Pickands Mather Pickands Mather was shipping iron ore from mines in
Minnesota to
steel mills all over the Great Lakes. Coulby's fascination with lakes led him to learn all he could about Great Lakes shipping: the type of boats, port facilities, weather, routes, cost, and more. As often as he could, he traveled on ships to learn their idiosyncrasies, problems, and labor issues. Coulby was quick to identify ways in which to cut costs, and ways to expand the company's business at minimal expense. He worked in several areas of the firm, but returned again and again to the Marine Department. He was made a partner in the firm in 1900. Coulby helped plan and participated in the greatest expansion of a Great Lakes shipping fleet ever seen at that time. In 1889, Pickands Mather partner and iron mine owner Jay C. Morse, and others, organized the Minnesota Steamship Company to meet their joint shipping needs. Within three years, the firm had a fleet of nine steamers and five barges. When Pickands Mather lost the contract to manage the Minnesota Steamship fleet in 1901, Coulby formed the Mesaba Steamship Company to compete with it. Mesaba Steamship built the large freighters
Amasa Stone in 1905 and
Samuel Mather 1906, and two others. He also arranged to manage the fleets of the Acme Steamship Co., Peavey Steamship Co., and Provident Steamship Co. By 1903, Coulby had oversight of a fleet of 50 steamships (although only five were directly owned by Pickands Mather). He was also a member of the Dock Managers Association, the employer organization which engaged in
collective bargaining with
labor unions (such as
longshoremen and other workers who loaded and unloaded ship). Under the terms of this agreement, Coulby remained manager of the Marine Department of Pickands Mather.
Pittsburgh Steamship As head of the largest Great Lakes steamship company in North America, Coubly was a study in contrasts. He wore tailored suits purchased in England and smoked fine cigars. Yet, he also loved to tell stories about his life on the farm and his early weeks in America, aggressively demanded to know how much money his subordinates were making, and liked to walk the wharves to learn about his ships, weather, and navigational hazards. Coulby's tenure as president of the fleet was marked by two major accomplishments. First, he significantly upgraded the fleet to eliminate wooden-hulled ships, replacing them with much longer and larger steel-hulled vessels. He ordered the significant redesign of Great Lakes carriers as well, eliminating the curved deck of the whalebacks which allowed for greater access to the hold. This allowed for faster loading and unloading, and less time in port (the most costly part of shipping). He also ordered the crew cabins placed atop the deck at the stern, crew cabins placed atop the
forecastle, and a
pilothouse atop the forecastle cabins. This freed up space belowdecks for cargo. Coulby's redesign of the Great Lakes ore carrier, first implemented with the construction of the
Elbert H. Gary in 1905, became the standard for the next 65 years. He then sold off most of the older, smaller vessels. Ship crews downsized significantly, and skilled sail crews were replaced by deskilled blue-collar workers (such as
firemen,
oilers, and deck watchmen). Ship captains, whose judgement about a sailor's skills often was critical, now performed far more limited roles and had little input about the makeup of the crew. Second, Coulby significantly reorganized the fleet's management and pressured labor unions for wage and benefit cuts. He moved the company headquarters from
Duluth, Minnesota, to Cleveland; appointed a new vice president to supervise operations in Duluth; promoted several mid-level managers; and ordered cuts in managerial pay (sometimes as much as 48 percent). With unionization growing among steamship workers, the
Lake Carriers' Association (LCA) proved critical to Coulby in implementing his employment policies. He was elected the LCA Executive Committee on January 22, 1903, and came to dominate the group. Coulby's influence came from his having been manager of the Pickands Mather fleet and Great Lakes Towing (commonly known as the "Tug Trust"), as president of the largest shipping fleet on the lakes, his company's relationship to U.S. Steel (which shipped far more ore on the lakes than any other company), and his natural aggressiveness and tendency to see himself as a "benevolent despot". Coulby immediately reorganized the LCA. The group had attempted to form a
company union, the Lake Carriers' Beneficial Federation, in 1901, but this effort had failed to stem unionization. In the early months of 1904, Coulby led the LCA in bargaining with the many small unions fighting for membership among ship and dock workers. His strategy was to negotiate incremental givebacks first, then snowball the effort into a major anti-union drive. He convinced the
Marine Firemen, Oilers and Water Tenders' Union to accept a small wage cut, agree to the elimination of engineers on barges, and to permit captains to lay off workers if a ship was more than three days in port. Then the LCA forced the
International Seamen's Union to agree to drop
overtime pay and accept a similar layoff provision. The LCA then refused to bargain with the
Marine Cooks and Stewards' Union. The union was unable to win a strike vote, and its members went back to work without a contract (accepting a sharp reduction in pay to just $70 a month). Just weeks before the shipping season began in April, Coulby fired all captains in the Pittsburgh Steamship Company fleet, and forced them to reapply for their jobs (
blackballing those who had joined a union). The
American Association of Masters and Pilots resisted, demanding a captain' right to join a union and a 13.6 percent wage increase (to $2,250 for a full nine months). Although many members of the LCA initially declined to support Coulby, he told them that U.S. Steel would not charter their ships if they backed down. The owners decided to support Coulby. The union went on
strike, but the strike was broken on June 14, 1904, after many union members went back to work without a contract. The union never again attempted to organize ship captains. Coulby then forced his workers to sign
yellow-dog contracts in 1905. When the Marine Firemen threatened to strike, Coulby won a pledge from the
Lake Seamen's Union and the
Marine Engineers' Beneficial Association to provide
strikebreakers. The
International Longshoremen's Association struck anyway on May 1, but when it received no backing from any other union the strike collapsed. In late November 1905, the Pittsburgh Steamship Company lost 10 vessels (but, amazingly, only 12 crew members) when the
Mataafa Storm struck the Great Lakes. Coulby rushed to Duluth to oversee rescue and salvage operations. Coulby responded to the disaster by rapidly building 21
Morgan-class ore freighters: True long freighters which were several feet wider than existing steamships. During the 1906 and 1907 shipping seasons, Coulby quietly allowed the LCA to sign one-year contracts with a wide range of labor unions. During this time, however, iron and coal companies stockpiled large amounts of raw materials. In early 1908, Coulby announced that the Pittsburgh Steamship Co. was implementing the
open shop. Engineers were required to sign yellow-dog contracts in which they agreed to their classification as management. Other LCA members went even further, enforcing the blacklist, barring union representatives from company property, and requiring all ship crews to sign oaths affirming they were not members of a labor union (and firing anyone who refused to sign or was caught breaking their oath). The LCA's anti-union effort continued the following year. Coulby helped design the LCA "welfare plan", which required all crew members to participate in a pension scheme that effectively weeded out union supporters. Several unions struck in May 1909, but the employers hired strikebreaks and the International Longshoremen's Association refused to support the strike. Feelings ran high during the strike. In 1910, union workers cut the ear off a non-union deck hand in Buffalo and mailed the ear and a letter containing a death threat to Coulby. But the unions were largely broken, even though the strike lingered into 1912. When it finally ended, what few union members remained went back to work without a contract. The open shop remained the rule among Great Lakes shipping fleets for decades to come, and unionization rates never recovered. Although some wage increases and improvements in working conditions occurred over the next half century, these were implemented at the discretion of employers because they were seen to be good business practices and not because of worker demands. After 1907, Coulby became an increasingly confident and aggressive manager. He began holding meetings with the captains and managers of the Pittsburg and Pickands Mather fleets, coordinating their efforts and discussing schedules, loading problems, routes, navigational issues, and much more. With labor relations quiescent, the 1910, 1911, and 1912 shipping seasons were uneventful. But in early November 1913, the
Great Lakes Storm of 1913 struck. The terrible storm sank 17 ships and more than 250 crewmen lost their lives. But while the Pittsburgh Steamship Co. lost several barges, only two of its large freighters were wrecked and loss of life was almost nonexistent. By the time Coulby retired in 1924, he had expanded the "Steel Trust Fleet" into the most dominant on the Great Lakes. Under his supervision, the company built 26 freighters and four , and purchased three freighters and six freighters. These ships, known as "tin stackers" for the silver color of their funnels, were part of a fleet which continued to dominate Great Lakes shipping into the 1970s.
Interlake Steamship Co. Coulby devoted his full attention to both the Pickands Mather and Pittsburgh Steamship fleets. While cost-cutting and labor issues dominated his activities at Pittsburg Steamship, he focused on expanding the Pickands Mather fleet. To finance the construction of these vessels, Pickands Mather would partner with another firm (usually a coal, iron, or steel firm). The two partners would then create a new shipping company to hold title to the vessels built. A fourth company would manage the ships. In 1906, Coulby formed the Lackawanna Steamship Co., a subsidiary of Pickands Mather, and purchased eight steamships to stock its fleet. Beginning in 1912, Henry Dalton, the president of Pickands Mather, held a meeting of all department heads to discuss the company's business. In Dalton's absence, Coulby chaired these meetings. In May 1913, Coulby orchestrated the merger of a number of smaller independent and subsidiary steamship lines into a new company, the Interlake Steamship Company. Pickands Mather had a 100 percent interest ownership in the new line. The firm, which had started out with just a 13/20th interest in a single wooden ship, now owned a company which had 37 freighters and two barges and was the second-largest shipping fleet on the Great Lakes next to the Pittsburgh Steamship Co. The merger included the Acme Steamship Co., Gilchrist Transportation, the Huron Barge Co., the Lackawanna Steamship Co., the Mesaba Steamship Co., the Provident Steamship Co., and the Standard Steamship Co. Coulby was named president of the new fleet. In 1916, Coulby purchased 13 freighters from the Cleveland Steamship Co., and built its first -foot freighter, the
Henry G. Dalton. Another six -foot freighters were built in 1916. These purchases brought the Interlake fleet to 52 ships, the second largest on the Great Lakes. Coulby also became increasingly active in other areas of the company as well. In 1905, Pickands Mather invested in the By-Products Coke Corporation, which distilled
coal into
coke and a wide range of chemical products. Pickands Mather freighters now began hauling coke to iron foundries throughout the Great Lakes. By-Products merged with the Federal Furnace Company in 1915. In 1920, as the By-Products facilities were aging into obsolescence, Coulby and several other partners and upper-level managers backed a successful buyout of By-Products stock, making the company a wholly owned subsidiary of Pickands Mather. The company then invested heavily in upgrading and refurbishing the company plants, becoming a major manufacturer of coke and chemicals. Management of By-Products was overseen by C.D. Caldwell, who was named president of Pickands Mather's new Interlake Iron Corporation and a partner in the firm in 1929. ==Personal life==