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George Gunton: Pioneer Spokesman for a Labor-Big Business Entente

Published online by Cambridge University Press:  24 July 2012

Jack Blicksilver
Jack Blicksilver
Affiliation:
Assistant Professor of Economic History at Georgia State College
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Extract

The story of George Gunton is that of an astonishingly accurate economic prophet whose viewpoints have found wide acceptance a half-century after they were enunciated. Gunton is shown in this article not as a paid defender of big business but as an apostle of compromise, standing in the No Man's Land of a vast battleground. With equal fervor Gunton declared, “It is our industries that make us great,” but that laborers' wages were “as elastic as human wants … capable of as much expansion as the social character of man.” His numerous commentaries are a lucid clue to the relative importance of contemporary issues, and those commentaries are enhanced by Gunton's instinctive sense of history. Out of the confusion of contradictory evidence recorded at the Chicago Conference on Trusts, before the Industrial Commission, and elsewhere on the business and political stage Gunton framed his thesis of the essential interdependence of big business and organized labor. His convictions were, in total, unique, and his judgment and reconciliation of conflicting viewpoints have meaning and utility today.

Type
Research Article
Information
Business History Review , Volume 31 , Issue 1 , Spring 1957 , pp. 1 - 22
Copyright
Copyright © The President and Fellows of Harvard College 1957

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References

1 Gunton, George, “Position of Gunton's Magazine,” Gunton's Magazine, XIII (Nov., 1897), 363Google Scholar.

2 For divergent views held by contemporaries see Social Economist, II (May, 1892), 414–21, 425–28Google Scholar; clippings in Seligman, Edwin R. A., Scrapbook, I (1886–1897)Google Scholar at Columbia University; John Hobson to Henry D. Lloyd, Jan. 8, 1896, Lloyd Papers, State Historical Society, Madison; Carroll D. Wright, testimony, United States Industrial Commission, Report … on the Relations and Conditions of Capital and Labor (Washington, 1901), VII, 25Google Scholar. Of recent writers critical of Gunton see Flynn, John T., God's Gold (New York, 1932), 329Google Scholar; Destler, Chester M., “The Opposition of American Businessmen to Social Control During the ‘Gilded Age,’” Mississippi Valley Historical Review, XXXIX (March, 1953), 652, 657Google Scholar; Thorelli, Hans B., The Federal Antitrust Policy (Baltimore, 1955), 330Google Scholar. For more favorable views see Fine, Sidney, “Laissez Faire and the General-Welfare State in American Thought, 1865–1901” (Ph.D. dissertation, University of Michigan, 1948), 517Google Scholar. (This reference to Gunton is not included in the recent published version.) See also Ralph, W. and Hidy, Muriel E., Pioneering in Big Business, 1882–1911 (New York, 1955), 660, 744Google Scholar.

3 The best summary of Gunton's career is found in Dewey, Davis R., “George Gunton,” in Johnson, Allen and others, eds., Dictionary of American Biography (New York, 1928–1944), VIII, 55–56Google Scholar; see also National Cyclopaedia of American Biography (New York, 1891–1955), X, 146–47Google Scholar and New York Times, Sept. 13, 1919.

4 Gunton, George, Wealth and Progress. A Critical Examination of the Labor Problem (New York, 1887), v–viGoogle Scholar; cf. Dorfman, Joseph, The Economic Mind in American Civilization, 1607–1918 (New York, 1946–1949), II, 980, III, 27–28, 47Google Scholar.

5 Labor Standard, Feb. 24, Aug. 26, 1877, Jan. 27, 1878; Berthoff, Rowland T., British Immigrants in Industrial America, 1790–1950 (Cambridge, 1953), 97Google Scholar; Commons, John R. and others, History of Labour in the United States (New York, 1918–1935), II, 301–6Google Scholar.

6 As candidate for the seat of the Eighth Representative District, Bristol County, Gunton was endorsed by the Greenback Labor Party. His platform included demands for higher fines for violators of the Massachusetts Ten Hour Law, making employers responsible for injuries on unprotected machines, ending the truck system and abolishing the poll tax. Labor Standard, Sept. 11, Oct. 30, 1880.

7 He continued, however, to support actively the eight-hour day and for a “nominal honorarium” wrote a widely circulated pamphlet, The Economic and Social Importance of the Eight-Hour Movement, for the American Federation of Labor in 1889. See Gompers, Samuel, Seventy Years of Life and Labor (New York, 1925), I, 294, 298Google Scholar and Fine, Sidney, “The Eight-Hour Day Movement in the United States, 1888–1891,” Mississippi Valley Historical Review, XL (Dec, 1953), 445Google Scholar. In 1903 Gunton accepted a request of the striking boilermakers in the Bayonne plant of Standard Oil of New Jersey to intervene with the company on their behalf. Gunton strongly urged Standard Oil to grant recognition of the union. Hidy and Hidy, Pioneering in Big Business, 600.

8 See reminiscences in Gunton, George, “A Decade of Progress in Public Opinion,” Lecture Bulletin of the Institute of Social Economics, V (March 1, 1902), 296Google Scholar (hereafter cited as Lecture Bulletin); George Gunton to Edwin R. A. Seligman, Dec. 8, 1886, Seligman Papers, Columbia University; Seligman, Edwin R. A., review of Wealth and Progress, Political Science Quarterly, II (Dec, 1887), 696–99CrossRefGoogle Scholar.

9 R. Heber Newton to Richard T. Ely, Nov. 21, 1891, Ely Papers, Wisconsin State Historical Society, Madison.

10 Gunton, Wealth and Progress, vi.

11 Jeremiah W. Jenks to Henry D. Lloyd, Nov. 20, 1895, Lloyd Papers; “Two Views of Trusts,” Bradstreet's Aug. 31, 1889), 551; Nevins, Allan, John D. Rockefeller (New York, 1940), II, 141Google Scholar.

12 This financial assistance, which amounted to as much as $15,000 annually, lasted until 1904. John D. Archbold to George Gunton, Sept. 28, 1899, in Anonymous, “Standard Oil and its Hirelings of the Press,” Hearst's Magazine, XXIV (July, 1913), 26–27Google Scholar; Mrs. Amelia Gunton to Edwin R. A. Seligman, Dec. 24, 1905, Seligman Papers; Hidy and Hidy, Pioneering in Big Business, 660.

13 Aside from Standard Oil, the sources of financial support for the school are uncertain. A news item implied that “several gentlemen” who were acquainted with Gunton's lecture work connected with Newton's church contributed to the Institute. It is suggestive that among the later Counselors of the Institute were such men of wealth as Joseph A. Hendrix, president of the National Union Bank, William F. Draper, New England industrialist, Alfred Dolge, manufacturer from upper New York State, and Edwin Seligman. See New York Times, Jan. 17, 1892; Social Economist, I (July, 1891), 325–28Google Scholar; “Gunton Institute Announcement, 1898–99,” Gunton's Magazine, XV (Sept., 1898), 225–26Google Scholar.

14 Principal of the Business College was John Halley Clark, A.M., former superintendent of the Flushing, New York, public schools.

15 A sampling of those who directed questions to the editor of the journal indicates that the periodical circulated throughout the country, although a majority of the readers seemed to be in urban centers east of the Mississippi.

16 Lecture Bulletin, IV (Nov. 15, 1900), 49Google Scholar; ibid., IV (Jan. 15, 1901), 99.

17 Early in Roosevelt's presidential administration, Gunton broke with him on the tariff and trust issues. See Morison, Elting E. and others, eds., The Letters of Theodore Roosevelt (Cambridge, 1951–1954), II, 10, 13, 31, 959–61, 974, 1083, 1139–40, 1325, III, 483Google Scholar, and Hurwitz, Howard L., Theodore Roosevelt and Labor in New York State, 1880–1900 (New York, 1943), 216–17, 259Google Scholar.

18 In 1904 Gunton closed the Institute, ceased publication of his journal and went into semiretirement. He taught economics at Columbia University for a short while but spent most of the years until his death in 1919 living quietly in Virginia.

19 Morison, , ed., The Letters of Theodore Roosevelt, II, 1325Google Scholar. See also Gunton, Wealth and Progress, 240, 375; Gunton, George, “Extension of the Public School System,” Social Economist, III (Sept., 1892), 159–62Google Scholar; Gunton, George, “Our American Proletariat,” Gunton's Magazine, X (May, 1896), 356–60Google Scholar; George Gunton, “Menace of Immigration,” ibid., XVI (March, 1899), 166–70.

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22 Gunton, George, Principles of Social Economics, Inductively Considered and Practically Applied (New York, 1891), 421–23Google Scholar; Gunton, George, “The Carnegie Conflict,” Social Economist, III (Aug., 1892), 115Google Scholar; Gunton, “Economics of Strikes and Boycotts,” ibid., IV (May, 1893), 262–63.

23 Gunton, Principles of Social Economics, 432; Gunton, George, “American Social Problems,” Lecture Bulletin, III (Oct. 7, 1899), 16Google Scholar.

24 Gunton, , “Economics of Strikes and Boycotts,” Social Economist, IV (May, 1893), 263–65Google Scholar; George Gunton, “Society and Sympathetic Strikes,” ibid., VII (Nov., 1894), 262–68; Gunton, George, “Liberty and the Boycott,” Lecture Bulletin, III (Nov. 11, 1899), 135–43Google Scholar.

26 Gunton, Wealth and Progress, 12; Gunton, George, “Large Corporations and Labor Unions,” Lecture Bulletin, IV (June 15, 1901), 219, 225Google Scholar; Gunton, George, “Union vs. Open Shop,” Gunton's Magazine, XXV (Aug., 1903), 108Google Scholar.

26 “Editorial Crucible,” Social Economist, VIII (Jan., 1895), 44Google Scholar; “Editorial Crucible,” Gunton's Magazine, X (Jan., 1896), 66Google Scholar; “Editorial Crucible,” ibid., XIII (July, 1897), 65–67; George Gunton, “The A.F. of L.,” ibid., X (Feb., 1896), 134–37.

27 Gunton, Principles of Social Economics, 393; “Editorial Crucible,” Gunton's Magazine, XII (June, 1897), 430–31Google Scholar.

28 Gunton, George, “Economics in the Magazines,” Gunton's Magazine, XII (Jan., 1897), 64Google Scholar; George Gunton, “Government by Injunction,” ibid., XI (Oct., 1896), 242–48; George Gunton, “Misuse of Injunctions,” ibid., XXIII (Sept., 1902), 226–33.

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34 Gunton, Wealth and Progress, 35–58, 90; Gunton, Principles of Social Economics, 391–92.

35 Gunton, Wealth and Progress, 24–30, 264; Gunton, Principles of Social Economics, 143–49, 190–217.

36 Gunton, Wealth and Progress, 22, 229, 270–71; Gunton, George, “Henry George's Economic Heresies,” Forum, III (March, 1887), 15–28Google Scholar; Gunton, Principles of Social Economics, 262, 276, 279.

37 Gunton, Principles of Social Economics, 13–14; Gunton, George, “Large Aggregations of Capital,” Gunton's Magazine, XII (May, 1897), 334–41Google Scholar; Gunton, George, “The Public and the Trusts,” Chicago Conference on Trusts (Chicago, 1900), 276–85Google Scholar; Gunton, George, “Large Corporations and Labor Unions,” Lecture Bulletin, IV (June 15, 1901), 204–16Google Scholar; George Gunton, “Are ‘Trusts’ an Enemy of Labor?” ibid., VI (Jan. 15, 1903), 168–77.

38 Gunton, , “Trusts, and How to Deal with Them,” Chautauquan, X (March, 1890), 699Google Scholar; Gunton, George, “Economics in the Magazines,” Gunton's Magazine, XII (April, 1897), 287Google Scholar; George Gunton, “Opportunities for Young Men,” ibid., XVII (Oct., 1899), 293–94; Gunton, George, “Prosperity and the Cost of Living,” Lecture Bulletin, V (April 1, 1902), 357–58Google Scholar.

39 Gunton, George, “Pulpit Economics,” Gunton's Magazine, XII (June, 1897), 367–75Google Scholar.

40 Gunton, Wealth and Progress, 206–7; Gunton, George, “Social Importance of Wealth,” Social Economist, I (Oct., 1891), 399Google Scholar; George Gunton, “National Greatness,” ibid., III (July, 1892), 3; Gunton, George, “Course in Social Economics,” Lecture Bulletin, III (Oct. 7, 1899), 22Google Scholar.

41 Gunton, George, “The Abolition of Poverty,” Social Economist, III (Aug., 1892), 94Google Scholar; George Gunton, “Public Effects of Great Fortunes,” ibid., VIII (May, 1895), 272–78; Gunton, George, “Are Luxuries Wasted Wealth,” in Trusts and the Public (New York, 1899), 61–71Google Scholar; Gunton, George, “Are Millionaires a Menace?” Gunton's Magazine, XXV (Nov., 1903), 386–91Google Scholar.

42 Gunton, Principles of Social Economics, 74, 177; Gunton, George, “The Economic and Social Aspects of Trusts,” Political Science Quarterly, III (Sept., 1888), 385–408CrossRefGoogle Scholar. (Hereafter cited as P.S.Q.)

43 Gunton, George, “Trusts and How to Deal with Them,” Chautauquan, X (Feb., 1890), 571–75Google Scholar; Gunton, George, “The Economic Errors of Trusts,” Social Economist, IV (Feb., 1893), 65–74Google Scholar; Gunton, , “Large Aggregations of Capital,” Gunton's Magazine, XII (May, 1897), 337, 341Google Scholar; George Gunton, “The Era of Trusts,” ibid., XVI (March, 1899), 161–65; Gunton, George, “Trusts and Socialism,” Lecture Bulletin, IV (April 15, 1901), 172Google Scholar.

44 Gunton, , “The Economic Errors of Trusts,” Social Economist, IV (Feb., 1893), 72Google Scholar; Gunton, George, “Failure of the Nail Combine,” Gunton's Magazine, XII (Jan., 1897), 32–38Google Scholar; George Gunton, “The Ice Trust Outrage,” ibid., XVIII (June, 1900), 515–19; “Review of the Month,” ibid., XIX (July, 1900), 13.

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46 In his first major article Gunton catalogued the fears of the public: trusts tended to develop monopolies and drove small capitalists out of business; they destroyed competition which served to restrain prices; they led to the amassing of great fortunes at the expense of the public; and they corrupted politics, controlling legislation in their own interest and against that of the public. Gunton, , “The Economic and Social Aspects of Trusts,” P.S.Q., III (Sept., 1888), 387Google Scholar.

47 Gunton, , “The Economic Errors of Trusts,” Social Economist, IV (Feb., 1893), 67Google Scholar; Gunton, “The Public and the Trusts,” Chicago Conference on Trusts, 276–85.

48 Gunton, Principles of Social Economics, 402–3; Gunton, George, “Monopoly and Competition,” Lecture Bulletin, III (Oct. 28, 1899), 88–90Google Scholar.

49 It was Gunton's contention that one primary cause of depressions was the behavior of overeager small-scale manufacturers who began to overproduce as soon as prices rose. Gunton, Principles of Social Economics, 382–96; Gunton, George, “Trusts and Business Stability,” Gunton's Magazine, XX (Feb., 1901), 121–22Google Scholar.

50 Gunton, George, “Billion Dollar Corporation,” Gunton's Magazine, XX (May, 1901), 423–24Google Scholar.

51 George Gunton, “Crusade Against Prosperity,” ibid., XVII (Sept., 1899), 175–76; “Review of the Month,” ibid., XX (Feb., 1901), 106–7.

52 Gunton, , “The Economic and Social Aspects of Trusts,” P.S.Q., III (Sept., 1888), 395–97Google Scholar; Gunton, , “Trusts and How to Deal with Them,” Chautauquan, X (Feb., 1890), 572–74Google Scholar; Gunton, , “Large Aggregations of Capital,” Gunton's Magazine, XII (May, 1897), 338–39Google Scholar; Gunton, “The Public and the Trusts,” Chicago Conference on Trusts, 279; Gunton, George, “The Beef Trust,” Gunton's Magazine, XXIII (July, 1902), 46–47Google Scholar.

53 On the question of Gunton's relations with Standard Oil, the author is in essential agreement with Professor and Mrs. Hidy that “Although for some years the company helped to finance Gunton's work, he was an independently minded journalist.” Pioneering in Big Business, 660. Evidence pointing to this conclusion includes: newspaper reports of his lectures before Rev. Newton's class in social economics which indicate that his philosophy was well formulated before the financial assistance began; that Gunton opened his journal to a wide range of views, some hostile to big business; and that he himself continued to maintain a position favoring shorter hours, collective bargaining and government aid to labor which was far in advance of the prevailing attitude of the top leadership of Standard Oil. See New York Times, Jan. 19, 27, 1888. For what it is worth, Gunton put himself on record: “I do not regard myself as under the slightest obligation to change my views or policy by receiving aid from anybody.” Gunton to Theodore Roosevelt, April 1, 1901, Roosevelt Papers, Library of Congress.

54 Gunton, , “The Economic and Social Aspects of Trusts,” P.S.Q., III (Sept., 1888), 392–97Google Scholar; Gunton, George, “Large Aggregations of Capital. Are They Necessary?” Independent, XLIX (March 4, 1897), 7–8Google Scholar; Gunton, George, “Fresh from the Oil Regions,” Gunton's Magazine, XIII (Sept., 1897), 155–63Google Scholar; Gunton, George, “Standard Oil and Carnegie Profits,” Lecture Bulletin, III (March 3, 1900), 500Google Scholar.

55 Gunton, George, “Integrity of Economic Literature,” Social Economist, IX (July, 1895), 13–24Google Scholar; Gunton, George, “Ida Tarbell's Tale of the Standard Oil,” Gunton's Magazine, XXVI (Feb., 1904), 95–107Google Scholar.

56 Gunton, , “Trusts, and How to Deal with Them,” Chautauquan, X (March, 1890), 701Google Scholar; Gunton, , “Monopoly and Competition,” Lecture Bulletin, III (Oct. 28, 1899), 81, 95Google Scholar; Gunton, George, “‘Trusts’ and Monopolies,” Gunton's Magazine, XIX (Oct., 1900), 344–49Google Scholar.

57 Gunton, Principles of Social Economics, 403–7; Gunton, , “‘Trusts’ and Monopolies,” Gunton's Magazine, XIX (Oct., 1900), 351Google Scholar.

58 Gunton, , “The Economic and Social Aspects of Trusts,” P.S.Q., III (Sept., 1888), 402–3Google Scholar; Gunton, , “Monopoly and Competition,” Lecture Bulletin, III (Oct. 28, 1899), 90–91Google Scholar.

59 Gunton, Principles of Social Economics, 283–94; Gunton, , “Society and Sympathetic Strikes,” Social Economist, VII (Nov., 1894), 265Google Scholar; Gunton, , “Coal Strike and the Public,” Gunton's Magazine, XXIII (July, 1902), 23Google Scholar.

60 Gunton, George, “The Social Economist,” Social Economist, I (March, 1891), 2Google Scholar; George Gunton, “Atkinson and Economic Methods,” ibid., III (Sept., 1892), 130; Gunton, George, “Spencer's Last Book,” Gunton's Magazine, XII (May, 1897), 292–94Google Scholar; George Gunton, “The Death of Herbert Spencer,” ibid., XXVI (Jan., 1904), 52–53.

61 Gunton, George, “Back to Hamilton,” Gunton's Magazine, XI (Aug., 1896), 126–32Google Scholar; George Gunton, “What We Owe to Hamilton,” ibid., XIV (June, 1898), 364–75.

62 Gunton, Principles of Social Economics, 296–319; Gunton, , “Labor and Capital,” Lecture Bulletin, V (Nov. 1, 1901), 104Google Scholar; “Question Box,” Gunton's Magazine, XXIV (Jan., 1903), 42–43Google Scholar.

63 Gunton to Theodore Roosevelt, March 26, 1900, Roosevelt Papers; George Gunton, Review of Ely's, Richard T.Monopolies and Trusts, Gunton's Magazine, XVIII (June, 1900), 565–67Google Scholar; George Gunton, “The New Anti-Trust Law,” ibid., XXIV (March, 1903), 189–96.

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65 Gunton, , “Large Corporations and Free Government,” Lecture Bulletin, IV (May 15, 1901), 177–202Google Scholar; Gunton, George, “Influence of Corporations on Government,” Gunton's Magazine, XXI (Sept., 1901), 252–54Google Scholar.

66 For further documentation of these points see Blicksilver, Jack, “A Study of Some Defenders and Certain Aspects of the Defense of Big Business in the United States, 1880–1900” (Unpublished Ph.D. dissertation, Northwestern University, 1955Google Scholar) and Toppin, Edgar A., “A Study of the Defense and Defenders of Big Business in America, 1900–1914” (Unpublished Ph.D. dissertation, Northwestern University, 1955Google Scholar).

67 Samuel Gompers, “What Does Labor Want?” a paper read before the International Labor Congress, Chicago, Sept., 1893, in Addresses and Editorials (n.p.,n.d.), New York Public Library; Samuel Gompers, “The Control of Trusts,” Chicago Conference on Trusts, 330; Henry White, “A Period of Doubt and Darkness in a New Industrial Era,” ibid., 323–29; E. E. Clark, address, Convention of the National Association of Railway Commissioners, Proceedings (1898), 20–25.

68 United States Industrial Commission, Report, VII, 753, 810–11Google Scholar; White, William A., “Hanna,” McClure's Magazine, XVI (Nov., 1900), 58–59Google Scholar; Ralph M. Easley, “What Organized Labor Has Learned,” ibid., XIX (Oct., 1902), 484-88; Cochran, Thomas C., Railroad Leaders, 1845–1890 (Cambridge, 1953), 33, 179–80Google Scholar.

69 Theodore Roosevelt to John Pierpont Morgan, March 27, 1901, Morison, ed., The Letters of Theodore Roosevelt, III, 30.

70 Gunton, , “The Social Economist,” Social Economist, I (March, 1891), 3Google Scholar.