Monday, Apr. 27, 1936
League v. Borden
To Jersey City last week for the annual stockholders' meeting of Borden & Co. journeyed about 15 Manhattan gentlewomen primed with leading questions. The League of Women Shoppers, least vague, best-mannered consumer pressure group of its kind, was making its first sortie on the management of a company whose labor policy it disapproved. After the meeting, thin, exasperated Chairman Albert Goodsell Milbank rumbled that nothing like this had happened in 80 years.*
Borden was boycotted by the League's 2,000 members last month because it refused to renew its agreement with Local No. 584 of the Milk Wagon Drivers' Union. The League investigated, found in its opinion that the company had spent money to break up the union, had formed a company union without determining fairly what its employes wanted. Last week members of the League who were also Borden stockholders or who could get Borden proxies went to Jersey City to identify their protest with the interests of Borden owners.
Tall, dimpled Evelyn Preston, president of the League, asked why 1935 earnings failed by 50-c- per share to cover the $1.60 dividend. President Milburn said most of the difference was due to produce losses (30-c- per share), the farmers' milk strike in Illinois (10-c- to 15-c-) and a strike of milk wagon drivers in Milwaukee (remainder).
"Might it not be cheaper for the stockholder in the long run," asked Miss Preston, "if the company quickly negotiated with the union?"
"The utter unreasonableness of the union's demands made that impossible,'' snapped President Milburn.
"Our employes are happy and satisfied and well paid and taken care of," chimed another director.
"I understand the company is losing money because Borden products are not bought in union circles and thousands of bottles have been dropped a day," said Writer Leane Zugsmith.
"If that is so," countered President Milburn, "the loss is taken up elsewhere because our sales show an increase."
"Is this a labor meeting or a stockholders' meeting?" asked Director Stanley Ross. When a motion was made that money now spent by Borden on labor disputes should be spent for arbitration, Di rector Ross complained bitterly that "most of the company's labor troubles have been inspired by Reds and Communists."
"Recently there has been a large impor tation of agitators from Russia," observed Mr. Ross.
The motion was voted down 2,768,877-to-950. Mr. Milbank ruled out further labor questions because they were taking up too much time.
"They are just as important as passing resolutions on directors' salaries," insisted Mr. Reis.
The League of Women Shoppers was born last June when a few ladies left a tea at the home of Mrs. Arthur Garfield Hays to call on Nathan Ohrbach, who runs a big bargain dress store on Manhattan's Union Square. Merchant Ohrbach had had a strike on his hands for months. To their great surprise the ladies left his office with the realization that they had suddenly settled the Ohrbach strike. Mrs. Hays was promptly chosen as first president of the League of Women Shoppers. Among early members were Writers Genevieve Taggard and Josephine Herbst. The organization developed a standard procedure of investigating strikes, boycotting, picketing if necessary. A strike last November at May's Department Store in Brooklyn gave them most work, most publicity. Of 40 League pickets, 24 were arrested.
Evelyn Preston, who succeeded Mrs. Hays as president last December, was born 37 years ago in Colorado Springs. She went East to school, studied at Barnard and the University of Wisconsin, found herself interested in labor problems after the War. In 1924 she went to England, joined the Labor Party. Now married to Roger N. Baldwin of the American Civil Liberties Union, she lives with him and her two children by a previous marriage at Oakland, N. J., raises chrysanthemums, plays bridge, has six Scottish terrier pups.
* Most peaceful annual meeting of the week was that of Virginia Electric & Power Co. at Richmond, where the only stockholder to show up was an old Negro pensioner named Freeman Harris. Stockholder Harris dropped in on his way to church, prayed, while officials bowed their heads, for the Divine guidance of the company.
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