to the principles of the working agreement signed in 1913 by the Journeymen Stone Cutters Association of Worth America, the Bricklayers, Masons and Plasterers’ Interna­ tional Union and the International Cut Stone Contractors Association.

These interruptions to work not only inflamed

the employers against the stone cutters but also resulted in the breaking off of the offensive and defensive alliance of the Bricklayers and the Stone Cutters.

This ended the scheme

of using a refusal of the bricklayers to set the stone in the wal!L to enforce the protective agreements in which Indiana cut stone mills had been forced to agree not to ship orders to the most important consuming centers below a specified minimum number of cubic feet.

When, therefore, the Journey­

men Stone Cutters finally refused to use the airin hammer any longer and went on strike in 1921 to enforce their refusal, the employers no longer felt that it was necessary to deal with them.

The operators refused to have business relations

with the union any longer and encouraged the formation of local unions in the Indiana district unaffiliated with any national organizations.

This they could now do for the

reason that the stone could be shipped from Indiana mills ready to set in the walls and the bricklayers no longer placed obstacles to setting it.

The Journeymen Stone

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473 Cutters Association, therefore, was forced to rely upon its own efforts alone to combat the Indiana employers and re­ sorted to a refusal hy their own members — entirely in the consuming centers — the Indiana district.

now found almost

to work upon stone from

The result was quite naturally to

accentuate the concentration of the cutting of Indiana stone in the Indiana district mills.

It was the suit filed by

the employers against this primary boycott by the stone cutters that brought the famous "Bedford Cut Stone" decision of the United States Supreme Court.

The expulsion of the

Journeymen Stone Cutters Association from the Indiana dis­ trict put an end to active opposition to the use of the air hammer and effectually checked efforts to bring the less skilled types of mill workers and the quarry workers into union organizations. In order that convenient reference can be made to the changes in wage rates that ensued during the period, Table yf presents the general wage scales of the Bedford Stone Club for the years 1919“1933« A brief summary of the details of the strikes of

1919, 1920, and 1921 follows, therefore, in order that their contribution to this expulsion and its consequences may be under stood#

■ ,■m *^ f t

474 The first difficulty arose when the Oolitic Belt Conference (employees) and the Bedford Stone Club (employ­ ers) Were unable to agree upon the terms of wages and hours for’1919*

The matter went to arbitration by the president

of the Journeymen Stone Cutters Association of North America and the president of the International Cut Stone Contractors and Quarrymen* s Association. 1919*

An award was made March 27,

Two significant results were achieved.

First, the

Bedford maehine men, who had not been a part of the Oolitic Belt Conference, were to come in at the expiration of their existing agreement April 5, 1920.

In the second place, the

men were disgruntled because the wage increases received were not as much as they had asked £er.

This was particular­

ly true of planermen and blacksmiths who now received

1/26

less per hour than they had received while working on the steel war contracts of late 1918*

The wages awarded were

to apply until April 5> 1920 although the other features of the agreement applied until April

1921.

A closed shop

was recognized for cutters, planermen and diamond sawyers.^ Early in 1920 a dispute arose that involved the in­ terpretation of the last phrase above.

The Bedford local

^Terms described in Stonecutters Journal. XXXIV (May, 1919), 4-5* Reaction of men indicated in Department of Justice, Indiana Limestone Investigation, op. cit.. Exhibit 406, "Minutes of Joint Conference of I.C.S.C.+ Q. A. and J. SCA of N.A., Indianapolis, April 23, 1920," p. 80.

475 of the stonecutters union called a strike -- contrary to the no-strike clause of the international agreement and with­ out the support of the Oolitic Belt Conference or the Journey­ men Stone Cutters Association.'*'

Business had not revived in

substantial volume until mid summer, 1919.

The fall, however,

had brought power failures that made increasing difficulties in maintaining continuous production.

In October the elec­

tric current failed and in November and December the coal strike Interfered materially with production*

Certain

mills, therefore, had to lose one day a week.

Certain em­

ployers had contracts that needed to be completed soon to avoid time penalties.

They asked their men to work overtime

and on Saturday afternoons to make up the lost time.

Al­

though the president of the Stonecutters asked the men to accede, the local unions refused.^

On the occasion of the

strike, one mill had asked diamond drag saw operators — the horizontal saw that trimmed slabs from the gang saws before they went to the planer — in the emergency.

to work overtime to assist

On January 12, 1920, over 1000 men walked

out of twelve mills at Bedford with the statement that the employers had violated the union agreement limiting working hours.3

The employers issued a statement in which they

^Bedford Stone Club, "A Statement of Facts,” Paid advertisement, Bloomington Evening World, January 15, 1920. Agreements between associations were here reprinted.

2Ibid. ^Bedford Daily-Mail, XXVIII, no. 128, January 13,

1920.

476 said*

(1) that the men had agreed not to strike but to sub­

mit all disputes to negotiation and arbitration; (2 ) that the diamond drag sawyers concerned were not covered by the closed shop or terms of the International agreement which Included only stone cutters, planermen, headers, shapens, and operators of circular diamond saws which did jointing —

trimming true edges on pieces after planing; and (3)

that this strike occurred the very day before a scheduled meeting of the Oolitic Belt Conference and the Bedford Stone Club to discuss the new wage agreement.

The temper

of the employers was shown by a statement that they now con­ sidered the Bedford local of the Journeymen Stone Cutters Association outlawed and that the men must either return to work and submit the case to arbitration or the national union officials must designate a new organization f,known to be of sufficient honor and good faith that a new and dependable

X

agreement must be negotiated.”

At the January, 1919 9 meeting of the executive com­ mittee of the contractors and the stone cutters associations in Chicago, the executive board of the bricklayers union had stated that they would not be a party to any agreements that would make the stone cutters an industrial union and insisted that they would cooperate only if the stonecutters confined their membership to men who actually did stone cutting by hand or operated machines that took the place of stone ^Bloomington Evening World. January 15, 1920, loc. £lt*

477 cutters,

Therefore the employers refused to recognize the

jurisdiction of the union over diamond rip saws, either Circular, or horizontal drag saws or over gang saws*

This

brought a protest from the president of the stonecutters who instructed the locals not to yield jurisdiction over the diamond sawyers*

The employers stated that in the

Niagara Falls meeting of 1915 they had conceded to the stone­ cutters the right to organize the planermen and diamond sawyers in only three locals, Bloomington, Ellettsville, and Stinesville, Indiana*

They also stated that on November 15,

1919 at Indianapolis the stonecutters union president had told the contractors executive board that the union claimed no jurisdiction over diamond drag saws.*

For their part,

the stone eutters insisted that their existing constitution and by laws which claimed jurisdiction over stone cutting and sawing machinery had been adopted May 1, 1918 and that the international agreement of July 11, 1918 had recognized this constitution.

In addition, they said, that the Bedford

Stone Club and Oolitic Belt Conference agreement of March 27, I919 had agreed on wages and working conditions for the diamond sawyers.^

These arguments of the stonecutters,

however, were advanced in the May, 1920 issue of the Stone­ cutters Journal while another strike was in progress. ^Bloomington Evening World* loc* cit* 2 Stonecutters Journal. XXXV (May, 1920), 4-5*

At

478 the moment —

on January 15, the executive officers of the

stonecutters ordered the Bedford men back to work and ordered the return of the dues of the sawyers working on preparatory machines*n

It was stated that the union intended to organize

them under a separate charter with a ten hour day with the option of working twelve hours with time and a half for overtime.*

It was obvious^ however, that the issue of ex­

pansion by the stonecutters had not yet been settled. In February, 1920, another interruption to work occurred when the quarrymen at the Dark Hollow quarries of the Consolidated Stone Company struck to obtain payment of wages weekly rather than every other week.

After five days, p the request was granted and the men returned to work. In the meantime, negotiations over wage agreements

had been in progress since early November.

At the opening

of negotiations, the operators favored a date of expiration of the existing agreement prior to January 1, 1920.

The

existing agreement did not expire until April 5* 1920 and the men refused to consent to any change that would make the expiration occur in the winter months.^

Wages of $1.25

per hour for stonecutters and $1.15 Tor planermen and dia­ mond sawyers were requested.

These rates would be higher

^Bedford Daily Mail. XXVIII, no. 130, January I92O 5 Stonecutters Journal* XXXI (February, 1920), 5*

1$9

^Bedford Dally Mail. XXXVIII, no. 169, February 28,

1920. 3Stone, XL! (May, 1920), 231.

479 than any then current in the United States.1 Stone Club offered rates of 90irf, 70rf and

%£

The Bedford ' respectively.

The existing rates were 81.25*?, 62^, and 48*?.

On January

26, 1920, the Stone Club offered $1, 80*?, and 60jzf.

The men

made a counter proposal of $1 .05, 85*?, and 65*? although the employers later stated that this proposal was declared by the Committee representing the men as only formal, the Com­ mittee not being agreed that they would settle on that basis.2 The Bedford Stone Club suggested that the presidents of the two international organizations be invited to meet with the local arbitration committee to effect a settlement. This they did on March 10*^

On this date the employers re­

peated their proposal of January 26 and the men went back to their original figures.

The operators suggested that as a

means of opening negotiation, the unions modify their re­ quest for the diamond sawyers — to “a more reasonable figure."

a 140 percent increase — The operators then stated

that they had offered as much as they could stand and sug­ gested that the question be put to arbitration.

To this

proposal the men were not yet ready to agree and asked the Bloomington Evening World. April 7 , 1920. by Bedford Stone Club.

Paid ad

2Stone. XLI (May, 1920), 231. ^Stonecutters Journal. XXXV (May, 1920), 4-5. When the first meeting occurred the employees refused to stay be­ cause Sam Griggs, former president of the Journeymen Stone Cutters was discovered to be on the negotiating committee of the Bedford Stone Club. Then again on March 10 a delay occurred because the Stone Club had six representatives, the Oolitic Belt Conference only three.

480 1 continuation of negotiations. March 24.

Another meeting was held on

Here both sides insisted that it was up to the

other to make a new proposal*

None being made from either

side* the men said it was not yet time for the old contracts to expire and refused again to arbitrate and the meeting adjourned.

2

The next day the president of the International

Cut Stone Contractors and Quarrymen^ Association at the re­ quest of the Bedford Stone Club asked the president of the Journeymen Stone Gutters Association to arrange for arbi­ tration according to the agreement. On April

He did not.3

the secretary of the bricklayers union

appealed to the president of the stonecutters union to in­ struct his men to remain at work, promising that the egsecuiives officers of the bricklayers would meet with the stone cutters and the operators to aid in obtaining a favorable settlement.

The stone cutters president promised to con­

sider the request and inform the secretary later in the day of his decision, but did not.4. On April 6, the stonecutters struck, although the two year international agreement prom1sing no strikes did not expire until April 30 .'

On April 7,

^Ibld. 2Stone. XLI (May, 1920), 231. 3Ibid.. pp. 230- 231. 4Ibid.« p. 231. ^Bloomington Evening World. April 8, 1920. advertisement of Bedford Stone Club.

Paid

481 the Stone Club renewed their offer of $1, 80«f, and 60«£, pointing out that these rates would put wages for these classes of labor in the Indiana stone district at substan­ tially the same level as all the large cities, New York) Chicago, etc.* Efforts were then made by the secretary of the brick­ layers to induce the stonecutters officials to call their executive board to Indianapolis for a joint conference with the bricklayers and the stone cut contractors.^

On April 23>

1Ibid.

2

Proceedings of the Seventh Biennial and Forty-sev­ enth Convention of the Bricklayers. Masons and Plasterer’s International Union. Department of Justice, Indiana Lime­ stone Investigation, op. cit. Exhibit 406, pp. 74-76. Telegram of William Dobson, Secretary of Bricklayers, Mason’s and Plasterer’s International Union to A. C. Daugh­ erty, President of Journeymen Stone Cutters Association of Worth America, April 14, 1920s "As a third party to the international agreement between your organization and the International Cut Stone Contractors and Quarrymen*s Associa­ tion, we several days ago talked with you by telephone re proposed strike of your Bedford district members in violation of this agreement and the constitutional law of your organiza­ tion. We protested strike being entered into and urged that you wire your members informing them as a special re­ quest of our executive officers that they remain at work pending the three parties to the agreement meeting in Bedford for the purpose of attempting a peaceful settlement of what­ ever differences existed between the men and their employers. You consented to consider our request and promised to inform us of your action upon same. Up to date we have been abso­ lutely ignored and on April 6 your members went on strike and so far as we can find out, the violation of the agreement received your silent consent and that within a few days fol­ lowing Such action you visited the Bedford district and told the men to stand pat regardless of the agreement and the constitutional law of your organization. We consider your attitude deserving of the severest censure. Agreements with us are not mere scraps of paper and we now demand In order to establish our good faith that you call your Executive

482 a joint conference was held at Indianapolis attended by the Board of Governors of the International Cut Stone Contractors Board members together for a joint conference in Indianapolis not later than April 23rd. Phone or wire us your action on this request at once as we have other important business en­ gagements requiring our definite attention." Reply of Daugherty to Dobson, April 15» 1920s "We are not of the opinion that the agreement entered into with you precludes the members of this organization from taking action looking towards a betterment of their conditions with­ out first obtaining your consent. As we can not claim the right to interfere with action of your membership on the con­ duct of their affairs, we do not relinquish our right to the same autonomy." Reply of Dobson to Daugherty, April 15, 1920s "In answer to your telegram we want to say and say emphatically that we have never and do not now deny to your members the right to seek a betterment of their wage and working condi­ tions without our sanction. You are simply begging the ques­ tion by raising such a false issue. "The question involved is a repudiation and violation of an agreement that your organization has with the employers and to which we were made a third party. Therefore our hon­ orable dealing and good faith are involved jointly with you and we propose to protect our partnership as far as It Is pos­ sible to do so. If we made your organization parties to our agreements we could not successfully deny your responsibility nor right to demand correction of proven violations and we urge that it is your bounden duty as President of your inter­ national union to stand pat against and not with those who wilfully violate agreements. "We want an answer, yes or no, whether you agree to at once call your International executive board members to meet in joint session In Indianapolis and dispose of this very important matter. Please wire us your decision as to conference immediately upon receipt of this letter as our Board is holding up other conference dates for next week pending your answer being received." No reply was received to the last communication.

483 and Quarrymen’s Association, the executive officers of the Bricklayers, Masons and Plasterer*s International Union and the president and secretary of the Journeymen Stone Cutters Association of North America*^" The first point diseussed was the question of the diamond sawyers*

The stonecutters took the stand that the

Bedford stone contractors had recognized their jurisdiction over the diamond sawyers since their proposal stimulated their wage.

The employers explained that they meant only

the diamond sawyers that did jointing and not those that did rip sawing.

The secretary of the stonecutters stated

that they had refused to arbitrate because at the last arbi­ tration in 1919 the planermen and diamond sawyers did not receive what they requested.

The union officials stated

that when the employers had broken off negotiations they had abrogated the agreement, and that the agreement had been wigned by men who ”do not belong to our association.1* The employers replied that an offer of a twenty-five percent increase was not a refusal to negotiate and said, ’’the Stone Cutters seem to think that negotiations must always mean acceptance of their original demands•”

At this point

the president of the contractors association stated that since the men had gone out on strike the contractors be­ lieved that they had violated the agreement and would now

•hvirunnington Evening World. April 24, 1920.

484 refuse to arbitrate.

The secretary of the bricklayers re­

quested the withdrawal of this statement but it was refused with the remark that the men could go back to work at the pay offered.

The union officials then offered to return to

work at $1.12 1/2, $1, and 60ji but the contractors refused to consider it.*’ The suggestion was then made by the presi­ dent of the bricklayers that the men return to work at the wages offered by the employers and the "rest be arbitrated.H The contractor's representatives opposed this suggestion. A recess was called during which the contractor's representa­ tives conferred with the Bedford Stone Club men.

The latter

stated they would leave the matter in the hands of the In­ ternational Cut Stone Contractors and Quarrymen'S Association representatives.

On resumption of the conference, the presi­

dent of the stonecutters was asked if he would order his men back to work.

He replied that he could not guarantee such a

request would be carried out nor that at the expiration of the local agreements the men would arbitrate.

At this point

a resolution was proposed that it was the sense of the con­ ference that the J.S.C.A. of N.A. officers should order their men to return to work and agree to arbitrate the wages as required by the international agreement with the wages •^Department of Justice, Indiana Limestone Investiga­ tion, op. cit., "Proceedings of the Seventh Biennial and Forty-seventh Convention of the B.M. + P.I.U." Exhibit 406, pp. 78-84.

485 thus decided upon, to be retroactive from the day the men re­ turned to work.

On this resolution the contractors and

bricklayers representatives voted affirmatively and the stonecutters officers declined to vote.1 On the following day the I.C.S.g. + Q.A. issued a public statement in which after reviewing the terms of the international agreements and the events of the conference, the following statement was made: The Journeymen Stone Cutters Association of North America, through their international president and secretary have therefore repudiated the international agreement between the three international organization above mentioned which was approved by their executive board in 1918 and again reaffirmed by their executive board in May, 1919> and by their action have demon­ strated beyond question that the Stone Cutters Union proposes to maintain no discipline or concerted auth­ ority over their subordinate unions and to sanction and permit their members to remain on strike. In view of the above facts, the Bedford Stone Club in conjunction with the International Cut Stone Con­ tractors and Quarrymen*s Association have no alterna­ tive other than to refuse to have any further business relation with these officers of the Journeymen Stone Cutters Association and in the meantime the stone in­ dustry must of necessity remain at a standstill.2 On April 29, 1920 the Bedford local of the stonecutters union paid for a newspaper advertisement in which they made the following points:

(1) that the bricklayers

joined the controversy in an attempt to Annihilate” the 3-Ibid.

1920), 6.

See also Stonecutters Journal. XXXV (May,

^Bloomington Evening World. April 24, 1920. advertisement of Bedford Stone Club.

Paid

486 Journeymen Stone Cutters Association; (2) that the employers had refused to negotiate fnrther after making their offer of $1 * 80itf, and 60gf; (3 ) that the international agreement of

1918 between the three organizations had been signed by stonecutters officials who had since become highly paid officials of the contractors association; and (4) that the refusal of the contractors to negotiate on the hours and wages of the diamond sawyers constituted a violation of the agreement.

They ended their public statement by expressing

a willingness to negotiate *1 On May 5, the Oolitic Belt Conference asked to meet the Bedford Stone Club*

The latter organization replied on

May 7 that they had referred the request to their interna­ tional organization, the International Cut Stone Contractors and Quarrymen's Association.

On May 11, the Bedford Stone

Club wrote and proposed that the men go back to work at $ 1 , 80jtf, and 60ji for the remainder of the year 1920, the final wages to be submitted to local committees of three each and the question to go to arbitration if the local groups could not agree.

On May 15 the men proposed that

they return at the wages offered and arbitrate the differ­ ence between those figures and the amounts demanded by the men.

May 17, the operators replied that the men must first

go back to work at the old wages.

2

^-Bedford Daily Mall. XXVIII (April 29, 1920). Paid advertisement of Journeymen Stone Cutters Association. ^Stonecutters Journal* XXXV (June, 1920), 5-7 •

487 Secretary Dobson of the bricklayers asked the De­ partment of &abor on May 10 to send a conciliator and on May 12 F. T. Hawley was dispatched. both sides with Hawley was arranged#

On May 25 a meeting of At this conference it

developed that employers desired that the arbitration be be­ tween the wages paid when the men were not on strike and their demands.

The union committee said that if the oper­

ators would pay the amount they had offered at the resump­ tion of work, instead of the old wages, they would order the men back to work and meet with the operators to negoti­ ate an agreement.

In the event the negotiations failed,

they would arbitrate between the amount paid when the strike began and the amount demanded.

This proposition was

accepted and work was resumed on May 27 with 65 to 70 per­ cent of the men returning.

The next day the agreement ap­

peared to be in danger of being upset when the local union passed a resolution to notify the employers that unless more wages were granted they would strike again June 3 #

On June

8 , however, an agreement embodying the terms of May 26 was signed. 62 1/2

On July 12, an award of $1.12 1/2, 82 1/2^ and

fi was

given and accepted.

It was also agreed that

in a ease of emergency diamond sawyers could work 54- hours a week.**' ^Department of Labor, Conciliation Service, File I7O-II36 , Report of F. T. Hawley.

488 The most important consequence of this episode occurred shortly before the final settlement.

On May

27, 1920 Secretary Dobson of the Bricklayers, Masons and Plasterers dispatched the following telegram to all members of the Executive Board of the Journeymen Stone Cutters Associations For two years our international union was involved in litigation in state and federal courts because of its protection and general support of the stone cutters of America# Finally we succeeded jointly in negotiat­ ing agreements with the cut stone contractors and this litigation was withdrawn. Your Indiana belt members recently struck in violation of these agreements. To show our good faith we urged your president to order their enforcement. This he has refused to do and has given our executive officers to understand that we can consider our agreements and friendly relations at an end. As self-respecting men, we have therefore no alternative other than to withdraw from all agreements entered into with your international union, including all local and protective agreements and our board has so ordered.1 Despite this decision, the bricklayers continued to tacitly assist the stonecutters by informally recognizing the protective agreements until a suit was filed against the bricklayers in 1922 by the Federal Government in the Federal District Court of the Southern District of New York.2 In the meantime another labor difficulty had been brewing.

In February, 1920 an organizer for the Quarry

•1 Department of Justice, Indiana Limestone Investiga­ tion, oj>. sit., Exhibit 406, p* 76. 2Ibid.

489 Workers International TJnion came to the Indiana belt and be­ gan to organize the quarrymen at Bedford.1

On July 9, 1920,

H. P. Ledyard, general organizer for the Quarry Workers Union appealed to the Department of tabor to send a con­ ciliator saying that he was trying to hold the men at work pending the arrival of the conciliator.

On July 22, over

1000 men struck and about 1000 more were made idle by the strike*

The operators had refused to meet with the men or

in any way recognize the new union. A conciliator arrived b on the 22nd but on the 27th the Bedford Stone Club pub­ licly announced its determination not to recognize any new u n i o n s O n August 19, the strikers voted to return to 4. work. Recognition had not been achieved. On the other hand, it will be noticed from Table 9? that substantial increases in wage rates per hour were given not only to the planermen, cutters, and sawyers in 1919 and 1920 but also to the other classes of mill laborers and to the quarrymen. These Increases may have been granted in part to avert unionization but were also due to a scarcity of labor in the Stonecutters Journal. XXXV (May, 1920), 5* Fuel was added to the flames by the fact that the stonecutters president of the Oolitic Belt Conference was said to be very active in assisting in the formation of the Quarry Workers Union. ^Department of Labor, Conciliation Service, File 170193; Bedford Daily Mail. XXVIII, no. 294, July 22, 1920. ^Bedford Daily Mail. XXVIII, no. 298, JuAy 27, 1920.

4Ibid.. XXIX, no.

% August 19, 1920.

490 district.

Many of the workers who had left the section to

work on war jobs had returned but not rapidly enough.

In

the latter part of 1919 and early I 92O the Bedford Stone n

Club had advertised for men in several towns in the state. On February 11, 1921, the Bedford Stone Club adopted the following resolutions Whereas during the war wages were raised to an abnormal rate thereby forcing the prices of building materials to a point where it was Impossible for pros­ pective builders to secure funds to build and whereas the cost of living has been reduced approximately forty percent and in order to allow building to go ahead it is necessary that cost be reduced, Therefore, be It resolved, that it is the sense of this meeting that wages of fctone cutters, planermen, diamond sawyers and all other labor of every kind em­ ployed in the mills and quarries to be substantially reduced and that the Industrial Committee be instructed to investigate the matter thoroughly and report their recommendations to the members of this club at a later meeting.2 This was the frame of mind of the employers when serious trouble again broke out in the Indiana district.

In

December, 1920 officers of the International Cut Stone Con­ tractors and Quarrymen1s Association had drawn up a state­ ment of principles to govern shop operations which were to be a matter of negotiation with the Journeymen Stone Cutters Association in formulating a new international agreement to follow the existing one which expired April 30, 1921.

This

statement was submitted to the Executive Board of the union ^Bloomington Evening World. August 7* 1919* ^Ibid.. February 12, 1921.

at the union*s convention in January, 1921.1

It proposed

to recognize only cutters and carvers as members of the union and to introduce a system of apprenticeship for machine o workers. The union convention passed a series of resolu­ tions governing the conduct of its officers In any negotia­ tion with the employers and on February 17, 1921 the officers of the International Cut Stone Contractors and Quarrymen*s Association were informed by the union that the matters they had submitted to the convention had been placed In the hands of the Incoming union officials and that they would be pleased to confer.

An invitation was extended to the union

officials to meet with the Board of Governors of the con­ tractors association on March 4 at Indianapolis but the union representatives did not appear.^

A declaration was

therefore adopted by the Board of Governors that after May 1,

1921, they would operate with fair wages and just working conditions "under conditions such as will merit a free de­ velopment of the industry.**4. This statement was posted in all shops Monday, March 21.

April 6, the president of the

stone cutters asked a joint meeting of executive committees and such a meeting occurred on April 18. 1§£one* X L H (April, 1921), 203.

2

Stonecutters Journal. XXXVI (June, 1921), 2.

^Stone, XLII (April, 1921), 2034Ibid. *Ibid. (May, 1921), 2?8.

493 At this time the union made a concrete proposal as a basis of negotiations.

The essential elements of this

proposal were as follows:

(1) forty-four hour week with

two hours overtime at time and half to be allowed —

this

would limit the hours the machines operated by extending the Stonecutters hours to the operators of stone working machinery; (2) union membership to include cutters, carvers, planermen, diamond sawyers, tool grinders, blacksmiths, and lathemen; (3) foremen to belong to union; (4) apprentices to be limited to not more than three in any one shop and were to serve a four year term —

if shortage of planermen en­

sued, journeymen stonecutters were to be used; (5) the air hammer to be entirely abolished; and (6) carving not to be subcontracted. At this time the membership of the contractors asso­ ciation operated plants in forty-nine cities. were' organized in twenty-nine of these cities.

The planermen Diamond

sawyers were organized in three cities outside the Indiana 2 district. At the second session of the conference, the contractors agreed to make local agreements with the planermen in those localities where the planermen were already organized.^

The union still insisted on negotiating on all

■^Ibid., p. 253. Union convention made a survey of the hours worked by machine operators found one locality working 10-12 hours, seventeen working ten hours, twentyfour nine hours and twenty-,nine eight hours.

2Ibid.. p. 259* 3Ibid.

493 classes named and the meeting broke up in a deadlock, April 18.

On the request of the union officials, however,

it was resumed April 21. tentative proposal.

The contractors made the following

In this proposal they agreed to the

forty-four hour week and to the limitation of apprentices to three in a shop, but insisted (1 ) that foremen should be agents of the employer and hired by them although belonging to the union

if they actuallycut stone; (2) that the air

hammer Could

be used although

and (3 ) that

carving could besubcontracted.

contractors agree to

not for undue roughing out; For did the

the extension of membership. They also

proposed the adoption of the following principles as a basis for working rules:

(1) that there shall be no limitations

as to the amount of work a man shall perform during the working day; (2) that there shall be no restrictions as to the use of machinery or tools; (3 ) that there shall be no restrictions as to the use of any manufactured material except prison work; (4) that no person shall have the right to interfere with workmen during working hours; (5) that the use of apprentices shall not be prohibited; (6 ) that the worker shall be at liberty to work for whomsoever they see fit; and (7 ) that the employer shall be at liberty to employ 1 and discharge whomsoever they may see fit. This proposal was met by such suggestions from the union as would bring it into conformity to their own

494 proposal*

The onion representatives suggested that the con­

ference be resumed thirty or sixty days later, the old agree­ ment to remain in force in the meantime*

The contractors

refused, saying that the delay in negotiations was due to the men and that on and after May 1, 1921 they would operate according to their declaration of March 5 with a closed shop for stonecutters, forty-four hour week, foremen as representatives of employer, rehabilitation of the supply of skilled labor by unrestricted use of apprentices, unre­ stricted use of the air hammer, and optional use of sub1 contracting. On May 2, 1921 strikes or lockouts occurred in many localities although the union executive board urged members to avoid trouble.^

In the Indiana district a new type of

reaction occurred.

On May 28, 1921, the Association of

Planermen*s Unions of the Indiana Limestone District in Lawrence and Monsoe Counties was incorporated under the laws of the state of Indiana.

On June 2, 1921, the Stone Cutters

and Carvers Union of the Indiana Limestone District in Lawrence and Monroe Counties was incorporated.^

On May 21,

the Bedford Stone Club signed a contract for four years with the new planermen1s union.

This contract called for a

forty-nine and one-half hour week.

The individual companies

1Ibid.* p. 260.

2

Stonecutters Journal. XXXIX (September, 1924), 18.

Lawrence County, Recorder*s Office, Miscellaneous Records* XLIV, 445-446 .

495 were to have the right by agreement with the workmen to operate for a greater or less number of hours at straight rates subject to the approval of committees representing the two parties*

One apprentice would be permitted for

every five or less journeymen —

all men now running planers

to continue without discriminations

eighteen months appren­

ticeship was to be served on stone machinery; the union was not to join or affiliate with any other union or to take in any men except planermen and men operating shapers, headers, lathes and milling machines; wages of 75^ per hour until February 1, 1923 with

^6

extra for operators of headers,

shapers, milling machines and circular planers would be paid. Foremen were to be competent planermen but representatives of the employers.

No restrictions were to be placed on the

use of machinery.

Disputes were to be settled by arbitra­

tion without strikes or lockouts*

If the regular committees

disagreed the question should be referred to special com­ mittees of three from each side, thence to the presidents of the two organisations, and finally to an umpire.^

On

June 2, 1921 the Stone Club signed a contract that was the same except that it covered stonecutters and carvers, pro­ vided a forty-four hour week, a four year apprenticeship be spent two years with mallet and chisel and two with the air hammer, wages of $1 per hour, and the employer to have

1Sto|ie, XLVI (June, 1921), 321-322

to

496 fight to sub-contract carving.

1

The Bricklayers, Masons

and Plasterers International Union had informed the Bedford Stone Club in May that they would work on setting all stone placed before them regardless of the differences between the Journeymeh Stone Cutters Association and the Bedford 9 Stone Club. There seems to be little doubt that these organizations were inspired by the employers.

Indeed, the

dues of many of the workers were paid by the employers, at least in the beginning. ^

At first the mills operated very

short-handed. On June 2, it was said that 1200 men were 4 idle, but gradually many men came back to work, late in the summer, however, men were imported by the Bedford Stone Club.

The majority seem to have been from the southern 5 marble and granite districts, especially Georgia. Not all employers in the Indiana district broke with the Journeymen Stone Cutters Association.

One of the larg­

est firms in Bedford signed the new agreement with the J.S.C.A. and one small company in Bedford and several smaller firms in Monroe County followed suit.

These firms paid

$1.12 1/2 for stone cutters, 82 1/ 2d for planermen and for diamond sawyers.^

These firms together produced approx-

IIbid. 2Stone. XLVI (June, 1921), 287. ^Confidential interviews with stone executives and

workers. B e d f o r d Daily Mail. XXIX, no. 239, June 2, 1921. Stonecutters Journal. XXXVI (September, 1921), 6 .

6Ibld.

497 mately 20 percent of the total output of the Indiana district. On June 15, 1921, the Bedford Stone Club requested Its members to hire as planermen or stonecutters only members of the new local unions and the next day sent out posters to be posted in the shops at the option of the employer stating that on and after June 20, 1921 all men of the trades eoni earned must be members of the new unions. In October, 1921, one of the Bedford Stone Club mem­ bers, Shea and Donnelly, obtained an Injunction from the federal district court at Indianapolis restraining the Journeymen Stone Cutters Association's national or local officials from interfering with the companies interstate trade in stone products.

2

In December, 1921, the same firm

obtained an injunction from the federal district court at St. Louis restraining the Building Trades Council of St. Louis and the St. Louis local of the Journeymen Stone Cut­ ters Association from interfering with the use of Indiana limestone fabricated by the company*

Union cutters there

had refused to work on this stone.^ The leadership of the union evidently decided to proceed Slowly.

The first move was to submit the issues to

the membership for a referendum.

This gave overwhelming

majority in favor of their proposal.

Early in January,

•^Stonecutters Journal. XXXIX (September, 1924), 19* ^Bedford Daily Mall. XXX, no. 37, October 20, 1921. 3Ibid.. XXX, no. 87 ,December 21, 1921. ^Stonecutters Journal. XXXVI (August, 1921), 3.

498 1922, the Union president and another representative at­ tended the International Cut Stone Contractors Association convention in Cleveland.

They were informed that their con­

stitution must he revamped before any negotiations could occur.

The offending clauses were pointed out and the

union officials submitted the proposal to their executive board members.'*'

Again in June, 1923, a similar conference

occurred at the contractors convention in Buffalo.^ Finally in October, 1923, the Journeymen Stone Cutters Association at its Cleveland convention eliminated the claim of jurisdiction over tool sharpeners, tool grinders, gang sawyers and diamond sawyers but retained claim to the planermen, lathemen and carborundum molding machine operators. The article calling for abolition of the air hammer was like­ wise stricken out.

The number of permissible apprentices

in one shop was Increased from 3 to 5 and the provision requiring that stonecutter apprentices be given an apportunity to learn to operate stone cutting machinery was eliminated. Machine apprentices were to serve two years and could be 18 to 27 years of age.3. The union officials then approached the contractors again and were told that they must win over certain members, 1

Stonecutters Journal. XXXVII (Hareh, 1922), 4. The Executive Board divided four to four on accepting the pro­ posed changes. The question was then submitted to a refer­ endum of the members and voted down (Ibid.. XXXVII (April, 1922), 4 and (May, 1922), 4. 2Ibld.. XXXVIII (July, 1923), 8.

3Ibid.. xxxnil (November, 1923), 2.

499 notably Indiana men*

One of the Indiana executives ex­

pressed their opinion in saying that while a better feeling existed toward the Journeymen Stone Cutters Association by reason of their peaceful procedure, the Indiana agreements with their present employees still had some time to run and they were,ttherefore, not quite ready to meet the union for further negotiation.* On June 28, 1924, the Executive Board of the Stone Cutters adopted a resolution that after August 1, 1924 all members were to quit working on any stone fabricated by men in opposition to the organization.

This was not to apply

to work done by Shea and Donnelly, the firm that held the o injunction mentioned above. The circular sent out by the Union on July 7, 1924 containing this resolution cautioned the members that it applied only to members of the Journey­ men Stone Cutters Association, that they were not to get the aid of any other trade and were not to tell architects, builders, or others that any firm or firms were unfair.3 The sole action was to be that the members of the organiza­ tion would refuse to plane, turn, cut or carve any stone on ^Stonecutters Journal. XXXIX (May, 1924), 4. Kansas City, Detroit and Indianapolis contractors had also estab­ lished workind conditions with other than General Union men (United States Supreme Court, October Term, 1926, Docket 4122 Transcr5pt of Record. CIII, 137* Testimony of Walter Drayer ) ^Stonecutters Journal. XXXIX (August, 1924), 7 *

^Ibid., XXXIX (December, 1924), 4.

500 which work had been d o n e b y members in opposition to the Journeymen Stone Cutters Association. Early in October all of the companies in the BedfordBloomington district that did not hire Journeymen Stone Cutters —

except Shea and Donnelly which already had an in­

junction, the Hoosier Cut Stone Company and the Hoadley Stone Company —

applied to the federal district court in

Indianapolis for an injunction restraining the General union from carrying out the orders of this circular.^

Hearings

were held October 24, 1924 and on November 13 the applica2 tion was denied. Appeal was taken to the Circuit Court of Appeals at Chicago and October 28, 1925, the denial of the injunction was upheld on the grounds that "so long as it does not appear that the appellees resorted or threatened to resort to unlawful acts or means to accomplish their lawful purpose, there was no impropriety in Judge Anderson's refusal to grant a temporary injunction."

One of the judges

held that interstate commerce was not involved; the other two said that "the tendency in greater or less degree thereby to restrain interstate commerce may be conceded."^

Appeal

was again taken and the ease was argued before the United States Supreme Court January 18, 1927.

On April 11, 1927,

^-Stonecutters Journal. XXXIX (November, 1924), 4. 2Ibld.. XXXIX (December, 1924), 2. ^Federal Reporter. IX (Second Series), 40.

501 the ruling of the lower courts was reversed*

The majority

opinion of the court held Strikes were ordered and conducted for the sole purpose of preventing use and consequently the sale and shipment in interstate commerce of the petitioner's product in order by threatening the loss or serious curtailment of their interstate market to foree pe­ titioners to the alternative of coming to undeslred terms with the members of these unions. The strike order did not make any allowance for stone thereto­ fore shipped. That the means adopted to bring about the contemplated restraint of commerce operated after physical transportation has ended is held immaterial. Restraint of interstate commerce was the necessary consequence of the acts and conduct and the immediate end in view. It is the result — not the means devised to secure it which gives character to the conspiracy. Restraint of interstate commerce can not be justified by the fact that the ultimate object of the parti­ cipants was to secure an ulterior benefit which they might have been at liberty to pursue by means not involving such restraint.1 The cases of Loewe v. Lawlor. TJ.S. v. Brims, and Duplex Printing Co. v. Peering were held to be the con­ trolling cases.

The decision was said to follow from the

Sherman Anti-Trust Act and the Clayton Act and not from the common law or local statutes. Holmes concurring.

Justice Brandeis dissented,

The dissent pointed out that the char­

acter of conduct involved in the Bedford case was different from that held unreasonable in the Duplex Printing Company ease. —

In the latter case the aid of others had been invoked

both organized and unorganized labor not concerned in the

•^■Supreme Court Reporter. XLVII (St. Paul, Minnesota),

524- 525.

502 trade dispute by a general boycott of the businesses of all participating in marketing, installation or exhibition of the product* There it was an effort to unionize an open shop. Here it is action taken for self-protection against an opposing union installed by employers to destroy the regular union with which they had long had con­ tracts* There it was aggressive action against an isolated employer. Here it is defensive action of working men directed against a combination of em­ ployers. Also not just one craft is affected but organized labor through the American Federation of Labor* In U.S. v. Brims the immediate purpose was to suppress competition with the Chicago manufacturers not primarily to further the interests of union car­ penters. If on the undisputed facts of this case, refusal to work can be enjoined, Congress created by the Sherman law and the Clayton act an instrument for imposing restraints on labor which reminds one of in­ voluntary servitude.1 An injunction in accord with this ruling was issued by the Federal District Court at Indianapolis on April 17, 1927 and the Union Executive Board revoked their order to their members April 23, 1927.^ p p - 530-531The course of events leading to the rupture of relations between the Journeymen Stone Cutters and the Bedford Stone Club is also well summarized in the Transcript of Record of the Bedford Cut Stone Case* Docket 412, October Term, 1926, CIII, Transcript of Records Of U.S. Supreme Court, Washington, D.C. See especially pp. 121-127, "Testimony of Michael W. Mitchell, President of Journeymen Stone Cutters before the Colorado Industrial Commission, August 30, 1924" and pp. 128-143, "Testimony of W. W. Drayer, Secretary of International Cut Stone Con­ tractors Association."

Stonecutters Journal. XLII (May, 1927), 2.

503 The Bedford Stone Club members continued to adver­ tise for men throughout 1922 and 1923.1

That some men were

obtained and an apprenticeship program inaugurated is indi­ cated by the fact that on December 1, 1923 Stone Club mem­ bers employed one hundred thirteen stonecutters and carvers; one hundred ninety-three planermen; ninety-five air hammer 2 apprentices; and ninety-one planer apprentices* The con­ tinued scarcity of workers was also reflected in the wage increase granted*

Tool grinders and quarry derrick runners

were evidently very scarce since, while all other categories of labor were being cut, these men had been raised in 1921 from 53^ to 63^ and from 65^ to 70j£ respectively*

Diamond

sawyers were given 62«f instead of the 62 1/2^ of the 1920 scale*

On July 17, 1922, the 1920 scale was reestablished

for all but a few classes of labor.

Quarry derrick runners

Were not increased but tool grinders received another in­ crease to 69^ an hour.

Certain classes of quarry labor,

namely, quarry drill runners, breakers, quarry derrick helpers, scabbiers, and nozzlemen lacked being restored to the 1920 scale.

16

per hour of

Water and signal boys

who had been cut from 30^ to 22^ were raised only to 24*f.3 This placed the cutters and planermen of the local unions on ^Bloomington Evening World. March 6, 1923* ^Stone Cutters Journal. XXXVIII (March, 1923), 2. ^See Table 40.

504 S parity with the similar classes of labor in the firms con­ tinuing to hire General Union men. On May 1, 1923 , further Increases were granted by the Bedford Stone Club.

Experienced stonecutters received

12 l/2fT an hour increase; planermen, blacksmiths, and mech­ anics 7 l/2d per hour increase; water and signal boys

an

hour; and all other classes of labor, except mill laborers

$4

and quarry derrick runners,

an hour increase. The pay of t the two latter classes was not increased. The General Union

mills had granted an increase of 7 l/2d, making an amount of $1.20 for stonecutters on April 2 to last until October 1 and $1.25 thereafter.

Planermen received 90^ and $1.00 and

sawyers 72 1/2^ and 8Qd.

The firms employing the local

union men, therefore, paid 5^ an hour more for cutters and 2 l/2*£ per hour more for sawyers than did the mills using General Union labor from April 2 to October 1, 1925*

After

the later date, General Union members received the same wages if cutters, lOjrf more if planermen or sawyers than did the members of local unions. 1924.

Ho wage changes took place in

On February 1, 1925 local union planermen received

2 l/2«£ per hour and blacksmiths a 5^ an hour increase; but all other wages remained unchanged.

In February, 1926 local

*See Table 40. tone cutters Journal. XXXVIII (May, 1923), 7» The Ingalls Stone Company as the largest of the firms hiring General Union men, tended to set their wage.

505 union planermen were raised to $1 per hour thus placing them on the same basis as General Union workers*

They had asked

for $1*25 or equality with the stonecutters and settlement of the dispute was not negotiated until July 22.

Ho other

wage s were changed.1 Wages then remained the same until November 30, 1933-

JLt that time the Bedford Stone Club announced that

business conditions made a wage cut imperative.

Cutters

were to be lowered from $1.25 to $1*00, planers from $1.00 to 80^, blacksmiths and mechanics from 90d to 75^, and all other classes of labor except water and signal boys 10j£ an hour.

The latter were to receive a

%

cut.

The local

union contracts were not due to expire until February 1, I933.

After some deliberation, it was decided to have an

individual member file suit against the Bedford Stone Club for violation of the contract.

Before the suit could be

tried, however, the union withdrew it on a promise from the Club to split time among the members on a twenty-hour week basis.

4

When the Bedford Stone Club announced this wage cut, several of the firms that had been hiring General i Bloomington Weekly Star. July 22, 1927.

^Bloomington Evening World. December 8, 1933-♦ 3Ibid.. April 8, 1932. 4

Interview, former union official.

506 Union men announced on December 10 that beginning December 11 they would pay the same wages as the local unions.

The

General Union men concerned did not return to work the next day but sent for their international president.

He believed

the best thing to do was to accept the cut and the General Union Executive Board gave the Indiana locals the right to work at the wages offered.

The Ingalls Stone Company, the

largest firm concerned, proposed to pay the old wage scale until April 1, 1932 but insisted that it would then have to meet the wages paid by competitors or it could not stay in the market. stand.

The Edinger Stone Company took a similar

The union men refused to accept the offer.

For

several weeks the General Union men were out. President Mitchell of the Journeymen Stone Cutters Associa­ tion then intervened and agreed to the acceptance of the offer of the Ingalls Stone Company.

The Edinger Company

was allowed to begin its reduced wages on April 1, 1932 in consideration of its small size Bloomington men agreed to take the prevailing wages and the difficulty ended on 1 January 11, 1932. Since that date the companies in the Indiana stone belt have all nominally paid the same rate of wages.

There

are a few companies that have not belonged to the Indiana Limestone Institute, but they have usually paid the pre-

^Stoneeutters Journal. XLVII (October, 1932), 14-15.

507 Vailing wage scale*

During the depression, particularly in

the early years, there were a few firms that used various devices to pay less than the prevailing wages.

For example,

apprentices at low rates would be used instead of cutters or carvers or some form of "kick back” to the employer wbuld be exacted.

These practices became more difficult to

execute, however, with the unionisation of virtually all branches of labor in the quarries and mills in 1933*

In

1934 the statement was made to the NRA that prior to the HRA "bootleg wage agreements existed for 25 to 50 percent 1 of the established wage rates. Annual estimates of average employment figures for the industry have been collected by the Bureau of Mines since that agency began the collection of annual accident data in 1911*

Prior to 1931? however, the published state

figures did not aggregate dimension stone from crushed and broken stone.

The number of men employed in stone quarrying

and fabricating companies is available for each year, 19111939; and the number of men in Indiana employed in dimension stone quarries and in dimension stone mills can be separated from these all-industry figures for the years 1931- 1939.

In

I93I, the number of men employed in Indiana dimension stone quarries was approximately 55 percent of the total number of men employed in all Indiana quarries.

The number of men

^■Rational Recovery Administration, Code History 113. Limestone Industry, Basic Materials Division, Mining and Quarrying Section, pp. 74— 75* See also Stonecutters Journal XLVII (October, 1932), 4-2.

508 employed in Indiana stone mills in the same year was 59*8 percent of the total number of men employed in stone fab­ ricating plants*

In 1932, the percentages became 40 and 46

percent respectively; and in 1933» 37 and 36 percent re­ spectively*

In order to obtain an estimate of the fluctu­

ations of employment in the quarries and mills of the dimen­ sion stone industry, the percentage divisions of 1931 be­ tween the number employed in non-dimension stone companies and dimension stone companies were applied to the total figures for each of the preceding years.

The resulting

estimates for 1911-1930 and the actual figures for 19311933 are given in Table 4tL

The assumption that the years

1911-1930 were characterized by equivalent expansions and contractions in the non-dimension stone and dimension in­ dustries is obviously fallacious.

The figures prior to

1931 must be considered of value only as first approxima­ tions*

Some of the figures that may be the most removed

from actuality can be checked either by actual figures or by estimates made by other methods and the figures secured are given in parentheses.

Thus, in 1914, the actual number

employed in dimension stone quarries was 1106, a number that is 42 percent rather than 55 percent of the total num­ ber of stone quarrymen given for Indiana.

We know, however,

that 1914 was a depressed year for the industry.

In 1917*

1918, and 1919, likewise years of depression in which the influence of the first World War was being felt, the figures

509 TABLE 4 CL

ESTIMATED AVERAGE NUMBER OP MEN EMPLOYED IN INDIANA DIMENSION STONE INDUSTRY, 1911-193J9* Year

Quarry

Mills

1911 1912 1913 1914 1915

1961 2157 2085 1480 1634

896 1193 872 584 1122

2857 3350 2957 2064 2756

1916 1917 1918 1919 1920

1745 1563 784 1282 1552

1309 826 581 733 866

3054 2389 1365 2015 2418

1921 1922 1923 1924 1925

1495 1583 2008 2060 1599

1030 1059 1016 1132 2130

2525 2642 3024 3192 3729

1926 1927 1928 1929 1930

1401 1318 1282 1269 1219

1817 1829 1789 1859 1728

3218 3147 3071 3128 3447

1407* 795* 586*

2273* 1193* 1064*

1931 1932 1933 Source:

866* 398* 478*

Total

Derived from U. S. Bureau of Mines, Quarry Accidents in the United States, 1911 -1930',

passim. The total number of men employed in all Indiana quarries and all Indiana stone fabrication plants is obtainable from these bulletins. Since 1931, the totals are sub­ divided into dimension and non-dimension stone. The starred figures are actual numbers of men employed, 1931-1933. The previous years are estimated on the assumption that dimension stone quarries employed 55 per cent of all men in Indiana quarries and that dimension stone mills employed 60 per cent of the total of all men in Indiana stone fabricating plants.

510 in parentheses give the amount of the estimates on the assumption that the percentage divisions between dimension and non-dimension stone was as low as that prevailing in the depression years of 1933-1935* or, roughly, 35 percent. This seems reasonable when we remember that non-dimension, unlike dimension stone, had an increased volume of business ini those war years.

On the other hand, it is probable that

the figures for the years 1921, 1922, and 1926-1929 are underestimated by this method.

Stone executives active in

those years estimate the total volume of employment to have reached a peak of between 4500 and 5000 men. The personnel problem had several other phases not associated with the question of organized labor, the im­ portation of workers during strikes, and the wage rates paid. A brief statement of the total cubic feet of stone produced by the industry by years (Table 4&) indicates the extent of its expansion in the early 1920*s.

By 1922 the

total eubie feet had regained the level of 1906-1913* the peak years of the pre-war cycle; and in each year from 1923 until 1930 sales exceeded any year of this previous peak. This increase in production involved an expansion in the labor force that was difficult to secure.

This was met by

lengthening the working day, by an increase in the average number of days worked per year, and by a reduction in labor turnover as well as by attraction of additional men by higher wage rates.

511 TABLE 4$ SALES OP INDIANA OOLITIC LIMESTONE, 1919-1940* Year

1920 1921 1922 1923

1924 1925 1927

1928 1929

Cubic Feet

YeYear

Cubic Feet

4 788,639

1930

12 308,310

6,343,536 5,279,458 9,616,640 11,694,380

1931 1932 1933

7,865,210 5,927,35° 4 ,858,660

1934 1935

2,795,510 2 ,764,870 4 ,831,310 4,432,130 4,151,910

,

11 ,005,770 11,803,890 14,177,490 13,572,950 14,520,260 ' 14,009,850

,

1936 1937 1938 1939

5,275,120

1940

3 ,222,170

lit Source: Mineral Resourced of the United States, 1919-1931, passim: Minerals Yearbook, 1932-1940, passim.

In 1922-1926, ten to twelve and occasionally fourteen hour shifts were utilized.

During 1922 and 1923» many mills

worked two twelve hour s h i f t s I t will be noticed that the years of most rapid expansion, 1921-1924, were the years in which the Bedford Stone Club were advertising widely for workers.

The scarcity of labor had begun by the removal of

many workers, both skilled and unskilled, from the district during the World War2 and was further complicated by the *Data derived from David G. Wylie, op. clt., p. 56, and checked by discussions. ^Bloomington Evening World. August

79

1919•

512 departure in 1920 and 1921 of some men — stonecutters and planermen —

particularly

who did not desire to be in­

volved in the labor disputes of those years. The hiring of common unskilled labor was made much more difficult by the fact that the migratory or casual labor —

especially of foreigners —

that it had been possi­

ble to secure in previous boom years was now not as available. Another factor causing added expense to the individual em­ ployer was the increased personal mobility of the average individual*

With the advent of the low-priced automobile

and improved roads, the number of workers who changed from one company to another had increased.

The rate of turnover

is expressed as the percentage of the number of terminations of employment to the average force on the payroll during a given period.

The rate of turnover in three stone mills

studied in 1921 by Ray E. Mitchell, an Indiana University School of Commerce student, was found to be 79.5 percent, 74 percent, and 65 to 75 percent.'*'

In 1922, David G. Wylie

found the turnover at another firm to be 266 2/3 percent in the quarry and 250 percent in the mill.

In both the quarry

and the mill the turnover was greater for the unskilled than the skilled workers*

The unskilled workers were apt to be

younger, unmarried, and less tied to the stone district. t

Ray E. Mitchell, The Limestone Industry of Southern IMigna, unpublished B.S. Thesis, Indiana University Library, 1921, pp. 53-54. ^David G. Wylie,

sii-» P* 62.

513 Many

tamers

of the stone district —

agricultural region for Indiana —

a relatively poor

continued to alternate

tietween farming and the stone industry, becoming casual workers in the quarries or mill yards between growing seasons.1 Factors were at work, however, to reduce the rate Of turnover.

The increase in wage scales had by 1922 brought

about the almost complete replacement by native labor of the foreign unskilled laborers who had been brought into the district in the late 1880*s and during the labor troubles immediately prior to the World War years*

In 1922 only five 2 percent of the labor of the industry was foreign. Another factor in reduction of turnover was the increasing percentage of employees in the post-war years who had married and were raising families.^ An Increase in the number of working days per year was another important influence in meeting the labor short­ age.

In the pre-war years, the average number of days worked

in the quarries is said to have been between 200 and 230. Beginning with 1920, it began to average 250 to 300 days a A year. This reflected not only the significantly increased "4)avid G. Wylie, op. clt.. pp. 57-58. Ibid. , p. 51*

3£Sld., p . 5 7 .

4l6ia.. p. 51.

514 ▼Glume of business but also the attempt by many operators to decrease the overhead burden of idle equipment and the expense of labor turnover*

Increasing taxes plus the in­

stallation of cost accounting systems had made operators conscious to a degree that they had never been before of the cost burden of idle equipment and idle men*

Many

quarrymen, in periods when weather conditions stopped opera­ tions in the quarry, now utilised their men to strip new quarry sites, repair and service machinery, as casual labor in their mills,

etc .1

As a result of the disclosure of the costliness of labor turnover by the cost studies of Scovell, Wellington, and Company, the Bedford Stone Club began to take a more united stand in seeking to reduce those classes of labor turnover that resulted from the eommon laborer who liked to be idle without particular cause and those persons who liked to change from one employer to another.

Since the

person who laid off from time to time without good cause was usually an unskilled laborer and relatively easier to replace, mill and quarry superintendents began to refuse to rehire such men *2

The "drifter" from mill to mill or quarry

to quarry was met by the Bedford Stone Club by organized opposition to such a practice. ■4)avid G. Wylie, op. e^t., p. 51.

2Ibld.. pp. 58-59.

515 Bulletin 13 of the Club illustrates the method of dealing with this practice: Employers discharging stone cutters or planermen without first consulting Mr, Hatfield, labor repre­ sentative of the Bedford Stone Club, is a practice inimical to the best interests of all concerned, This practice has given the men in the past an opportunity of leaving one mill for another with or without suf­ ficient causes. If it becomes necessary for any of these men to present himself to Mr* Hatfield before securing employment anywhere it would (1) tend to re­ duce the number of defections in employment; (2) give Mr. Hatfield an opportunity of presenting to an em­ ployer the names of applicants for various positions resulting in possibly greater satisfaction than might otherwise maintain; and (3 ) there would soon impress itself so firmly on the minds of these men as to dis­ courage their leaving one place of employment for another without good reason and generally create a wholesome respect for the Bedford Stone Club's labor department, which in its turn must naturally haye a favorable influence to the operators generally,1 In view of the enlargement of the labor force, it is not surprising to find the employers paying increased attention to the training of labor and to the safety educa­ tion of their employees.

Reference has already been made

to the large number of apprentice stonecutters and phnermen hired by the members of the Bedford Stone Club in 1922 and 1923,

On various occasions, some companies conducted

schools of instruction for apprentices in these trades. Another critical group of employees was composed of the

^Stonecutters Journal. XXXIX (June, 1924), 2.

516 blacksmiths, tool grinders, and mechanics*

In the summer of

jL?25» tlje Stone Club retained Professor J, F. Keller of Pprdue University, a metallurgist, to make a survey of the causes of the failure of tools and machine parts*

In the

fall of that year, Mr* Keller conducted a special ten-weeks course for blacksmiths, tool hardeners, and oxyacetylene welders.1

In these years with the encouragement and fi­

nancial aid of the stone companies both Bedford and Bloom­ ington placed craftsmanship and stone cutting in the mecho anieal arts curriculum of their high schools. In 1923> the Bedford Stone Club started the practice of having monthly dinners for foremen, superintendents, and department heads of its member firms.

The objective was to

improve relations between operators and their executives and to exchange information of technical problems of fabri­ cation.

In May, 1925> this group formed the Bedford Indus­

trial Club.3

in September of the same year, a similar club

was organized in Monroe County.

As time passed, these clubs

set up committees on charity and began quietly to assist stone workers in financial distress*

4

^Bloomington Evening World. September 24, 1915* ^Quarries and Mills. I (May, 1929), 30. ^Bedford Pally Mall. Kay 13, 1925. ^Quarries and Mills. I (May, 1929), 50.

' >

As an outgrowth of these activities, when, the years

1924-1925 brought an alarming increase in the number of ac­ cidents in stone mills and quarries, a systematic safety X campaign was inaugurated. The campaign was begun with a two-weeks series of noonday meetings in the plants.

Repre­

sentatives of the Indiana Industrial Board, the State Fire Marshal1s office, and the Travelers* Insurance Company ap­ peared on the program.^ safety suggestions.

prizes were given for the best

Several mills and quarries operated

the entire two weeks without any lost time accidents.

The

mills and quarries were equipped with first aid material. Investigators declared that 80 percent of all personal in­ juries in mills and quarries were preventable and due largely to lack of self-protection; consequently, In 1926 several companies, especially the newly-organized Indiana Limestone Company, organized safety committees in their various plants.

These committees held monthly meetings to

investigate the causes of accidents, to draw up safety sug­ gestions to the company and to the men, and to assist fore­ men in curbihg careless practices.

Classes of the Indiana

Limestone CompanyAFirst Aid were Instructed by the company doctor and a representative of the Bureau of Mines. Bedford Daily Mail. October 27, 1925* Bloomington Evening World. August 3 , 1925*

This

518 company also prepared a safety manual covering each opera­ tion and presented each employee with a copy.

As a result,

the company director of safety reported in May, 1929 that a forty percent reduction in the number of accidents had been achieved; and that a considerable number of mechanical guards had been installed.

The companies active in safety

education continued thie program until the advent of the de­ pression curtailed those aspects of the program that re­ quired financial investment.^ Unfortunately, it is impossible (in the Bureau of Mines annual reports for the years prior to 1933) to segre­ gate safety figures for the Indiana dimension industry. The situation that had prevailed in the early days of the industry in which several firms had been bankrupted and forced out of business by damage suits over accidents was not possible after the passage of the Indiana Workmen*s Compensation Act in 1915* Another possible means of meeting the labor shortage would be to increase the productivity per man.

If the esti­

mate of the average number of men employed as indicated in Table 41 is correct, Indiana quarries did not regain until 1925 the average of 7,150 cubic feet sold per man

2

attained

B r e d E. Hatfield, "Developing Safety-First in the Stone Industry," Quarries and Mills* I (May, 1929), 18. B h e fact that the only measure of production avail­ able is the total number of cubic feet sold means that to the extent that production for stock varied in proportion to the cubic feet sold from year to year, the computation is not a true measure of actual productivity. A decline in the cubic feet sold per man in a depression year might not reflect ac­ tual decline in efficiency but increased production for stock.

519 in 1914.

This is perhaps more an indication that the estimat­

ed average number of men employed for the years 1919-1924 is overestimated than it is an indication of a decrease in productivity.

This conclusion seems reasonable in view of

our knowledge of ehanges in technological methods in the quarry in these years.

The estimated average cubic feet

of stone sold per man is indicated in Table 44.

TABLE 44 A^EIAfS CUBIC FEET OF STONE SOLD PER MAN EMPLOYED, 1919-1933*

Year

Cubic Feet

1919 1920 1921 1922 1923

7,735 4,807 3,543 6,074 5,823

1924 1925

5,342 7,382

Year

Cubic Feet

1926 1927 1928

10,119 10,298 11,326

1929 1930 1931 1932 1933

11,742 10,096 9,082 14,892 10,164

^Source: Sales in cubic feet, Table 43, divided by average number of men employed in Indiana dimension stone quarries, Column I, Table 42.

It will be notieed, however, that the peak production years of 1926-1930 do show substantial gains in productivity compared with the 1914 figure.

It may well have been that

the years, 1919 through 1924, as a result of the shortages of skilled labor and the strikes that characterized those

520 years, were marked by a productivity per man somewhat less than that which had prevailed in 1914, but the amount appears to be overestimated in the table.

Since 1931, not only the

actual average number of men employed in Indiana dimension stone quarries but also the actual number of man hours worked has been published by the Bureau of Mines.

The number of

cubic feet sold per man hour worked is presented in Table

TABLE COMPARISON OF CUBIC FEET OF INDIANA LIMESTONE SOLD PER MAN HOUR WORKED FOR SELECTED YEARS* Year

Cubic Feet

Year

Cubic Feet

1881

.36

1931

5.85

189?

1.36

1932

8.11

1914

3-0?

1933

10.13

Source: Cubic feet of sales. Table 42, divided by estimated man hours for years 1881, 189?, 1914; by actual man hours 1931-1933. For method of estimation see note , p. Chapter III, above. Actual man hours were secured from Bureau of Mines, Quarry Accidents in the United States. 1931-33? Passim.

In summarizing this section, we may call attention to the fact that during this period the employers seemed to have gained the advantage in the collective bargaining pro­ cess.

The opposition of the stonecutters union to the use

of machinery, their attempt to regulate the terms under which

521 the stoneworking machinery could be used, their attempt to restrict

the competition between the Indiana firms and

the daoal cut stone contractors who hired the bulk of the stone cutters and finally the recognition in Indiana of the very unions themselves —

all these had disappeared.

This

process had happened at the very time at which the most prosperous period in the history of the industry was appear­ ing.

The unprecedented expansion in output in the industry

boought an increased volume of employment but was not accom­ panied by risigg wage levels.

On the other hand, a period

of ££w£rful relations from 1922 to 1931 gave stability to industry and undoubtedly was an important factor in assisting it to hold its own against the encroachments of rival products.

522 Business Organization and Financial Policy The post World War period did not bring any signi­ ficant change in the form of business organization utilized by the Indiana stone industry.

The superiority of the cor­

porate form of business organization had already been demonstrated in previous years.

Even the smallest firms

organized in the post war period, including those closely held within one family, adopted the corporate form of business organization.

Two small mills owned in each case

by a family operated as partnerships for several years befor incorporating.1 The methods of financing the stone companies in the early part of the 1920’s continued to be essentially the same as those followed in the pre-war period.

When the

great building boom of the early 1920’s began, nearly all firms found their capacity insufficient to meet the demand. Some of these firms had so depleted their working capital in the years 1914-1919 inclusive that expansion was not possible unless new capital funds could be obtained. The years 1922-1924, therefore, were marked by the issuance of new securities by approximately forty per cent of the companies in the industry.

The majority of these

companies were small or medium-sized concerns.

Of the six

“Mortgage Records. Lawrence and monroe Counties, passim. Miscellaneous neeords. Lawrence and Monroe Counties, passim.

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541 At the time the hank loans were made, bond holders, debenture holders, and stockholders protective committees were formed at the initiative of the bank firms which had participated in the reeent loans,

fhese committees noti­

fied the security holders that sinking fund requirements had been defaulted as of May 1, 1931, and that interest payments would likely be defaulted on November 1, 1931. She deposit of securities with a reorganization committee made up of four members from the bond holders committee, two from the debenture committee and one from the stock holders was asked.

If he did not desire to participate in

the new financial plan, any depositor of securities would have the privilege of withdrawing them after paying the 1 pro-rata expense. She reorganization committee began to compose and study a number of different plans.

Strong efforts were

made to induce stock holders and debenture holders to put new money into the company, but to no avail.

Borrowing

money to refinance, reorganize, or to operate the company was virtually impossible so long as the existing debt and high fixed eharges continued to exist. plans were proposed.

Seven different

Finally on March 1, 1932, the consent

of 93 per cent of all bond holders and 88 per cent of all debenture holders was secured to plan number seven,

a

special master in equity was appointed by the United States District Court, in the southern district of Indiana, to hold

^Ibid., Findings of Fact by Court, December 31, 1932, Number 7.

542 hearings to determine the feasibility of this proposed 1 plan. At these hearings eertain interests appeared to in­ tervene.

The interveners stated that it was their belief

that the central difficulty of the company was mismanage­ ment.

They believed that the company could not be in dis­

tress except through mishandling and cited a number of acts of management which they regarded as evidence of incompetency.

They felt that plan number seven was need­

lessly drastic and insisted that assessments on common and preferred stock holders should be made.

The inter­

veners proposed that a receiver be appointed to run the company until the court should decide what could be done to restore profits without foreclosure.

They suggested

the postponement of the bank loan and that bond holders should waive their accrued interest and reduce the rate charged.

The company officials pointed out that the ap ­

pointment of a receiver would seriously handicap the suc­ cess of the business since it would preclude the company from handling public contracts, the bulk of the business then available.

Special Master Ward did not believe the

proposal of the interveners feasible.

Creditors were al­

ready pressing for foreclosure and the court had already set a date for the sale on December 28, 1952.

furthermore,

the reorganization committee had been unsuccessful in

1 Ibid., Number 18.

543 inducing "bond holders to waive the accrued interest.

Such

a step could only he undertaken hy voluntary consent.

There

were legal reasons also against the appointment of a re1 eeiver. Consequently, the special master recommended the acceptance of plan number 7.

According to this plan

a new company, The Indiana Limestone Corporation, was form­ ed.

The bid of this company of 92,400,000 was accepted

December 31, 1932. The new company’s financial plan scaled down the fixed charges drastically.

An issue of 12,000,000 of

prior lien, ten year, sinking fund six per cent gold bonds would be authorized.

The annual sinking fund was to be

based on 20 per cent of the net earnings of the new company after interest on the prior lien 6 ‘s, taxes, and deprecia­ tion had been deducted.

An issue of $6,813,750 of general

mortgage six per cent income bonds was to be authorized with interest, payable out of net earnings.

All interest

was to be cumulative and payable at maturity whether earned or not.

Wo interest should be charged or accumulated

until after November 1, 1934. 1, 1952.

This issue was to mature May

After the^ retirement of prior lien, sinking fund,

six per cent gold bonds, all interest payments were to be­ come unconditional obligations and the sinking fund created for the prior lien bonds should be applied to the general 2 mortgage income bonds.

1Ibid., Number 15. 2

Ibid., Special Findings of Fact by the uourt. December 31, 1932, Number 9.

544 All holders of first mortgage flOOO bonds of the old company could exchange them for $500 general mortgage income bonds of the new company and 18 shares of the common stock in the new company.

All debenture holders of the

old company were to receive twenty shares of no par common stock for eaeh $1000 of debentures.

Preferred stock

holders in the new company were to receive one-half share of stock for each share in the original company.^ The Cleveland Trust Company, the Bankers Trust Company of Mew York, and the Continental Illinois Bank and Trust Company of Chicago agreed to underwrite at par and accrued interest $500,000 of the new prior lien bonds to the extent that the old security holders did not purchase them.

At the instigation of these firms, the

original plan seven proposed that a voting trust, the members of which would be selected by the heorganization Committee, handle the common stock until all of the prior lien bonds had been retired or such prior date as might be determined by the heorganization Committee.

This voting

trust provision was not approved by the Special Master or the Court.

Preferred stock holders were included in the

plan for the reason that they represented largely key 2 employees, valued customers or friends of customers.

1 Ibid. 2 Ibid., Numbers 9 and 19.

545 Non-participating security holders in the old company were to be allowed $16.48 for each $100 bond, and $2.36 for each $100 debenture.

The new company could apply securities

of the old company at the above exchange rates against the purchase price of the old company.1 To give adequate working capital for the new company and to seeure funds necessary to carry out the reorganiza­ tion plan, $1,500,000 of the prior lien bonds plus 150,000 shares of new common stock was to be offered for pro-rata subscription and purchase by the old security holders at a price of f50 plus accrued interest for a $50 bond plus five shares of common.

Five hundred four thousand, seven

hundred forty-three shares of stock were issued of the new 2 company. This financial plan was declared in effect Decem­ ber 31, 1932.

The old security holders took only limited

advantage of the opportunity to purchase new securities. By December, 1935, they had purchased $180,000.®

The finan­

cial report of November, 1934, showed outstanding $560,650 of prior lien, six per cent, sinking fund, gold bonds and $6,491,500 of general mortgage, six per cent income bonds.

4

^Ibid., Order of uourt, December 31, 1932, Numbers 4 and 5 * g M o o d y Js, Manual of Investments: Industrials, 1932, p. 2088. ®Docket 1340, Transcript of Evidence before Special Master, Y. Ill, 751. ^Indiana Limestone Corporation, Financial Report for F iscal Year Fnded November 30, 1934, Consolidated Balance She e t , -Bedford, Indi ana.

546 The additional prior lien bonds had been purchased by the banking syndicate named above. The Bloomington Limestone Company found itself un­ able to pay the interest charges of December 1, 1932.

They

proposed to the bond holders at that time that the date of payment be extended to April 1, 1933, and that the bond holders deposit their coupons at the Boulevard Bridge Bank of Chicago and receive in exchange serip and interest at six per eent to April 1, 1933. the amount of $54,483.30.

Such scrip was issued to

Thirty-three thousand six hun­

dred sixty dollars in serip was cancelled prior to July 1, 1933.

On March 31, 1933, trustees declared the bond in­

terest in default and the bonds, therefore, beeame payable.1 A reorganization committee was organized which presented a reorganization plan in March, 1933.

The new

plan required that 344.8 acres of stone land, appraised at a value in excess of #4,000,000, should be set aside in trust.

Against the segregated land, trust certificates

were to be issued.

A new company was to be organized to

acquire the rest of the assets.

The new company was to

pay the trustee 10 cents per cubic foot from all stone sold from this property.

This amount would then be used

to retire the trust certificates.

The new company was

required to use at least 20 per cent of its annual stone

Docket 1468, Special Findings of Facts by Court, January 4, 1934, Number 20.

547 requirements from this segregated land.

Taxes should he

paid by the new eompany and title would resort to it when the trust certificates were paid off.^ JSach holder of a $1,000 bond in the old eompany would receive f500 in debenture bonds in the new company, $500 in trust certificates, $50.60 in scrip and $120 in common stock.

Preferred stock holders in the old company

would receive $35 in eommon stock for each share of pre­ ferred.

Common stock holders would receive $1 in common

stock for each share of the old eompany.

The trust cer­

tificates were to bear four per eent interest per annum, 2 but were payable only at maturity on April 1, 1953. The new debenture bond holders were to receive interest from April 1, 1933, to April 1, 1937, at a rate of six per cent if earned.

If earnings, however, were not enough during

that time to pay six per cent for the next period, the rate of interest was to be reduced and the difference earried as cumulative interest payable at maturity. After April 1, 1937, the rate was to be six per cent un­ conditionally, but to be paid onl^ (1| if current assets were $300,000 more than current liabilities prior to October 1, 1933, and $400,000 more thereafter, and 12) only after deductions of interest payable to the Indiana Oolitic

lMoodyrs, Manual of Investments: p. 2327.

2 Ibid.

Industrials. 1934,

548 Realty Company at six per eent. The new company's authorized securities would, there­ fore, equal $1,011,5.00 in land trust certificates, $1,011,500 in debentures, $1,119,759 of capital stock, and $102,363.80 2 m scrip. The bid of the new company for the property of the old company was $166,000.

Bonds of the old company were

to be exchangeable for the new securities to the amount of 3 $6*766 per flQQ bond. The new company was to obtain new money from the sale of stone from inventory to the G-eneral Stone Bales Company of Bloomington, an organization formed 4 by the chief stoek holders of the old company. This plan did not reduce the funded debt. of interest obligations.

It did defer the payment

The trust certificates, the de­

bentures and scrip were equal to the par value of the old bonds plus interest.

General creditors of the old company

agreed to become general creditors of the new company.

The

special master believed that this plan was fair and equit5 able, and it was ordered into effect on April 1, 1934.

Docket 1468, Decree of Court Confirming Sale. January 4, 1934. 2Ibid., Special Master1s Report. March 7, 1938. M o o d y ’s, Manual of investments: Industrials. 1934, p. 2327. 4 Docket 1468, Special Master’s Report Concerning Reorganization Plan, bindings of Fact, Number 19.

5Ibid., Number 15.

549 The Shawnee Stone Company, despite net losses for the years 1931, 1932, and 1933, did not undergo reorganiza­ tion until 1936.

Thus we can see that two of the three

companies that issued mortgage bonds had undergone reor­ ganization by the end of this period while the third was rapidly approaching the condition in which reorganization was necessary.

As a result of the reorganization of the

Indiana and the Bloomington Limestone Companies, the fixed charges not postponable of the Indiana Limestone Company had been reduced from almost 11,000,000 to #36,000; while the fixed charges not postponable of the Bloomington Lime­ stone Company had been cut from over #300,000 to the in­ terest upon the preferred stock of the Indiana Oolitic Realty Company, a sum equal to #12,300 in 1934.

In the

process of reorganization, the valuation of the fixed assets of the Indiana Limestone Corporation was eut from approximately $38,000,000 to approximately #15,000,000; while the fixed assets of the Bloomington Limestone Cor­ poration were reduced from approximately $9,500,000 to 1 approximately $2,400,000. Thus once again the danger of burdening a company in such a highly competitive business with high fixed charges had been demonstrated, and the danger of over­ valuation of fixed assets made apparent.

■^Indiana Limestone Corporation, Financial Report for Fiscal Year Ended November 30, 1934; Bloomington Limestone Corporation. Financial Report. December 31, 1935.

550 The remaining companies in the industry were all closely owned.

Their balance sheets and profit and loss

statements are not available.

It is apparent, neverthe­

less, that these companies were much better able to with­ stand the decrease in sales accompanying a decline in the building eyele than were the over-expanded and over­ capitalized firms described above.

Only a few of the

smallest and weakest of these firms had found it necessary to cease operations by the end of 1933.

When fixed charges

are implicit costs rather than explicit costs payable to outsiders, they represent payments that are made when pos­ sible to owner-operators and their families.

So long as

their marginal costs are being covered, the difficulty of switching investments to other lines will keep such firms operating for some time.

This was evidently the ease with

a great majority of the medium sized companies of the Indiana stone district.

Most of these companies were pay­

ing salaries to the entrepreneurs of the firm.

Accurate

information is not available, but inquiry has produced the opinion that few of these firms paid dividends after 1930.

Since we know that virtually all firms made money

in the early years of this period (See Table §d below), it seems apparent that a complete cycle of earnings had been traversed.

551

Price Polieies At the end of the section of price policies in Chap­ ter 4, it was pointed out that the Federal Government was ■beginning to concern itself with the activities of the Indiana stone industry in its efforts to stabilize sales and profits.

It will be recalled that the Journeymen Stone

Cutters* Union had entered into agreements with the Brick­ layers’ and Plasterers’ International Union to restrict the amount of cut stone shipped from Indiana that the latter would set in a wall to an amount above a set specified minimum.

She Department of Justice had not in­

stigated any proceedings against these agreements on the grounds that since only unions were parties to them it was desirable to withhold aetion until sections six and twenty of the Clayton Anti-Trust Act had been construed. On December 8, 1918, several members of the Bedford Stone Club filed charges with the Federal Trade Commission that the Bedford Stone Club Auxiliary was using unfair methods of competition to drive the smaller companies out of existence.

An investigation was accordingly begun by

the Federal Trade Commission.^

This investigation dis­

closed that the members of the auxiliary were using a uniform estimate sheet to prepare their bids, upon which a minimum cost figure for each item was printed.

The amount

^Department of Justice, Indiana Limestone, Memorandum Re Past Performances of Constituent Companies Ke Competition, p. 1.

552 of this item was hased upon the minimum cost of performing the particular operation as determined by the cost studies made for the industry by Seovell, igllington and Company. Members of the auxiliary were expected to charge at least these minimum prices in making up their estimates*1

The

Federal Trade Commission in October, 1939, secured an agree­ ment from the members of the auxiliary to cease the use of these uniform minimum prices upon their uniform estimate sheets.

The original complaint to the Federal Trade Com­

mission had been directed against the practice of the owners of integrated quarry-mill firms of not invoicing cut stone to their stone plants at the market price.

The

Federal Trade Commission dismissed this portion of the ease without action.

It appears, however, that Federal Trade

Commission employees may have made the recommendation that quarries should eharge the stone to their own cut stone mills at the same price at which they sold that grade of stone to other operators. 2 tion was made.

No formal ruling on the ques-

As a result of the Federal Trade Commission investi­ gation, however, the chairman of the commission wrote to the Attorney General that the Federal Trade Commission of the Bedford Stone Club Auxiliary had developed a case in

1Ibid. ^Ibid., Letter of ¥, W. Van Fleet, Acting Chairman, Federal Trade Commission, to A, T. Seymour, Assistant to the Attorney General, August 13, 1923, Washington, D. C.

553 opposition to the Sherman Act.

The commission believed

that evidence was available which indicated closed working agreements among members of the auxiliary Rwhereby prices are f i x e d . T h e

commission had refused to make a stipu­

lation with the auxiliary for the discontinuance of the practices in the case. A memorandum was soon prepared on the basis of the faets developed which indicated that the

i ;

.-

v;

...Auxiliary assumed to determine by its rules how bids should be obtained and who should be con­ sidered the lowest bidder; to prevent any reduction in bids after they were onee submitted, to adjust differences between its members arising out of charges of members or unfair practices in bidding, to charge certain percentages of so much per cubic foot on all successful bids and dues, for the auxi­ liary to determine and impose uniform rates to be charged for gang-sawed, diamond sawed, car blocking and loading, drafting, selling, and administrative expenses; as well as to fix the rate per cubic foot estimated by the members in computing freight which should be made between them.^ Attention was also called to the restrictions on the minimum quantity shipments in force by the union.

At

that time such restrictions applied to 33 of the larger cities of the Last and Middle west.

The memorandum closed

with the suggestion that criminal proceedings were advised.

^-Ibid., Letter of Victor Murdock, chairman, federal fra&e Commission, to Attorney General, ueeember 8, 1919. 2Ibid., Memorandum of C. C. Richards, special Assis­ tant to Attorney General, January 13, 1920. 3Ibid.

554 Due to the scarcity of investigation agents, the Department of Justice did not begin active investigations of the case until April 28, 1920.

From April 28 to

August 24, 1920, an agent Of the federal .bureau of in­ vestigation was active. August 27, 1920.^

This agent filed his report on

Apparently the federal Trade Commission

employees had advised the secretary of the auxiliary to have the members to submit at intervals a summary of the average costs of work from time to time for some prior month.

The investigating agent found the subsequent sum­

maries of costs filed to be fairly uniform.

On November

23, 1920, the same agent was detailed to New York City and at that point, with several other agents, investigated the rule prohibiting the importation of cut stone within a zone of 25 miles of the New York City Hall.

As a result

of this investigation, a consent decree was entered on March 1, 1923, in the District Court of the United States for the Southern District of New York against the Brick­ layers1 and Plasterers1 International Union.

This decree

prohibited the union among other things from entering into contracts of an exclusive character and agreements which restrained employers from using any building materials not fabricated by union labor.

This action appears to have

^Ibid., Memorandum for Mr. Seymour by John A. Purinton, Special Assistant to the Attorney General, May 31, 1924, p. 7.

555 ended the general application of the minimum shipments agreements.***

It will he recalled that as a result of the

1920 strike in the Indiana limestone field, the bricklayers had broken their protective alliances with the stone cutters1 union and abrogated their agreements.

Many local

organizations of the bricklayers had continued, however, to recognize the minimum shipments agreements.

On April

21, 1922, William Dobson, secretary of the Bricklayers* and Plasterers* International Union, had instructed the members to cease recognition of these rules. . In this case the government had presented evidence which indicated that this practice had increased the price of these small 2 orders of stone at least one hundred per cent. In the meantime no further action had been taken in the Indiana stone district.

Scovell, Wellington and

Company had continued its negotiations with the Bedford Stone Club Auxiliary for the installation of eost account­ ing systems for the members.

The preliminary survey was

begun December 12, 1921, and on February 11, 1922, the 3 system was adopted by the auxiliary.

^Ibid., pp. 10 and 11. Three New York locals re­ fused to comply. They were not prosecuted in order to take no chances in upsetting the decree elsewhere. ^Ibid., Memorandum of March, 1932, W. B. W. Snyder. ^Ibid., Memorandum to Seymour by Purinton, December 11, 1924, p. 4.

555 •Early in 1922 certain members of the district com­ plained to U. S. Lesh, Attorney General of the State of Indiana, that the activities of the Bedford Stone Club Auxiliary were in violation of the Indiana anti-trust law. A ease was filed by the State of Indiana against the Bedford Stone Club Auxiliary, the International Cut Stone Contractors' and Quarrymen’s Association and individual members of the auxiliary.

The case was to be tried in the Superior Court

of Marion County in Indianapolis, Indiana; but on November 2, 1922, a change of venue was taken to Danville, Indiana.1 When the trial was held the state charged that the producers had restricted production and increased prices.

Attention

was called to the regulations of the International Cut Stone Contractor's and Quarrymen's Association in connection with the practice of filing bids with the secretary.

The

rules and regulations of the Bedford Cut Stone Auxiliary were likewise brought into the discussion.

It was pointed

out that these rules provided that bids should be opened by the secretary of the auxiliary at least two working days prior to the letting of the contracts.

If the lowest

bid was substantially lower than the next highest, the secretary then checked the methods of computation.

If the

rules for the methods of computation had not been followed, the lowest bidder was notified that he had apparently made

Estate of Indiana, Superior Court (Marion County), Room 5, Docket A-15988, "State of Indiana versus the Bed­ ford Stone Club Auxiliary et al," November 2, 1922.

557

a mistake which notices were given in order to have such proposals withdrawn or withheld.

It was the agreed prac­

tice that no member was to enter bids after the original ones had been opened, unless it was found that a nonmember had made a lower bid.

If that were the ease then

the low bidder among the members could change his bid to meet this outside competition.

Any member who had not

bid before the opening of bids by the contractor was not allowed to bid unless the quantities were changed by as 1 much as 10 per eent. In his summary review and findings of fact the Hendricks County Circuit Court Judge Zime E. Doogan stated fhe court further finds that prior to the beginning of this action the defense entered into a:.scheme, design, understanding, combination and conspiracy to limit, restrain, retire, impede and restrict bids for the letting of contracts for the furnishing of stone to be used in public and private buildings of this state and elsewhere in the further­ ance of which scheme, designplunderstanding, com­ bination and conspiracy said defendants did in a material, wrongful, and unlawful way supress com­ petition in the production and sale of building stone in said state, and they did limit, restrain, retire, impede and restrict the bidding and the letting of contracts for private and public works requiring the use of stone in said state and elsewhere. Consequently, a decree was issued June 29, 1923, expelling the International Cut Stone and Q,uarrymenfs Association

Hendricks County Circuit Court, Docket 11,105, "State of Indiana on Belation of U. S. Lesh, Attorney General, versus Bedford Stone Club Auxiliary et al,Ei Findings of Facts June 27, 1923, Numbers 3-10. 2Ibid., Number 15.

558 from the state and dissolving the corporate existence of the Bedford Stone Club A u x i l i a r y . O n September 14, 1923, Attorney General Lesh wrote United States Attorney General Daugherty that in Lesh’s opinion the International Cut Stone and Quarrymen’s Association were continuing their activities uninterruptedly outside the jurisdiction of the State of Indiana.

Mr. Lesh suggested that breaking up

their practices might go a long distance toward the reduc­ tion of building prices from their war time peak, and sent to the Department of Justice the files of information 2 gathered by the State of Indiana in its case. The Federal Bureau of Investigation was asked to investigate the case.

Due to the scarcity of special agents,

the investigation was not begun until May 22, 1924.

At that

time the agents’ investigation disclosed that on October 21, 1923, the Indiana Cut Stone Club had been organized with practically the same membership and by-laws as the Bedford Stone Club Auxiliary.

A comparative statement

may be given of the principal practices of the two organiza­ tions

^Ibid., Order of Court, June 29, 1923. p

Department of Justice, Indiana Limestone, Memorandum of John A. Euriittoanto A. T • Seymour, May 31, 1924, p. 13. 2 Ibid., Memorandum of Purinton to Seymour, December 11, 1924, p. 2.

559

Bedford Stone Club Auxiliary

Indiana Gut stone Club

1. Bids were to he filed 48 hours before closing date.

1. Bids were to be filed by noon of the day before the closing date.

2. Bids were openedE48ohours before the closing date,

2. Bids were opened 9 a.m. of the closing date.

3. Low bidder notified im­ mediately on opening of the bids.

3. Low bidder notified im­ mediately by wire or telephone.

4. The low bid substantially lower than the next high bid 110$) was automatical­ ly withdrawn by such low bidder.

4. Such prevention of low bids was not controlled through the club but it was believed by the De­ partment of Justice agents that Scovell, Wellington and Company accomplished the same purposes.

5. only the low member bidder was concerned in the bid opening by general con­ tractor.

5. Identical.

6. No member bidder may under­ bid the low member bidder after the closing date.

6. Identical.

7. The low member bidder may eut bid to meet outside competition.

7. Identical.

8. On the opening date a bul8. Bulletin on the opening date showing the bidders. letin was sent to members showing bidders on each job. International on the same The International Associa­ date gives the names and indicates the low bidder tion on the same date showed and in 14 days sends out the amounts and the low the amounts. bidder. 9. The refiguring of a job was to be limited to the ori­ ginal bidders unless there was a \0 °/o change in quantities.

9. same effect but in reverse Lnglish.

10. The uniform proposal eon10. Identical tract was to be used by all members.

560 Bedford. Stone Club Auxiliary

Indiana Cut Stone Club

II* A uniform estimate sheet was to he used hy all members.

11. The uniform estimate sheet provided hy Seovell, Wellington and Company practi­ cally identical.

12. No provision.

12. The low f.o.h. plant hid was to govern. All addi­ tional surveys were to he extra, thus preventing the absorption of freight and total charges to de­ crease the net hid.

It was pointed out hy the agent that the deeree dissolving the Bedford Stone Club Auxiliary had been based primarily on the praetiee of withdrawing the lowest bid if it were 10per cent lower

than thenext

Indiana CutStone Club entered

higher bid.'*’ The

intoa contract with

Seovell, Wellington and Company on November 14, 1923. The accounting firm prepared balance sheets, audits, tax returns for all members and installed cost accounting systems.

In December, 1923, certain members of the club

questioned the efficacy of the cost accounting system, saying that certain other members were still filing bids below cost.

So on April 5, 1924, the firm entered into

a contract with the members of the club providing for a cost study of the plants, and for the submission for audit of all bids filed.

If the bid did not conform to the costs

Ibid., p. 3. The Secretary of the Auxiliary states that the low bid was recommended to be withdrawn only if it were lower than "known costs."

561 as ascertained by the auditors, it was returned to the member for revision.1

The variable quantities in these

bids would appear to be:

first, the estimates of the

amount of stone needed; second, an estimate concerning the number of hours required for fabrication.

The

federal agent originally assigned to the case secured 2 assistance of an agent trained as an accountant. After a discussion with Mr. 0. H. Seovell of the firm Seovell, Wellington and Company, arrangements were made for the federal agent to check the bids filed on a number of jobs.

The agents reported on Mareh 24, 1925,

that they had found nothing wrong with the cost analysis of the firm or the work done by them on tax returns, in­ dividual audits, or cost reports; but they refused to make a statement on the legality of the auditing of bids from the individual concerns.

The report of the agent showed

that bids were audited and ehecked and juggled to some extent, the latter resulting in the withdrawing of bids by many members and the ‘'lessening of competition between them.”

It was discovered to be true, however, that the

jobs in which the most indications of these practices occurred were jobs that were actually obtained by non­ members of the club who quoted lower figures than the

1Ibid. o Ibid., Memorandum of T. P. Merrilees, Accountant, February 18, 1926. 3 Ibid.. Memorandum of V. B. W. Snyder, June 7, 1926, p. l. This "juggling” is denied by the Secretary of the Auxiliary.

562 figures Seovell, Wellington and Company had advised to he withdrawn.

As a result of this investigation, Seovell,

Wellington and Company on February 27, 1925, advised its clients that on the advice of its counsel it was discon­ tinuing bid-filing services for the Indiana Cut Stone Clufe as of March 1, 1925.1 From this time until the inauguration of the N. R. A., bid filing does not appear to have been a prac­ tice of the Indiana stone district.

The International Cut

Stone Contractors1 and ^uarrymen’s Association continued in existence until December, 1932; but revised its rules January 17, 1924, to permit the opening of bids by its secretary on the day after the opening by the contractor.

2

It cannot be said to have been an important factor in the 3 cut stone market during these years. During these same years the price leadership prac­ tice that had developed in the quarry industries in the previous period was found by the government investigators to have continued.

Average prices for the rough blocks,

sawed and semifinished stone and cut stone are shown in Table

As we have seen, this practice involved the

setting of prices by one or the other of the leading quarry

1Ibid., pp. 1-2. 2Stone, ALIX, (June 1928), 363. ^Charles C. Fanning, '"Address at the Convention of the International Cut Stone and Quarrymen1s Association on February 20, 1930,“ Stone, LI, (March 1930), 154-155.

563

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564 firms.

Although several stone company executives denied

any agreement in the making of these prices, they did agree that it was a general tendency for all firms to fall in line with any price change.^

As one quarryman expressed

it, "When one of the larger firms ehanges its price, I follow since I eannot demand more for a similar article and it would be foolish to take less since stone prices 2 are so near the cost of production." No references to prices were discovered in the minutes of the Indiana Gut Stone Club, but the agents did find two references in the minutes of the Bedford Stone Glub Auxiliary to price practices.

On May 16, 1921, the secretary of the auxili­

ary had reported that his office was now receiving new price lists from several firms changing prices on all grades of rough block stone except a select standard buff. It was his suggestion that these new prices be used on all bids opened after May 18, 1921.

On February 7, 1921,

the motion was made, seconded, and carried that owing to the decrease of the going market price of the Indiana limestone, the new price should govern effective on all bids opened on or after February 9, 1921.

The government

agents came to the conclusion that although no price fixing

^Ibid., Memorandum on Prices, Snyder, pp. 1-3. 2Ibid., p. 1. 8Ibid.. Memorandum of John A. Purinton to Seymour, December 11, 1924, p. 4.

a

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565 eould be proved in relation to rough block stone it did appear from their investigation '‘that a price leadership situation1* existed in the industry.

The price of standard

grade buff stone had been 55 cents on February 1, 1918, and had been lowered to 50 cents on February 6, 1920, and increased to 80 cents on October 20, 1920; on February 8, 1921, the price was reduced to 75 cents per cubic foot aad on August 5, 1932, the price was restored to 80 cents. The priee of rough block stone had not changed since 1922. In this connection attention may be called once again to Table 46, page 525, above and to the remarkable stability in the proportion of the sales exhibited by the leading producers,

it is of interest to notiee that the leading

firms suffered a slight reduction in 1925. In the meantime, what had been the profit experiences of the firms during the periods in virhich these practices had been followed?

In determining this question, we have

a type of information unavailable for any other period in the Indiana stone industry*s history,

in collecting in­

formation concerning the Indiana Limestone uompany merger, figures were secured which showed the profits of most of the merged companies for the preceding five years.

These

are given, together with their authorized capitalization, in Table 5*.

Those firms that operated cut stone mills

are starred.

It will be noticed that seven of these firms

that operated cut stone mills made less money in 1925 than in 1924, while seven other firms, the majority of which

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569 acres of stone land had no monopoly on quarry lands.^ fable 53 shows that total outcrop was estimated at ap­ proximately 28,000 acres.

The summary report of the agent

stated that the re-entranee of so many persons who had been associated formerly with the merged firms indicated that there was no danger of a physical monopoly of the limestone beds.2 TABLE §& APPROXIMATE ACREAGE OF OOLITIC LIMESTONE OUTCROP BY COUNTIES* County

Acreage

Owen Monroe Lawrence Washington

1,040 13,322 12,267 1,218

Total

27,747

*Source: Bureau of Business Research, Indiana University.

The experiences of 1927, 1928, and 1929 would not indicate that the Indiana Limestone Company would be able to maintain any monopolistic prices.

Already by February,

1927, five of the Indiana Limestone Company plants were shut down or running only a single shift, while all of the

Ibid., Summary Report on Merger, Mrs. Mary 0*Connor, February 9, 1927, p. 23. The Indiana University Bureau of Business Research, using the Indiana Geological Survey maps, has estimated the acreage of outcrop of oolitic limestone to be approximately 28,000 acres with about 25,500 in Lawrence and Monroe Counties. 2Ibid., p. 26

570 competitors were working overtime and operating some double shifts.

Competitors stated to the government agents that

they had no fear of price competition with such an over­ capitalized company.

All agreed that at the existing

prices of 1926 and 1927 profits were being made by the independents,

They felt that the Indiana Limestone

Company, however, could not continue to make money at these prices.

Shortly after the merger was put into ef­

fect, the Indiana Limestone Company had raised its prices. The other companies refused to follow and within thirty days the Indiana Limestone Company reduced its prices to the former level.

If prices were raised again, the in­

dependent companies believed that east stone would benefit too much.

They were of the opinion that since profits

were being made at the old figures, they would not raise priees.

The most important of the new companies had no

indebtedness beyond their current expenses and believed that if the Indiana Limestone Company lowered prices with its overhead bonded indebtedness and its enormous bank loans, it could not survive.

The independent com­

panies, therefore, did not fear price war and stated that if the Indiana Limestone Company eut prices they would follow it as far as they could and then curtail production.^ In view of this situation, the government agents recommended no action, feeling that they would be unable

1Ibid., pp. 27-30.

571 to prove any desire to eliminate competition unlawfully, any monopoly of the raw material, or productive capacity 1 or that the company could or would control the price. Sometime in 1927 the cutting of prices did begin. Reference to Table

indicates that the prices of sawed

and semifinished stone and of cut stone began to fall in 1927, while the prices of rough blocks started downward in 1928.

In 1929, certain Indiana quarry-mill owners

asked for a new investigation of methods of competition in the Indiana stone industries.

Investigators reported

a great deal of erroneous bidding, secret rebating and 2 similar practices. In an effort to check this trend, the industry arranged a Trace Practice Conference under the direction of the Federal Trade Commission.

The International Cut

Stone Contractor’s and Q,uarrymen's Association seems to have sponsored this meeting.

The conference was held in

Chicago May 3, 1929, under the direction of Commissioner G-arland S. Ferguson, Junior, and M. M. Flannery, director 3 of the Trade Practice Conference.

1Ibid., p. 33. 2Ibid., Report of Mrs. Mary O'Connor, August 20, 1929. 3Federal Trade Commission, Official Report of Pro­ ceedings before the Federal Trade Practice Conference,' Cut Stone Industry. Chicago. Illinois, May 3, 1929, p. 1. Typewritten. Federal Trade Commission Files, Washington, D. C. Hereinafter called Trade Practice Conference Report.

572 A number of resolutions were introduced and dis­ cussed.

In the discussions which followed, the division

of interest within the industry hy the quarry owners, the cut-stone mill owners and producers who owned both quarries and mills was quite apparent.

The first item

of discussion, for example, concerned the attempt on the part of Indiana quarrymen to require the publication of price lists not only by the producers of block and sawed stone but also by the sellers of planed and cut- stone. On this point the cut-stone men placed objections that each building was a eustom $ob requiring individual treat­ ment, that it was, therefore, impossible to publish prices. The quarrymen replied that the cut-stone contractor made a great show of fairness in charging their own mills block or sawed stone at the same prices at which he sold such block and sawed stone to the cut-stone trade, while, at the same time, cutting unpublished prices upon the finish1 ing operations. The proposed rule was defeated. i

I M rules adopted by the conference were as follows GROUP I Rule 1. Inducing or attempting to induce the breach of a contract between a competitor and his customer is an unfair method of competition. Rule 2• The marking or billing of the product of the stone industry as to the quantity or the grade

-*-Trade Practice Conference Report, pp. 27-34 2Stone, L (August 1929), 450-452.

575 of stone, or the naming of any material, for the purpose of or with the effect of misleading or deceiving purchasers, is condemned as unfair practice. The industry approves of the standard methods of classifying, grading and measuring of stone as adopted or sponsored hy representative associations, institutes or trade organizations. Rule 3. The payment or allowance of secret rebates, refunds, credits or unearned discounts, whether in form of money or otherwise, or extending to certain purchasers confidential practices, special service or privileges not extended to all purchasers under like terms and conditions, is unfair practice. Rule 4. It shall he unfair competition for any person engaged in commerce, in the course of such commerce, either directly or indirectly to dis­ criminate in price between different purchasers of commodities, which commodities are sold for use, consumption or resale within the United States or any Territory therof or the District of Columbia, or any other insular possession or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of commerce: Provided. That nothing herein contained shall prevent discrimination in price between purchasers of commodities on account of differences in the grade, quality, or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or transporta­ tion, or discrimination in the price in the same or different communities made in good faith to meet competition; and provided, further. That nothing herein contained shall prevent persons engaged in selling goods, wares or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade. Rule 5. tformerly 6) The furnishing or sell­ ing either Block, Sawed or Gut Stone at or below cost for the purpose of injuring a competitor and with the effeet of lessening competition is an unfair trade practice.

574 GROUP II Rule 6. (formerly 5} In all eases of com­ petitive bidding, all bids submitted should be the bona fide final bids of the bidders and no changes in the amount of the bid should be made, save only those due to ehanges in the plans or specifications; and in such cases ehanges in the amount of the bid should be made on the same unit or other basis as the original bid. Any departure from the practice stated above is hereby condemned. Rule 7. So that all competitors shall bid on an equal footing, estimates shall be based upon the work as detailed by the plans and defined in the specifications. For a quarryman-cut-stone-contractor to figure his stone in competition with cut stone contractors at a price different from that at which he offers to sell bloek or sawed stone to them or others is price discrimination, and is hereby condemned. In the submission of bids to cover revision in the plans, all additions to, or deductions from, the original bid submitted shall be relatively pro­ portionate and predicated upon values ag originally included on the items affected. Where bidders are requested to separate their bids, which included the delivery to building site or setting, for the purpose of awarding the cut stone work on an f.o.b. basis, only such amounts included in the original bid for delivery and setting shall be deducted. This same rule to apply when the item for setting is to be separated for the purpose of awarding the work on a delivery basis. Any viola­ tion of these rules is hereby condemned. The industry approves in the appointment of a date up to which bids upon cut stone work will be received, the naming of a date when such bids will be opened and public announcement of sueh bids made in the presence of bidders by architect, owner or general contractor. That after the opening of bids in the manner prescribed by the architect, public announcement of the bids upon private contract may be made, in the same manner as has been followed for many years by the united states u-overnment, and by state authorities in the letting of public contracts.

575 The submission of subsequent bids have been received, opened and exposed in the manner stated above, unless there is a change of ten per cent or more in stone quantities, labor, materials, or both, from original plans, within a period of ninety days is hereby condemned. Unless a closing date is fixed for bids on any particular Job and the conditions of bidding fair, a contractor is Justified in refusing to bid on the work. That fair and Just dealing may at all times prevail in an open and competitive field, the con­ tract for cut stone work shall be promptly awarded to a satisfactory original bidder upon his original bid. Architects, owners or general contractors re­ ceiving and opening bids prior to the awarding of contract for cut stone work shall keep sueh bids confidential until all bids upon such cut stone work have been received and opened, upening of bids and divulging information relative to such bids prior to awarding contract for cut stone work, in a manner which may result in favoritism or the altering of bids not yet filed, is hereby condemned. The industry approves a method by which bidders file copies of their bids with some designated depos­ itory; the same to be kept confidential until the day of the closing date, or the letting of the contract, after which they may be disclosed to all bidders. Rule 8. The industry favors the adoption of a uniform system which enables those engaged in the trade to accurately determine their costs. Rule 9. The industry records its approval of the practice of making the terms of sale a part of all published price schedules or contracts, and the failure on the part of quarrymen and cut stone con­ tractors to strictly adhere to such terms of sale and enforce collection under sueh is hereby condemned. Rule 10. The industry records its approval of the practice of distributing and circulating to the entire cut stone purchasing trade, price schedules of block and sawed stone by the Q,uarryman and Q,uarryman Cut-Stone-Contractor, also all notices of advance or decline in prices.

576 Rule 11. The industry approves the practice of handling disputes in a fair and reasonable manner, coupled with a spirit of moderation and good will, and every effort should he made hy the disputants themselves to arrive at an agreement. If unable to do so, arbitration under some one of the prevail­ ing codes should be agreed upon. Rule IS. The industry favors the adoption and use of a Uniform Proposal Contract Form. Rule 13.

(formerly Res. 14)

Quarrymen The industry reeords its approval of the defini­ tion of a quarryman to be one whose principal business is quarrying, sawing and selling stone to the trade, in accordance with published price schedules, and who assumes credit risks, and other obligations incident to terms of sale. Quarrymen-Gut-Stone-Gontraetors The industry records its approval of the defini­ tion of a quarryman-eut-stone-contractor to be one whose principal business is quarrying, machining and selling stone to the trade in accordance with published price schedules, and who operates a yard or plant for fabri­ cating stone for building purposes, assumes credit risks, and sueh other contractual obligations in­ cident to delivery of stone. Gut Stone Contractors The industry reeords its approval of the defini­ tion of a cut stone contractor to be one whose principal business is buying stone, operating a yard or plant for fabricating, and re-selling said stone for build­ ing purposes, assumes credit risks and such other con­ tractual obligations incident to delivery of cut stone. (Note: Stone referred to in the above defini­ tions applies to Indiana Limestone, Sandstone, or any other stones used for interior and exterior work). Rule 14. (formerly Res. 16) Resolved: That the officers of the International Cut Stone Contractors’

577 and Q,uarrymenfs Association, Inc., be given author­ ity by this Conference to confer with the Federal Trade Commission at any time it desires a confer­ ence in regard to these resolutions.

It will be noticed that Rule 6, Group 2, was offer­ ed by the industry as a rule applied by the commission in Group 1, but was transferred to Group 2 containing the rules which were simply expressions of views of the trade but not ordinarily enforced as unfair methods of competi­ tion by the Federal Trade Commission.

Two resolutions

proposed by the industry were completely disapproved by the commission.

The first resolution had stated, "The

practice of sub-letting contracts as well as of finished or semifinished stone to any person or persons not operating g cut stone plant should be discouraged." The other dis­ approved rule stated "that all jobs under ten thousand cars or six thousand eubic feet shall be considered a retail job and that it should be termed an unfair practice for the integrated quarry-eut-stone-mill-owner to figure 3 those jobs since they belong to the local man." The com­ mission refused to recognize as group one, rules six to fourteen inclusive.

No record is available to indicate

that any action was ever taken for the enforcement of the rules laid down in this Trade Practice Conference.

It

1Stone, (August 1929), "Statement by the Federal Trade Commission Trade Practice Conference, Cut Stone Industry, by Otis B. Johnson, Secretary," 450-452. 2 Trade Practice Conference Report, p. 36. 3Ibid., p. 39.

578

seems very probable from the discussion in the trade journal that rules three and five have been violated many times. At the March, 1930, conference of the International Gut Stone Contractors1 and Q,uarrymen’s Association, Mr. Charles G-. Fanning, former president of the organization, stated '‘u-urin Curing all the time that the International organization was loyally supported by its members the cut stone men made money, but because of the great ehanges in the stone belt and because some of the largest operators considered that the fil­ ing of bids was a detriment to them and that it tied their hands in so far as not allowing them to change their prices, fhey fell away from the rule of filing of bids and as a consequence one operator after another followed suit, until we have now come to a place where the great benefit of our great international association is beginning to fall to pieces. We have had almost two years of price cutting with results that are demoralizing the industry.1 Several attempts were made in the Indiana stone dis­ trict between 1929 and 1933 to form some sort of organiza­ tion that would be able to stabilize prices.

Early in

1932 a number of the independent operators in the stone district formed the Hoosier Limestone Corporation*

Its

purpose was expressed in these words: The maintenance of a separate sales organiza­ tion, duplicate sales campaigns of advertising and promotion activities as carried on individually by several of the producers in this district have occa­ sioned an economic waste which has not only added to

1Stone, LI (March 1930), Address of Gharles G. Fanning. 154-155.

579 production and distribution costs but has necessitat­ ed an ever increasing capital outlay. Spasmodic t&ends to one particular grade of stone while no movement occurred at the other grades of stone which must be carried in order to get out the particular grade of stone for the moment in demand has occasioned an excessive amount of quarrying with resultant overloading of inventory not justi­ fied by the potential market and prospective large structures of recent years required thousands of feet of unusual or over-sized structure, likewise have occasioned unwarranted surplus quarrying and overloading of inventories. She Hoosier Limestone Corporation proposes to overcome this economic waste. It will buy the output of a number of producers and will in turn distribute block and sawed stone to the cut stone trade throughout the country. The individual producers with this definite market for his stone before him can practically eliminate his sales cost. He can also preclude the necessity of carrying forward surplus quarrying to meet unusual or extra size stock or a surplus of any one particular grade of stone. He need not carry overloaded inventories. .... Individual quarries need not be depleted un­ necessarily thus preserving the natural resources of Indiana stone district.^At this time the price of stone was less than terra cotta and most of the contracts were being taken at a loss.

a

The Hoosier Limestone Corporation did not fulfill the expectations of its founders.

The basic idea included the

notion of prorating the available business.

The fundamen­

tal difficulty was that the promoters were unable to get all of the quarrymen to join the scheme whose membership would have been necessary to insure stabilized prices.

-^-Bloomington Evening World. July 11, 1932 ^Ibid., March 26, 1932.

580 The owners of several of the quarries having large quantities of standard buff stone, the grade onee again most in demand, refused to join the organization at the 1 last moment • Several attempts were also made to form an organiza­ tion that would stabilize the price of cut stone.

Early

in 1931 several producers formed a new Indiana Gut Stone G lub.

According to inquiries made of cut-stone operators,

there was some thought in the beginning of this enterprise 3 of reviving the practice of bid filing. Scarcely had the organization been, proposed when an agent of the Federal 4 government appeared in the district and the plans were abruptly revised. It appears from the evidence that the extent that internal competition was of the cut-throat variety in this period was greater than it had been in previous per­ iods for two major reasons:

in the first place, the decline

in the volume of building was more drastic than it had been in the years 1910-1918; and in the second plaee, the events since 1925 in the industry had created a greater amount of excess eapaeity--exeessive even for the building market that existed in the late 1920's.

It was inevitable that

^Confidential interviews. 2

EllettsviTIe Farm, isilettsville, Indiana, March 26,

1931. 3

Confidential interviews.

^Bloomington Evening world, December 4, 1931.

581 price cutting would ensue, particularly in view of the fact that the industry had on the one hand certain firms heavily burdened with excessive fixed charges and on the other hand firms with scarcely any indebtedness except their eurrent expenses.

It is no wonder that the situa­

tion provoked the cutting of prices to levels considerably below costs, even below eosts that according to the studies made by Scovell, Wellington and Company were considerably below the levels of 1920-1925.^

The Indiana limestone

industry was, therefore, a very demoralized one just prior to the advent of the B.R.A. What progress was made during this period in the utilization of by-products?

Table 5tf shows the total

sales of by-product stone, 1919-1933.

It is apparent that

the recovery of waste products improved in relation to the sales of dimension stone, especially in the years 19261930.

Part of this was due to a vigorous attempt on the

part of the Indiana Limestone Company to find additional uses for the material.

Furnace flux and breakwater stone

continued to be important outlets.

In 1925 the Bedford

Stone Products Company was selling about 85,000 tons of ground limestone.

Sixty thousand tons went to glass plants

and twenty-five thousand tons as fertilizer.

About 1,000

tons were sold for powders for farm animals and fowls. The market for crushed limestone from the oolitic belt, was

^Department of Justice, Indiana Limestone. Memorandum by Snyder, Mareh 2, 1934.

582 greater during and for a few years after the World War because of the scarcity of pulverizing plants in the mid­ dle west.

When local plants--using local stone— began to

appear in the middle twenties, the market contracted.

A

great deal of Indiana stone was used in the 1920’s in the Chicago lake front development and in the improvement of the Mississippi fiiver channel. fABLE

m

SALES QE BY-PBQDUGI SfONE, 1919-1933*

Year

Short Ions

Value

Average Price per ton

1919 1920 1921 1922 1923

174,463 278,235 141,068 214,722 233,180

1159,181 293,200 146,425 139,233 167,845

I .91 1.05 1.04 .65 .72

1924 1925 1926 1927 1928

255,930 290,990 405,630 423,320 429,890

200,512 170,772 354,703 381,445 302,819

.78 .§7 .87 .90 .70

1929 1930 1931 1932 1933

414,140 538,480 313,100 136,130 150,140

250,578 364,365 200,754 85,957 80,961

.61 .68 .64 .63 .54

*Source:

Mineral Resources, p t . II, 1919-1931, passim; Minerals Yearbook, 1932-1933, passim.

The Indiana Limestone Company maintained a research laboratory with a chemical engineer seeking to discover such new uses.

Among such uses developed were its use as

583 lime in water purification, glue manufacture, manufacture of refraction brick, strawboard and paper; its use in toothpaste, tennis court tops, in the manufacture of paint, varnish, rubber,

sand lime brick, plaster, insecticides,

in special non-staining mortar and for the dusting of mines

In most cases, however, the sale was handicapped

by the fact that there were other materials suitable for the purposes that could be found as close or closer to the producer.

Hence, the market for Indiana limestone as by­

products was much more restricted in area than the market for it as dimension stone.

The Indiana Limestone Company

found it difficult to keep its lime-burning plant (inherited from the Indiana quarries Company) busy full time.

Despite

the size of the company, it still proved to be true that with the competitive situation no one company had enough waste to pay to build and operate the plants that ground, crushed, or otherwise treated the by-produet for these uses,

freight rates would not allow the shipment of these

materials to producers at a very great distance outside the state.

Hence the demand for most classes of by-products

was limited to that which would be taken by producers within 2 this radius. Considerable progress was made, as we have already indicated above, Table jJ, in the reduction of waste and the increase in sales of dimension stone by the successful

^Stone, XLIX (March 1928), 84. ^Interviews with stone producers.

584 to promote the sale of the variegated and rustic grades and the gray color of stone.

The decline of the pro­

motional campaign of the industry, it will he remembered, brought a relapse of the demand for these varieties and a return to the old preference for standard buff stone. Another type of campaign for more economical usage of stone was carried out in 1927-1930.

Shis was an attempt

to push short length stone— good stone but available in sizes smaller than the dimensions usually sold to the trade. Formerly this stone was priced at so much extra on the grounds that it must be specially quarried.

Such pieces,

however, in the days of large production were available in sufficient amounts from cull blocks— good stone but oddly shaped and usually broken by seams into small sizes. Hence, the experiment was tried of reducing the price of 1 these short lengths to stimulate the demand. That con­ siderable suceess was achieved is noticeable in Table When the market became curtailed, however, and competition between the Indiana producers and the local cut stone contractors became very keen, this short length stone was withdrawn from sale to the outside market by 2 virtually all Indiana quarrymen. Indeed the competition

■^Interstate Commerce Commission, Doeket I.S.3589, Stone from Bedford, Indiana, to Chicago, Illinois, and Related Points. Hearings. Bedford, Indiana, May 28, 1937, p. 356. Typewritten, Formal Docket Files, Washington, D.C. ^Bloomington Evening World. April 8, 1931.

585 between the local cut stone contractor and the Indiana district mill became increasinly intense.

As the number

of large orders diminished, the Indiana mills began going after smaller and smaller contracts.

At this period there

were no minimum shipment agreements to hinder them in taking these small ^obs.

Table 5 ^ gives a sample of the

orders of two companies in 1929 that illustrates the point. TABLE 5 S' SIZE OF C'OT STONE JOBS 'SOLD BY TWO LARGE INDIANA PRODUCERS IN 1929* dumber of Jobs Cubic Feet Over 100,000 50,000-99,999 25,000-49,999 10,000-24,999 5,000- 9,999 Under 5,000

Company A Company B 1 7 4 15 16 79

10 13 20 52 49 189

Total Cubic Feet Company A Company B 145,277 416,812 160,124 249,586 107,641 126,808

2,241,954 909,450 699,425 806,928 322,346 404,566

*Source: Interstate Commerce Commission, Docket 19656, ’’James O ’Meara et al vs. B. and 0. Railroad Company et al,” Hearings, April 16, 1931, Report of Examiner, p. 20. Typewritten, Formal Docket Files, Washington, D. C.

In reviewing the period 1919 to 1933, it is apparent that the Indiana limestone industry had once again oscillat­ ed from tacit or concerted agreement in which prices were kept relatively high despite increasing output to a situ­ ation in which excess capacity had been created and the pressure to recover overhead costs drove prices to below

586 costs level.

TJnfortunatli^y for the stability of the

industry the capacity of the industry became by 1929 thirty to forty per eent greater than the cubic footage sold in 1928, the greatest sales volume in the history of the industry.

In the period prior to 1926 the price

of rough block stone was relatively stable and a price leadership situation existed.

This situation seems to

have corresponded to the theoretical situation in which the competitors are each very conscious of the prospeets of retaliation to any price change by their competitors, and as a consequence the results are to keep the price relatively high.

In view of the fact that the price

leaders were in good financial position and not over­ burdened by fixed charges, the smaller firms hesitated before cutting their priees very far.

After 1926, however,

the price cutting became the order of the day and the smaller producers were not deterred by fear of a price war with the merged firm that had replaced the former price leader.

587 Summary In the years surveyed in this chapter, 1919-1935, the Indiana-Oolitic limestone industry experienced a series of changes that carried the industry through a complete business cycle. In the beginning of the period the scarcity of labor, the interruption to building that occurred in 1921, the shortage of railway cars in 1922, and the labor diffi­ culties in Indiana in 1920 and 1921, caused the influence of the building revival upon the Indiana stone industry to gain momentum slowly.

By 1923, however, the industry

had revived its volume of sales to the peak obtained in 1910.

Sales continued to grow in amount until 1928. A significant proportion of the increased sales

represented simply the industry’s participation in the greatest building boom yet experienced by the country. The Indiana limestone industry’s share of the market, however, seems to have been improved by the vigorous pro­ motional activities undertaken by the Indiana Limestone Quarrymen’s Association.

In no other period of the in­

dustry’s history has so much time and expense been devoted to selling the consumers of building material upon the quality, durability and attractiveness of Indiana limestone. This task was made easier after 1922 by the cessation of strikes within the Indiana stone district, by the ending of minimum shipment agreements enforced by the former

588 alliance between the Bricklayers' and the Stone Cutters1 Unions and by the relative stability of freight rates after 1922.

In 1927 the Supreme Court's decision in the

Bedford Cut Stone case prohibiting the journeymen stone cutters from refusing to work upon stone that had been quarried and machined in Indiana, added another factor to those already mentioned. Despite the fact that building stone sales did not increase as rapidly in proportion as the sales of the relatively young industry— east stone--this was per­ haps the most conspicuous period of prosperity that the Indiana-Oolitic limestone industry has ever enjoyed. The majority of firms made profits during these years. We have seen that while prices of finished stone advanced in 1919 to 1924, wage rates remained virtually unchanged from 1923 through 1931.

At the same time many

improvements occurred in the technical efficiency of opera­ tion of both quarry and mill.

These circumstances, to­

gether with the increased volume, produced a declining cost per unit of operations,

we have noticed that price

leadership in the quarry branch of the industry and con­ certed action by cut stone producers centering around a bid filing scheme that involved the elimination of the lowest bids before submission to the contractor, contribut­ ed to the maintenance of price levels.

As a result of this

situation not only was it easier for the cast stone industry

589 to obtain such a foothold in the market, hut also new firms were attracted into the Indiana-oolitic limestone industry and old established firms increased their output to retain their leadership. In 1925, therefore, the favorable picture began to be disturbed.

The increased capacity of the industry and

the elimination of the bid filing seheme through the threat of government action produced the beginning of a decline in the prices for finished stone.

The desire to

maintain the previous situation led certain leaders in the industry to revive the idea of attempting to reduce the possibility of the occurrence of cut-throat competi­ tion by the formation of a merger.

The favorable situa­

tion in the securities market at that date, plus records of profit obtained by the Indiana companies during the previous five years, enabled capital to be secured for the promotion of a merger on a scale that embraced 85 to 90 per cent of the productive capacity of the district.

A significant number of the entrepreneurs who had sold out to the merger, however, reentered the industry with. the newest and most up-to-date equipment.

Other firms,

either within the Indiana stone district, or previously engaged in the cut stone business in the consuming centers, expanded their capacity or entered the Indiana district in the belief that this might be necessary to maintain their position.

Two other mergers, smaller in scope, likewise

occurred.

The result was that the capacity of the Indiana

590 limestone district became 30 to 40 per cent greater than the sales of the industry in its peak year.

From this

point the situation rapidly deteriorated. The total volume of building construction had be ­ gun to decline.

The price leadership situation in the

quarry branch of the industry failed to continue and price cutting began to oecur.

kven the large Indiana companies

found it necessary to seek to obtain smaller and smaller contracts.

The increased number of small cut stone mills

in the Indiana district likewise contributed to more in­ tense competition for the local cut stone contractors located in the consuming eenters.

As these firms found

it more and more difficult to survive, they sought to obtain freight rates differentiating between rough and dressed stone.

The reduction in priee levels, however,

made the differential prescribed by the Interstate Com­ merce Commission too small to benefit these local mills, with the reduction in number of these firms, the industry lost one of its most valuable promotional factors,

such

local cut stone contractors had been able to exert an influence in the promotion of stone that could not be achieved by the firm located in the quarry center.

As

the curtailed volume of business foreed the Indiana firms to close their district sales offices, one after another, and in many eases to disband their sales force almost en­ tirely, they found it necessary to rely more and more upon

591 the stone broker who might also be engaged in pushing other products. When the general business depression began and the private building volume contracted, governmental building became a larger and larger proportion of the total market. The desire of individual localities to maintain the volume of local employment by the use of local materials became a very significant factor in curtailing the market for such widely distributed products as Indiana limestone.

The fact

that raw materials for competing products were to be found in many areas gave the producers of these products an ad­ vantage in their local markets that was particularly sig­ nificant^ in view of the failure of freight rates to decline. The closing years of the period, therefore, found price cutting general, and losses, rather than profits, the rule.

592 CHAPTER VI PERIOD OF FRUSTRATION 1934-1941 It is scarcely accurate to call the years since 1934 a complete cycle for the Indiana limestone industry since It can not he said to include any period of pros­ perity.

Yet there was some recovery from the low sales

of 1933-34 until the advent of the war brought virtual collapse. Non-residential building in general reached its low point in 1933 both in the number and value of projects. This was in fact true of the F . W. Dodge figures for every class of non-residential building except the factory and commercial buildings.

In the former case 1934 was slightly

lower than 1933; for commercial buildings, 1938 represented the low point in number of projects although the value was more than double that of 1933.

The peak dollar volume for

all non-residential building prior to the advent of the defense program came in 1937.

When faetory buildings—

still a type of building in which stone is not typically used— are d e luded,

the peak came in 1938.

Both 1940 and

1941 surpassed 1938 but these years were dominated by defense construction in whieh stone as a building material has not been important.

Table

presents the various

classes of non-residential building 1934-1939.

These

figures are not strictly comparable with those of Table

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Chapter V. The figures of Chapter V were adjusted by the Department of Comers® to be estimates for the entire United States. The figures of Table 56 are the f, w, Bodge figures for construetion contrasts for non-residential building for 3? states. It is apparent that there was a gradual recovery from the low.point of 1955*1 The new peaks were reached at various times in the several sub-classes of non-residential building. Commercial and manufacturing buildings reached peaks in 1937; educational and science buildings, hospitals and institutions, social and recreational and public buildings in 1938; and only religious and miscellaneous in 1959* The 1939 figures reflect, of course, the beginning of the turn to defense projects. The 1940 and 1941 total non-residential figures show very signifi­ cant increases over 1939, but have not been segregated into classes* Estimates of non-residential building by the Department of Commerce comparable to those given in Table 28, chapter V, are given in Table 57. It will be noted that these figures make some slight changes in the years in which low points were reach­ ed from those indicated by Table 56, Those categories of build­ ing whose low points in Table 57, chapter VI, were for other years than 1935 were factory building (1952); religious and mem­ orial building (1934); private hospitals and institutions (1934); public buildings (including work relief construction 1934); and public *An excellent discussion of the relationship between the demand for buildings and the changing levels of national income is available in C. D. Long, Jr., oja* cit., pp. 38-45.

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596 hospitals and institutions (1935).

In this table, as in

fable 56, the peak dollar volume for all non-residential building prior to the advent of the defense program came in 1937; but when factory buildings are exeluded, the peak shifts to 1938.

Only one ehange is made in the location

of recent peaks by the use of fable 57 rather than 56. .Educational buildings show a peak in 1936 rather than 1937. Some difference in timing is naturally to be expected since the F. W. Dodge figures are for contracts awarded; whereas, the Department of Commerce uses the F. V. Dodge figures to estimate the actual value of construction done in each year. One should notice the growing proportion of the total expenditures for new construction that have been financed by public funds,

fable 58 shows the estimated expenditures

for new construction in the United States by sources of funds, 1925-1938. Federal construction continued to increase in im­ portance.

fable 59 shows the proportion of total estimated

expenditures for new public construction coming from the Federal G-overnment, 1933-1938. How did the sales of leading facing materials react in this brief period?

fhe lag In publication of government

data does not make it possible to give complete figures, fable 60 presents those available.

For the sake of compari­

son the 1933 figures are included.

It is significant to

note that sales of building stone and terra cotta began to

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630 Professor George f . Starr of the Indiana University Bureau of Business Research conferred with Indiana congressmen and officials of the Publie Works Administration and the Procurement Division of the Department of Treasury in an effort to promote the use of Indiana limestone in this building program.

According to members of the committee,

stress was laid upon the statement that "quarries and mills in the Bioomington-Bedford district are unhampered by labor trouble, their wage agreements signed and work­ ing and consequently are in a position to start work at any time and supply stone without d e l a y . T h i s statement, unfortunately, did not remain true throughout the year. At the Denver convention of the American Federation of Labor in 1937, the Quarry Workers’ International Union took exception to action taken concerning a jurisdietional dispute between the quarry workers and the operating en­ gineers over sand, crushed stone, gravel, slag, and rock pits or distribution yards.

The Quarry Workers’ Union,

therefore, withdrew from the American Federation of Labor; and on January 15, 1938, affiliated with the Committee for 2 Industrial Organization.

^Bloomington Daily Telephone. May 8, 1937. ^National Labor Relations Board, “Monon Stone Company vs. Quarry Workers International Union of North America," Docket #773-R790 Indiana p. 11. Typewritten. National Labor Relations Board Formal Docket Files, Washington, D. C.

631 The Indiana stone distriet locals of the Quarry Workers Union had voted on the eourse of aetion of their national organization on December 9, 1937.

Testimony be­

fore the National Labor Relations Board at a later date revealed there was some confusion in the minds of the mem­ bers present at this meeting concerning the nature of the question voted upon,

some stated they believed at the

time that they were voting to ask the A. F. of L. to recog­ nize the Quarry Workers claims as an industrial union.

Union

officials, however, stated the vote gave power to the nation­ al executives to bargain with the u. i. u. for purposes of affiliation.

The vote was a standing vote and was inter­

preted by the union officials as a 4 to 1 vote in favor of affiliation with the 0. I. 0.^ In the meantime, the annual negotiations with the employers had begun in November, 1937.

No mention was made

in these meetings of any jurisdictional disputes until .January 27, 1938.

Un that date the quarry workers repre­

sentatives were told that the employers understood that there was a dispute over representation and that contractors felt they were not obligated to bargain until the proper agency was determined.

They proposed that work be continued

from day to day after the expiration of the old agreement on

■^National Labor Relations Board, Official Report of Proceedings. Case #XI-R-94-XIRlll. "Monon Stone Company vs. Quarry Workers International Union of North America, et al," March 10, 1938, Bloomington, Indiana, pp. 713-725. Type­ written. In National Labor Relations Board Files, Washington, D. C.

652

February l.

Any agreement negotiated when the proper bar­

gaining agency had been determined would be retroactive until February l.'*’ A rough manuscript proposing such an extension of the old contract was drawn up by the employees.

Shis

manuscript named the National Labor Relations Board as the agency to determine the proper bargaining agent.

She

employees asked that this reference be stricken out.

Shey

desired the United States Department of Labor to conciliate. She agreement was never signed.

2

At some date in January, 1938, American Federation of Labor organizers arrived in the Indiana stone district and began the organization of q,uarry workers into local Federal Labor Unions affiliated with the A. F. of L.

Shese

Federal Labor Unions then applied to the Indiana Limestone Institute for recognition. Beginning January 31, 1938, at the request of the National Labor Relations Board, several conferences were held between the rival labor organizations for the purpose of arranging a consent election.

The president of the

Quarry Workers International Union, C. V. Crawford, desired the ballot to eontain the names of the unions of the hoist­ ing engineers and mill workers as well as the Quarry Workers

1Ibxd.. pp. 211-217. ^Ibid.. p. 231.

635 International Union and the Federal Lahor Unions.

The

National Labor Relations Board representative objected to inelusion of the additional names on the grounds that this was a bargaining dispute which should not include a Juris­ dictional dispute as well.

Mr. Crawford then asked that

the ballot contain a third alternative— "Neither. When no agreement could be reaehed on the form of the ballot the American Federation of Labor organizers began to eheek their membership affiliation cards against the company payrolls.

A United States Department of Labor

representative on their invitation began to assist them with this check, but soon was ordered by his office to cease.

2

The check was continued in the presence of the

county elerks of Lawrence and Monroe Counties as disinterested observers.

3

The Federal Labor Unions then presented

their certified lists to the Indiana Limestone Instituted committee with the elaim that they had enrolled a substan­ tial majority of members for all companies except the B. G. Hoadley Quarries, Inc., and the Ingalls Stone Company.

The

employers then stated that they feltAunder the National Labor Relations Act they must bargain with the Federal Labor Unions.4

1Ibid., p. 233, p. 269, p. 880. 2Ibid., p. 592. 3Ibid., p. 104. 4Ibid.. p. 125.

634 A collective 'bargaining contract with the federal Labor Unions— one each for Lawrenee, Monroe and Owen 1 Counties--was signed by the employees on Mareh 9, 1938. fhe very next day the National Labor Belations Board opened a scheduled hearing at Bloomington, Indiana. At the hearing the representatives of Quarry Workers International Union stated their belief that the eontraets were nnot the result of unhampered bargaining but were rather the culmination of a plan by the Respondents to select the American Federation of Labor unions as the ex­ clusive representative of the Respondents employees and at the same time deal a blow to the Quarry Workers Inter­ national Union.1,2 During the hearing, statements were made alleging that some of the employers were willing to pay a part of 3 the cost of chartering the Federal Labor Unions; that thh clerk of Lawrence County was not a disinterested observer because he was a former Indiana Limestone Company employee; that various workers had been told they would be locked out if they did not ^oin the Federal Labor Union;5 that the

1Ibid., p. 194.

2

Ibid., Petitioner^ Brief, p. 4.

3Ibid., p. 242, 386. ^Ibid., p. 522.

5Ibid., pp. 494-496.

4

635 signatures on some of the affiliation cards were not in the employees* handwriting;^* and that the men were told they would he eharged high initiation fees if they did

2 not join the Federal Labor Unions within five days. All of these accusations were denied during the hearing.

On February 21, 1938, the Federated Council

of Limestone trades had voted to support the Federal Labor *7

Unions.^

As a result of this hearing the Board decided:

A question has arisen concerning the repre­ sentation of the employees of the companies. the closed shop contracts with the Federal Unions were executed at a time and under such circumstances that it is clear that they afford no reason for our not determining the questions concerning repre­ sentation. Hence the board ordered a secret ballot election on December 2, 1938.

All employees who had worked sixty days

for any or all companies during 1937 were declared eligible to vote.

Members of the Journeymen Stone Gutters Associa­

tion, the International Association of Operating engineers, the International Association of Machinists, the interna­ tional Brotherhood of Blacksmiths, Drop Forgers, and Helpers and the International Association of Marble, Stone and Slate

1Ibid., p. 636. 2Ibid., pp. 734-S37. ^Bloomington kvening world. F e b r u a r y 22, 1938. ^National Labor Relations Board, Decision in Case B773-R790 Indiana, “Monon Stone Go. vs. Quarry Workers International Union of North America, typewritten, National Labor Relations Board Files, Washington, D. C. p. 14.

656

Polishers, Hubbers and Sawyers, Tile and Marble Setters, Helpers and Terrazo workers and Helpers were to be in­ eligible to vote.

The fourteen members of the Indiana

Limestone Institute were to constitute a unit for the ballot•and the four non-member companies would eaeh be counted as a separate unit.'1' On December 14, 1938, the attorneys for the Federal Labor Union asked a vacation of the elections on the grounds that the Board had no power to invalidate their contracts. They also asked that each company be made a separate unit in balloting, unless all employees together could be made a single unit. The election was consequently postponed and an oral argument before J. W. Madden and L&win s. Smith of the National Labor Belations Board was permitted January 12, 1939.

At this time counsel for the Federal Labor Unions

did not dispute the facts, but argued that the Board was without power to direct the employees of more than a single employer to vote as a unit and that if the Board had such power, the Board*s ruling was better than the use of 18 separate units since consent could not be obtained to make 3 all companies a single unit. The Board denied a motion to eertify the Federal Unions without an election and ordered

1Ibid. 2Ibid.* p. 17. 3Ibid., Oral Argument, January 12, 1939, p. 1.

637 a secret "ballot election to be held on February 10, 1939. On February 3, 1939, the hoard ordered that the affiliation of the organization be inserted in the notification of elections.^"

i‘he election resulted in a victory for the

Federal .Labor unions in each of the five designated units. On February 17, the Quarry workers international union [010) moved to vacate the election on the grounds of intimidation and coercion by the employers against the @10. . i'he regional JUireetor of the hoard, however, certi­ fied that the election had been fairly and impartially conducted and stated that the Quarry workers international had presented no evidence in support of its objections. Oonsequently, on March 31, 1939, the Federal Labor Unions were designated as exclusive bargaining agents for the 2 quarry workers. Perhaps the major force influencing the outcome of this election was the realization on the part of the men as well as the operators of the difficulties that would beset the industry if one of its branches was controlled by the C. I. 0. while the other was under the jurisdiction of the A. F. of L.

Although the quarry workers had not

been organized long, they had witnessed the results of jurisdictional disputes in the stone mills.

1 Lbid. 2 Ibid., February 17, 1939.

638

At the time this dispute had occurred, the 1938 wage agreements had been in process of negotiation.

With the

conclusion of the Federal Labor Union contracts, the wage fates for the entire stone industry had been increased. According to the terms agreed upon in 1936, stonecutters received an additional 12-j^ increase to fl.25 per hour, and planermen were brought up to fl per hour.

Head black­

smiths and head mechanics were raised 1%$ to 90^ an hour. All other workers except water and signal boys received 1 a per hour increase. This restored the wage rates per hour that had prevailed in the industry from 1923-1931 except for planermen, mill laborers, steam Wardwell ehanneler runners, quarry laborers, blacksmiths and water and signal boys.

Planermen had had a wage of fl per hour only

from 1926 through 1931.

Mill laborers were nolf to receive

lOjf an hour, and quarry laborers and steam Wardwell channeler runners 5^ an hour more than their 1923-1931 wage rates.

Blacksmiths had lagged behind and had not obtained

this scale until 1925. creased.

Water and signal boys were not in­

No work stoppage and no violence was pledged.

An arbitration clause was included but was not to apply to wage rates.

The agreement provided that staggered lay­

offs should be used with three consecutive weeks of work between layoffs.

This contract was to be in force until

March 4, 1941.2

^■See Table 2 U. S. Department of Labor, Conciliation Service, Docket 199-1029 #3382-9E.

639 Even before the quarry workers bargaining agent had been selected, a labor dispute begahn in another section. In the previous year, 1938, the operating engineers had asked an equalization of their wages with those of the blacksmith and machinists.

The employers had refused.

The Labor conciliator had advised the engineers to agree to the offered scale because of the unemployment prevail­ ing and because he understood that the other crafts would sign and leave the engineers to fight their battle alone. The other erafts did sign but served notice on the em­ ployers that all crafts favored an increase in pay for the engineers on future wage negotiations to bring them

1 to the same wage level as the other erafts mentioned. When the 1939 negotiations began, all crafts but the machinists asked for wage increases.

All unions but

the operating engineers dropped their demands and agreed to continue on the old scale for another year. gineers asked an increase for 70^ to fl.OO.

The en­

On January

30 it was agreed that the operating engineers would not cease working and negotiations would continue after E February 1. Before 1917-1918, the spread between the traveler unions and the head blacksmiths and mechanics had been

"^Indiana Division of Labor, Case #524, Mareh 11, 1938, Report of Arthur C. Viat, Assistant Commissioner. 2Indiana Division of Labor, Case #967. Eabruayyy^, 1939, p. 1.

640 2-§-/ to 4/ on the hourly rate.

The war-time shortage of

blacksmiths and mechanics had increased the spread to 23-^/. In 1920 it had been as low as 12/, but increased again to 20/ in 1923-1931, and since 1938.

On February 1, 1939,

however, the operating engineers presented the employers with a statement that they would accept their pay as part payment only until such time as the final amount had been decided by legal action or otherwise.

To this the operators

refused to agree and told the engineers they need not re­ port for work.

The Indiana State Labor Commission sent

representatives who persuaded the union to agree to sub­ mit the demand for wage increase to arbitration, working in the meantime at 70/ per hour, but the operators turned the proposal down.

After an interval of nearly a month

during which work in the mills virtually ceased, the other unions voted to return to work, and the national officers of the engineers advised them to do likewise.

Work was

resumed, therefore, on March 2, 1939, at the old wage rate Scarcely had these disputes been settled than a third labor difficulty arose.

The draftsmen of the stone

district had organized a branch of the International Federa­ tion of Technical Engineers, Architects and Draftsmen.

As a

result of a National Labor Relations Board election on March 17, 1939, of 83 draftsmen eligible to vote— having worked

1 Ibid.} See also Bloomington Daily Telephone. February 2, 1939.

641 480 hours between July 1, 1939, and February 1, 1940, two did not vote and the other 81 voted yes."*- The new organiza­ tion then asked a closed shop and a minimum wage of $1.50, $1.25 and $1 per hour for various classes of journeymen.

2 The employers offered 85/ an hour with no closed shop. The draftsmen struck on May 20, 1939. began to pieket the plants.

On the 23rd, they

This resulted in the Monroe

County mills being idle as other craftsmen declined to cross the picket lines.

The Lawrence County mills, how­

ever, continued to operate.

The mill workers and stone

cutters of Lawrence County voted to go through the picket lines so long as the mills had patterns available.

g

On

May 30, 1939, the pickets were removed and negotiations were begun, but a settlement was not reaehed until June 22, 1939.

B y the terms of the contract, the union was recog­

nized and a sliding wage scale of $1.00, $1.10, $1.20 and $1.25 was authorized.

A classification of draftsmen was

to be worked out between each draftsman and the head draftsman of his office.

(The wage increases were to begin

in four installments on July 23, September 23, November 23 and January 23, 1940.

Apprentices were to serve six-years.

^•The Ellettsville Farm, Allettsville, Indiana, March 23, 1939. 2U. S. Department of Labor, Conciliation Service, Docket 199-5704. ^Bloomington Daily Telephone. May 26, 1939.

642 They were to he paid 30/ per hour for the first six months with a five eents an hour increase for each additional six months.

At the end of five and one-half years their wage

rate was to become ninety-five cents and at the end of six years $1.10.

1

With the signing of this contract, all em­

ployees of the stone companies, except the office workers, were covered by collective bargaining contracts.) The negotiation of the 1941 contracts with the unions did not bring any changes in the wage rates.

Two other new

features of the contracts, however, were of importance.

The,

first set up a system of regular procedures in dealing with all types of disputes.

Any direct violation of the agree­

ment, by failure to pay the agreed wage scale, violation of the closed shop articles, failure to abide by the deci­ sion of the arbiter or any attempt to induce or intimidate the other party to violate the agreement would be taken up first by the employer and the executive committee of the union.

If they failed to agree within five days, such

violations should be referred to the Stone Industry In­ dustrial Relations Committee and the Executive Committee of the Federated Limestone Trades.

If these two committees

eould not settle the dispute within five days, the union should have the right to withdraw its members from the plant until an agreement was reached.

Any new questions

of jurisdiction should be submitted by the unions to the Federated Council of Limestone Trades which should meet

^■U. S. Department of Labor, conciliation service, Docket 199-3704.

643 with the Stone Industry Industrial Kelations Committee within 36 hours to arragge a temporary settlement.

The

international presidents Of the unions concerned were to make the final settlement.

No cessation of work by unions

or companies was to occur as a result of the dispute.

1

Other types of disputes, complaints, or grievances exclusive of the direct violation and jurisdictional ques­ tions mentioned above were to be handled first by the shop steward and the foreman.

If they were unable to settle

the question in one working day, the matter should be giveni, to a committee of three for the employer and the executive committee of the union.

If these committees

could not settle the issue in three days, the joint coun­ cil of the stone industry Helations Committee and the .Executive committee of the federated uouncil of Limestone Trades should review the question.

If after three days,

the joint council could not reach a decision the matter was to be referred to a permanent arbiter. The permanent arbiter was a new character in the industrial relations of the stone industry,

he was to

be ehosen by the joint council, and was to hear the case orally or in writing within 24 hours and render a decision within ten days,

he could take any additional evidence he

■4his account is based upon the actual contracts. They were furnished by the Indiana Limestone Institute.

644 deemed necessary. parties.

The decision was to be binding on both

The losing side was to pay the arbiter's fee

and reasonable necessary expenses. to occur— strike or lockout. to be selected.

No work cessation was

Two alternate arbiters were

The arbiter was to be permitted to award

damages only for unjust discharges.

General or partial

layoffs were not to be subject to arbitration. Two men were selected as permanent arbiters for the industry.

Dr. Carrol Christenson of the Indiana

University Department of Economies, and Professor George W. Starr, director of the Indiana University Bureau of Business Research.

Dr. Christenson has been in govern­

ment service ever since his selection and Professor Starr has taken care of the cases that have occurred under this clause. The first case involved a union protest that an individual worker had been illegally discharged.

After

the hearing, Professor Starr ordered the man reinstated with back pay. The second ease grew out of the annual wage negotia­ tion of 1942.

At this time the union requested that the

wage rates be increased to keep pace with the rising cost of living.

The quarry men asked an increase of ten cents

an hour with an adjustment that would place the head track­ men and trackmen in the same group with the channel runners and channel helpers.

This would involve an increase of

645 19 $ an hour for the trackmen.

The mill workers union

desired a 10 y ( an hour increase with a three cents an hour adjustment for the head car blocker, the diamond sawyer, the air saw operator, and the head hooker, so that their real rates would equal those of the head gangsawyer.

The operating engineers, the blacksmiths, the

machinists wished a 10j^ hourly increase.

The stone

cutters requested a 25$^ increase per hour, the carvers 6 2 ^ per hour and the planermen $1.20 per hour.

In addi­

tion, they asked a five eents differential above the usual rate not only when operating headers, shapers, milling machines and circular planers, but also for the operation of lathes and carborundum planers.

The draftsmen, receiv­

ing a sliding wage scale of $1.10, $1.20, $1.25, wanted a flat rate of $1.35 per hour.

It was the belief of the

union that this increase in wages amounting in general to 20 per cent would increase the price of stone perhaps 10 per eent.

It was their view that the price of stone had

reached low levels not because of competition with other products, but because of competition within the industry, and that it was within the power, therefore, of the in­ dustry to raise wages without producing a decline in sales.^ Management representatives and the union were uh&ble to agree and after proceeding through the usual channels, the ease was referred to Professor Starr as the permanent

■^Brief of Claim Submitted by Federated Council of Limestone Trades, February, 1942. Typewritten,

646 arbiter*

The operators' committee in their brief called

attention to the low value of sales, to the extremely low priees prevailing in the industry, and took the viewpoint that the cause of this distressed condition was the com­ petition of the Indiana Limestone with the Alabama and Texas Limestone, and with concrete and east stone.

They

stated that only a few companies had made any profits from the operations within the last few years, and that such profits where made were very small.

They pointed out that

the wage scale in existence was virtually that which pre­ vailed from 1926-31, at a time when the volume of business was much greater, and represented the highest wage scale that had ever been paid in the industry,

it was their

contention that the cost of living was not as high as it 1 had been in 1929 when these same wages prevailed. Dur­ ing the course of the hearings, Professor Starr asked the stone operators to furnish him with the extent of their planer operations, direct labor cost per cubic foot, and their operating profit in eents per cubic foot.

The re­

sults of this questionnaire indicated that during 1939, 1940, and 1941 the number of operators that suffered an operating loss steadily increased.

The arbiter viewed

his function as a chairman of an arbitration board since two representatives of labor and two representatives of management met with him.

Consequently, he voted only in

^Brief Submitted by stone Industry Industrial Rela­ tions Committee, February 13, 1942. Typewritten.

647 the instances where the vote was tie(i &&& it appeared de­ sirable to break the tie,

The draftsmen were given an

increase of 10^ per hour by a majority vote; a five eents per hour differential for machine men when operating carborundum planers or lathes was likewise passed by a majority vote,

stone cutters, earvers, machinists and

blacksmiths were given an increase of five cents an hour. Quarry workers, mill workers, and operating engineers were allowed a seven and one-half cents increase. In his report to the industry,

1

Professor Starr gave

the following reasons for his decision:

he believed that

the surplus production capacity in the industry was as much responsible for the unprofitable condition within the industry as were the variable costs,

he considered

it very unlikely that anything like capacity operations could be achieved through reduction of wages alone.

At

the present state of the market for building materials, it was his belief that to achieve capacity operations the stone industry would not only have to undersell east stone and terra cotta, but would also find it necessary to reduce the cost of stone production and freight rates to the point where the industry eould compete favorably with brick. did not believe this likely to occur.

He

In the absence of

this possibility the limestone market must be derived primarily from the kind of building in which limestone had

Opinion of the uhairman of the ^age Arbitration Board, March, 1942. Typewritten.

648 been customarily used prior to the depression.

In view of

the conditions surrounding the general cost and volume of building, particularly in view of the war, it did not appear probable to Professor Starr that price concessions would increase the volume of business coming to the Indiana limestone district.

On the other hand, it appeared to him

that the price of Indiana limestone was lower in relation to the prices of artificial building materials than it had been in more than a decade.

On the other hand, consider­

ing the changes in the cost of living in reeent months and thhe location of many defense industries in towns adjacent to the stone industry, Professor Starr did not feel that the increase given the quarry and mill workers was unreason­ able .

He believed that some sueh change was necessary to

hold workers in the industry. The reaction of the industry to this decision may have some unfortunate results upon the future success of arbitration within the industry.

The operators considered

that the figures showing operating losses per cubic foot should have convinced the arbiter that the industry could not stand a wage increase,

Un the other hand, the workers

were not satisfied, believing that the erafts getting the higher wage rates had been favored to the detriment of the others.

This situation was made particularly bad in

view of the fact that the sole direct representative of labor on the arbitration board was a member of the craft that received the highest increase per hour.

Indeed, this

649 labor representative, who had been chairman of the Feder­ ated Limestone Trades Uouneil, was forced to resign from that p ost♦ The reaction, however, was not great enough to appear to seriously threaten the continuation of collec­ tive bargaining relations within the industry upon a basis which would permit negotiated settlements rather than industrial warfare. in the meantime, what had happened to the volume of employment in the Indiana stone industries during these depression years?

Table

(ri gives

the average number of

men employed in the industry in the years 1934 through 1940.

These figures are obtained from reports on quarry

accidents made by the companies to the Bureau of Mines. It will be noticed that the volume of employment in the stone mills has been from one and one-half to two times as mueh as that in the quarries.

The years 1934 and 1935

were the low ebb of employment in the industry,

Luring

these years, the counties in which the Indiana stone dis­ trict is located ranked among the highest in the United States in the percentage of their population depending upon publie assistance for support.

In March 1938, 40.8

per cent of the population of Lawrence uounty and 40.5 per cent of the population of Monroe Uounty were supported by relief payments.

The records of the Home Owners* Loan

Corporation also indicated that these counties were among

650 TABLE 6$

AVERAGE NUMBER OP MEN EMPLOYED IN INDIANA DIMENSION STONE INDUSTRY 1934-1940

Date

Quarry

Mill

1934

459

638

1935

499

765

1936

946

1377

1937

1122

1470

1938

912

1507

1939

986

1524

1940

647

782

Source:

Bureau of Mines, Quarry Accidents in the United States. 1954-1940 passim.

651 the highest in fore-closures of mortgages,

since that

time the employment in the industries has increased about two and one-half times.

But in 1939, the best year since

1932, the number employed was still less than half the peak figure of the previous building cycle. The comparison of the cubic foot of limestone sold per man hour worked may be extended through this period. As presented in Table 6® one surprising thing about these figures is the low level indicated for the year 1937. This is particularly noticeable in view of the fact that this was one year when there was no work stopped by strikes or lock-outs.

The only responsible explanation that oecurs

is that work may have been spread among a larger number of people working part time than any of the other years. The average worker does not believe that the produc­ tivity per man hour figure obtained from the Bureau of

Table£>T

Mines irieportsA presents a true picture,

it is his feeling

that the large number of men available in comparison to the demand for laborers inspired each man to work more intensively and that the productivity per man hour figures should have increased steadily throughout the depression. On the other hand, the employers believed that the reduc­ tion was real and was the result of the unionization of tbi mill and quarry workers.

During the early years of

the depression and after the break down of split time agreements in 1932, many companies had operated with as few employees as possible, sometimes to the point of

652

TABLE 6$ AVERAGE CUBIC FEET OF STONE SOLD PER MAN EMPLOYED 1934-1940

1934

9076

1935

8535

1936

7513

1937

6130

1938

7999

1939

8605

1940

4780

Source:

Sales In cubic feet, Table 41 divided by average number of men employed In Indiana Dimension Stone Quarries. Table 66.

655

TABLE 6§ AVERAGE CUBIC FEET OP STONE SOLD PER MAN HOUR WORKED 1934-1940

1934

14.29

1935

7.21

1936

6.11

1937

3.87

1938

5.48

1939

5.11

1940

3.70

Source:

Cubic Beet of Sales, Table 41, divided by man hours of Indiana Quarrymen, Bureau of Mines, Quarry Accidents in the United States, l954-l'94Q, passiml

654 requiring a man to look after a greater number of machines or a bigger job than one man was really capable of handling. With the advent of the unions, however, rules were put into force requiring a certain number of men for an operation. This forced some companies to increase their labor force without a corresponding increase in the number of cubic feet produced. A feeling developed among a number of the operators that they needed special guidance in the drafting of con­ tracts and the conduct of labor relations.

Late in 1936

or early in 1937, therefore, the Stone Industries Indus­ trial Relations Committee employed Harry B. Dynes, a former conciliator of the United States Department of Labor and long acquainted with the labor field, to serve as their labor relations counsel.

It was Mr. Dynes’ function to

assist the industries committee in the drafting and in negotiating of contracts and in their dealings with the leaders of labor.

In short, it was his duty to assist

the industries to adjust themselves to the new deal in labor regulations. The employer may have been splitting time among the labor force to a greater extent than the workmen realized.

Some of the unions succeeded as early as 1937

in obtaining recognition of the principles of seniority in their labor contracts.

The quarry workers’ contract

for 1941 for example included the following provisions:

655 When the working force is reduced or re­ stored the principal of complete departmental seniority and ability shall govern. Cutting and quarrying departments shall be recognized for the purpose of determining seniority and additional departments shall be recognized by mutual agree­ ment • No man shall be included on the current seniority list who has not worked for his em­ ployer since January 1, 1939, seniority rate lapses when the employee is justly discharged, quits, or fails to report for work when called; or, if he is still in good standing with his union fails to report to his employer in writing or in person every 90 days his address and avail­ ability for work. -tUmployees bired after the year 1940 shall serve his employer 640 hours within one year from the date of employment before any senior­ ity is established. His seniority is dated from the time this 640 hours has been reached. This 640 hours shall be considered a probation period and the employer shall determine the ability of the employee during this time. In case of a vaeaney preference shall be given to men in the company according to their seniority and ability without reference to departments and advancements are recognized. Men may be worked in departments other than their regular departments for temporary periods. The rule applied to machinists was much simpler. It stated simply that seniority and ability to perform the work should govern and that a service roster should be maintained. The operating engineers and the blacksmiths had a provision very similar to that in the quarry workers con­ tract.

The contract of the draftsmen stated that the

employer should have the sole right to judge the employees’ ability for the first 640 hours which he was employed and that, thereafter, his ability should be judged by both parties to the contract.

The stone cutters1 and planermen’s

656 contract contained no such provisions. In analyzing these provisions it will he noticed that the employers were given at least a year’s time to adjust their labor force in sueh a manner as to give seni­ ority to the most efficient men on their books. Attention continued to be paid by the stone com­ panies to the question of safety, but the elaborate safety committees, competitive safety campaigns of the predepression years were abandoned.

657

Transportation Facilities Since the advent of the depression, the problem of transportation facilities has been one that has been acute but about which less public controversy has raged than in the previous period. The railroad freight rates on stone prescribed as a result of the Consolidated Stone case in 193^ wene further in­ creased in 1937 over the operators* protest but without a hearing.^

Since that time the rates have been again increased

by the 15°jo advances of 193$*

Finally, in 1939* the so-called

"G-overnor ’s Case1* occurred in which southern manufacturers and producers sought to eliminate the handicap placed on them by the higher level of rates in southern territory.

This resulted

in rate changes that, in the words of the traffic manager of one stone company, "have not hurt out business in the South only because the depression and the Pv/A emphasis on local materials had already made our sad.es in this territory very o

small.11*" The effect of these' rate changes on the rates to the points mentioned in Table 3? is shown in Table

It is

evident that a number of factors were combining to restrict the market area reached by the Indiana stone industry.

In­

creasing freight rates, limited financial ability to und.ertake sales promotion in distant territories, and the emphasis of *^Note that to New York, Philadelphia, Boston, and In­ dianapolis rough stone rates were lowered, while dressed stone rates increased. 2 H.

H. B i e z e ,

Indiana Limestone

Company,

B a y 10,

19^2.

658 governmental builders on the use of local materials were among the most important. One factor worked to alleviate this trend to a small extent.

This has been the growing proportion of shipments

made by truck.

The shipment.of cut stone, by truck began in

the latter part of the previous period.

By 1935 anuarrymenTs Association had gone out of existence on January 1, 1933;

and therefore when the Recovery Act came into existence the building stone industry as a whole was without a trade 1 association. The Indiana limestone district drafted a proposed code of their own which was submitted on June 17, E 1933. The National Recovery Administration, however, said that only a national building stone code would be considered. The deputy administrator in charge wrote to Dr. Leo Wolman of the Labor Advisory Board that this was done to prevent a monopoly in the quarry industry such as would have re­ sulted from the original code. to propose a code.

They were among the first

The Indiana Limestone Institute hired

Robert Winn, attorney at Washington, D. C., to represent their interests.

^Hearing on Code of Fair Practices and Competition presented by the Limestone Industry, V « S. Appendix," p. 19. federal Trade Commission Library, Washington, D. C. Here­ after called Code Hearings. Code History 113, Limestone Industry, W. A. Janssen, January 15, 1936, p. 1. National Recovery Administration Records. Department of Commerce, Washington, D. C. Here­ after called Code History.

669 TABLE 71 NUMBER OP QUARRIES AND MILLS IN OPERATION IN MONROE COUNTY BY MONTHS JANUARY 1931 TO JULY 1942 MILLS Date 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec 22 17 16 10 14 12 17 16 18 18 16 12

23 19 13 9 11 12 17 16 14 18 16 14.

22 17 12 15 12 14 15 16 18 19 16 13

23 19 13 15 13 15 16 17 17 21 16 15

23 18 12 13 15 15 16 18 18 20 16 14

21 18 12 12 15 16 17 17 17 20 16 12

19 18 13 13 15 16 17 17 18 20 15

19 18 13 15 15 16 18 17 18 20 16

19 17 10 15 15 16 16 17 18 21 17

20 19 16 17 9 9 17 ’ 15 14 14 17 16 16 17 18 18 18 18 17 20 17 16

20 15 10 14 13 16 16 18 19 17 15

18 9 15 10 5 12 15 12 13 13 13 7

16 9 15 13 7 12 14 10 13 13 13

16 10 9 11 9 14 14 12 13 13 10

16 11 9 9 9 14 15 11 13 13 12

15 13 8 8 8 14 15 10 13 12 11

11 9 7 2 5 12 10 8 12 7 6

QUARRIES 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942

Source:

15 11 9 5 0 5 11 7 9 10 8 5

15 12 5 5 1 3 11 11 10 11 10 5

17 12 9 8 2 8 11 13 12 13 12 9

18 13 7 12 6 9 14 12 12 13 12 8

18 11 12 12 8 11 14 11 13 13 12 9

Public Service Company of Indiana

11 9 10 5 7 12 14 9 13 8 9

670 On July 28, 1933, the National Gut Stone Associa­ tion was organized in Chicago*

This organization then

proceeded to draft a proposed code which they filed on August 10, 1933^

Indiana limestone interests in the mean­

while organized the National Limestone Industries Associ­ ated in Chicago August 16th to 18th.

The National Cut

Stone Contractor^! Association invited the other group into their association, but this did not appeal to the Indiana limestone firms on the ground that the National Cut Stone Contractors* Association omitted the quarrymen. It was then agreed and approved by the National Recovery Act authorities that there should be a separate eode for the limestone industries supplemental to the national build­ ing stone eode.

Under the auspices, therefore, of the Na­

tional Limestone Industries Associated, proceedings con­ tinued and a proposed code was filed August 26, 1933. 2 Public hearings were held on September 23, 1933. As might be expected the old conflicts of interest in the industry and the old methods of attempting to solve the industry's problems appeared. Some of the most important provisions of the proposed code may be cited.

The proposed code provided that the

minimum rate of wages should be not less than 40 cents per hour unless the hourly rate in the same class of work was

^Oode Hearings» p . 20.

2

Code History, p. 1 .

671

less than 40 cents per hour on July 15, 1929, in which case they should be not less than that amount and in no event less than 30 cents per hour.

fhe maximum hours were to be

40 hours per week averaged over a six months period, but not more than 48 hours in any one week, or more than eight hours in any one day.'*’ -Engaging in the practice known in the construction industries as "bid peddling" was to be considered an un2 fair method of competition. It would be deemed unfair to sell any product below reasonable cost plus ten per 3 cent. Gosts were to be defined as the cost of direct labor, plus the cost of materials, plus an adequate amount of overhead including an amount for use of any plant facili­ ties employed; and in quarrying an amount of depletion as determined by cost accounting methods recognized in the in­ dustry and approved by the control committee selected for 4 the enforcement of the code. Persons in the industry who sold block and sawed stone were to publish formal price schedules and file them with the association. notice should be given of any changes.

Six days

No direct or in­

direct evasion of these prices was to be permitted.

Per­

sons who operated both quarries and mills should charge

Code Hearings, p. 10.

2 Ibid., p . 2 0 .

3Ibid., p. 2 1 . 4Ibid.. p. 2 1 .

672

themselves as fabricators the price which they filed with the association for blocked and sawed stone

I'-2o members

of the industries should install any channelling or carbonrundum machines, or planers where the effect would be to increase the present capacity in the industry without the express permission of the Control Committee.

Heplaeement

of obsolete machines by new and modern machines could be permitted.^ Another clause in the code stated that "the employers of the Mational Limestone Industries propose to continue the local or district union policy where it has been here­ tofore followed and under which unusually satisfactory and harmonious relations with employees have been maintained. She selection and advancement of employees will be on the basis of individual merit without regard to their affili­ ation or non-affiliation with any labor or other 3 organization." It was claimed that there were 1409 cut stone plants in the country and that 974 of them were represented in the National Limestone Industries Associated,

fhe organiza­

tion meeting was attended by persons representing 95 per cent of the quarrying capacity and a large majority of 4 the cut stone trade.

3-Ibid.. p. 22. 2Ibid.. p. 23. 3 Ibid., p . 23. 4 Ibid., p . 24.

673 Opposition "began to be expressed to various features of the Code.

The secretary of the National Cut Stone Con­

tractor’s Association entered a final protest to the en­ tire idea of a limestone code embracing both cut stone mills and quarries.'1' The granite and marble groups, however, had already met on an industry basis and had 2 included both quarrying and fabricating in the same code. Objection arose to the fact that there was no provision in the code for the selection of the control committee and suggestions were offered designed to make the eode committee as representative as possible.

3

Labor repre­

sentatives asked the prohibition of subcontracting and 4 carving or any other portion of the fabrication, the 5 elimination of the use of air hammers and of the local

6 unions,

equalization of wage and hour scales for all 7 classes of labor in the various localities with the same rate of pay at the quarry centers as prevailed in the 8 finishing centers, a 30 hour week with the same weekly

xIbid., p. 27. ^Ibid., p . 35. ^Ibid., p. 35. ^Ibid., p. 62. 5Ibid., p. 72. 6Ibid.. pp. 102-127. ^Ibid., p. 94. ® Ibid., p . 94.

674

I

wage as previously received, and representation of labor p on the control committee. A representative of the Indi­ ana district unions voiced a protest against the necessity of joining the Journeymen Stone Cutters1 Association of Worth America.

Other representatives of the Indiana lo­

cal unions said that they were told that their employers could not get government contracts unless the unions g affiliated with the American Federation of Labor. Other labor leaders protested against the phrase in the Code providing for the maintenance of agreements now in force, saying that there were too many starvation rates being paid. The code was approved on November 14, 1933.

It

provided for a minimum wage of 38 cents per hour except in the states of Alabama, Arizona, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, Southern Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia where the established rate of pay for the same class of work on July 15, 1929, had been less than 38 cents per hour.

The

hourly rate in these states should not be less than that of July 15, 1929, and in no event less than 30 cents per hour.

The existing wage differentials, where equitable,

were to be maintained and no reclassification of workers

1Ibid., :. i ^Ibid.« p. 101. 3Ibid., pp. 103-108, p. 124

675

was to be made to defeat these provisions.'*’ The National Control Committee of the National Limestone Industries Associated was made the eode authority with three government members appointed by the administration. The language of section 7A of the National Heeovery 3 Act was incorporated in article 5 of the code. The code authority was given power to establish rules, methods and practices for filing bids.

Such rules if they obtained

the approval of the administration were to be used by all 4 members of the industry. A report on health hazards affecting employees of the industry was to be prepared and submitted with the cooperation of the United States Public Health Service to the administration no later than January 1, 1934, with recommendations for their improve5 ment and correction. The code authority might recommend to the administrator the registration of production machinery or a requirement for certification by the ad­ ministration that any installation of any additional

^National Heeovery Administration, Gode of Fair Competition for the Limestone industry as approved on November 14, 1933, Government Printing Office, Washington, D . 0., 1934, Article IT, p. 25. 2Ibid., Article 71, pp. 26-27. 3Ibid., Article 7, p. 26. 4Ibid., Article 71, Section 1, part e, number 7, p. 28. 5 Ibid., Article 71, Section 1, part e, number 9, p. 28.

676

production machinery did not defeat the purpose of the Nat i onal He e ove ry Ac t . The two most significant features of the opera­ tion of the code were the experiences with the cost formi ula and with hid filing. The cost formula was deemed necessary because many members of the industry had been selling below cost to get operating capital.

The proposed formula was referred

to D. H. F. Taggart of the Research and Planning Division.. Dr. Taggart on December 22, 1933, stated that although the oral representations sounded reasonable and satis­ factory in a thing that looked so mueh like price fixing needed more tangible information.

2

Hence Scovell, Well­

ington and Company were asked to submit budgets of operat­ ing costs for the thirteen members of the Indiana lime­ stone district.

Figures for the six low cost producers

were then used to establish an average unit cost for each 3 fabricating operation. In the discussions bf.i.this nformulan it appeared that these producers were considered the low cost producers of the industry,

it was stated that

cost studies in Detroit, Des Moines, uallas and Kansas City supported the contention that cut stone could be produced more economically on the Indiana quarry district than in

3-Ibid.. Article 71, Section 2, p. 28. ^Code History, pp. 24-25. 3Ibid., p. 25.

677 the consuming centers.

In effect, therefore, a price floor

for the industry was created.

It was not believed that 1 profits would be made by anyone at these prices. The Control Committee added an item for the eost of code ad­ ministration and, at Dr. Taggart’s suggestion, cut the selling and administrative expense from fifteen to ten per cent and adopted a procedure to permit an individual whose costs were lower to deviate from the formula upon 2 proper showing of justification. The quarry formula was worked out by a committee of Indiana quarrymen appointed by the control committee on November 25, 1933.

They studied the figures of sales

for the preceding years of some 50,000,000 eubic feet of stone and, recognizing that this was an extreme example df joint cost sought to apportion prices to the various grades andocolors of stone in such a fashion as to produce an average price of about 47 cents.

Representatives or­

ganizations were said to have shown in Scovell, Wellington and Company^ cost studies an average operating cost of 38.5 cents per cubic foot including depreciation on the basis of 20 per cent of total annual depreciation cost and a selling and administrative expense of nine cents per eubic foot or a total of 47.5 cents.

Objection was made to allow­

ing an individual to use his own lower costs on grounds that

^Code Hearings. Supplement 1, February 14, 1934, p p . 10-12.

2

Uode History, pp. 25-26.

678

this might he due, not to superior management, hut to the stage of the quarrying operations in which hy chance he was engaged at the moment.^ shen the formulae were given a public hearing on February 14, 1934, cut stone contractors outside the Indiana district protested that certain specific features favored the Indiana producers.

They desired a spread be­

tween freight rates on rough and dressed stone; they did not approve of charging freight to them at an estimated weight of 150 pounds to the cubic foot, and they said that they were discriminated against on the cost of gang 2 sawing. In the latter case, the cut stone contractor must pay 30 cents more to buy stone sawed into slabs than to buy rough blocks but the cut stone contractor who had gang saws must charge only 21 eents for the operation of gang sawing. saws.

Most local cut stone contractors had no gang 3 Virtually all Indiana mills did.

When the southern members presented evidence that the formula would not result in a profit, a greater pro­ portion of eost return to them, the cost formula was 4 presented to the JM. R. A. on April 23, 1934. The Research and Planning .Division recommended a trial period; the Legal

iQode hearings, Supplement 1, pp. 8-9. ^Code History, p. 29. *2

See Cost formula, Appendix B. 4

Code History, p . 30.

679 ■Division raised objections but reserved final Judgment

■

while the Labor and consumer Advisory Boardscdisapproved from the start l’he cost formula remained in force until the scheehter decision May 27, 1935, but not because of continued approval.

At the outset the code authority was asked to

show Justification of the sawing differential and to co­ operate with the nesearch and Planning division in a 2 study of the costs in the industry. By September, 1934, the research and Planning Divi­ sion was recommending a change on the ground that the formula was against existing policy,

while the N.B.A.

formulated its policy on special order industries, how25 ever, the cost formula was continued to avoid chaos. For some time, the majority of the industry seemed to be interested in the extension of the formula,

on February

25, 1935, the iidvisory uouneil recommended the termination of the formula and the use of some substitute procedure based on N.R.A. Office memorandum 228.

Hence, on .February

28, 1935, the life of the cost formula was extended to April 20, 1935, during which time the Research and Planning Division was to assist on the working out of a substitute procedure.

When this was not finished by April 20, the

^Ibid. 2 Ibid. 3 I bid.. pp. 33-34.

6 SO time was extended to June 16 to allow time to hold hearmgs.

1

„

For the first time concerted opposition to the

extension appeared. the extension.

Twenty-six firms voiced a protest to

The Indiana Limestone Company stated that

it was also opposed, saying that with 52.11 per cent of the productive capacity of the industry it had secured only eight per cent of the available business during the 2 life of the code. Table 7S compares the amount of cut stone actually sold by Indiana firms from May 18, 1934, through December 18, 1934, with the amounts they would have received if the business had been divided in proportion to the produc­ tive capacities of the companies.

■^Ibid., pp. 34-36. ^Ibid., p. 37.

681 'I!ABLE 73 ACTUAL SALES OF INDIANA CUT STONE MILLS COMPARED TO SALES IF PRORATED ACCORDING TO PRODUCTIVE CAPACITY* Actual Sales in Cubic Feet

Amount upon Prorated Basis

**Bedford Cut Stone Go. Bloomington Limestone Corp. Bowman Schwab **Cline Edinger

22,300 6,121 1,554 13,135 1,763

13,828 20,690 2,970 7,886 22,970

**J. P. Fait **Fluek **Carl Furst **Harding and Cogswell F. B. Harris

8,661 21,804 29,884 23,590 2,307

7,886 3,944 7,886 6,914 2,970

**Heltonville **J. M* Hoadley **Indian Hill Indiana Limestone Corp. Ingalls

43,659 8,240 52,802 39,980 38,766

19,717 4,916 12,803 268,409 43,430

Ittenbach (Indianapolis) Matthew Brothers **Monon Reed Powers Sare Hoadley

2,820 1,179 25,120

6,914 13,828 6,914 7,886 6,914

Como any

- -

3,500 119,742 4,207 14,540

**Shawnee Swensen * Walher Brothers Wallis **Woolery

25,710

13,828 5,944 8,911 3,944 5,941

512,134

512,134

—

**kiils exceeding q.uota • *Source:

Code History, Exhibit E.

A new formula following offiee memorandum 228 requiring the filing of list prices with the code authority to become effective six days later was approved by the Code Authority April 25, 1935,

Revised price terms

632 could fee filed but higher prices could not then be filed /

for 48 hours. prices*

Ihere would be no fixed minimum basis for

It was intended that Hsound cost accounting methods

should be used and that consideration should be given to costs in the determination of pricing policies.”

Willful

price cutting was to be an unlawful means of competition. If the Research and Planning Board on appeal from a firm found that a stated minimum price was necessary, the Code Authority could get an impartial ageney to investigate and recommend such a price list and then selling below that figure would be unfair competition.

A hearing was held

on this proposal May 20, 1935, but no decision had been reached when the N« R. A. was declared unconstitutional!, on May 27, 1935 fhe bid filing provision was applied under the working rules provided for by Subsection 7 of Section 1, e, of Article 71 of the Code,

fhe Code Authority made a

detailed breakdown of the general rules and under Mr, Calhoun as the administration member promulgated these rules.

fflhen Mr. Janssen became the administration member,

he questioned the legality and eontext of these rules and arranged a revision and public hearing.

1?he hearing was

held March 27, 1935, but the proposed change in the allow­ able cost formula delayed matters and the new rules did not

ICode History, p p • 36-37•

683 go into effect before tlie N. R. A. ended.^ The rules provided that all bids from 350 cubic feet or more (250 cubic feet in New York City) should be filed with the Code Authority 72 hours before the opening date. Indiana district members were also to file at Bedford and New York area members in New York.

A summary sheet was

to be filed giving the cubic feet, amount of the freight and the freight rate.

Ihe Code Authority was to review

the bid, comparing it with a master bid as to quantity estimates and in compliance with the cost formula.

2

If

the two did not cheek, the bidder was asked to withdraw or furnish proof of his contention.

If the bids were

different on the hours required for fabrication, Code 3 Authority sent an inspector to the plant• On November 22, 25, 1933, the Code Authority asked regulation of channelling machines, carborundum machines and planers.

A public hearing was held February 14, 1934.

Members of the industry and equipment companies protested and the consumerrs and labor*s advisors likewise objected. 4 Nothing more was done on this question. In the fall of 1934, the Indiana Limestone Company requested some plan for the allocation of available busi­ ness on the grounds that competitors were getting a large

^Code History, pp. 195-196. 2 Ibid.. pp. 144-145. ^Ibid.. p. 45. 4Ibid., p. 60.

684 percentage of tke vailable business by violating the code. Deputy Administrator Hoff on November 16, 1934, drew up a plan for restricting a firm's sales to spread the available business on rough correspondence to the available capacity. The Indiana Limestone Corporation offered to take 40 per cent and finally 37 per cent of the available business in place of the 52.11 per cent that would be proportionate to its capacity.

But before the plan eould be carried any

further, the Indiana Limestone Corporation recommended the end of the cost formula and unrestricted competition. 1 further action was taken.

No

The general opinion of the Code Administrators and the Code Authority was that during the life of the code it did exert some stabilizing influence.

2

This seems to be

borne out by references to Table 74 which indicates some­ what higher prices for the code years than the years immediately before and after.

A Job in Washington, D. C.,

that would have been let at fl.70 per cubic foot by the cost formula, was let after the N. B. A. expired at 97 3 cents per cubic foot. There was a feeling on the part of the code admin­ istration and the members of the Research and .Planning Division of the N. R. A. that the prices for rough block

1Ibid., p. 64. 2Ibidt, p. 198 3Ibid.

685

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# cit#, pp. 40-41# 8Ibld#, p. 42#

715

The difficulties thus described led to pro­ gressive steps in the passage of additional legislation on the part of the General Union*

In December, 1902,

a National convention of the General Union passed the following new rule in regard to a shipment of cut stonej "This association will not countenance the transporta­ tion of cut stone from one place to another where the interchange of work is not mutually agreeable (Article 12, Section 1)

Any branch of the union under

the authority of this provision might now shut out planer-cut stone*

This recommendation was ratified by

the branches by a vote of 145 to 103*

Further difficulties

led to the calling of another convention at s t * Louis in September, 1904,

By vote of 129 to 84 the rule was

amended to read as follows: This association will not countenance the transportation of cut stone from one place to another where the interchange of work is not mutually agreeable, except from branches where planers are operated by stone cutters and where wages and hours are equal at the time the contract was let. But in no case shall planercut stone be shipped into the jurisdiction of any branch that has succeeded in keeping the planers out of their jurisdiction.2 (consti­ tution of 1905, Article 12, section 4) By 1905 the executive board and president of the General Union were Convinced that attempts to stop the shipment of planer-cut stone were futile. ^Ibid., p. 43. 2Ibid., p. 44.

The rank and

716 file, however, were still in favor of restriction."1 At the 1906 convention of the General Union the recommenda­ tion regarding the transportation of cut-stone was left substantially the same but in 1908 the issue was reopened. The convention committee on the transportation of cut stone recommended that "the branches should be forbidden to restrict the shipment of stone provided that the wages at the shipping and receiving points were equal." St. Louis delegates complained that this would force them to allow the introduction of planer cut stone despite the fact that they had been successful in keeping it out.

After strong debate the convention repealed

entirely the recommendation relating to the transporta­ tion of stone and this repeal was ultimately ratified by the branches by a vote of 957 to 521.

As a result,

those branches that attempted to keep out planer-cut stone could no longer expect the aid of the shipping branches.**

As a matter of fact, the executive board

of the General Union had not interpreted that part of the Gonsitution of 1900 that urged the branches "to make every effort possible to prevent the introduction of planers in their jurisdiction" as being a mandatory requirement and had refused to pay strike benefits where strikes were called against the introduction of the planers.

^•Ibid., p. 45. 2Ibjdt,, p. 45. 5Ibid., p. 46.

2

717

It will be remembered by the reader that the Chicago union had adopted a rule in 1898 limiting the number of hours that planers might be operated.

Several

other branches of the General Union adopted similar rules and in 1902 the convention of the General Union, in an effort to make this resolution general, placed the following rule in the constitution.

(Artiele 12, Section 8)

In no case shall planers be allowed to run or work more than the number of hours per day worked by stone cutters of said branch. The common practice was to employ the planers 9 or 10 hours with double shifts when needed whereas stone­ cutters had succeeded in establishing an 8 hour day in nearly all sections of the country.

This resolution

proved to be very difficult of enforcement and particularly as in those districts in which the stone cutters were hired by another company than the one which operated the planing machines.

In those cases in which hours were

reduced the effect often was to increase the number of planers in use.

Since the fluctuating nature of the

business made the amount of planer work to be done subject to considerable variation, employers usually insisted upon the right to operate their planers with two shifts if the amount of work was sufficient.

This was recognized by a

new rule adopted in 1905 authorizing the use of a double ijbid., p. 47, See also Stone Cutters Journal, XVII (January, 1905), 23.

718

shift in case of necessity.

(Article 12, Section 2)

in

1907 the rale involving limitations of hours was made a recommendation rather than a requirement and in 1908 the rale was repealed.1 The Chicago Union had also sought to establish a rule that a specified number of stone cutters should be hired for each planing machine in use.

This rale

was likewise copied by other branches of the union.

Dr.

Barnett was of the opinion, however, that this rule was "more irritating than restrictive since the contractor ordinarily could arrange his work so as to do on the planer all of it that could be done more economically by machinery.

There were times, however, when the con­

tractor was forced by the rule to give to his hand-cutters work which could have been done more cheaply on the machine."^ The final step in the policy of the General Union in respect to the planing machine was the establish­ ment of a rule that planermen should be stone cutters. Until 1902 the General Union was still hopeful that in some way planers might be got rid of and consequently did not concern itself with the planermen. As it became evident that shipments of planer-cut stone could not be prevented and that the number of planers was increasing, the leaders of the Union began to favor a rale requiring that planermen should be stone cutters. It was argued, in the first place, that it would be Barnett, op. eit., pp. 47-49. sIbld., p. 49.

719 difficult to enforce any limitation of hours as long as the planers were manned by handy men. Secondly, it was felt that with the encroachments of the planer it might be necessary to find new fields of employment for stone cutters. Finally it was contended that the strength of the union would be greatly increased by complete control of all cutting of stone whether by hand or by machine.1 In 1902, therefore, the convention adopted the following rule: It is the sense of this convention that planers should be operated by members of this organization, and branches are instructed to enforce this law as soon as practicable.® It proved difficult, however, to displace the men already employed as planermen particularly in those oases in which they had themselves become organized into local unions.

At the 1904 convention a proposal to

organize the planermen as separate branches of the General Union was defeated and a rule was adopted, effective April, 1905, instructing the branches to require the employment of members on the planers.

Strong opposition

from the employers was incurred, however, and little was accomplished, especially in those places at which the number of planers in operation was large.

At the 1906

convention, therefore, the rule requiring employment of stone cutters to operate planers was repealed and it was

^Ibid., p. 50. 2Ibid., p. 50.

720 decided to admit planermen to special membership in the General Union#

Members were then forbidden to cut or

set stone not planed by members of the stone cutters branches#

Tery little was accomplished under this rule#

ffhen the National rules relating to the planer were struck out of the constitution at the 1908 convention, the clause permitting the admission of planermen to the General Union was not eliminated#

In December, 1912,

the constitution was amended to provide further admission to membership of "all men operating stone cutting machinery#"1 By this time all hope that the employment of stone cutters as planermen could be generally secured was lost. The only question was whether planermen should be organized in local unions directly affiliating with the American Federa­ tion of Labor or should be connected with the General Union.2 During this same period of time the bargaining power of the union was considerably weakened by the development of a strong association of employers and encouragement by the employers of the creation of dual unions of stone cutters.

In both Chicago and in New York

the employers already associated in local Associations of Cut Stone Contractors organized independent unions (in Chicago during the building-trades strike of 1900 and in New York during the strike of September, 1904.)

1Ibid., pp# 50-51. 2Ibid., p. 52.

721

Til© Contract©*©* Associations negotiated agreements with these independent unions in which it was provided that there should be no restriction on the use of machinery*^ In January, 1904, the National Cut stone Contractors Association was formed with one of its expressed pur­ poses stated to be protection of its members against restrictions in the use of machinery*

p

In November,

1904, this association adopted the following resolutions which were to be posted in the shops of all its members* First, that we shall run our machinery without restrictions as to hours, or as to whom we shall employ to operate them; secondly, we shall cut and ship cut stone without any restrictions as to the place or local conditions*® In May, 1905, the National Stone cutters Society was organized in Pittsburg-, Chicago and New York, where dual local unions already existed, plus Brooklyn, Newark, South Dover, Louisville, and Cincinnati, where independent unions were being formed, were the localities represented. This rival national union agreed to the principle that there should be no restrictions on the use of machinery. A policy of expansion was followed and branches of the National Society were organized in 1906 in Toronto; 1Ibid., pp. 53-54. %Ibid*, p. 54, See also stone cutters Journal, XVIII (February, 1904), 4. 5Ibld*, p. 55.

722

Washington, D, c,; Carthage, Missouri} and Bedford, Indiana.^The same method was pursued in all these cases. Members of an existing branch of the national Society were sent to the city selected, and after a lock­ out, the Members of the old branches were obliged to become members of the Natiogal Society or go to another city to work. After the General union had repealed its rules relating to the shipment of cut stone and the use of the planer in 1908, increasing efforts were made by the branches of the old union to bring about the amalgamation of the independent unions.

In September, 1909, the

executive body of the General Union offered free admission without penalty to all members of the National Society,

4

The General Union had affiliated with the American Federation of Labor in August, 1907,® and in November, 1908, the American Federation of labor and its BuildingTrades Department upheld the General Union and declared the National Society to be an out-law.

6

The National

Out Stone Contractors Association, however, in its convention of September, 1909, decided to continue to

1

Ibid,» pp. 35-36.

8Ibid., p. 56, 3Ibid., p. 56. (September, 1908), 3,

See Stone Cutters Journal, XXII

% t o p e Cutters Journal, XXIII (September, 1909), 4. 5Stone Cutters Journal, XXI (April, 1907), 10.

^Barnett, op. cit., p. 56.

723

support the National Stone Cutters Society and de­ clared that, after November 1, its members would employ only members of the National Society,-**

As we shall see

later, this action precipitated a prolonged strike at Bedford, Indiana, in which the General Union was de­ feated,

In the succeeding months the General union sought

to organize boycotts against all stone that had been cut by members of the National Society,

in this effort 2 the aid of local building-trades councils was enlisted and in addition the stone cutters secured the coopera­ tion of the Brick Layers, Masons, Plasterers union by an agreement negotiated in 1913 in which the stone cutters relinquished the setting of stone to the brick layers.

This agreement was ratified May 14-15, 1914,

and provided an arbitration system for settlement of

llbjd., op. oit., pp. 56-57} See also stone Cutters Journal, XXIII (November, 1909), 3, ^Barnett, op, cit., p, 57.

724 disputes between the two unions.^ All parties to the controversy, however, were being led by the course of events to feel the futility of prolonging the struggle#

The Contractors Association saw

evidence that the demand for stone was being injuriously -*-The Bricklayer, Mason and Plasterer, XVI (August, 1913), 173. See also The Stone Cutters Journal, XXVIII (September, 1913), 3 ainfiSO. On July 31, 1913, the Journeymen stone Cutters Association of North America had reached an agreement with the Brick Layers, Masons, and Plasterers Inter­ national Union, the significant terms of which were as follows: Clause “In event of a dispute arising between local unions of either organization as to the intent of the provisions of this agreement, the question at issue shall be immediately referred to the president of each international union for decision pending which no strike or stoppage of work shall be ordered or entered into by the members of either international union.” Clause 6— “Where the B. M. & P. I. U. of A. and the J. S. C. of N. A. become involved with any other craft Of the building industry in jurisdictional disputes, no member of either organization shall be allowed to work on any job where non-union stone cutters, brick layers, stone masons or plasterers are put to work# Clause _7— W® agree to a general offensive and defensive alliance under the following provisions: (a) “That in all movements offensive and defensive no sub­ ordinate loeal or either international union shall be permitted to take any action whatsoever until the question requiring joint action shall first have been acted upon and determined by the presidents of both international unions, (b) “No Movement of an offensive or defensive connection shall be countenanced in cases where such would be in violation of any existing agreement.” The remaining clauses defined the jurisdiction of the respective unions} provided a procedure for the settlement of disputes between them; and provided that the agreement should go into effect immediately except in the case of unfinished jobs.

725

affeeted by the fear of architects and owners of increased costs through labor difficulties and were ready to make peace provided that the General union should definitely renounce for the future any restrictions on the use of planers.

The officers of the General Union had become

convinced of the futility of the planer and were desirous of decreasing the expense of continuing the struggle— a very costly burden#

The leaders of the National Society

were desirous of being recognized once again as “good union men.“i

It was not surprising, therefore, that in

June, 1913, the officers of the General union, of the National Society, and of the Contractors Association negotiated a mutual agreement.

According to the terms of

this agreement the General Union agreed to waive control over foremen and over stone working machinery, and over the shipping of the stone, to take into membership all members of the National Society without penalty, and to carry out all existing agreements between the National Society and the Contractors Association.

All future

disputes between the Contractors Association and the branches of the General Union were to be settled by 2 arbitration without cessation of work. Opposition soon developed, however, to some features of this agreement.

Certain of the General Union

lBarnett, op. cit., p. 57—58. 2Ibid., p. 58. See also Stone Cutters Journal. XXVIII (October, 1913), Front Cover.

726

branches, notably Chicago, strongly desired to penalize National Stone Cutters.-**

Certain other branches of the

General Union who had successfully maintained a local embargo on the shipment of cut stone and who had succeeded in controlling the operations of the planers did not desire to see their gains lost.

In addition, the execu­

tive board of the General Union wished to be sure that the phrase “stone working machinery” did not include the pneumatic hammers which were worked by stone cutters. The executive board of the General Union, therefore, oonvened in August, 1913, and pursuant to their action a supplementary agreement was reached with the stone cutters in which these points were clarified.

2

Having conquered the dual union and strengthened its position by the offensive and defensive alliance with the brick layers who set the stone in the wall, the General Union then turned its attention to the proposal of seeking to bring into affiliation with their organiza­ tion those men engaged in operating stone cutting machinery. In February, 1915, the following provisions were added to the constitution of the General Union.

(Article 9,

Section 4-6) ^Barnett, op. clt.» pp. 58; Stone Gutters Journal, XXVII (August, 19131 3. ^Barnett, o£. cit., pp. 58-59. Stone cutters journal, XXVIII (September, 1913), 14-17.

727

Planermen, masonmen, and curb cutters* locals may affiliate with this association under their present working conditions. The rule governing affiliation shall be mutually agreed upon between the locals seeking affilia­ tion and a committee of three representing the Association. This agreement shall be ratified by the executive board. Affiliation fee of $2.50 shall be charged until July 1, 1915, and $20. thereafter. Locals will be charged $10 for every 25 members or a fraction thereof. There shall be no charge for the charters if all the applicants are members of the General Union. No charters shall be Issued to any without the sanction of the local General Union concerned.-** In February, 1915, then, the convention of the Stone Cutters Union voted to favor amalgamation of all workers in the stone industry under the General union and to ask the aid of the American Federation of Labor in doing it.2 Under the regulation thus established the president of the General Union sought to organize the planermen in various localities, especially in the Indiana stone belt, into organizations affiliated with the Journeymen Stone Cutters Union. The assistance of the American Federation of Laborms asked in the attempt to amalgamate all workers in the stone industry under the General Union and those planermens unions that had been chartered by the American Federation of Labor were to be ordered to surrender these charters in favor of charters J-Ibid., XXX (February, 1915), 41. aIbid., XXX (February, 1915), 42.

728

from the General Union*^ In the meantime these pleaar­ son's locals had often taken in other stone workers engaged in car blocking, traveler running, hooking, ant other labor around the stone mill.8 Many of the con­ tractors took the attitude that the organization of these planermen*s locals at Bloomington, Stinesville, and Sllettsville, Indiana, violated the agreement that had been made by the Journeymen Stone Cutters Association and the National Cut Stone Contractors Association* On August 31— September 1, 1915, a conference was held by the officers of the General Union and the Contractors Association at Niagara Falls to attempt to iron out the difficulties that had arisen in interpreta­ tion of the agreement* At the Niagara Falls conference the secretary of the General Union stated that the national officers had not attempted to organize planermen but that the locals had, and that the locals of planer­ men, including diamond sawyers, crane runners, right on down to mill laborers, had been formed in Bloomington, Sllettsville, and Stinesville, Indiana, and chartered by the General Union.4 The officers of Journeymen Stone >2

^Stone Cutters Journal, XXX (June, 1915), 5. 2Ibid., XXX (October, 1915), 12. 5Ibld., XXX (May* 1915), 5-6. ^Department of Justice, Indiana Limestone, File 60-54, Sub 3;1-39; 206-284. Unnumbered Eshibit; synopsis, joint Committee Meeting Executive Committees J. S. C. A. of N. A. and I, c. S* C. & G. A., April 18-22, 1921, claypool Hotel, Indianapolis, Indiana, p. 12.

Gutters Association proposed that if the existing planer­ men*s locals in the Indiana belt would be allowed to continue, they would eliminate all except planermen, headers, shapers and circular diamond sawyers from member­ ship and would agree to charter no more locals of m chine men.l

At the same time a new issue came up. In sevesL cities locals of the General Union had entered into agreements with locals of the Brick Layers, Masons and Plasterers of the International Union prohibiting the importation of cut or planed stone for jobs under 6,000 cubie feet# The contractors objected to this proposal on the grounds that it would be in violation of national law#8 The first of these agreements had been made in Philadelphia, November 20, 1914, followed by Cincinnati, Detroit, and St. Louis on June 1, 1915; Pittsburg, July 6, 1915; Milwaukee, September 11, 1915; Cleveland, October 1, 1915; Fort Wayne, November 9, 1915; St. Louis March 1, 1916; Topeka, Kansas, November 28, 1916; South Bend, April 5, 1917#3 In New York there was no written 1Ibid. department of Justice, Indiana Limestone, loo♦ cit., Unnumbered Exhibit, Report of Robert D. Ramsey, ■^summary Report of Alleged Violations of Sherman AntiTrust Laws by the J.S.C.A. of N.A., the B.M. & P.I.U*, and Local Cut Stone Contractors, July 17, 1916,« p. 18. See also stone Cutters Journal, XXX (November, 1915), 19-27. department of Justice, Indiana Limestone, loc. cit. , p. 6. PP* 8-27. Bureau File 67y6-Elxhibit 415, ■"Uoples-of Restrictive Agreements Approved by B.M.V.P. & I.U.

730

agreement but an embargo on cut stone had been generally observed since the days when Connecticut-Brown^ one had been in vogue ^ 6 0 * S-1Q7Q) * In May, 1915, the New York cutters union had added sawed and resawed stone to the classes under embargo#1 In Chicago there was likewise no formal agreement but the embargo seemed to be in effect on all shipments under 12,000 cubic feet.8 At the same Niagara Falls Conference the union officials brought up the question of the use of the pneumatic hammer. A number of stone cutters had claimed that the use of the air hammer produced injurious effects Upon the health of the cutter# some of them had begun to agitate for action on the part of the union in refusing to use this tool# When the question was raised, one of the officials of the Contractors Association stated that he believed that a considerable amount of the difficulty was due to misuse of the tool by men who tried to use it in roughing out a stone block or in work that was too heavy for the best use of the instrument# It was agreed on this score to have the secretary of the Contractors Association communicatev. with each member of the Association using the air hammer and ask them to give careful consideration to this ^Department of Justice, Indiana Limestone, loo. cit., Report of Ramsey, p. £l-2£. 8Ibid., pp. 25-26.

731

complaint and to use their best efforts to attain the results desired.1 It appears that shortly after this meeting at Niagara Falls in November, 1915, leading officials of the Contractors Association and the General Union went to Washington and sought an informal opinion from the Attorney General as to the legality of the 6,000 foot rule.

It was their understanding that this rule was

not believed to be a violation of the law, but a definite

mile could not be given until the matter presented itself in a specific case.2 In January, 1916, the Bedford Stone Club filed a brief with the Department of Justice charging that these restraint agreements were a |>-G of the U. S. Geological Survey. FORMULA FOR STONE SAWED POUR SIDES Vs/hen stone sawed four sides is sold to the trade, the cost of sawing the additional two sides shall be computed by the method of cost-finding developed for the industry by Scovlll, Wellington & Company, which is the basis of this formula, and a sum not less than the cost of such additional sawing shall be added to the selling price of stone sawed two sides. PROCEDURES FOR ESTABLISHING LGiER INDIVIDPiR COST Provided that any member of the industry may netition the Administrator for permission to use the individual costs of such member of the industry when such individual costs are less than those established in this formula, when

computed on a 20$ production basis (one shift) and at wages rates prevailing in such petitioner’s geographical location.

Such petition shall be accompanied by adequate

production data for a period of not less than five (5) years immediately preceding the year 1934, substantiating the position of such member of the industry.

After such

hearing as the Administrator may prescribe if such petitione is able to substantiate an average cost for quarried stone of less than 450 per cubic foot and if in the opinion of the Administrator, the purposes of the National Industrial Recovery Act will not be defeated by permitting such petitioner to use such lower costs, the Administrator may permit such petitioner to apply the same percentages used in arriving at the cost figures in this formula to the average cost of such petitioner. Wien the facts in the case warrant it, the Administrator in his discretion, may suspend the provisions of this allo?7able cost formula, insofar as it will affect such a petitioner, without or pending hearing.

For ten (10)

days after such approval, such successful petitioner shall not use such approved costs in computing a job, and the Code Authority shall advise all members of the industry of the details of such member’s approved costs. Any other member of the industry may sell below the cost formula herein prescribed and down to the cost

754 prescribed for sueh petitioner in order to meet the oonrpetition of such petitioner* EXCEPTIONS COVERING QUERENT CONTRACTS FOR SPECIFIED PROJECTS Members of the industry may sell block or sawed limestone at a lower price than the cost indicated in this formula when (a) such a sale consummates a contract for the sale of sueh stone entered into prior to the date of approval of this formula, when such contract requires such member of the industry to furnish such block or sawed lime­ stone to a cut stone contractor or other purchaser for use in the execution of a contract which was in existence prior to the date of approval of this formula; or (b) - where the contract to furnish such block or sawed limestone is entered into as the result of an offer made prior to the date of approval of this formula and accepted within thirty (50) days of the date of such offer for use in a particular specified building or structure, on which limestone bids have been taken. REPORTS The Code Authority for the Limestone Industry is directed to study the effects of the application of this formula upon the industry, upon labor and upon the consuming public and to report thereon from time*- to time, or as often

755 as it may be required, to the Administrator.

For the

purpose of obtaining complete information from all members of the industry in connection with the study which the Code Authority is to make of this formula, and to aid in the preparation of such reports as the Code Authority may make, the Code Authority shall obtain from members of the industry, sworn or unsworn reports periodically, or as often as it may require regarding sales of limestone.

Such reports

shall Include the following, as well as such other facts as may be required by the Code Authority, -prices of stone, classification and grades of stone sold, dates of shipments, dates of sales, and names of purchasers. EFFECTIVE DATA This Cost Formula shall be effective on the sixth day after its approval by the Administrator, and shall remain in effect for ninety (90) days, unless the Administrator shall extend the provisions thereof.

The Code Authority

shall study the provisions and effects: of this formula and shall make recommendations to the Administrator based thereon. The Administrator may, at any time prior to the expiration of ninety days’ period herein provided for, entirely suspend the provisions of this Cost Formula.

AN ECONOMIC HISTORY OF THE INDIANA OOLITIC LIMESTONE INDUSTRY

BIBLIOGRAPHY

BY JOSEPH ALEXANDER BATCHELOR

756 BIBLIOGRAPHY

Original Sources Personal Interviews A very important part of the information for this study was obtained from interviews with men and women now or formerly engaged in the industry. In the majority of cases these persons ashed that the source of the informa­ tion be kept confidential. fhe manuscript, with the exception of the summary chapter, has been read by Mrs. L. C. Walters, Secretary, Indiana Limestone Institute, Bedford, Indiana; Mr. Jess Hay, President, Independent Limestone Company, Bloomington, Indiana; Mr. Louis Ingalls, President, Ingalls Stone Company, Bedford, Indiana; Mr. L. C. Donaldson, President, Indiana Limestone Corporation, Bedford, Indiana; Mr. 0. 0. Rollins, Superintendent, Victor Oolitic Stone Company, Bloomington, Indiana. Parts of the manuscript have been read by Mr. H. H. Bieze, fraffie Manager, Indiana Limestone Corporation, Bedford, Indiana; Mr. C. C. Woolery, President, Woolery Stone Company, Bloomington, Indiana; Mr. David G. Wylie, President, Bloomington Limestone Company, Bloomington, Indiana; Mr. Harold Howland, Vice-President, Shawnee Stone Company, Bloomington, Indiana; Mr. Irvin Matthew^, former president, Crescent Stone Company, Bloomington, Indiana; Mr. Leo Sahn, General Manager, Bedford Foundry and Machine Company, Bedford, Indiana; Mr. Victor Albright, Presi­ dent, Meyers-Diamond Saw Company, Bedford, Indiana; Mr. H. S. Brightly, former secretary of the Indiana Limestone Q,uarrymen Association, Washington, D. C., and by several former Union officials who did not wish their names disclosed. Footnote references in the text to interviews were with persons cited in this list.

757 Public Documents —

Federal

Department of Justice. Indiana Limestone Investiga­ tion, File Mo. 60-54 Sub 3-1-39-206-284. (Typewritten). Washington, D. C.: Depart­ ment of Justice Files. The most important sub-headings within these reports were as follows: Summary report of Alleged Violation of Sherman Act by Journeymen’s Association of North America, Brick Layers, Masons, and Plasterers International Union and Local Contractors. July 17, 1916. Memorandum.

May 31, 1924.

Memorandum on The Facts Developed by Attorney General Lesh, December 11, 1924. Memorandum.

February 14, 1925.

Memorandum. Summary Report Re: Alleged Violation of Sherman Anti-Trust Act. February 18, 1926. Memorandum.

Re: Merger.

March 28, 1926.

Memorandum. Re: Indiana Cut Stone Club. June 17, 1926. Memorandum.

Report of Merger.

June 17, 1926.

Memorandum. Summary Report of Merger. August 16, 1926. Memorandum.

Re: Merger.

January 21, 1927.

Memorandum. Summary Report on Status of Merger. February 9, 1927. Memorandum.

Report of October 20, 1929.

Memorandum. R e : N . R . A . March 28, 1934. Memorandum.

Re: Prices.

Undated.

Memorandum. Re: Past Performances of Con­ stituent Companies re: Competition. Undated.

758 Skis file comprised the reports and exhibits of the Department of Justice investigation of the Indiana Limestone Industry, containing a complete investigation of the price policies of the industry covering the years 1916-1934. The agents’ reports and the exhibits collected contribute indispensable material for the study of the financial and price policy of those years. Very valuable financial and statistical exhibits accompany the reports. Department of Labor Conciliation Service. Files No. 170-193; 170-1136; 199-3704. Reports of Federal Conciliators. (Typewritten). Washington, D. C.: Office of Conciliation Service, Department of Labor. District Court of the United States, Southern District of Indiana, Indianapolis Division, Dockets in Equity 1468. ”Central Republic Trust Company and Arthur T. Leanord, trustee vs. Bloomington Limestone Corporation.11 Transcript of Evidence, July 25, 26, 1933. January 4, 1934, August 31, 1935. 2 volumes. (Typewritten). Docket 1340. Cleveland Trust Company, et al v s . Indiana Limestone Company. Transcript of Evidence, November 9, 1932, November 12, 1932, December 7, 1932, December 29, 1932, December 31, 1932. 3 volumes. (Typewritten). Docket 8580. nIn the matter of the Shawnee Stone Company of Delaware, Debtor, in Proceed­ ings for reorganization under section 77A and 77B, Bankruptcy A c t .” Hearings and Petitions. March 25, 1936; April 2, 1936; April 24, 1936; April 28, 1936; May 7, 1936; May 21, 1936; July SO, 1936; July 31, 1936; September 16, 1936; December 31, 1936. 3 volumes. (Typewrit­ ten). Clerk of the District Court of the United States, Southern District of Indiana, Federal Building, Indianapolis, Indiana. Federal Trade Commission, Official Report of Pro­ ceedings before the Federal Trade Practices Conference. Cut Stone Industry, Chicago, Illinois. May 3, 1929. (Typewritten). Washington, D. C.: Federal Trade Commission Files. Interstate Commerce Commission, Transcripts of Testimony at Hearings, Formal Docket Files, Interstate Commerce Commission. (Typewritten). Washington, D. C. The following dockets were used:

759 241Q, "In tiie Matter of Division of Joint Rates for Transportation of Stone from Points in Indiana to Points in Other States." September 7, 1909. 5093, "John A. Flynn vs. G. I. & L. Railroad Company." April 14, 1913. 8668, "George Oakley and Son, Ltd. et al vs. Chicago, Terre Haute and Southeastern Railway Company, et a l ." May, 1916. I & S 1012, "Consolidation Classification Case." March 15, 17, 1917. 2 volumes. 19656, "James OlMMarai>, et al vs. B. & 0. Railway, et a l ." October 27, 1927; May 12, 1930; April 16, 1931. 19897, "Builders Association of KdnsaSiCirljy, Inc. vs. 0. V. Q. Railroad Company, et a l ." June 30, 1928. 22959, "Consolidated Stone Cases." June, 1932. 19 volumes.

April-

I & S 3589, "Stone from Bedford, Indiana, to Chicago, Illinois and Related Points." May 28, 1937.' The testimony of these hearings was by no means confined to transportation materials, but was also in­ dicative of the competitive situation within the in­ dustry. Valuable statistical exhibits accompanied these cases. National Labor Relations Board. Decision in Case R773-R790-Indiana. "Monon Stone Company vs. Quarry Workers International Union of North America." (Typewritten). Washington, D. C.: National Labor Relations Board, Case Files. National Labor Relations Board. Official Report of Proceedings. Case XI-R-94. "Monon Stone Company vs. Quarry Workers International Union of North America, et a l ." March 10, 1938. (Typewritten). Washington, D. C.: National Labor Relations Board, Case Files. National Recovery Administration. Code History No. 113. Limestone Industry, Report of W. A. Janssen, Deputy Administrator, January 15, 1936. (Type­ written) . Washington, D. C.: National Recovery Administration Records, Department of Commerce.

760 National fiecovery Administration, Hearings on Code of Fair Practices and Competition. Proceedings by the Limestone Industry. September 19, 1933. Supplement No. 1, February 14, 1934. Supple­ ment No. 2, May 20, 1935. 3 volumes. (Type­ written). Washington, D. 0.: Federal Trade Commission Library. Supreme Court. Transcript of Records. Locket 412, Washington, D. C.: United States Supreme Court.

Vol. G U I . Library,

Public Documents -- State Indiana Division of Labor. Case No. 524, March 11, 1938. Case No. 967, February 9, 1939. Re­ ports of Conciliators. Case files, Division of Labor, State House, Indianapolis, Indiana. Annual Reports of Foreign and Domestic Corporation, Secretary of State, State House, Indianapolis, Indiana. Valuable in determining capital stock issued by companies. Public Service Commission of Indiana. Motor Carrier Docket 368B2 and B3, October 16, 1936. Publie Documents -- County Lawrence County Clerk’s Office, Bedford, Indiana. Givil Order Books, Lawrence County Circuit Court, 1870-1942. Lawrence County, Recorder’s Office, Bedford, Indiana. Miscellaneous Records, 1870-1942. Mortgage Records, 1870-1942. Township Deed Records, 1870-1942. Monroe County Clerk’s Office, Bloomington, Indiana. Civil Order Books, Monroe County Gireuit Court, 1870-1942. Monroe County, Recorder’s Office, Bloomington, Indiana. Miscellaneous Records, 1870-1942. Mortgage Records, 1870-1941. Township Deed Records, 1870-1942. Owen County Glerk’s Office, Spencer, Indiana. Civil Order Books, Owen County Circuit Court, 1870-1923.

761 Owen County, Recorders Office, Spencer, Indiana. Miscellaneous Records, 1870-1923. Mortgage Records, 1870-1923. Township Deed Records, 1870-1923. Hendricks County Circuit Court. Docket 11105 State of Indiana. "On Relation of U. S. Lesh, Attorney General vs. Bedford Stone Club Auxiliary, et al.H Docket file, Clerk's Office, Danville, Hendricks County, Indiana. Marion County Superior Court, Room 5, Docket A-15988. "State of Indiana vs. Bedford Stone Club Auxiliary, et a l ." Docket Files, Clerk of Superior Court, Indianapolis, Indiana.

Secondary Works Books Andreas, Alfred Theodore. History of Chicago. Chicago: A. T. Andreas, 1884-1886.

(Ill)

Barnett, George E. Chapters in Machinery and Labor. Cambridge : Harvard Ehiversity Press, 1926. Bookholtz, H. E., and Judkins, C. The Construction Industry. (Market Research Series No. 1 0 .lT, Washington, D. 0.: Bureau of Foreign and Domestic Commerce, Department of Commerce, April, 1936. Bowen, B. F. History of Lawrence and Monroe Counties. Indianapolis: B. F. Bowen and Co., 1914. Bowles, Oliver. The Stone Industry. New York: McGraw Hill, 1934. Bowles, Oliver, and Justice, C. W. The Grov/th and Development of the Don-Metallic Mineral In­ dustries, United States Bureau of Mines Information Circular 6687. Washington: Government Printing Office, February, 1933. Brayley, A. W. History of the Granite Industry of New England". (T] Boston: E. L. Grimes, 1913.

762 Buehler. H, A. The Quarrying Industry of Missouri* (Missouri Bureau of Geology and Mines Reports, II, 2nd Series), Jefferson City, Missouri, 1904. Chamberlin, Edward. Competition. Press, 1933.

The Theory of Monopolistic Cambridge: Harvard University

Chawner, Lowell J. Construction Activity in the United States. 1915-1937. ICons true ti on and feeal Property Section, Division of Economic Research). Washington, D. C.: Bureau of Foreign and Domestic Commerce, Department of Commerce, 1938. Chute, A. Hamilton. Marketing Burned Clay Products. Columbus, Ohio: Ohio State University, June, 1939. Department of Labor. (Information and Education Service). Economics of the Construction Industry. Washington, D. C.: Government Printing Office, 1919. Galbraith, J. K., and Johnson, G. G., Jr. The Economic Effects of the Federal Public Works Expenditures, 1933-1938. Washington: National Resources Planning Board, 1940. Haber, William. Industrial Relations in the Building Industry. Cambridge: Harvard University Press, 1930. Hargrave, Frank F. A Pioneer Indiana Railroad. Indianapolis: Wm. B. Burford Printing Co., 1932. Hilton, J. A., Secretary, Chicago, Indianapolis, and Louisville Railway Company. History of the Road from July 8, 1897, to January 1. 1899. Chicago: Chicago, Indianapolis, and Louisville Railway Company, March 15, 1899. Hoyt, Homer. One Hundred Years of Land Values in Chicago. ohicago: University of Chicago Press, 1933. Indiana Limestone Institute. Indiana Limestone: Standard specifications^ Indiana" Limestone Institute, Bedford, Indiana. Bedford, Indiana; Indiana Limestone institute, 1940.

763

Kimball, Sidney Fish, Domestic Architecture of the American Colonies and of the Early Republic. New York: C. Scribner’s Sons, 1922. Lockhart, Oliver Cary. The Oolitic Limestone Industry of Indiana. Indiana University Bulletin VllI, No. 8. Bloomington, Indiana: Indiana Univer­ sity, September, 1910. Long, C. D., Jr. Building Cycles and the Theory of Investment. Princeton: Princeton University Press, 1940. Manee, Grover G. Power Economy and the Utilization of Waste in the Quarry Industry of Southern Indiana" Indiana University Studies, IV, Bloomington, Indiana: March, 1917. Merrill, George P. Stones for Building and Decoration. 3rd. e d . New York: J . Wiley and Sons, 1910. Moody’s. Manual of Investments American and Foreign: Industrial SecuritiesT New York: Moody’s In­ vestor’s Service, 1910-1941. Mumford, Lewis. She Brown Decades. New York: Brace & Company, 1931.

Hareourt,

Nighman, C. R., and Kiessling, 0. E. Rock Drilling (Mineral Technology and Output per Man Studies). Report No. 1-11, National Research Project. Philadelphia: Works Projects Administration, 1940. Owen, David Dale. Report of a Geological Reconnaissance of the State of Indiana. Indianapolis: J. W. Osborn and J. S. Willets, 1838. Perazick, George, Woal, Theodore S., and Sehimmel. Mechanization in the Cement Industry. (Report No. M-3, National Research Project on Employ­ ment Opportunities and Recent Changes in In­ dustrial Techniques). Philadelphia, Pennsylvania: Works Projects Administration, National Research Project, December, 1939. Poor’s Manual of Railroads. New York: Company, 1890-1912.

Poor’s Publishing

Renwick, W. G. Marble and Marble Working. C. Lockwood and Son, 1909.

London:

764 Starrett, William Aiken. Skyscrapers and the Men Who Build_|hem. New York: d. Scribner*s Sons, 1928. Statistical Abstract of the United States. Department of Commerce. Washington, D . C .: Government Printing Office, 1934. Tallmadge, Thomas E . The Story of Architecture in America. New York: W. W. Norton & Company. 1927. Thiel, George A., and Dutton, Carl E. The Architectural, Structural and Monumental Stones of Minnesota. Minneapolis: University of Minnesota Press, 1935. Thurston, R. H. (ed). Report of the Commissioners of the United States to the International Exposi­ tion Held at Vienna, 1873. TT~. Washington, 35." C . 1 8 7 6.

Transactions of the Indiana State Agricultural Society. (Second Annual Report, State Board of Agriculture). Indianapolis: J. P. Chapman, 1853. Van Tassel, Alfred J., and Bluestone, David W. Mechanization in the Brick Industry (Report No. M-8, National Research Project on Employment Opportunities and Recent Changes in Industrial Techniques). Philadelphia, Pennsylvania: Works Projects Administration, December, 1939. Warren, George Frederick, and Pearson, Frank A. World Prices and the Building Industry. New York: J. Wiley & Sons, 1937. West, M. C. Brick and Tile (Report No..N-2 National Re search Project Employment Opportunities and Recent Changes in Industrial Techniques). Philadelphia, Pennsylvania: Works Projects Administration, February, 1939. Articles Adams, W. S. "The Return of Stone." Architectural Record IX (Qctober-December, 1899), 202. Ayres, Lee Ross. "New Marketing Fields for Stone." Stone LVI (December, 1935), 457-458. Bagley, W. A. "The Evolution of the Stone Mason’s Tools: Stone Working Machinery and Modern Tools." Stone LVIII (April, 1937), 144-146.

765 Baraum, George. "Estimating Costs." (September, 1912), 465-466.

Stone XXXIII

Bowles, Oliver, Supervising Engineer, Building Materials Section, U. S. Bureau of Mines, and Gnam, Carl A., Building Materials Section, U. S, Bureau of Mines. "The Use of Stone in Residential Building." Stone LYII. (February. 1938), 61-62. Brightly, H. S. "Indiana Limestone Producers Adopt Uniform Classification and Grading." Stone XLIX (December, 1918), 753-755. _______ "The Development of Special Finishes in Limestone." Stone XLY (November, 1922), 573, _______ "The Story of Indiana Limestone." XIII (November, 1926), 11

Railway Life

_______ "The Written Word as a Permanent Reference Record in Promotional Work." Stone XLVI (May, 1925), 294-297. Gathcart, Daniel Boyde. "Modernized Building Materials Terra Cotta, Cement, and Gypsum." Architectural Forum LV (August, 1931), 241-244. Croly, Herbert. "The Use of Terra Cotta in the U, S," Architectural Record XYIII (July, 1905), 90-93. Dies, Edward J. "Stone Machinery." (April, 1930), 340-341.

Stone LI

Fanning, Charles G. "Address at the Convention of the International Cut Stone and Q.uarrymen’s Association on February 20, 1930." Stone LI (March, 1930), 154-155. Holden, T. S. "The Architect as a Factor in the Construction Industry." Architectural Record L I U (Aprils 1923), 375. Howe, Samuel. "On the Use of Color in Commercial Architecture." Architectural Forum XLYII (November, 1927), 470, 471.

Johnson, Otis 33. "Statement by the Federal Trade Commission Trade Practice Conference, Cut Stone Industry." Stone L {August, 1929), 450-452. Long, C. P., Jr. "Seventy Years of Building Cycles in Manhattan." Review of Economic Statistics XVIII (1936), 183-193. McCormick, P. W. "Sandstone, Its Uses and Abuses." Stone XXXIII (Mareh, 1912), 146. McMillan, John. "Old and New Production Methods in Cut Stone Plants." Stone LII (January, 1931), 29-31. Mason, Joseph B. "New Treatment of Monolithic Exteriors. Architectural Forum XLIX (October, 1928), 591-594. _______ "The Architectural Use of Cast Stone." Architectural Forum XLIX (August, 1928), 255-257. Myers, George W. "Planing Machines of Ye Olden Days," Quarries and Mills I (May, 1929), 38. Newsom, J. B. "The Results of Wire Saw Tests at Maple Hill Quarry, Bloomington Limestone Company. July-August, 1931." Stone LIII (April, 1932), 190-192. Proctor, Redfield. "American Quarrying." 100 Years of American Commerce. Edited by Chauncey Depew T. New York: 'Haynes , 1895 . Richter, R. M. "Stone and Policies of Business Conduct." Stone XXXVII (January, 1917), 27-28. Riggleman, J. R. "Building Cycles in the United States, 1875-1932." Journal of the American Statistical Association XXVIll (June. 1933). 174-183. Walters. C. W. "Quarry and Cut Stone Plant." XXXIII (March, 1912), 144.

Stone

Whiting, Lawrence H. "The Indiana Limestone Industry." Stone XLIX (March, 1928), 178. "The Advantages of Terra Cotta." Architectural Record XVIII (October, 1905), 515 -3 % 0 ~ .

767 "Modern Stonework." Architectural Record 7 (November-Deeember, 1895), 193. "Keeping Costs in Stone Works." (June, 1912), 309-310.

Stone m

ill

Periodicals Several periodicals closely connected with the stone industry were utilized for a large number of references to unsigned and untitled material. Architectural Record, vol. 711 (April, 1898). Stone, vols. 1-63. This is the trade journal for the building limestone industry. It is particularly valuable in tracing promotional activities and the conflicts of interest within the industry. The great bulk of its material was printed as news items and unsigned and untitled articles. Nation’s Business, vol. 14 (February, 1926). Quarries and Mills, vols. 1-3 (May, 1929-January, 1931). Harris Publishing Company, Nllettsville, Indiana. This was a short­ lived quarterly periodical for the Indiana limestone industry. Its editor was a close personal friend of the majority of the stone men and it was particularly valuable for unsigned news items concerning the early history of the industry. Stone Cutters Journal, vols. 1-57. This is the official publication of the Journeymen Stone Cutters Association of North America. It is of great value in tracing the development of collective bargaining within the industry, the resistance of labor to mechanization, and the attempts of labor to restrict the market of Indiana limestone. Yery few of their articles were titled or signed. They con­ sisted principally of news letters from the local unions and reports of the local and national union officials. The Brick Layers. Masons, and Plasterers Journal, vol. 16 (August, 1913;.

768 Book Products, vol. 7 (August, 1907}. During the brief interval of time in which the Stone Magazine ceased publication (190IJ-1907) this magazine, a periodical for the erushed stone industry, published news items con­ cerning the Indiana limestone district. Newspapers Bedford Daily Mail. Bedford, Indiana, 1890-1939.

Bedford Weekly Mail. Bedford, Indiana, 1892-1916. Bloomington Daily Telephone, Bloomington, Indiana, 1914-1942. Bloomington .Evening World. Bloomington, Indiana, 19121942. Bloomington Weekly Star. Bloomington, Indiana, 1919-1942. Chicago Record Herald. Chicago, Illinois, January 9, 1908. Chicago Tribune. Chicago, Illinois, April-June, 1878. Ellettsville Farm. Ellettsville, Indiana, 1920-1939. Indianapolis News, Indianapolis, Indiana, May 9, 1903, Indianapolis Sentinel, Indianapolis, Indiana, May 24. 1878. Monroe County Citizen, Bloomington, Indiana, December 10, 1885. The Bedford Item. Bedford, Indiana, March 15, 1863. The Republican Progress, Bloomington, Indiana, 1887-1898. The majority of the newspapers cited and published in the Indiana stone district have published much more information than it is usual to find in such sources concerning business enterprise. This may be ascribed on the one hand to the fact that the limestone industry was by far the most important industry of these localities; and on the other, that the editors, particularly in the early days, have usually been close personal friends of veteran stone men. Material used from such sources has been cheeked against all other available information.

769 Public Documents

Federal

Congressional Becord, Vol. IXVI, Part I, 68th Cong. 2d sess. flol. IXVI, Part III, 68th Cong., 2d sess. Vol. IXXV, Part XI, 72d Cong., 1st sess. Vol. LXXIX; Part V, 74th Cong., 1st sess. Legislative Debates on proposals to eliminate the use of limestone in federal buildings. Federal Reporter IX, (Second series). St. Paul, Minnesota: West Publishing Company. Interstate Commerce Commission Beports. Decisions of the Interstate Commerce Commission, 1909"1940. Vols . XL-CCX}£VI. Washington, D. C.: Government Printing Office. The decisions contain the same type of valuable material as the Transcripts of Hearings by the Interstate Commerce Commission, but in less extensive form. Loughlin, G. F. “Indiana uolitic Limestone: Belation of Its Natural Features to Its Commercial Grading." United States biological Survey, Contributions to Economic --oGeology. Part I . Washington, D. C. Bulletin 811-C. Loughlin, G. F., and Coons, A. T. "Stone." Mineral Kesourees of the United States, Part II, NonMetals, United States Geological Survey, 1921, pp. 1189-1314. Washington, D. C.: Government Printing Office. Contains valuable historical sketch of the early building stone industry in the United States. Mineral Resources of the United States. Washington, D . C .: Government Printing 0ffice. This an­ nual report was published in the Miscellaneous Documents of the House of Representatives, Washington, D. C.: Government Printing Office, from 1883-1899. It was published as a separate publication of the United States Geological Survey from 1899 to 1923 and has been issued by the United States Bureau of Mines since that date. It is the chief source for price and quantity data for the stone industry. In addition, each annual volume contains pertin­ ent comments on the state of the trade. Supreme Court Reporter XLVII. lishing Company.

St. Paul:

West Pub­

770 Udden, Jon A. "The Oolitic Limestone Industry at Bedford and Bloomington, Indiana." United States Geological Survey, Contributions to Economic Geology, Part I, 1909, pp. 335-345. Washington, D. C .: Government Printing Office. United States Bureau of the Census, Twelfth Census of the United States I . Washington, D . d.: Government Printing Offiee, 1901. United States Bureau of Labor Statistics. Effect of The Airhammer on theHands of the Stone Cutters. Bulletin 236 (Industrial Accidents and Hygiene Series No. 17). Washington, D. C.: Government Printing Office, 1918. United States Bureau of Mines. Quarry Accidents in the United States 1911-1940. 'Washington, D. C.: Government Printing Office. Valuable primarily as the basis for estimates concerning the volume of employment in the industry. United States Congress, House of Representatives. Report of Industrial Commission VIII. House Document 186, 57th Cong., 1st sess. Washing­ ton, D. C.: Government Printing Office, 1901. Public Documents —

State

Board of State House Commissioners, quarterly reports, 1877-1888. Indiana State Library, Indianapolis, Indiana. 4th Biennial Report, Indiana Labor Commission, 1904. L. P. McCormick and B. F. Schmidt, Indiana State Library, Indianapolis, Indiana. 5th Biennial Report, Indiana Labor Commission, 1905-1906. McCormick and Woerner. Indiana State Library, Indianapolis, Indiana. 7th Biennial Report, Indiana Labor Commission, 19091910. C. F. Woerner and H. H. Slough. Indiana State Librarjr, Indianapolis, Indiana. Indiana Department of Geology and Natural Resources. Annual Reports. (From 1868 to 1876 this department was called the Geological Survey of Indiana). Particularly applicable to the Indiana limestone industry were the following sections of these reports.

771 5th Annual Report. "Geology of Lawrence County7" John Collett, 1873. pp. 260-315. 11th Annual Report. "Building Stones." A. J. dox, 1881. pp. 1-33. 17th Annual Report. "Report of the Various Stones used for Building and Produced in Indiana." Maurice Thompson, 1891. pp. 18-66. 22nd Annual Re-port. "The Bedford Oolitic Limestone of Indiana." T. C. Hopkins and C. E. Siehenthal, 1896. pp. 291-427. 32nd Annual Report. "The Indiana Oolitic Lime­ stone Industry in 1907." Raymond S. Blatchley, 1907. pp. 299-460. These reports were very valuable in discussing the technology of quarrying, the names and numbers of firms in the business, the extent of the early market and the price changes in the early years. Indiana Department of Statistics, Biennial Reports Nos. I-VII, 1885-1899. Indiana State Library, Indianapolis, Indiana. These reports usually gave the output, number of men employed and range of wages paid for the respective years. Unpublished Material "Bloomington-Bedford Indiana Limestone Industry Directory." Bloomington, Indiana, 1937. Brightly, H. S. "Engineering Problems of the Stone Industry, Bloomington, Indiana: Building Stone Association of Indiana. (Mimeographed). Bulletin 5, "Biggest United States Government Building Program in History Authorized and Construction Started," Indiana Limestone Company, Bedford, Indiana, March 8, 1930. "Bulletin 83," Building Stone Association of Indiana, Inc., Bloomington, Indiana, C. C. Woolery, Bloomington, Indiana, April 14, 1931.

772 "Brief Submitted by Stone Industry Industrial Relations Committee." (Typewritten). Files of Permanent Arbiter, Bloomington, Indiana, February 13, 1942. "Brief of Claim Submitted by Federal Council of Limestone Trades." (Typewritten). Files of Permanent Arbiter, Bloomington, Indiana, February, 1942. "ILCO, General Information." Indiana Limestone Corporation, Bedford, Indiana. "Indiana Limestone Corporation M a n u s c r i p t B e d f o r d , Indiana, 1927, Good summary of early days of the industry but a little too partial to firms that became a part of the Indiana Limestone G ompany me rge r . (Typewri 11 en ). Johnson, C. E.t Compiler. "Clippings on the Stone Industry." Bedford Public Library, Bedford, Indiana. A selection of clippings from the Bedford Weekly Star, 1875-1879. "Letter of Representative Eugene M. Crowe," 7th Indiana District, Washington, D. C., to Professor George W. Starr, Indiana University, Bloomington, Indiana, May 28, 1940. Milholland, Charles B. (ed.). "Bedford-Limestone Town." (Typewritten Manuscript). Federal Writers* Project. Indianapolis, Indiana, 1939. Mitchell, Ray E, "The Limestone Industry of Southern Indiana." (Unpublished Bachelor's Thesis). School of Commerce and Finance, Indiana Univer­ sity, Indiana University Library, Bloomington, Indiana, 1921. "Opinion of the Chairman of the Wage Arbitration Board." Files of Permanent Arbiter, Indiana Limestone Industry, Bloomington, Indiana. (Typewritten). 1942. "Statement of Representative Eugene M. Crowe,1 Bedford, Indiana, to the House Buildings and Grounds Committee." (Mimeographed). Copy furnished Professor George W. Starr, Indiana University, by Representative Crowe, May 28, 1940. Walters, E. C. "Stone Associations." Bedford, Indiana. A brief summary of the activities

773 of the various trade associations in the industry from 1914 to 1930. (Typewritten). Walters, E. C., Secretary, Indiana Limestone Institute. I!A Survey on Industrial Capacity for National Defense, preparedfisg? the Advisory Commission to the Council of National Defense,” Bedford, Indiana, 1940. (Typewritten). Wylie, David Gray. nThe Limestone Industry of Indiana.” (Unpublished Bachelor*s Thesis). School of Commerce and Finance, Indiana University, Indiana University Library, Bloomington, Indiana, 1923. Reports Indiana Limestone Corporation, Financial Reports, November 30, 1934, to 1941. Indiana Lime­ stone Corporation, Bedford, Indiana. Bloomington Limestone Corporation, Financial Reports, 1933-1941. Bloomington Limestone Corporation, Bloomington, Indiana. Louisville, New Albany and Chicago Railway Company. Annual Report for Year 1886, New York, 1887.

TITA

Joseph Alexander Batchelor, born August 2, 1909, at Harrisville, Indiana, was graduated from Marion High School, Marion, Indiana, in 1926; received the A. B. degree cum laude from Indiana University in 1930; and the degree of M. S. in Commerce from Indiana University in 1931.

In 1931-1932, 1932-1933 and 1934-

1935 he was a University Fellow at Northwestern Univer­ sity.

Since 1935, he has been an Instructor in the

Department of Economics at Indiana University, teaching courses in Principles of Economies, American Economic History and Recent European Economic Changes. member of Phi Beta Kappa and Beta Gamma Sigma.

He is a