Saturday, December 27, 2014

Flashback: FDR seizes control of Montgomery Ward

History.com reports:
On this day in 1944, as World War II dragged on, President Franklin D. Roosevelt orders his secretary of war to seize properties belonging to the Montgomery Ward company because the company refused to comply with a labor agreement.

In an effort to avert strikes in critical war-support industries, Roosevelt created the National War Labor Board in 1942. The board negotiated settlements between management and workers to avoid shut-downs in production that might cripple the war effort. During the war, the well-known retailer and manufacturer Montgomery Ward had supplied the Allies with everything from tractors to auto parts to workmen's clothing--items deemed as important to the war effort as bullets and ships. However, Montgomery Ward Chairman Sewell Avery refused to comply with the terms of three different collective bargaining agreements with the United Retail, Wholesale and Department Store Union hammered out between 1943 and 1944. In April 1944, after Sewell refused a second board order, Roosevelt called out the Army National Guard to seize the company's main plant in Chicago. Sewell himself had to be carried out of his office by National Guard troops. By December of that year, Roosevelt was fed up with Sewell's obstinacy and disrespect for the government's authority. (The uber-capitalist Sewell's favorite insult was to call someone a "New Dealer"--a direct reference to Roosevelt's Depression-era policies.) On December 27, Roosevelt ordered the secretary of war to seize Montgomery Ward's plants and facilities in New York, Michigan, California, Illinois, Colorado and Oregon.
FDR sure wasn't a believer in property rights.