Andrew Carnegie’s Quest for Peace

Andrew Carnegie
Andrew Carnegie

 

Andrew Carnegie (November 25, 1835 – August 11, 1919) was a Scottish-American industrialist who led the enormous expansion of the American steel industry in the late 19th century.[1] He also was one of the highest profile philanthropist of his era who had given away almost 90 percent of his large fortune to charities and foundations by the time of his death.[2]

 

Carnegie also was a pacifist at heart, and starting in 1903 devoted significant time and money to promoting peaceful resolution of international disputes, especially by arbitration pursuant to treaties.

Hague Peace Palace
Hague             Peace Palace

He helped to create the Palace of Peace at the Hague in the Netherlands with his 1903 formation of a Dutch foundation and his funding of the Palace’s construction that was completed in 1913. It initially was the site for the Permanent Court of Arbitration, which was established in 1899 and which now is an intergovernmental organization with 115 member states that provides dispute-resolution services for various combinations of states, state entities, intergovernmental organizations, and private parties.[3] From 1922 to 1946 it also was the site for the Permanent Court of International Justice of the League of Nations and since 1946 the International Court of Justice, the principal judicial organ of the United Nations.

Carnegie also funded the construction of the headquarters building for the Pan-American Union (later the main building for the Organization of American States) in Washington, D.C. and the building for the Central American Court of Justice in Costa Rica.

In 1910 he funded the establishment of the Carnegie Endowment for International Peace, whose trustees were charged to use the fund to “hasten the abolition of international war, the foulest blot upon our civilization.” The Endowment is still operating today with its headquarters in Washington, D.C. Now it describes itself as “a unique global network of policy research centers in Russia, China, Europe, the Middle East, and the [U.S.]. Our mission . . . is to advance the cause of peace through analysis and development of fresh policy ideas and direct engagement and collaboration with decision makers in government, business, and civil society. Working together, our centers bring the inestimable benefit of multiple national viewpoints to bilateral, regional, and global issues.”

Carnegie Hall
Carnegie Hall

Another activity Carnegie organized to promote peace was the April 1907 National Arbitration and Peace Congress at Carnegie Hall in New York City. The Hall, as its name suggests, was another Carnegie-financed project that opened in 1891 in Midtown Manhattan.[4]

The Congress with over 1,200 registered delegates was described as the “greatest gathering ever held in advocacy for the abolition of war as a means of settling national disputes.”

Carnegie himself, of course, gave a major speech at the Congress that in retrospect can be seen as an outline of the United Nations created after World War II. Carnegie said, “[W]e are met to urge the speedy removal of the foulest stain that remains to disgrace humanity, since slavery was abolished—the killing of man by man in battle as a mode of settling international disputes.” He also expressed his support for “the League of Peace idea—the formation of an International Police, never for aggression, always for protection to the peace of the civilized world. . . . “ States should agree “that no nation shall be permitted to disturb the peace.” Before use of the international police, there should be a proclamation of “non-intercourse [“sanctions” in our parlance] with the offending nation.”

President Theodore Roosevelt did not attend the Congress, but sent a letter that embraced its purpose. It said, “[I]t is our bounden duty to work for peace, yet it is even more our duty to work for righteousness and justice.” Moreover, the President stated,“[T]here can be at this time a very large increase in the classes of cases which [could ] . . .be arbitrated, and . . .provision can be made for greater facility and certainty of arbitration. I hope to see adopted a general arbitration treaty.” Roosevelt added that  the Hague court [of Arbitration] should be greatly increased in power and permanency.”

On the other hand, Roosevelt cautioned the delegates to not insist “upon the impossible [and thereby] put off the day when the possible can be accomplished.” “[G]eneral disarmament would do harm and not good if it left the civilized and peace-loving peoples . . . unable to check the other peoples who have no such standards.” Indeed, according to the President, “[T]here are few more mischievous things than the custom of uttering or applauding sentiments which represent mere oratory, and which are not, and cannot be, and have not been, translated from words into deeds.”

The Congress adopted resolutions endorsing international peace and international law; calling for permanency for the Hague Court of Arbitration open to all nations; the adoption of a general international arbitration treaty; the creation of a committee to investigate international disputes and attempt to mediate them before the parties resort to war; the establishment of the neutrality of personal property at sea; and limitations on armaments. [5]

Baron de Constant de Rebecque & Andrew Carnegie
Baron de Constant de Rebecque &     Andrew Carnegie

At the end of the Congress Carnegie was presented with the French Cross of the Legion of Honor by France’s Baron de Constant de Rebecque (nee Paul Henri Benjamin Balluet), a member of the Permanent Court of Arbitration and the 1909 winner of the Nobel Peace Prize. The Baron praised Carnegie for “his interest and energy in behalf of the peace movement” and for being “a good citizen of the whole world.”

According to the New York Times, Europeans were not interested in, or impressed by, this Congress. First, they did not have “a large number of peace propagandists.” Instead their prevailing view was that “universal, permanent peace is a long way off” and that the major issue was the practical one of adopting an agreement on the manner in which wars should be conducted. Second, many Europeans believe that U.S. policies regarding the Western Hemisphere threaten world peace, especially with respect to Germany’s interests in that part of the world. Indeed, The Times of London called Carnegie “an ardent but ill-informed amateur” and had “rushed in where sagacious statesmen fear to tread.” Another European critic said Carnegie should “endow a chair of contemporary history for his own instruction.”

Carnegie Mansion
Carnegie Mansion

Preceding the Congress, Carnegie hosted a large dinner at his beautiful mansion at Fifth Avenue and 91st Street in New York City to celebrate industrial peace in the U.S. and the upcoming Congress. In attendance were 100 “sons of toil” or workers’ representatives; prominent merchants; manufacturers’ executives; bankers; leaders of universities and other educational institutions; church leaders; publishers and editors; lawyers; and railroad executives, including William C. Brown, then Senior Vice President of the New York Central Railroad (and my maternal great-great uncle).[6]

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[1] This post is based in substantial part on Chapter XXIII (“The Quest for Peace, 1901-1910”) in Joseph F. Wall’s Andrew Carnegie (Oxford Univ. Press 1970), which won the 1971 Bancroft Prize for best book about history of the Americas (or diplomacy). Professor Wall was a revered History Professor at my alma mater, Grinnell College, and I was fortunate to have known him and learned from him.

[2] One of Carnegie’s philanthropic endeavors was funding the establishment of public libraries throughout the U.S. and other countries. My mother was the Librarian at the Carnegie Library in Perry, Iowa, and I studied at Grinnell College’s Carnegie Library during my first two student years.

[3] I have had two “contacts” with the Permanent Court of Arbitration. First, a Minnesota company had suggested arbitration of its claim against my client, an Asian manufacturer, under the UNCITRAL Arbitration Rules. Because my client and I did not believe that there was a valid arbitration clause and the claimant had not appointed the first arbitrator, we did not appoint a second arbitrator and then were surprised to receive a letter from the Permanent Court designating an appointing authority to appoint a second arbitrator. There eventually was a three-person arbitration panel that issued an award in favor of my client. Second, I have researched the life and career of Edward Burnham Burling, a fellow Grinnell alumnus (Class of 1890), whose gift funded the College’s library (the Burling Library) that replaced its Carnegie Library. Burling was the co-founder of the eminent Washington, D.C. law firm of Covington & Burling and represented the Kingdom of Norway against the U.S. over expropriation of shipping contracts during World War I with the Permanent Court of Arbitration in 1922 issuing an award in favor of Norway. Writing blog posts about Burling and the Norway case are on my list of future posts.

[4] This account of the Congress is based upon Andrew Carnegie’s Plea for Peace, N. Y. Times (April 7, 1907); Stead Recommends a Peace Pilgrimage, N. Y. Times (April 8, 1907); Frenchmen Arrive for Peace Congress, N. Y. Times (April 9, 1907); Prelude to Peace Congress To-Night, N. Y. Times (April 14, 1907); Women’s Part in Peace, N. Y. Times (April 14, 1907); War Talk Opens Peace Congress, N. Y. Times (April 15, 1907); The Afternoon Session, N. Y. times (April 16, 1907); Editorial, Peace on Earth, N. Y. Times (April 16, 1907); Peace Conference Not All Harmony, N. Y. Times (April 17, 1907); Honor Carnegie Friend of Peace, N. Y. Times (April 17, 1907); Editorial, Peace Congress Resolutions, N. Y. Times (April 18, 1907); Editorial, Peace Congress Sequels, N. Y. Times (April 21, 1907); Europe Is Amused at Peace Congress, N. Y. Times (April 21, 1907); Proceedings of the National Arbitration and Peace Congress, New York, April 14th to 17th, 1907 (1907).

[5] Roosevelt became a hero for Carnegie, but Roosevelt never liked Carnegie.

[6] Unique Party Carnegie Host, N. Y. Times (April 6, 1907). About one week before this special dinner, Carnegie, after a luncheon meeting with President Roosevelt at the White House, made a statement supporting the President’s policies regarding the railroads. The Carnegie Mansion now is the home for the Cooper Hewitt, Smithsonian Design Museum.

Save the Minnesota Orchestra!

Osmo Vanska
Osmo Vanska
Minnesota Orchestra @ Orchestra Hall
Minnesota Orchestra @ Orchestra Hall

 

Under the baton of Maestro Osmo Vanska in recent years, the Minnesota Orchestra has played beautifully. When they performed at Carnegie Hall in March 2010, a New Yorker reviewer said, “The Minnesota Orchestra sounded, to my ears, like the greatest orchestra in the world.” As Minnesotans, we loved the music produced by the Orchestra and the praise from New York City.

Alas, the Orchestra’s entire 2012-2013 season has been cancelled due to an unresolved dispute over the musicians’ compensation. As a result, some key members of the Orchestra have left for positions elsewhere.

Even more ominous, on April 30, 2013, Maestro Vanska in a letter to the Orchestra’s Board of Directors said, our “musical policy of excellence in symphonic music programming . . . is now under critical threat.” After noting the need to prepare for scheduled recording sessions in September and Carnegie Hall concerts in November (“one of the most significant goals of my entire Minnesota Orchestra tenure”), Vanska said that if those concerts were cancelled, “I will be forced to resign.”

The dispute started last September when the Board proposed a new contract with the musicians that called for an average annual salary of $89,000 with a minimum of a 10-weeks annual paid vacation, a comprehensive medical plan and defined benefit pension plan. This represented a huge decrease from their compensation under the prior contract and was necessitated, according to the Board, by the immediate need to stop additional significant draws on the Orchestra’s endowment.

According to public information, the Musicians rejected this proposal, but have never made a counteroffer on compensation. Instead, they have proposed a review of the Orchestra’s finances and binding arbitration. Such a financial review has been undertaken, but not without apparent disputes regarding some of its details. The Board rejected binding arbitration as inconsistent with their fiduciary duty to guard the endowment.

Most recently the Board proposed submitting the dispute to mediation next week (the week of May 20th), but the Musicians apparently have not yet responded to this proposal.

We are obviously saddened by the ongoing dispute between the Orchestra’s Board and the Musicians. We also have empathy with the Musicians on being presented with a proposal last Fall for a large reduction in compensation. No one wants to be subjected to such a jolt.

Early last December I sent an email to Minnesota Governor Mark Dayton saying the “Orchestra’s cancellation of many concerts has left a major void in the cultural life of the Twin Cities and thus has caused a major negative impact on the quality of life here and in the State as a whole.” After noting that “over the years Dayton family members have been strong supporters of the Orchestra . . . [and] the cancellations have to be particularly sad for you and your family,” I implored the Governor “to become involved in this matter. Publicly invite both sides to meet with you at your office to explore how this dispute could be resolved. If there are any mediation services the State can offer, perhaps that could be offered as well. I also wonder whether there is any State funds that could be provided to help pay for the renovation of Orchestra Hall so that the gifts for same could be re-directed to the endowment to help pay the musicians.”

I received no response from the Governor, and there have been no public reports of his being involved in any way to try to resolve this dispute. I, therefore, reiterate my plea for his help.

On May 5th the Musicians had a full-page ad in the StarTribune that, among other things, called for the Board leaders “to step aside so that truly civic-minded and globally aspirational leadership can step forward” to resolve the dispute. This was a totally unfounded and unwise move by the Musicians, in my opinion. The Board members, some of whom are friends of mine, are all honorable citizen unpaid volunteers who have given of their own time and financial resources to help the Orchestra. Therefore, on May 10th I sent an email to the Musicians that said the following:

  1. “As we understand, the Musicians have never made a counteroffer on compensation. As a retired lawyer, I have been involved in many negotiations to settle legal disputes. The normal process in such negotiations is offer and counteroffer, often with many iterations. A similar phenomenon often occurs in buying a house. Wake up. Engage in the process.
  2. The Musicians must recognize that the national financial collapse of several years ago has caused damage to the finances of many corporations, organizations and individuals and made it more difficult for non-profit organizations to raise charitable contributions. In addition, the low interest rate policies of the Federal Reserve System have made it very difficult for all persons to obtain significant income on their endowments and savings. As a retiree, I am very aware of this phenomenon. So too the Musicians have to be aware of these facts.
  3. The financial problems of our Orchestra are not unique in the U.S. The Musicians obviously are aware of this.
  4. To respond to these facts, as the Musicians have done, with calls for binding arbitration, financial studies, no further negotiations unless the lock-out is ended and resignation of the honorable, unpaid volunteers on the Orchestra’s Board is unreasonable and irresponsible.
  5. In our opinion, the Musicians have known enough from the first day of this dispute to make a counteroffer of reduced compensation, undoubtedly as an initial position by the Musicians the reduction would be modest. But it would facilitate the negotiation process.”

The Orchestra’s website has information about the dispute as does the website for the musicians. The dispute has received extensive coverage in the Minnesota media along with full-page ads by the Board and the Musicians. And the New York Times had an extensive article about the dispute.

End the dispute! Save the Minnesota Orchestra!