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A NEW BUILDING AND A NEW ERA
A lasting monument to Warren Stone and the banking era of the BLE is the 22story Standard Building, opened in 1925 and then called the BLE Cooperative National Bank Building, built just across the street (Ontario) from the BLE Building.
The exterior of the building is covered with a creamcolored glazed terracotta, while the interior is fireproof throughout, earning itself a "1A" fire risk rating at the outset. The bank was located on the mezzanine floor of the new building. Today, after having been remodeled, the area is now the present home of the BLE International office. Both buildings were connected by an underground tunnel to facilitate movement of service personnel and to afford protection from the weather for those who wish to travel between these two facilities. Office space is at a premium as the Brotherhood's building location was wisely chosen and which developed in later years to be at the center of the courts and county administration area of downtown Cleveland.
The BLE's Standard Building opened as a Brotherhood Bank in 1925.
In 1988, the Engineers Building was sold to a development group that wanted the space to erect an office building and hotel. The threat of a very expensive eminent domain fight in the court system and the overwhelming support of government officials for the development of the new hotel and office building led the leadership to determine that it must negotiate for the best possible deal in the sale of the Engineers Building. Less than a year later, in February 1989, the headquarters of the International Division of the BLE moved into the Standard Building (also owned by the Brotherhood) at 1370 Ontario Street where it is located today.
With the passing of Stone, the Engineers' colorful era of finance, construction, and political action (it supported LaFollette for President in 1924) gradually came to a close. W. B. Prenter, who had been Stone's righthand man since 1904, undertook a liquidation of some of the BLE's holdings.
The financial adventures of the Brotherhood had by that time rankled some of the members and led to dissension. Among those who shared this rising spirit of discontent was the grand chief engineer, Alvanley Johnston. An energetic and forceful man of 50, he was gradually assuming the reins of leadership.
At the 1927 convention the membership eliminated the offices of president, first and second vice presidents, returning to the old titles of grand chief engineer, secretarytreasurer, and creating the offices of president and secretary-treasurer of the Insurance Association. The other officers of the Brotherhood remained as they were prior to 1924.
ALVANLEY JOHNSTON HEADS UP THE BROTHERHOOD
The grand chief engineer, by convention action, was given authority over the executive functions of the Brotherhood, and was elected president of the Insurance Association and had full jurisdiction over that department in conjunction with the secretary treasurer. This left Alvanley Johnston, the grand chief engineer, in complete control.
During this period Grand Chief Johnston also took bold steps to combat a financial crisis by levying what was known as a "loyalty" assessment.
Each loyal member participating in the assessment was issued a Loyalty Certificate which acknowledged his contribution and stated that repayment would be made in the event that liquidation of certain assets produced enough revenue to do so.
Although there virtually was no likelihood that funds would ever be available for repayment, many loyal BLE members purchased additional certificates as evidence of their confidence in the organization and its leadership.
As a result of a widespread misunderstanding, many subscribers to these certificates (and their descendants) in later years sought recovery of the assessments through the courts. In 1965 a Federal Court of Appeals finally laid the matter to rest by affirming the position that the BLE had no obligation to redeem the certificates.
The Johnston era began on a note of strength. Wage negotiations, which had begun under the leadership of Warren Stone, were continued, and in August a settlement was reached with 54 eastern railroads. A wage increase of 7-1/2 percent was obtained, affecting some 30,000 engineers. This added between six and seven million dollars to the wages of these employees. The increase became effective August 1, 1927.
One of Johnston's first big tasks was the liquidation of much of the Brotherhood's real estate and bank holdings, and consolidating its other assets. Because these properties were acquired during a period of inflation and were liquidated during poor financial times, there was naturally a large loss involved. That Johnston was able to do this as successfully as possible is attested to by the fact that he was able to win re-election at the Sixth Triennial Convention in 1930. He was never seriously challenged after that time.
A necessary step to guarantee the future security of the Locomotive Engineers Mutual Life and Accident Insurance Association was taken during this period. Like much of the fraternal type of insurance of that day, BLE insurance was still being conducted on the old assessment plan basis, and clearly this type of insurance could no longer be relied upon to meet the challenges of the years ahead. Accordingly, a complete revision was made to the legal reserve plan and the L.E.M.L. & A.I.A. today stands as a model of solvency and service in the fraternal insurance field.
With 1934 came major amendments to the Railway Labor Act, establishing the National Railroad Adjustment Board to decide grievances and claims, and the National Mediation Board to assist in disputes over contract changes. In 1936 came the Washington Agreement between rail labor organizations and the U.S. railroads. This provided for severance pay and other protection for employees displaced by rail mergers.
In 1938 the Brotherhood celebrated its Diamond Jubilee, 75 years in existence, with a weeklong meeting in Detroit.
BLE GOES TO WAR
With the coming of World War II, the members of the Brotherhood of Locomotive Engineers, like workers everywhere in the United States and Canada, put in long hours to do their part for the war effort. Unlike the first World War, this time the railroads were in better physical shape and there was no apparent need for Government operation. With BLE members at the throttle, U.S. railroads carried 90 per cent of all military freight and 97 per cent of all military passenger movements.
But the regaining of equitable wages and working conditions after the war turned out to be an uphill fight. Despite the agreement on vacations, there was much yet to be won to put railroaders on an equal footing with workers in other industries. The BLE and the Brotherhood of Railroad Trainmen took the burden upon themselves to upgrade working conditions for their members. When talks with the carriers proved fruitless, a strike was authorized and the matter was turned over to a Government Emergency Board, under the provision of the Railway Labor Act.
The Brotherhood monument at Marshall, Mich., commemorating the founding of the BLE, was dedicated May 23, 1943 with appropriate ceremonies and speeches. The monument is well-maintained and is in a prominent spot in the southern Michigan city.
Ninety days after that, with still nothing accomplished, the two brotherhoods, according to the provisions of the Railway Labor Act, asked their members to withdraw from service on May 18,1946. At President Truman's request, after he put control of the railroads in the hands of the Department of Defense Transportation (we were still "at war"), the strike was delayed. But the men went out five days later on May 23, and all wheels stopped on U.S. railroads.
President Truman asked Congress for legislation to draft the strikers, but this was stalled by Senator Robert A. Taft. Then, under great pressure from the White House, the brotherhoods accepted the terms laid down by the President: an award of 18-1/2 cents an hour increase, or $1.48 per basic day.
Johnston closed his years as grand chief engineer when he refused the nomination at the 11th Triennial Convention in Cleveland in 1950.
Elected to succeed him was J. P. Shields who had come from the Union Pacific. Johnston was honored by both labor and management alike when he decided that it was time for him to make his "last run." A typical statement relative to his guiding the Brotherhood through its turbulent years during and after World War II came from M. W. Clement, chairman of the board of the Pennsylvania Railroad: "I hope that labor in the United States in years to come will have the kind of leadership that Mr. Johnston has given the Brotherhood in the last 25 years."
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