The Eastland and Government Regulation

Today marks the 100th anniversary of the capsizing of the S.S. Eastland in the Chicago River, trapping and drowning 844 passengers, most of whom were Western Electric employees on a family picnic.  Of the 844, most were women and children and over 250 were teenagers or young children.  This disaster has a place along with the Chicago Fire and the Iroquois Theater fire as the deadliest and most scarring in Chicago history.  The photos found on the internet of bodies being recovered still haunt today, and recently actual film footage was recently discovered in Europe (www.eastlanddisaster.org).

For years, many theories and myths surrounded the causes of the disaster.  A common tale passed down was that the passengers all moved to one side of the boat to witness a commotion on land.  That theory turned out to be a myth.  In 2005, George Hinton published a well researched book, Eastland: Legacy of the Titanic.  Hinton documented the construction and history of the ship and consulted with maritime engineers.   The Eastland had a history of stability issues from the start.  But the government regulation that required a place in a lifeboat for every passenger turned out to be a major contributor to this catastrophe [although that conclusion has been disputed by Michael McCarthy in his recent book : Ashes Under Water: The SS Eastland and the Shipwreck that Shook America].  The Eastland was not designed to carry the lifeboats and could not handle the additional bulk and weight.   As a result, in a matter of minutes, on that fateful July day, hundreds of lives were cruelly snuffed out.

We should never forget that tragedy.  But we should also never forget the real consequences when government regulation is blindly applied.  As Nassim Taleb so wisely noted in his book Antifragile, government often inadvertently and tragically increases risks when trying to control them.