“Swope of Hull-House: The Influence of Settlement Life on Gerard Swope.” By Thomas Perrin Gerard Swope was born on December 1, 1872 in St. Louis, Missouri to Isaac and Ida Swope. Isaac and Ida were first-generation German Jewish immigrants who emigrated from Saxony, Germany to the Midwestern city in 1857.1 Isaac owned a modestly profitable watchcase manufacturing business that sustained a comfortable lifestyle and provided Gerard and his brother Herbert with exceptional educational opportunities.2 Swope moved into Hull-House in 1897 equipped with a Bachelors of Science in electrical engineering from Massachusetts Institute of Technology, a position as a repairman at a Western Electric manufacturing plant on Chicago’s West Side that paid twelve and a half cents per hour, and a growing awareness of the social problems associated with industrialization. The last of these attributes was uncommon for a man of his profession and was an endowment imparted on the twenty-five year old during his year-old association with Hull-House. While living at Hull-House Swope witnessed the arithmetic of unchecked greed and corruption: wealthy industrialists paying below subsistence wages to an army of the unskilled and desperate, corrupt city alderman extorting money from vulnerable immigrants, and immigrant families living in squalor due to insufficient public funding for sanitation. Living in a cramped slum amidst poverty and pestilence which negligent city officials, local business leaders, and respected community members did little to relieve made an indelible mark on Swope. His experiences at Hull-House impelled Swope to argue that industrialists had an obligation to provide: “decent housing, adequate schooling and elemental security” to 1 workers.3 The observations that Swope made while at Hull-House imbued the future industrial leader with a lifelong commitment to civic responsibility and social reform. In 1922, Swope took over as president of General Electric, one of the most influential and innovative American corporations of the time.4 Swope’s unique approach to industrial management and social reform gained fame around the globe because he was an influential man within a vital industry. Swope’s socially responsible labor policies were guided by the lessons he learned at Hull-House and made possible by his connection with the infrastructure of progressive reformers linked to Hull-House. The year that Swope spent as a resident and teacher of English, algebra, and electronics at Hull-House proved to be a pivotal one in the young man’s personal and professional life. After long workdays at Western Electric, Swope taught classes in his field free of charge to upwardly mobile neighborhood immigrants and Western Electric foreman.5 According to his biographer, the young engineer “learned at least as much as he taught” at the classes.6 Swope took particular interest in the career of one of his more ambitious students, Philip Davis, who would author And Crown Thy Good, part of which depicts Davis’ relationship with Hull-House. Davis’ reflections forecast Swope’s benevolent corporate leadership and suggest that female-led progressive politics and Settlement life had an impact on the traditionally male-dominated sphere of private enterprise. Of Swope, Davis writes: He was an example of the future industrialist, at ease with labor men like Bisno, Hillman and others of his day, as well as with the prominent figures representing management. Although a man of means, he was active in the cause of reform in playgrounds, bath houses and above all, housing. Up to the time that I met Swope, I had associated only with workers and trade-unionists. Their doctrine that all bosses were evil men and, by inference, that all trade unionists were righteous, appeared absurd when I saw what sort of individual Swope was. 7 2 Here Davis hints at the admixture of influences that guided the corporate policymaking of Swope the industrialist and social reformer. Swope practiced the lessons he learned at Hull-House when he became president of G.E. by responding to worker grievances and working with unions to create a better work environment. Swope took pride in his unusually copasetic relationship with the United Electrical, Radio and Machine Workers of America (UE). Negotiating with the leaders of the UE seemed a practical and moral step to Swope who believed that loyal workers deserved a voice in labor negotiations.8 Swope, as a former resident of Hull-House and a former industrial worker, had witnessed the results of unfair work conditions and poor communication between labor and management. He understood that poor labor-management relations would ultimately lead to labor unrest that could result in government regulation of employment practices. As a businessman, Swope deemed government regulation a threat to both democracy and capitalism. Moreover, as an advocate of social reform he believed that a worker’s social welfare was most secure when disseminated from the top-down by socially responsible corporate leaders.9 During his one-year residency at Hull-House Swope met, courted, and fell in love with fellow Hull-House resident Mary Dayton Hill. Hill was a former student of educator John Dewey at the University of Chicago and remained committed to social reform long after she and Gerard left Hull-House.10 Gerard and Mary were wed in 1901 at a ceremony presided over by Jane Addams and attended by many members of HullHouse’s extended family. Addams’ memorable wedding address expressed her confidence that the Swopes’ dedication to social reform would flourish long after they exchanged their vows that summer day on Mackinac Island. Her address is a unique 3 combination of socially conscious profundity and heartfelt sentimentality that expresses her high opinion of the couple and their strong ties to Hull-House. At such a moment, we surround a man and a woman, so far as possible by those who represent their earliest ties and tenderest affections -- by their families who have long known them and some of whom have experienced with them the high comradeship of identical aim and effort. Because all of us here have known Gerard and Mary so intimately, because they have each shown so genuine a sense of social obligation, and because each has for years striven to fulfill something of the social claim, we may perhaps venture to emphasize the social aspects of this marriage.11 Addams’ focus on civic-mindedness at the wedding ceremony aptly expresses the social vision spread among the white, middle-class professionals who resided at HullHouse. According to Addams, all professional and personal decisions of progressives were to be guided by a dedication to social reform. This lesson, imparted on the couple by one of the founding women of U.S. social reform, would ultimately influence Gerard Swope to devote General Electric resources to improving the welfare of industry workers. In 1899, Gerard was promoted to the position of branch manager at the Western Electric office in his hometown of St. Louis, Missouri, and the Swope’s dedicated themselves to ameliorating the conditions of the poor in a new city. Following their marriage two years later, Mary and Gerard purchased a pair of modest homes in Carr Square, a deteriorating St. Louis slum that was home to a growing population of Italian and Russian immigrants. Swope’s biographer alludes to Mary’s desire to continue the social work she had began at Hull-House as the deciding factor in the Swopes’ relocation to the neighborhood.12 Indeed, one of the homes purchased housed looms at which Mary 4 was able to teach sewing classes to underemployed immigrant women. Teaching basic industrial skills to immigrants who haled from rural backgrounds was a common activity at Hull-House and Mary replicated that aspect of settlement life on a smaller scale when she moved to St. Louis. Meanwhile, Gerard worked fifty-six hour weeks and had little time to help Mary with her efforts to bring the legacy of Hull-House to the neighborhood. It was not long before this changed. In 1903, Gerard’s social conscious was piqued by the dearth of open spaces and playgrounds in the city. That year he joined the Civic Improvement League and was appointed to the Open Air Playgrounds Committee. According to the organizations tabulations, 67, 843 people attended the six parks funded by the committee and 41,720 baths were provided to residents of the community.13 Gerard’s work on the Playgrounds Committee was an extension of the social reform spirit celebrated at Hull-House. In 1905, Swope expressed his commitment to the neighborhood in the form of philanthropy when he furnished $170.10 to help purchase a plot of land for a playground on Eleventh St. in downtown St. Louis. The slogan of the playground committee -- “A boy without a playground is father to the man without a job” -- foreshadowed Swope’s dedication to full employment of the able-bodied which became the cornerstone of a sweeping industrial reform model outlined in the “Swope Plan.”14 Gerard remained active on the playground committee for the remainder of the Swopes’ stay in St. Louis that ended in 1906 when Gerard was transferred back to Chicago.15 The continued influence of Jane Addams and Hull-House on Gerard and Mary is evident in their dedication to the community of St. Louis. The same year that Gerard helped purchase the playground on Eleventh Street he typed up a letter to Addams that is revealing of his high opinion of the woman who co-founded Hull-House. The 5 letter is a request for Addams’ assistance in finding a ‘worthy gentleman’ to take the place of the Civic Improvement League’s departing chairman. Gerard shows his respect for Addams and his commitment to improving the lives of the poor in two characteristically direct sentences. Gerard writes: “Much needs to be done and a great deal of work can be done in Saint Louis if we get the right kind of a man for Secretary ... It is my great desire that they do get the right kind, and I, therefore, write to you to ask if you know of a gentleman or not.”16 It is evident that Gerard’s respect for Hull-House and his dedication to its principles had not diminished in the four years he had lived away from Chicago’s near west side. Hull-House and its mission always held Swope’s high esteem, but when he became General Electric’s C.E.O. in 1922 he understood that his primary responsibility was to the stockholders and workers of that company. Unlike many present-day progressives and industrial capitalists Swope believed that civic-responsibility could complement the pursuit of profit. Swope initiated socially responsible corporate policies at G.E. in an attempt to combine the dedication to social reform he gained at Hull-House with company interests. In order to accomplish this, Swope advocated and implemented welfare capitalism at G.E.17 A model of labor-management relations in which employers provide uncommon benefits to employees, welfare capitalism intent is to promote worker contentment, stave off unionization and government regulation, increase productivity, and foster company loyalty.18 In the 1920s, economists and a growing number of capitalists believed welfare capitalism would serve to stabilize labor-management relations and secure the future of America’s largest corporations. 6 The perquisites that Swope granted G.E. workers when he was appointed president in 1922 included life insurance, mortgage assistance, worker grievance boards, company health care, and eventually unemployment security.19 Swope and the chairman of G.E., Owen D. Young, believed they were working within the interests of the company by crafting company policy that addressed the needs of workers. The catchy objective of the company coined by Swope was to provide, “more goods for more people at lower prices.”20 Welfare capitalism was the vehicle that Swope and Young believed could help the company meet this objective while avoiding the labor conflicts that slowed production in the mining and railroad industries. Their programs of welfare capitalism were not immune from the criticisms of either laborers or industrial managers. The young duo’s commitment to their workers raised eyebrows among leaders of finance and industry who believed that their programs were infected with radicalism and socialism. Indeed, within the conservative circle of industry leaders the young pair were rightly identified as revolutionary thinkers. Labor organizers on the other hand believed the two were only trying to undermine unions and saw their concern for workers as implicitly paternalistic and cynical.21 That the two were criticized from above and below for their policymaking is evidence that they were embarking upon a path of industrial management that was not yet well traveled. And, as with any path-breakers, it is a revealing exercise to identify the inspiration that impelled the two to blaze the trail. How can the socially-conscious decision making of the two be accounted for in a period when government had minimal power to regulate industrial employment practices and unions were yet to realize great power within the industry? Progressive politics, Settlement Life, and Hull-House were 7 not far from the minds of Swope and Young when they implemented their unconventional business plans.22 In a letter to Swope, Young confessed that progressive influences led the pair to adopt welfare capitalism, pay their workers a ‘cultural wage,’ and work to insure workers’ job security. Young reminisced to his partner: Perhaps you and Mary were discolored a little by your rather intimate contact with Jane Addams of Hull House and Lillian D. Wald of Henry Street. Perhaps I had gained a little understanding of color from Ida Tarbell and Lincoln Steffens. I mention them not as excuses for our behavior but in gratitude for their help to both of us.23 Young’s reflection raises interesting questions: Did social reformers like Addams and Wald, who generally advocated government regulation as the best means to relieve social ills caused by industrialization, influence the growth of welfare capitalism in the 1920s? Were the objectives of Young and Swope’s private programs of welfare capitalism similar to those of the female-led progressive movement that, during the same period, worked to expand governmental powers to bring about social reform? Did Swope and Young simply maintain better than average work conditions and a relationship with unions as a means to insure the loyalty and complacency of their workers? What is clear is that the policymaking of Young and Swope represented a fundamental change in industrial labor-management relations. The two innovators were molded by ideas that were at odds with profit-driven and traditionally male-dominated professional culture. It had been over two decades since Swope had lived at Hull-House when he was appointed to the top position at G.E. and began to implement programs of welfare capitalism. Nonetheless, Swope had not occupied the president’s office too long before he sought out the advice of Mary’s old Hull-House roommate, Dr. Alice Hamilton, regarding improving health conditions at G.E.24 In the early 1920s, progressive industry 8 leaders were beginning to recognize that unhealthy work environments contributed to certain kinds of ailments among their manufacturing workers that could be prevented by proper ventilation, lighting, and the establishment of worker safety standards. Florence Kelley of Hull-House was an early crusader for establishing health standards and reforming child labor laws for heavy and light industries where repetitive work and stifling work environments put the health of the industrial worker at risk. Kelley and Hamilton set out to perform the daunting task of persuading private enterprise to take an interest in the health of workers before the turn of the twentieth century. According to Addams, Kelley’s efforts had the effect of “galvanizing us all into more intelligent interest in the industrial conditions all about us.”25 The impact of their work was beginning to be evident in the 1920s in the practices of industrial leaders like Swope and Young. Swope’s first inquiry into the matter was addressed to Harvard’s new School of Public Health where Cecil Drinker, professor of physiology, and Roger I. Lee, professor of hygiene, became interested in the prospect of conducting a broad and expensive audit of the health conditions at all of the companies manufacturing plants. The price for such a comprehensive company survey was $100,000. This amount was unacceptable to Swope who had discussed the project with Hamilton beforehand and had some idea of what he wanted to be done. Hamilton, who had worked for the Department of Labor under the Harding administration and would serve as an advisory member of the newly formed Workers’ Health Bureau, agreed to conduct surveys of the Schenectady, N.Y. and Pittsfield, M.A. plants at the lucrative rate of $25 per day.26 Hamilton was uncomfortable with the high rate of pay but Swope insisted that the service she provided was worth it. She conducted the surveys of the plants to the great satisfaction of Swope who utilized 9 her expertise several times over the next decade in order to insure that adequate health conditions were maintained at G.E.27 Yet again it is evident that the birth of a corporatesponsored program for the improvement of the welfare of workers at G.E. was directly linked to the female-led social reform movement and Hull-House. Scholars of Hull-House and the Progressive-era have noted that the Settlement movement caused ripples of female-led social activism that affected federal policymaking in the U.S. Robyn Muncy’s, Creating a Female Dominion in American Reform, explores the link between Hull-House residents and the female-led movement for federal child welfare reform. Muncy rightly identifies the essential role of Hull-House’s professional network in the formation of new female-dominated professions and institutions within the federal government.28 The United States Children’s Bureau was established in 1912 with Julia Lathrop, Florence Kelley’s long-time ally in the fight for children’s rights, appointed as the new organization’s chief. Viewed as an obtrusive organization by many immigrant mothers and as a ‘threat to womanhood’ by ‘superpatriotic’ conservatives, the Bureau became one of the first exclusively female spheres of influence within the federal government. The power the institution wielded allowed it to question child labor laws, government welfare policies, and intimate child-rearing practices. More significantly for Muncy’s argument than the power the Bureau attained was the manner that Kelley and Wald’s dream came to fruition. Muncy recounts how a discussion between Kelley and Wald held over breakfast at the Henry Street settlement prompted the two to devote their significant energies into the establishment of the Children’s Bureau. In short, the two decided that morning that if the federal government was able to provide resources to Southern farmers facing a boll weevil infestation then it could also afford to devote 10 resources to improving child welfare. Kelley contacted one of the many powerful friends of Hull-House and the Settlement movement, Edward Devine, editor of the social reform periodical Charities and general secretary of the Charity Organization Society in New York. Devine was so enthused by the idea that he set up a meeting between Wald and President Roosevelt at which, as the story goes, Wald easily convinced the President to support the Children’s Bureau. Whether or not this dramatic description of the Children’s Bureau’s founding is wholly accurate is less noteworthy than the fact that Wald and Kelley’s breakfast conversation and their subsequent call to Devine resulted in the birth of a female-led federal institution. The founding of the Children’s Bureau illustrates that women involved in the Settlement movement attained power and respect within an infrastructure of social reformers that linked male and female progressives. Muncy’s book makes a strong argument that Progressive networks formed at Settlement houses affected policymaking in the public sector. However, Muncy ignores the influence that Settlement Life and female-led progressive politics had within traditionally male-dominated professional spheres in the private sector. By advocating social responsibility among future business leaders Settlement life helped activate the development of welfare capitalism in the modern corporation.29 To arrive at this conclusion one must allow that the motivations behind welfare capitalism are not simple, wholly profit-driven, or divorced from the intentions of the ProgressiveEra political reform movement. It is apparent in her conclusions that Muncy either is not willing to make this allowance or is unaware that Settlement life and progressive politics may be connected to the development of welfare capitalism. In a paragraph that begins by iterating one of the main premises of the book Muncy asserts that: “While some 11 people -- especially men in male-dominated professions -- were fashioning a professional culture that opposed the tenets of social reform, this study has identified another version of the professional creed that grew out of female experience and actually sustained the values of reform.”30 The industrial leadership of Gerard Swope and other welfare capitalists who expressed their dedication to social reform through political action and company policymaking repudiates this assessment of male professional culture. Muncy’s condemnation of male-dominated professional culture does not take into account the multifarious objectives and inspirations behind the growth of welfare capitalism in the 1920s. Welfare capitalism was established at G.E. in order to prevent government intervention in the industry and to stunt the growth of unions in the electrical industry. These objectives were clearly intended to benefit private enterprise and were antithetical to the objectives of Julia Lathrop, Florence Kelley, and Lillian Wald. However, selfinterested objectives such as these cannot stand alone as conclusive evidence that: “men - in male-dominated professions were fashioning a professional culture that opposed the tenets of social reform”.31 Indeed, Lathrop, Kelley, and Wald believed that the proliferation of federal institutions and the expansion of federal powers would best facilitate social reform. Progressive women staked their claim to power within the federal government because they believed federal institutions and ‘municipal ownership’ to be the most proficient vehicles for social reform in the first two decades of the twentieth century.32 Conversely, Swope and Young believed that the growth of corporate-sponsored social welfare programs, or welfare capitalism, would benefit all classes and that further government intervention in the nation’s economy posed a threat 12 to democracy.33 Swope believed that responsible corporations had earned public trust by providing social welfare programs for workers in the 1920s while maintaining financially solvent institutions. In 1931, it appeared to Swope that the government was incapable of performing either of these tasks and did not deserve the public’s trust, or expanded powers. That year Swope summarized his view of the role of welfare capitalism in society before a congressional committee: I think that industry ought to take care of its own [welfare and employment] difficulties and problems. You see, the moment government begins to help there is no economic restraint. You can vote money. We would be glad to have the money, as anyone would; but the moment the General Electric Company or any industrial organization … provides for these various factors it is reflected in costs … And selling prices reflect costs; and therefore the people who use the product will ultimately pay for that [provision of welfare] service; whereas, of course, if you vote the money by Government assistance your general public will pay for it through taxation, which is very general and very indefinite.34 Because Swope believed G.E. was a stable and socially responsible institution he expected the federal government to cede the power of distributing social welfare to industry leaders. Responsible industry leaders should be granted the power to set industry standards for company social welfare programs, coordinate production, and regulate costs argued Swope. This was an arrangement that Swope was convinced would advance the interests of the industrial worker, the general public, and the capitalist. Jane Addams agreed. In an essay entitled “Social Consequences of Business Depressions” Addams praised Swope for his efforts to stabilize employment at G.E. Remarkably, Addams points to the successes of corporations that were able to stabilize employment during the depression as a model to be followed by government. Addams’s opinions on the matter mirrored those of Swope. After enumerating the social ills and personal pain 13 caused by unemployment and poverty she points to the success of corporations in alleviating those problems with intelligent planning. She writes: “On the contrary, the consequences upon big industry have been encouraging in many ways. . . [P]erhaps the most encouraging of all is the plan recently announced by Gerard Swope, president of the General Electric Company, which advocates that each group of the great industries should regulate employment by the basic method of a careful estimate of the output required, as well as by providing unemployment insurance through the mutual efforts of all concerned. This plan also predicates governmental supervision. Its widespread discussion and favorable comment at least registers an approval of the fact that big industry is ready to hold itself responsible not only for its own unemployed, but also to avert the overproduction and lack of planning implicit in the situation itself.”35 In this excerpt Addams is referring to Gerard’s “Swope Plan” that was presented to Herbert Hoover in 1931 and would have implemented Swope’s corporatist social vision nationwide. It called for industry leaders to form trade associations that would stabilize industry and insure the full employment of all able-bodied and willing laborers. Squashed by Hoover, who believed the plan was in violation of the Sherman and Clayton anti-trust acts, it nevertheless gained proponents among powerful men within the private and public sectors.36 The plan would have established trade associations comprised of industry leaders who would: “outline trade practices, business ethics, methods of standard accounting and cost practice, standard forms of balance sheet and earnings statement, etc., … in order to promote stabilization of employment and give the best service to the public.”37 In effect, these trade associations, or cartels, would run the nation’s industrial economy. In addition, the Swope Plan called for Hoover’s administration to spend $2 billion on public works projects (federal spending in 1931 totaled $3.5 billion) including the building of schools, hospitals, and railroads.38 In many ways the “Swope Plan” was a privatized version of the New Deal legislation enacted in the first hundred days of the Roosevelt administration. The “Swope Plan” and the New Deal’s shared objectives were 14 to rejuvenate the economy and create jobs for able-bodied men desperate for work. The “Swope Plan” would have achieved these goals by increasing the power of industrial leaders and the expanding the breadth of welfare capitalism.39 According to Swope’s biographer, solving the problem of rampant unemployment was the main objective of the Swope Plan. Of course Swope’s motives were tinged with self-interest. Job relief was of primary importance to Swope because General Electric was a company whose success was intertwined with working-class consumption.40 The electrical appliances that G.E. pledged would become part of every modern home were nothing more than useless superfluities in the thousands of households where the main breadwinner was unemployed. Thus, it was not strictly the conditions of the downtrodden that concerned Swope when he unveiled his grandiose reform plan at the Oval Office and before G.E.’s most influential stockholders. Swope of General Electric authored the Swope Plan in an attempt to rejuvenate consumerism, advance G.E.’s interests, and curb federal regulatory power. However, Swope of Hull-House believed that contained within “Stabilization of Industry” (the speech that outlined the Swope Plan) were also appropriate and humane solutions to the social problem of unemployment. Like the programs of welfare capitalism Swope implemented at G.E., the Swope Plan reflected the businessman and social reformer’s attempt to balance his selfinterest with the ‘genuine sense of social obligation’ that Jane Addams attributed to him on his wedding day.41 Swope maintained a relationship with Hull-House and Addams into the 1930s. In 1930 he agreed to return to the settlement house for its fortieth anniversary to address the institution’s alumni and friends. Interestingly, he shared the speaking responsibilities that 15 day with Florence Kelley and Julia Lathrop, who advocated strict government regulation of industry as an essential element to the improvement of the social welfare of the working class. It bears mentioning that Swope shared the podium that day with these two women and that he maintained a steadfast commitment to Hull-House while many of its alumnus worked to expand the role that government played in regulating private enterprise. Swope’s continued relationship to the settlement house and the women involved implies that the capitalist did not feel alienated in female-dominated spheres created by settlement life and the progressive movement. And Addams and Starr were equally comfortable having the capitalist represent Hull-House at the anniversary. There is no evidence of skepticism on the part of Addams or Starr regarding Swope’s implementation of welfare capitalism. The two did not question whether Swope’s fundamental aims were to squash unionization and government regulation or create a dependent and complacent work force at G.E. Indeed, they invited Swope back as a speaker that day as an example of a person who upheld his dedication to social reform throughout his career. 42 Welfare capitalism at G. E. developed partly because of Gerard Swope’s relationship to the infrastructure of social reformers that he formed during his residence at Hull-House. Swope’s career raises interesting questions concerning the link between progressivism, the Settlement movement, and development of welfare capitalism.43 While Swope was impelled to author worker-friendly policy by the fear that external forces (i.e., growing government regulation and unionization) would usurp his power to control labor-management relations at G.E., his background in progressive politics and 16 short residence at Hull-House enabled him to better understand and respond to the needs of industrial workers. 1 David Loth, Swope of G.E. (New York: Simon and Schuster, 1958): 9. “Gerard Swope”, American National Biography, ed. John A. Garraty and Mark C. Carnes (New York: Oxford University Press, 1999): 219-221 Herbert Bayard Swope moved away from St. Louis to pursue a career in journalism and won a Pulitzer prize while writing for the New York Times. ANB, 222-223 3 Josephine Young Case and Everett Needham Case. Owen D. Young: An American Enterprise (Boston: David R. Godine publisher, 1982): 252. 4 G.E. numbers. 5 Loth, Swope of G.E., 30 6 Loth, Swope of G.E., 31. 7 Philip Davis, And Crown Thy Good (New York: Philosophical Library, 1952): 90. Abraham Bisno organized the women’s garment worker’s trade union in Chicago. Bisno organized the predominantly immigrant female garment workers and agitated for job security, improved work conditions, and a living wage. See Abraham Bisno Union Pioneer: An Autobiographical account of Bisno’s early life and the beginnings of unionism in the women’s garment industry. (Madison: University of Wisconsin Press, 1967.) 8 Schatz, Electrical Workers, 170. Whether or not Swope’s openness with the UE was a wise business move is a debated aspect of his legacy. One of GE’s labor negotiators in 1960, Herbert R. Northrup, believed that Swope and his chairman Young were naïve in their dealings with the Communist-led UE. Schatz cites Northrup: “[Swope and Young] understood, like few industrialists of their time, the need for employees to have a voice in the determination of their affairs and an avenue of appeal when they felt aggrieved. But Swope and Young did not understand either the nature of unions, or the type of union leadership which had won bargaining rights in the General Electric plants.” Northrup, Boulwarism, p. 14. 9 On corporate social responsibility during the progressive- Era see Morrell Heald. “Business Thought in the Twenties: Social Responsibility,” American Quarterly, Volume 13, Issue 2, Part 1 (Summer, 1961), 126-129. Walter S. Gifford, another former Hull-House resident and President of AT&T is quoted in the article and properly summarizes the view the role of the socially responsible public corporation during the era: “. . .not only our stockholders, but the public generally, are entitled to know how we are carrying on our stewardship. . .It is our further purpose to conduct the affairs of the Bell System in accordance with American ideals and traditions, so that it may continue to merit the confidence of the people of the country.” 10 Loth, Swope of G.E., 32. 11 Jane Addams Address at Swope Wedding, 24 August 1901, Swarthmore College Peace Collection, JAMC reel 46-1067-1077. 12 Loth, Swope of G.E., 50. 13 Gerard Swope to Jane Addams, 5 January 1905, Jane Addams Memorial Collection (JAMC), reel 41027, Special Collections, Richard J. Daley Library, University of Illinois at Chicago. 14 Loth, Swope of G.E., 50. 15 Gerard Swope, American National Biography, 221. 16 JAMC 4-1027. 17 “Gerard Swope,” American National Biography, 220. 18 Sanford Jacoby, Modern Manors: Welfare Capitalism Since the New Deal (Princeton: Princeton University Press, 1997): 5. 19 Josephine Young Case and Everett Needham Case. Owen D. Young and American Enterprise (Boston: David R. Godine, 1982): 257. 20 Case and Case, Owen D. Young and American Enterprise. 257. 21 Schatz, 20. Alluding to Stuart Brandes book American Welfare Capitalism 1880-1940 (Chicago: University of Chicago Press, 1976). Schatz summarizes the skeptical worker’s view of welfare capitalist programs. Brandes argues that welfare capitalism was meant to stave off unionization and make the worker dependent on the company. Companies like G.E. provided assistance in purchasing homes, planning for retirement, and in attaining middle-class status in order to insure worker complacency. Social control was the true motive behind welfare capitalism according to Brandes as companies indoctrinated workers to 2 17 chase success narrowly defined as homeownership and an ability to attain the consumer products that granted middle-class status. Jacoby presents a revised view of modern welfare capitalism that incorporates some of Brandes’ assertions on social control while also considering the point of view of welfare capitalists. Whether welfare capitalism was (is) an effort on the part of corporate leaders to control the leisure time of workers, regulate the interpersonal relationships in the communities which those companies reside, enforce middle-class standards of consumption and behavior, and generally maintain a stable, loyal, and complacent workforce is a matter for further debate, discussion, and study. Brandes’ social control theory and Jacoby’s focus one the development of company policy and its affect on society, represent two different ways to approach the topic of welfare capitalism. That these the studies, Brandes (1976) and Jacoby’s (1997), are written decades apart and constitute the two seminal works in the study of welfare capitalism is indicative of the dearth of attention the topic has been given by business or labor historians. 22 Swope’s letter to Addams. And Addams’ comments on Swope’s plans contained in her radio address. 23 Loth, Swope of G.E., 153. 24 Loth, Swope of G.E., 158. 25 Kathryn Kish Sklar, Florence Kelley and the Nation’s Work: The Rise of Women’s Political Culture, 1830-1900 (New Haven: Yale University Press, 1995): 228. 26 Barbara Sicherman. Alice Hamilton: A Life in Letters. (Cambridge: Harvard University Press, 1984.): 266. 27 Ibid. 28 Robyn Muncy, Creating a Female Dominion in American Reform. (Oxford University Press, 1991.): 48. Muncy shows that settlement women established separate spheres of female influence rather than challenging male authority in traditionally male-held government positions. “Rather than competing with men for positions of authority in established areas of policy, they led in the creation of a brand-When the logic of separate spheres encouraged men to cede this particular territory—child welfare—to women, female reformers were able to win their first bid for a position of official authority in the national government.” 29 Hull-House Residents 1889-1929, Hull-House Association Papers, University of Illinois at Chicago, University Library, Department of Special Collections, folder 294. Of the approx. 360 alumni’s of HullHouse listed 56 are business professionals among these are influential businesspeople including: Mr. Gifford Walter, Pres. AT& T, Mr. B. E. Hutchinson V. P. Chrysler Motor Companies, and Mr. Royal Hauer V.P. International Motor Company. The influence of HH on business leaders was not just evident in the policies of these former residents but more widely in the development of welfare capitalism in the 1920s. Julius Rosenwald who was active at HH and founded Sears implemented welfare capitalist programs at his company, Sears Roebuck that reflected his dedication to social reform. The majority of the list is comprised of female leaders employed in social and civic work and among the business people listed only seven are female. For a discussion of welfare capitalism after the New Deal at Sears Roebuck see Sanford Jacoby. Modern Manors: Welfare Capitalism Since the New Deal. (Princeton: Princeton University Press, 1999) 30 Muncy, 160. 31 Ibid. 32 Another male involved with HH, William Kent, advocated municipal ownership in a speech entitled A Political Survey. Kent’s view of social reform is vastly different than Swope’s. The two were both involved with the playground movement and Hull-House, Kent inherited his wealth and was able to devote much of his time and energy to social reform, graduated from Yale, and went on to be a spokesman for municipal ownership. The most significant difference between the two is the methods they advocate for bringing about social reform. Kent believed that the private sector and industrialism was the source of urban social ills while Swope believed the private sector could provide and implement the best remedies for the social ills caused by public corruption and private irresponsibility. The differences between Swope and Kent illustrate that male middle-class progressives did not have a monolithic view of social reform. Not all of these men -- certainly not William Kent -- fit into Maureen Flanagan’s thesis in “Gender and Urban Political Reform: The City Club and the Women’s City Club of Chicago in the Progressive Era” The American Historical Review, Vol. 95, No. 4. (Oct., 1990), pp. 1032-1050 See also on the UEIC website William C. Boyden, "Interesting People: William Kent," American Magazine (August 1910). And William Kent profile in American Magazine (1910) 18 33 Loth, 202. For a discussion of the opposing methods of reform advocated by male and female progressives see Maureen A. Flanagan. “Gender and Urban Political Reform: The City Club and the Women’s City Club of Chicago in the Progressive Era” The American Historical Review, Vol. 95, No. 4. (Oct., 1990), pp. 1032-1050. Flanagan studies the leading male and female reform clubs in Chicago from 1900-1920 and shows that the male City Club members advocated the privatizing of public works as the best way to reform city sanitation, education, policing, etc. Flanagan argues that men in the City Club used their membership to advocate private interests over public and the motivations behind their efforts of reform were profit-driven. The women of the Women’s City Club, many of whom were wives of men in the City Club according Flanagan, did not believe that advancing private interests would benefit the city as a whole and advocated municipal ownership. For example, women advocated municipal ownership of sanitation and education that stressed academic over vocational pursuits and the men’s City Club advocated the opposite. 34 Edward Berkowitz and Kim McQuaid. Businessman and Bureaucrat: The Evolution of the American Social Welfare System, 1900-1940. The Journal of Economic History, Volume 38, Issue 1, The Tasks of Economic History (Mar., 1978), 129. Quoted from David Nelson, Unemployment Insurance, pp. 45-46; U.S. , Congress, Senate, Select Committee on Unemployment Insurance, 72nd Congress, 1st session. (testimony of Gerard Swope), (Washington, 1932), pp. 29-30. 35 Jane Addams. “Social Consequences of Business Depressions” Aspects of the Depression, p. 16 ed. By Felix Morley (Chicago: University of Chicago Press), 1932. 36 Loth, Swope of G.E., 209. 37 Loth, 204. One of the first to know the full extent of Swope’s plan for the stabilization of employment at G.E. was Addams. In 1931, he sent a letter that read in part: “In view of the interest you have displayed not only in our conversations but also your kindly references in your book, I though you would be interested in seeing the attached copy of letter to the employees of General Electric Company declaring an emergency along the line of our unemployment plan.” Swope trusted Addams to not reveal his plan before he unveiled it to G.E. workers. This is evidence that the co-founder of Hull-House appreciated the efforts of welfare capitalists who sought to provide for the welfare of their workers. Indeed, Swope’s letter indicates that Addams may have recognized welfare capitalism as an extension of the social reform vision spread by the settlement. Gerard Swope to Jane Addams. 10 December 1930. JAMC reel 21-1443. Special Collections. University Library. UIC. Gerard Swope to G.E. workers. 24 November 1930. JAMC reel 21-1444-1446. Special Collection. University Library. UIC. 38 Ronald Schatz, The Electrical Workers: A History of Labor at General Electric and Westinghouse: 19231960. (Urbana: University of Illinois Press, 1991.): p. 56. 39 For a discussion on the debate between private and public intereì who had experience providing social welfare in the industrial economy. In this way, argue Berkowitz and McQuaid, welfare capitalism at corporations like G.E. directly impacted and shaped government welfare policies. 40 Ronald Schatz, The Electrical Workers: A History of Labor at General Electric and Westinghouse: 19231960. (Urbana: University of Illinois Press, 1991.): p. 55. 41 JAMC 46-1070 42 Jane Addams and Ellen Gates Starr letter to Edith Abbott. 25 April 1930. JAMC reel 21 470-471. University Library. UIC. 43 In addition to the links between welfare capitalists and the settlement movement enumerated above [i.e. Rosenwald (Sears Roebuck), Swope (G.E.), and Gifford (AT &T)] Kim McQuaid alludes to a link between settlement reformers and the development of welfare capitalism at one of the first companies to practice the model; Filene’s Department Store of Boston. According to McQuaid: “Lincoln Steffens, Louis D. Brandeis, settlement worker Robert Woods and municipal ownership advocate Frank Parsons worked as consultants for the Filene Store.” McQuaid and Berkowitz, “Businessman and Bureuacrat” p. 23 footnote 6. 19
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