Great Grandpa, Part 1
Great Grandpa Festus J Wade
The spate of family deaths over the past 3 years, along with my recent retirement, has me digging into family history. I feel like I’ve waited too long to develop an interest in my predecessors, but in my defense, my dad almost never talked about his family. My sense was always that his memories were painful - his father (my grandfather) fought in WW1, was an advisor of some sort during WW2, and then shot himself. Add in to the mix the fact that my great-grandfather, born in Limerick, Ireland in 1859 (the 6th of 6 children), was brought to the US as an infant when his family had something like $60 to their name, and died a millionaire in 1927. That’s a tough act to follow.
The paragraph above is really all the family lore that I knew until last year. The good news for me is that great grandpa, Festus John Wade, became not only a prominent St. Louis banker (who helped to establish the Federal Reserve system) - he was also a decent guy.
In our current era of tech bros and asshole billionaires, it’s been a balm to my soul to read through the many news articles about Festus that someone in the family painstakingly gathered throughout his life. Today I found an article from the St. Louis Republic, May 5, 1919, that outlines his perspective on the people in his employ, the importance of providing more than a ‘living wage’, and his acknowledgment that his institutions had a duty not just to the workers, but also to society at large.
Earlier this week I came across this post from someone name Kieran Snyder on LinkedIn where she emphasizes the importance of compensation. I feel like she and Great Grandpa Festus could have had some good discussions.
The overall piece is fairly long - I’ve reproduced it below (along with a photo of the original from the family scrapbook). The TLDR quotes include:
:
“ A square deal, living wages, and a definite amount of money that jingles in their pockets to take home on payday and count it out to the wife and family is the desire of every industrial worker.”
“The scrub woman and the president of a bank are simply employees of the financial institution,” he said. “One holds a different position from the other, but both are servants of the company and the public.”
“Some unreasonable demands are being made by Labor leaders and they must make concessions before an equitable readjustment can result. The employers must make most of the concessions in solving a permanent wage and working basis, but concessions must also be made by the other side.”
“The worker is entitled to something more than three meals a day for himself and family. There should be something for the education of his children and giving them proper clothing to attend school. There should be enough to pay to furnish a certain amount of amusement for the family. And there should be a little leftover to be set aside for the rainy day.”
“Wade said the most effective method of producing contentment among the general bank forces is to make it as easy as possible for the workers to purchase stock in the institution and participate at once in the dividends.”
“To aid them .further we have during the last two years paid our entire staff 14 months of salary each year, giving a bonus of one month pay twice each year this applies to all employees.”
“All persons in the employ of the company are insured for twice the amount of their annual salary in responsible old line insurance company, Wade said. “This insurance costs the employee nothing, the entire expense being born by the company.”
“During the war period, the lively little club of our employees known as The Mercantilians levied an assessment of one percent on the salary of all employees from office boy to president, to establish war service fund. We all came through and paid our assessments and were glad to do it.
The assessments were collected monthly. The company contributed a like amount to the fund, paying an amount equal to the aggregate collected from the employees.
The fund was administered by a committee of employees, elected by the employees, and was used to purchase articles twice each month for use by their comrades in arms in the United States service.”
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Photo of the original article
St. Louis Republic
May 5, 1919
How Mercantile Trust Company Gives Employees Share in its Profits
Two Months’ Extra Pay a Year, Insurance, Stock in Cancer on Easy Payments Among Plans Put into Effect by Festus J Wade - “Workers Don’t Want Charity,” He Says, “They Want and Are Entitled to Good Wages”
By Jesse Blythe
One of the things that should be remembered by employers in seeking a solution to the labor unrest during the reconstruction is that American workers do not want to buy any rainbows and if they do, they will go out and buy their own rainbows, in the opinion of Festus J Wade, president of Mercantile trust company.
The workers do not want welfare work that savors of charity, or complicated systems of measuring the market value of their labor, which have glowing promises, but put no real money in pay envelopes, Wade believes.
A square deal, living wages, and a definite amount of money that jingles in their pockets to take home on payday and count it out to the wife and family is the desire of every industrial worker, Wade told me. There can be no substitute for the fundamental desire if the employers are to have contented employees and an efficient working force.
There is no set rule which will meet all conditions and be practical in all lines of business and industry, in Wade's opinion. He believes that the best plan in readjusting conditions is for the employer to figure not that he is the boss, but that he is a collaborator with the workers for the success of his business.
All Are Servants
“The scrub woman and the president of a bank are simply employees of the financial institution,” he said. “One holds a different position from the other, but both are servants of the company and the public.”
I asked Wade whether he thought Wages will or should be lowered in the adjustment of industry in the shift from a war to a peace basis and what should be the basis of the normal wage scale under the changed industrial conditions following the war
“The time has gone by when labor can be hired for mere meat and bread,” he replied. Wages have been firmly set upward and they will not come down except in a extravagant wartime cases. The wage paid to some classes of labor during the war period have been abnormally inflated and must be readjusted to equalize the wage system, and give a square deal and living compensation to all classes of employees.
“Some unreasonable demands are being made by Labor leaders and they must make concessions before an equitable readjustment can result. The employers must make most of the concessions in solving a permanent wage and working basis, but concessions must also be made by the other side.
“The labor unrest is more than a fact, at least so far at St. Louis is concerned and the employer and worker can easily get together with just a little of the give-and-take principal put into practice.
The worker is entitled to something more than three meals a day for himself and family. There should be something for the education of his children and giving them proper clothing to attend school. There should be enough to pay to furnish a certain amount of amusement for the family. And there should be a little leftover to be set aside for the rainy day.
The Mercantile Plan
Wade has put into the Mercantile Trust Company and the Mercantile Bank a system of dealing with the employees which seems to promise contentment among the working force. He does not believe that this plan would be workable in all industries or business institutions, but it fits in with the efficient management of financial institution.
In outlining to me the benefits to the employees plan, Wade said the most effective method of producing contentment among the general bank forces is to make it as easy as possible for the workers to purchase stock in the institution and participate at once in the dividends.
“We have inaugurated such a system here,” he said, “and 1,500 shares of stock of this institution now are owned by employees. My greatest hope is that the day will come when the entire company is owned absolutely by its employees. About 40% of our workforce is buying stock.
“By our plan, we purchased the company stock on the market at the market price for employees who desire it. We carry it for him at the current rate of interest. They pay us for four dollars per share per month. They at once begin to draw the dividends on the stock and the dividends more than pay, the interest charges.
To aid them .further we have during the last two years paid our entire staff 14 months of salary each year, giving a bonus of one month pay twice each year this applies to all employees. The purchase of stock is entirely voluntary and we handle the financial problem for them on request.
This plan has three valuable features: (1) It creates the saving habit among our employees; (2) It inspires an interest in the proper conduct of the business; (3) It encourages them in their watchfulness and care in the development of the institution.
An Insurance feature, by which all employees are insured at the expense of the company offers a deviation from the pension fund plan being tried out in many industries.
All Persons Insured
All persons in the employ of the company are insured for twice the amount of their annual salary in responsible old line insurance company, Wade said. “This insurance costs the employee nothing, the entire expense being born by the company.
“If death overtakes one of the employees is substantial fund in Cash care for themselves or at least the emergency. If an employee leaves the service of the company or she has the option of keeping up the policy and paying the future premiums or may drop it. The payment of the premiums by our company ceases when the employee leaves.
An interesting and apparently effective method of enabling employees duty toward fellow employees who left the bank to go to war, was devised by the employees and was approved and financially aided by the company.
This little war investment in humanity was carried out under the direction of an organization of the employee is called the Mercantilians. It was explained to me by Wade as follows:
During the war period, the lively little club of our employees known as The Mercantilians levied an assessment of one percent on the salary of all employees from office boy to president, to establish war service fund. We all came through and paid our assessments and were glad to do it.
The assessments were collected monthly. The company contributed a like amount to the fund, paying an amount equal to the aggregate collected from the employees.
The fund was administered by a committee of employees, elected by the employees, and was used to purchase articles twice each month for use by their comrades in arms in the United States service.
Helped Men Overseas
When the embargo was put on against the sending of shipments to soldiers in France, the committee sent a European draft twice each month to the boys across the sea, to be used by them in their own way, in lieu of the usual semi monthly consignment. This war memorial is still kept up for those still serving with the colors.
In addition to the Mercantilians had a Visiting Committee, which visited the families of our men in the service and had instructions to render any necessary, whether in cash or otherwise.
This committee was instructed not to make report of assistance. The employees had implicit confidence in the members of the committee and gave it power to act and make no report of such expenditures, this assured secrecy to the transaction and eliminated the element of charity.
All married employees who went to arms were allowed a sum equivalent to their salary, up to 100 per month minus the $30 a month paid them by the government. The unmarried employees in the service were allowed a sum equal to half of their salary up to 100 less the 30 paid to them by the government This allowance was paid in cash to their families or dependents designated by them.
Trust the usual vacation of weeks with fully pay, and, in some instances three weeks at full pay ,and gives the usual Christmas memorial is some substantial sort, Wade said. These are some of the provisions designed to create a contented working force and bring about a big family spirit in the institution.
The greater consideration shown to the worker by the employer, the greater will be the standing of the institution in the community, in Wade’s opinion. This will apply whether it be a commercial concern, manufacturing, industry, or financial institution he declared.