Biographical note


CHAPTER VI The LaFollette Committee and Pearl Bassham



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CHAPTER VI

The LaFollette Committee and Pearl Bassham

One of the most famous investigations ever conducted by the United States Senate took place in the late 1930s. It was conducted by a special committee headed by Senator Robert LaFollette, Jr., the pro­gressive Republican from Wisconsin. Its purpose was to ferret out and expose brutal methods used by large corporations in fighting labor unions. Senator LaFollette, his associates and staff studied company spies in the Chrysler Corporation; a strike-breaking agency run by a gentleman widely known as "Chowderhead" Cohen; and inevitably interference with civil liberties in Harlan County, Kentucky, by the coal operators. The report of the LaFollette Committee has long been a matter of public record. Testimony filled ten books, two of which were devoted to Harlan County. What was testified to seems unbelievably today. Nevertheless, it is true. What the LaFollette Committee ascertained in 1937 was true in the years prior to the investigation and, by and large, conditions remained the same until 1941.

A typical witness before the committee was Pearl Bassham, vice president and general manager of the Harlan Wallins Coal Corporation which then operated four mines in Harlan County that produced over one million tons of coal a year, employing over 1,200 men.

By 1937, when the LaFollette Committee conducted its investigation, I was assigned to Harlan County and knew Pearl Bassham well. He was a small, middle-aged man about five foot six inches tall, with a bald head and a set of beautiful big teeth like a horse. He showed them all when he smiled. As far as union men were concerned, his smiles meant nothing except, perhaps, that he wanted to show his big beautiful teeth. He always gave me the impression — then and later — that he was a man in love with only one thing, money. He rose from the job as motorman in one of the Harlan Wallins mines to vice president of the company almost over night.


In this chapter I will detail what Bassham told the committee simply because he was typical and fairly honest in his answers. In the first place, he admitted that his company opposed union membership for its employes. He bluntly stated to the committee on May 4: "It has been our attitude up until two or three weeks ago to discharge men who became members of the union." Because of the LaFollette investigation, Bassham explained that in April he had "issued instructions that no one is to be fired on account of joining the union."

He also averred that every miner employed by the Harlan Wallins Coal Corporation was forced to sign a "yellow dog" contract binding him not to join any "mine labor organization." The contract read in part:

"Harlan Wallins Coal Corporation, Incorporated, employer, and (blank) employee, agree as follows: That so long as the relation of employer and employee exists, between them, the employer will not knowingly employ, or keep in its employment, any member of the United Mine Workers of America, the I.W.W., or any other mine labor organization, and will not aid, encourage or approve the organization there­of, it being understood that the policy of said company is to operate a non-union mine, and that it would not enter into any contract of em­ployment under any other conditions ..."

Bassham conceded that the "yellow dog" contract violated provisions of the National Labor Relations Act. Nationally known as the Wagner Act, this law had been passed in 1935 to protect further the rights of employes to organize and bargain collectively through labor unions. As a weak excuse, Bassham stated that the yellow dog "was a contract that has been in use ever since I came with the company and we just continued it." He further testified that he had "not had an opportunity to acquaint him­self" with the National Labor Relations Act." It is not surprising that the UMWA had never been able to organize a local union at any of the mines of the Harlan Wallins Coal Corporation. Bassham "explanation" was that "our people have never seemed to want the union."


Every miner who lived in the Harlan Wallins Coal Corporation camps was forced to rent a company-owned house and sign a company house lease. The lease required the occupant to vacate the premises immediately upon leaving the employ of the company. Miners discharged for violating the "yellow dog" contract by joining the union were immediately required to pack up their possessions and move on. Each man who worked at Verda (The Harlin Wallins company town) had to rent a house whether he used it or not. Single men living in the homes of their parents also paid house rent. There was one house in Verda which was rented to eight single men at one time and yet it was unoccupied.

When coal miners are paid on the basis of quantity of production, accuracy and honesty in weighing the coal is important to the miners. Coal companies usually hired a person to weigh the coal as it was unloaded at the tipple. One of the objectives of the United Mine Workers of America has always been recognition of the right of employes also to employ a checkweighman to see that miners paid by the ton are given honest weight at the mine scales. It has been proved on a national scale that men were cheated of approximately forty to fifty percent of their pay at mines where checkweighmen were not employed.

When the first contract was signed at Verda in 1937 between the union and the Harlin Wallins Coal Corporation, a state mine in­spector by the name of Guthrie was called in to inspect the scales and a checkweighman was put on the tipple. When Guthrie attempted to balance the scales he had to drill pounds of lead out of the scale weights. He re­ported to me that the false weights were costing the miners tonnage pay on seventeen gondolas (850 tons) of coal a day. The company had also been losing money because it was alleged that this non-weighed coal was sold separately. This money did not revert to the company but was a gravy train for some high company officials.


In Kentucky since 1886, the State law has required the employer to accede to the demand of a majority o fhis employes when they demand that they be permitted to employ a checkweighman to protect their interests, and provided for an election to determine as to whether or not a check­weighman is to be employed by the miners.

There were no checkweighmen at most of the mines in Harlan County in 1937. A union organizer testified that there were checkweighmen at only two mines in the entire county. Both were Black Mountain mines. Robert E. (Uncle Bob) Lawson, general manager of the Cornett-Lewis Coal Company located at Louellen, in Harlan County, testified that he knew of five checkweighmen in the county. He claimed that the reason more were not employed was due to the reluctance of the miners to pay for them. There was, however, no checkweighman at his own mine. His lame explanation was: "... I have tried my best on four different occasions in public meetings to get my men to elect one, and they won't do it. They don't want to pay one." On the other hand, a union representa­tive, Marshall Musick, who had worked at Lawson's mine testified that the miners had checkweighmen at the mine until their union was broken in 1934. He said that after the union was busted, both checkweighmen were run out of the company camp and were not replaced. Nor were there checkweighmen at the mines of the Harlan Wallins Coal Corporation. Mr. Bassham stated that the men had not demanded any. His employes claimed that they were denied the right to have checkweighmen. Any miner who "demanded" would have been chased off company property. He Probably would have been beaten up for his audacity.

The denial of the right to have checkweighmen was not the only grievance Harlan County miners had against the operators. Even more important was the fact that wages, hours and working conditions were pitiful when compared with standards achieved in unionized coal mines.To illustrate this, let me say that no Harlan County miner was paid for what we call "dead work." This coal miners' term means work that is non-productive, such as installing timbers to support the shaft or mine roof, loading out slate and cleaning up other refuse. In unionized mines, this work was paid for at an hourly rate. Not in Harlan County, though. The man was paid for the actual tonnage he loaded and he did this other heavy labor gratis. And he was required to work until his place was cleaned up before he could leave for the day—what old-timers call the "clean-up" system. Of course, he had an option. He could be fired.


The Harlan County miner was paid less than his organized brothers and worked more hours for his pittance. The only pay raise given by the Harlan County coal operators was fifty cents a day in 1937 and was granted because it was thought that this huge wage boost would take the steam out of the UMWA's organizing drive.

What little money paid to the men at the Harlan Wallins mines was quickly taken away from them, many times without the man having seen or touched it. In those days, Harlan County miners were paid semi­monthly at an average wage of $75 a month. It was customary for the employees, who were naturally always hard-pressed for money, to draw advances on their pay. And the kindly Harlin Wallins Coal Corporation permitted this. But there was a catch. The company deducted 15 percent from all advances in cash or company scrip. The latter did not have anywhere near the value of cash because the company did not redeem the scrip at its "face value" but at an additional discount of 15 percent.

The miners had little opportunity to make their purchases except at the company store of the Harlan Wallins Coal Corporation, which was operated by the Verda Supply Company, a separate company created by Pearl Bassham. The men lived in a town built on company property. Independent merchants were not permitted to open shops in the camp which would compete with the company store. The miners even faced the threat of being discharged if they failed to patronize the company store and went outside the camp to do their marketing. This placed the company store in a position to exact its own prices from the miners. The miners testified that they were forced to pay exorbitant prices. The truth of these charges is shown by the swollen profits made by the Verda Supply Company in spite of the fact that it was obliged to accept a ten percent discount on company scrip (five percent less than other merchants who accepted company scrip). Pearl Bassham permitted three other persons to share the Verda Supply Company gravy with him at an investment of $1500 each. For the first year of its operations (1935) the Verda Supply Company paid dividends of $2400 to each of the four persons, a 170 per­cent return on their investment in one year, a profit which Bassham described as "pretty good."


Even the medical services which the company arranged for its employes, at their own expense, was turned to a source of profit for the company. The miners were forced to agree to a monthly check-off from their wages for medical services, two dollars a month for single persons, and $2.50 for married persons. The company employed two doctors at a monthly retainer to provide its employes with what it called necessary medical treatment, but did not pay them all the money it collected from the miners for medical service. Mr. Bassham himself admitted: "We pay the doctors $1250 per month. We collect from $1800 to $2400. The remainder goes to the company."

Underpaying the doctors increased the company's profits but the quality of medical treatment available to the miners suffered corresponding­ly. Furthermore, the doctors had to pay for drugs and supplies out of their curtailed remuneration. They had an incentive, therefore, to run their offices as economically as possible.

One of the miners employed by the Harlan Wallins Coal Corporation told the LaFollette Committee that due to an accident in the mine, his jaw bone was shattered. He went to the company doctor, who merely gave him some pills. He later went to the company hospital for treatment, but proper care was not provided. After infection had set in because of im­proper treatment, he was compelled to go to a private physician at his own expense to effect a cure. Here, again, the miner had an option. He could pay for proper medical care or he could allow himself to die because of the abuses inherent in the company doctor system, or he could quit and allow his family to starve.

Another ingenious method of exploiting his employes, devised by Bassham, was a semi-monthly second-hand car lottery, which should be called a rattletrap raffle. Every two weeks the foreman in the Harlan Wallins mines "were given chances" which they carried through the mines on company time and "sold" to the employes. One of the foremen testified that the men were compelled to buy chances on pain of dismissal and that he never failed to dispose of all tickets he was forced to sell. The lottery tickets were prepared by the company, and the money for them


was collected from the miners by means of a check-off on their wages. Company officials handled the drawing of the lots on a wheel belonging to the company. As much as $800 was collected in this way from the em­ployees for each car that was raffled off. The car was not exhibited to the employees before the raffle and they complained that* they were forced to take dilapidated cars, worth practically nothing. Bassham readily admitted that "all the men together are paying more than the car is worth."

The company compelled its employes to kick in on this rattletrap raffle for more than ten years. During that period, Bassham admitted that he had disposed of "eight or ten" of his own private used cars in this way. I am sure that the number he foisted on his employees was nearer to one hundred than ten. He had a Ford agency in Harlan and had plenty of used cars to raffle off. Several of the company's supervisory officials had also taken advantage of this method of disposing of their own cars at a profit. W. W. Lewis, president of the Bank of Harlan, secretary-treasurer of the Cornett-Lewis Coal Company and treasurer of Harlan County, was permitted, as a special favor, to dispose of his used cars at the expense of the employees at the Harlan Wallins mines. A similar courtesy was ex­tended to Daniel Boone Smith, commonwealth attorney for Harlan County and Bell County. From time to time, the company too raffled off its own used cars. The raffle transactions were so profitable that Mr. Bassham estimated that the company approximated an $1800 or $1900 profit on them in 1936 alone. Bassham explained that the raffling of used cars was a regular part of the company operations. By this he meant that it was another little racket the company had going for it. Bassham conceded that he "might" be taking advantage of his employees in forcing them to partici­pate in the car raffle. He said that the raffle was very profitable to the company and that the cars were "very easily sold." He admitted to the LaFollette Committee that his ability to exploit the miners through the raffle was based upon the fact that they depended on him for their employment. A member of the Committee, Sen. Elbert Thomas of Utah, asked him: "Why don't you quit the mining business and go into this raffling business?" Bassham replied: "I would not be able to sell the chances, sir, if I did not have the mines."


Conditions in Harlan County varied in the different mining camps — from bad to miserable. Certain operators denied their employes were exploited as harshly as the employes of the Harlan Wallins Coal Corpora­tion. However, in 1935, the secretary of the Harlan County Coal Operators Association went to the State capital at Frankfort to lobby on behalf of the coal operators of Harlan County against legislation which was solely intended to correct abuses on wages paid employes, but they were also in a position to capture markets from operators in other districts who abided by the union standard of hours, wages, and working conditions.

Of all the operators and companies in Harlan County in 1937, there were only four whom I regarded as decent human beings. These men were victims of a Frankenstein monster, a system, over which they had no control and which, I believe, they hated and feared. The hillbilly syndicate that operated this vicious system could and would liquidate anybody who dealt with the union. This was proved by the attempt to dynamite the house of the superintendent of the Black Mountain Coal Company. The decent men to whom I refer are Armstrong Matthews at Closplint, A. J Asbury at Black Mountain, R. W. Creech, owner of the Creech Coal Company at Twila, and Elmer Hall at Three Point.



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