Cornell University Library 
 
 HD8051.B6 1919 
 
 Social and industrial conditions in the 
 
 3 1924 002 434 102 
 
 U. S. CONGRESS. StNATE. 
 
 SOCIAL A1\D IiroUSTT^LAl GONTiITIOKS li! TF] 
 UNITED STAv23. 
 
THE LIBRARY 
 
 OF THE 
 
 NEW YORK STATE SCHOOL 
 
 OS 
 
 INDUSTRIAL AND LABOR 
 
 RELATIONS 
 
 AT 
 CORNELL UNIVERSITY 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN 
 THE UNITED STATES 
 
 HEARINGS 
 
 BEFORE THE 
 
 COMMITTEE ON EDUCATION AND LABOR 
 UNITED STATES^ SENATE 
 
 SIXTY-FIFTH CONGRESS 
 THIRD SESSION 
 
 PURSUANT TO 
 
 S. RES. 382 
 
 A RESOLUTION DIRECTING THE COMMITTEE ON EDUCATION 
 
 , AND LABOR TO RECOMMEND TO THE SENATE METHODS 
 
 OF PROMOTING BETTER SOCIAL AND INDUSTRIAL 
 
 CONDITIONS ALONG LINES SUGGESTED 
 
 AND INDICATED HEREIN 
 
 Printed for the use of the Committee on Education and Labor 
 
 PROPERTY OF LIBRARY 
 
 NEW YORK STATE SCHOOL 
 INDUSTEIAL AND LABOR .RELATIONS 
 
 CORNELL UNIVERSITY 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1919 
 
COMMITTEE ON EDUCATION AND LABOR. 
 
 United States Senate. 
 HOKE SMITH, Georgia, C77M!i'man. 
 
 CLAUDE A. SWANSON, Virginia. 
 HENRY F. HOLLIS, New Hampshire. 
 HENRY F. ASHURST, Arizona. 
 ANDRIEUS A. JONES, New Mexico. 
 KENNETH McKELLAR, Tennessee. 
 
 2 
 
 WILLIAM E. BORAH, Idaho. 
 BOIES PENROSE, Pennsylvania. 
 CARROLL S. PAGE, Vermont. 
 GEORGE P. MnLEAN, Connecticut. 
 WILLIAM S. KENYON, Iowa. 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 FBIDAY, JANUARY 3, 1919. 
 
 United States Senate, 
 Committee on Education and Labor, 
 
 Washington, D. G. 
 
 The committee met, pursuant to call, at 10 o'clock a. m., in room 
 201, Senate Office Building, Senator Henry F. Hollis presiding. 
 
 Present: Senators Hollis (acting chairman),^ Ashurst, Jones, 
 Kenyon, and McLean. 
 
 Also present: Samuel Gompers, president of the American Federa- 
 tion of Labor. 
 
 The Chairman. The committee wiU come to order. Mr. Gompers, 
 the time is yours, so far as I know. 
 
 Senator Kenyon. I would like to explain to Mr. Gompers that I 
 introduced this resolution, and it was passed by the Senate for the 
 purpose of having this committee take up all questions involved in 
 iDBttering the social and industrial conditions of tne country, and that 
 the activities of the committee are not limited to the things specified 
 here at all, but this is a sort of a skeleton or a nucleus upon which to 
 work. I will say that I have received letters from all parts of the 
 country, from various organizations and from people who would like 
 to appear at this hearing. 
 
 Senator Jones. I think that the resolution ought to be inserted 
 in the record at this point. 
 
 The Chairman. Yes; the stenographer will show that this hearing 
 was held on this resoliition, and have it embodied in the record. 
 
 (The resolution referred to is here printed in full in the record as 
 follows:) 
 
 [S. pes. 382.] 
 
 Resolved, .That the Committee on Education and Labor be, and is hereby, instructed 
 to investigate and recommend to the Senate methods of promoting better social and 
 industrial conditions in the country, particularly as to — 
 
 (1) The establishment of a national tribunal to review and adjust difficulties between 
 employers and workmen and to improve industrial conditions in the various industries 
 and trades. 
 
 (2) The development of the United States Employment Service into a national 
 labor exchange. 
 
 (3) The regularization of employment. 
 
 (4) The prevention of unemployment among workers, both men and women, by a 
 program of necessary public works to be undertaken during periods of industrial 
 depression. 
 
 (5) The promotion of better living conditions and a plan for centralized, adminis- 
 trative control of the housing projects of the National Government during the period of 
 the war. 
 
 (6) The extension of the United States sailors' and soldiers' insurance to the civil 
 population, so that the workmen can insure against sickness, accident, and death at 
 the lowest possible rate. 
 
 (7) The feasibility of a national insurance law against nonemployment, old age, 
 disability, sickness, and accident. 
 
 3 
 
4 SOCIAL AND INDUSTRIAL CONDITIONS IN' THE UNITED STATES. 
 
 (8) The feasibility of some plan for a national mimmum--wage law. 
 
 (9) The question of extending the opportunity for vocational training and education 
 to all people in'the United States disabled by injury or sickness. 
 
 (10) Any other questions relating to a permanent improvement in the relations 
 between employer and employee. 
 
 Mr'. GoMPEEs. Mr. Chairman and gentlemen of the committee, the 
 resolution, as I imderstand it, authorizes or would undertake to 
 authorize an investigation regarding various subjects, having for their 
 purpose the amelioration or the improvement in the condition of 
 the masses of the people. Every man interested in his fellows must 
 necessarily feel that an iavestigation of that kiad should be welcome 
 and would be helpful. , 
 
 However, there are some of the" questions proposed to be investi- 
 gated which the thinking men, and the men interested — the men 
 who have given the particxilar question some years of study, are not 
 in accord with — that is, as they are printed in this document, for 
 investigation. I shall, with your permission, try to point out a few 
 of those a little later on. I simply want at this time to emphasize 
 the fact, that all the questions suggested to be investigated are not 
 questions in the interest of the working people, and are not in the 
 inteirest of the masses of the people, but are repugnant to, the very 
 spirit of freedom and calculated to work great injury to the institu- 
 tions of our country and the ideals upon which our republic is based. 
 
 Senator Kenton. Of course, you understand, Mr. Gompers, that 
 such was not the intention of the resolution by any means. 
 
 Mr. Gompers. I know Senator Kenyon very well, and anyone 
 knowing Senator Kenyon as well as I do realizes that nothing was 
 further from his mind in the introduction of this resolution. While 
 comparisons are odious, I am told, I shall submit the mere statement 
 that I am satisfied beyond peradventure that that is not what the 
 Senator had in mind. I will try to point them out a little later on if 
 I may, and I think there may be agreement in regard to those points. 
 
 The one thing upon which there is general agreement among men 
 and women who feel for their fellows is that there must come within 
 the very near future in our country, as weU as in the other countries 
 of the world, a new concept of the relations between man and man, 
 a new concept of the relations between nations and nations. These 
 concepts must be founded upon the spirit and the purpose of justice 
 and right and give to man an opportunity for the unfolding of his 
 character and his being and for the development' of the best that is in 
 him and his ; that is, the wife and the children. 
 
 I know that there are many panaceas offered for all the ills of the 
 human family, and that not all of them are applicable or practicable. 
 Of one thing we ought to rid ourselves, and that is speculative 
 theories, and indulge ourselves in the effort to solve the practical 
 problems which are confronting us, and to build upon- that hne tor 
 extension. 
 
 It has been said that it is easier to criticize and destroy than it is 
 to advocate a constructive policy. I tbink that the work in which 
 the men and the women of labor have been engaged for the last 30 
 
 fears or more has been of a constructive character. When wages 
 ave been increased and hours of labor reduced, working conditions, 
 safety j- sanitation, have been improved and brought light into the 
 life of the worker^.. When the morale of the worker has improved, 
 
SOCIAL AND INDtrSTMAL CONDITIONS IN THE UNITED STATES. 5 
 
 when the years of life, the longevity of the workers has been in- 
 creased, when their value as producers has been enhanced, and when 
 the understanding and the activities of and in civic pride and duty 
 count for something in the constructive work of the American labor 
 movement, surely something has been accomplished. 
 
 And yet we have had many obstacles to meet and to overcome, 
 and some of them have been the result of the best intentions. 
 
 I recall very distinctly that about 20 years ago a Mr. Lusk came 
 from New Zealand to the United States as a crusader and an evan- 
 gehst for compulsory arbitration of labor disputes between the 
 workers and the employers. He at once undertook a campaign 
 which had been arranged for him to preach his new gospel of com- 
 pulsory arbitration. Passing from thatvfor a moment, 1 may say 
 that that good friend of labor and great American, Henry D. Lloyd., 
 who within a year of Mr. Lusk's visit had gone to New Zealand and 
 stayed there for a few months, came back and wrote a book en- 
 titled "A Country Without Strikes." I remember very distinctly 
 the rather ill repute that I got myself into by contending against Mr. 
 Lusk's proposition of compulsory arbitration, and i refer to this 
 fact because of the first question submitted for investigation in this 
 resolution. 
 
 Now, the newspapers at the time took me to task. I questioned 
 Mr. Lusk in those public gatherings as to what was really meant by 
 compulsory arbitration. I asked him if it did not mean that, the 
 workers were to be prohibited by law from stopping work, from 
 quitting employment. I finahy pinned him down to the point and 
 he said it was. I asked him that in the event of workmen refusing 
 to abide by an award of a board or a court of arbitration, whether it 
 did not mean that these workers would be fined or imprisoned or 
 both. It was really extracting an answer from him when he finally 
 admitted that that would be the result of disobedience of the court's 
 or board's finding. 
 
 I was written down or written up as one who was promoting dis- 
 order among the workers, and one who wanted to prevent from being 
 put into operation a very fine method which would prevent strikes. 
 
 In spite of any opposition that we could manifest, in the Congress 
 of the United States and in several of the legislatures, bills were 
 introduced for compulsory arbitration, compulsory investigation, 
 and making it unlawful for workmen in concert to leave their employ- 
 ment before a board of arbitration had rendered its award or until 
 a board of investigation had niade inquiry and rendered an award. 
 
 It required all of the energies and activities of our men to prevent 
 the enactment of this species of legislation. In one of the States 
 it became a law — Colorado — compulsory investigation and forbidding 
 strikes or cessation of work until the court or board, had made an 
 investigation and rendered an award. That feature was based upon 
 the Canadian act. From the moment that the Colorado act was on 
 the statute books until the present day, there has not been any piece 
 of legislation that has given such general dissatisfaction as that one. 
 A little more than a year and a half ago, in spite of the law, the work- 
 men, failing to secure redress at the hands of the commission or the 
 board, simply struck. 
 
 They violated the law. They were lawbreakers. But they quit 
 work and got quicker action at the hands of the employers who have 
 
6 SOCIAL AND lETDUSTBIAL CONDITIONS IN THE UNITED STATES. 
 
 recognized since then the proper standards and conditions that should 
 prevail and should have prevailed for a long time previously. 
 
 Within 10 years of Mr, Lusk's first appearance in the United States 
 as the advance agent for compulsory arbitration, he made another ■ 
 visit to our country. On that visit he took occasion to say that his 
 hopes for the adjustment of differences between employers and 
 employees by a species of compulsory arbitration could not be 
 realized, that compulsory arbitration was a failure, and that he would 
 not recommend it for enactment by the Congress or the legislatures 
 of the States of the United States. 
 
 The result of our activities also aroused the employers to the 
 situation, and after we had expended much of our energies in com- 
 bating this legislation, they too resolved that they wanted nothing 
 of it. 
 
 Senator McLean. And that applied to compulsory investigation 
 as well as to compulsory arbitration, did it not ? 
 
 Mr. GoMPERS. Yes, sir; but not to the same extent, but in prin- 
 ciple and in fact, yes, sir. Hide it behind any phraseology you like, 
 when a law or the representatives of the law, or the Government of 
 the country will say to the workmen, "You can not leave this employ- 
 ment," that moment you have put the shackles of unfreedom upon 
 them. The difference between freemen and slaves is the difference 
 between the man who owns himself and can quit his service from his 
 employer or his master or owner — be the term what it may — and 
 the man who can not quit his employment upon his own sweet will, 
 to that extent is he a slave. 
 
 It may be inconvenient for you or for me of for most of us to have 
 a strike, that is, a cessiation of -labor. There are also lots of other 
 things that are inconvenient, but the inconvenience of a strike, the 
 inconvenience upon the people by reason of a strike, is of lesser 
 consequence than the maintenance of the loss of freedom and the 
 opportunity to work out the problem of proper and better relations 
 between employer and employee. 
 
 Just about three years ago I had occasion to meet with a com- 
 mittee representing the United States Chamber of Commerce when 
 there was rather a general open discussion of many questions. One 
 of the chief members of the Government of the Australasian States 
 was present, and he, much to my astonishment, because I had not 
 even had the honor of an introduction to him, showed the utter 
 futihty of compulsory arbitration in New Zealand or any of the 
 other Australasian confederated States; that strikes had taken 
 
 Elace by the hundreds, and by the thousands, and that the law 
 ad gone into innocuous desuetude; that it was obsolete; that no 
 one paid any attention to it and that there was now being developed 
 a better method. 
 
 In any event, in Australasia and in New Zealand, the home of 
 compulsory arbitration, the right of workmen to strike and quit 
 their work has been recognized by law for the first time since the 
 passage of the compulsory arbitration law. They had to get away 
 from it. No matter what the purpose may be the enactment of the 
 law is the attempt to curb the aspiration of the workers for a better 
 life — that is the result. If a workman earns enough money and 
 saves some money and then invests it in business or in stocks or in 
 any other enterprise, he no longer with that money can be regarded 
 
SQQIAX AND INDUSTKIAL CONPITIONS IN THE UNITED STATES. 7 
 
 as a wage earner per se. To work and to sustain himself and his 
 family, his hopes, his aspirations must come through but one way, 
 and can come only by one way. 
 
 I hope I make myself clear. If a wage earner has some savings 
 or may have acquired money through inheritance or anything of that 
 character, why, then, the situation is changed. But I am speaking 
 of the great mass of the workers of America who must depend upon 
 the wages received by them for the services performed. Their 
 only hope for improvement of the conditions of themselves and their 
 dependents, and to aspire to some really high standard of life, comes 
 through their wages. Any attempt on the part of the Government 
 to fetter the work or to curb that aspiration is so much of an obstacle 
 in the way of progress and uplift and civilization. 
 
 Senator McLean. I do not want to interrupt you at all, Mr. 
 Gompers, but I would like to ask a question. I imderstood you 
 to say that the arbitration system in Australia and in New Zealand 
 had failed and become inoperative, but there was a better method 
 adopted there or was coming into existence. Do you mean by the 
 better method the strike, or some other process? I uhderstood 
 you to say that a better method had resulted. 
 
 Mr. Gompers. The policy of conciliation and mediation. 
 
 Senator McLean. (Jan you elaborate on that a little bit ? 
 
 Mr. Gompers. Before I do that may I be permitted to give just 
 one or two instances which have occurred during the pendency and 
 full life and virility of the compulsory arbitration law of New Zea- 
 land? ,r 
 
 When the boot and shoe workers made a demand on the employer^', 
 for an increase of wages, the employers point blank refused, and .th^, 
 Court of Arbitration of New Zealand was invoked. The court mg^S; 
 an investigation, and after due time rendered an award in f avc?;-; of,' 
 the boot and shoe workers, the working men and women. The award. 
 was duly recorded, arid instead of the employers paying the incr,iEj^sedp 
 wages and complying with the award they closed down the f actoyxes, 
 and imported their boots and shoes from England and fropq, the, 
 United States. So that the workers got the award and did 4QJi-,get. 
 the work. 
 
 Senator Kenton. And if they had struck r .V, , 
 
 Mr. GoMPEBS. Workmen can not do that same thing in their axyn, 
 interest or with their own beings. They can not move in grea;t 
 bodies. If they want to work at another place they have got to, 
 remove their bodies with them. They can not work elsewhere and; 
 remain in their homes at the same time. There is the instance of the 
 sheep shearers; there were thousands of them. They disobeyed the 
 law and they went on a strike, and they could not imprison the 
 nation or the state. There was a strike — I forget just now the trade 
 or calling — and the government sent its police and clubbed the men 
 who were present at the strike. The leader of them was carried from 
 the Union Hall meeting by two pohcemen. He was carried up side 
 down, with a foot on the shoulder of each of the two policemen and 
 his head bumping from stone to stone as he was carried in that way 
 to the police station. Th e benign law of ease, compulsory arbitration. 
 
 About a year and a half ago President Carranza, of Mexico, issued 
 an order that any man or men or persons — I think that is it — any 
 person or persons who should be engaged in a strike or who should 
 
8 SOCIAL AND INDUSTKIAL COKDITIONS IN THE UNITED STATES. 
 
 counsel one or support one or who should be at any meeting of two 
 or more persons where the subject of a strike was being discussed, 
 unless he left the hall he would be regarded as equally guilty with all 
 others who were in attendance or who advocated the strike and be 
 put to death. He would be executed. But I am very pleased to say 
 that due to some assistance which was given from various quarters, 
 no such edict is any longer possible to be promulgated in Mexico. 
 The constitution of Mexico provides the right of the workers to quit 
 their employment. 
 
 I could relate to you innumerable instances. I think I ought to 
 mention this: That on the way from Washington to New York, about 
 three years ago, I met a gentleman, Mr. Theodore Marburg, who got 
 on the train at Baltimore, and who was going to attend the same 
 meeting as I in New York City. We discussed a number of ques- 
 tions. He was an advocate of compulsory arbitration. I asked the 
 question whether it was not after all the em^bodiment of the idea of 
 the employers who wanted to rid themselves of the possibility of 
 their workmen quitting work.. In other words, I use these words, 
 for they have burned into my mind, not because I uttered them, but 
 because of the answer: 
 
 "Isn't it true, Mi-. Marburg, that the purpose is to tie the workers 
 to their tasks?" 
 
 "Well, yes," he said, "that is about it." 
 
 I may say that at the meeting which followed a day or two after 
 that conversation, I related the incident iia the presence of Mr. 
 Marburg, as I havie substantially related it here, and I merely relate 
 it because that is the idea. Employers, stripped of the power of 
 ownership of the employes, now want to substitute by some subtle 
 means the same power of compelling workers to remain at their tasks, 
 to work, to work against their will, to work against their whim, if 
 you please, to work against their interests and against their 
 opportunities. We have succeeded in preventing that being done up 
 to the present time ; that is, succeeded in having it done in any effec- 
 tual way, but every now and then it crops out. The idea of the coun- 
 try or the State or an industry or a concern or a plant where men or 
 women are on strike and somebody is not inconvenienced. There is 
 a difference between war times and peace times and, thank goodness, 
 through all of this war, through which we have so happily and 
 triumphantly passed, there has not been an attempt to curb the 
 right of the workers from quitting their employment, and in no 
 country on the face of the globe there has been such loyal continuous 
 service. 
 
 Senator McLean. Yes; and it has been through your very great 
 infiufence that it has not been necessary. 
 
 Mr. GoMPERS. Well, never mind about me. 
 
 The 'Chairman. Seriously speaking, I msh to say that this com- 
 mittee feels it has been more through your influence than anything 
 else, Mr. Gompers. 
 
 Mr. Gompers. I thank you for your good opinion. All I have 
 done is what I believed right for my country, for my cause and for 
 the cause of freedom, for I believe in freedom. I believe with 
 Macaulay when he said that the remedy for the ills which result from 
 newly acquired freedom is more freedom. I know something, I 
 believe I know something, of the things which prompt men to do and 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 9 
 
 to think and to act. You have done me an honor by saying it is 
 due in whole or in part to the influence which I exercised upon my 
 fellows,- that there was such loyal continuous service during the war. 
 That may in part be true, but if it be true, it is because the men of 
 labor in America have come to look upon our Republic with a more 
 reverential vision than ever before. 
 
 Senator McLean. I think that is so. 
 
 Mr. GoMPEES. And because in the labor movement in America we 
 have not gone after false gods. In the labor movement in America 
 we have not allowed the political parties, no matter how altruistic 
 they may proclaim themselves to be, to dominate or influence our 
 movement, not any Republican Party, not any Democratic Party, 
 not any Socialist Party, or any Prohibition Party, or any Labor Party. 
 We have stood as a movement of America's workers, believing that 
 und6r the institutions of our Republic we have the lawful right to 
 organize, to strive for a better life, to -wOrk out our own salvation to 
 the last opportunity, otherwise that we could quit work and try to 
 impose justice into the consideration of the mind of the employer. 
 
 Now, when the war came on, can you imagine, gentlemen, what 
 might have happened in the United States if the war had occurred 
 about seven or eight or nine years ago, when the country was rampant 
 with indignation by reason of the injunctions which were issued 
 wholly without any warrant of law ? When men of honor and char- 
 acter were haled before the courts, put upon their trial, and sentenced 
 to imprisonment as if they were common felons ? If we had been in 
 the war at that time, when men's influence was gone and whatever 
 bit of reputation which they had, for which they had worked and had 
 hoped to maintain was sought to be taken from them; when all honor 
 was besmirched ; when men who had no other hope in life but to serve 
 their fellows were addressed by judges in language which could only 
 apply to the most consummate scoundrels and brutes; when men 
 with families, men who were husbands, fathers, grandfathers, were 
 addressed in terms, direct terms, as if the judges had before them men 
 who had raped womanhood^gentlemen, if we had been in the war 
 during that period, there might have been a different story to tell. 
 
 But we are in our present time. I remember when I was in London, 
 the third week in September of 1918, a few months ago, I attended 
 a meeting of the London Traded Council, and there I called attention 
 to the very situation which I am recounting here; that is, that in the 
 United States we had not any law that prohibited us from striking or 
 quitting our work, and yet we were getting the most loyal, uninter- 
 rupted service. Here and there there might have been a family 
 quarrel, but nothing of any important character, while they in Eng- 
 land, where strikes had been made illegal, struck upon the least provo- 
 cation and sometimes when there was no provocation at all. 
 
 I tell you, gentlemen, it is something to fully understand how per- 
 fectly safe freedom is, even if it does inconvenience us a little now 
 and then. 
 
 Now, what I have to say upon this, in regard to No. 1, which is: 
 
 The establiskment of a national tribunal to review and adjust difficulties between 
 employers and workmen and to improve industrial conditions in tbe various indus- 
 trious trades. 
 
 Senator Kenyon. I wish to say, Mr. Gompers, that I had no idea 
 of compulsory arbitration as you speak of it, but it was more to con- 
 
10 SOCIAL AND 'INDUSTBIAL OONDITTONS IN THE UNITED STATES-. 
 
 tinue something like the Taf t Board, and to draw out discussions such 
 as this, rather than compulsory arbitration. 
 
 Mr. GoMPEKS. The War Labor Board. Former President Taft was 
 brought in after that whole thing was fixed up. Probably I may be 
 a frightened child. I know the tendency of legislators both ways; 
 some who believe iii the policy of granting the fullest freedom and the 
 exercise of freedom, and others who would take it away and deny it. 
 Neither side is always in the saddle, and I have my apprehensions. 
 
 Give a court or give a government jurisdiction over anything and 
 they will exercise it when the opportunity comes, and exercise it even 
 in a broader manner than was contemplated by the lawmakers. 
 
 I know something of the meaning of government, and I say this as 
 one who has the highest and most exalted opinion of the Government 
 and the institutions of the Republic of the United States; but gov- 
 ernment in itself is a matter of force, a matter of power, and thkt is 
 dangerous, and I would think, twice or m'ore times before I would 
 place absolute power in the hands of the Government over the actions 
 of the people. 
 
 Senator Kenyon. Let us take the boards of conciliation and media- 
 tion; do you think they can perform a proper function without 
 infringing upon freedom ? 
 
 Mr. GoMPEES. Yes, sir; I do, sir. I think that the policy of 
 mediation and conciliation should be pursued very fuUy. 
 
 The -Chairman. Directing your attention to what Senator Kenyon 
 has said, is not that what is developing in Australia ? 
 
 Mr. GoMPEES. Yes, sir; thatis what is developing — conciliation and 
 mediation. 
 
 Speaking as a factory worker in my trade for 26 years, I 
 have had some experience in the relations between workmen and 
 employers; and since then it has not narrowed, but on the contrary 
 when a dispute arises between employers and employees, the party 
 to the dispute who -feels himself or itself to be the stronger is the least 
 likely to offer conciliation or mediation. The weaker party niay — 
 or the party believing itself to be the weaker — may suggest that, but 
 never the party believing itself to be the stronger. If, then, there be 
 some agency as a mediator to bring about conciliation, it is often 
 good, and yet there is this other feature which I want to present to 
 your mind, gentlemen. I think you will notice that I am rather 
 thinking aloud, without any restraint, because I do not know anything 
 that I think that I am willing to present to you. There are many 
 employers who, in their relations with the workmen, act upon a 
 policy of the Missourian, "You ha,ve got to show me." If a number 
 of workmen tell an employer that the workmen want a 10 per cent , 
 increase in wages, they say: "You do not represent my employees; 
 my employees are perfectly satisfied," and he evidently believes or 
 hopes that it is so. He becomes obdurate, or is obdurate. You 
 can not move him. You can not move him except by a physical 
 demonstration of the fact that his employees are dissatisfied, even 
 if they had told him or his superintendent or foreman that they were 
 perfectly satisfied, and they will leave their employment as a demon- 
 stration that they are not satisfied; that they want this increase or 
 improvement, or that they protest against deterioration, and con- 
 ciliation or mediation by any agency with the employer in that 
 frame of mind will be of no avail. He needs to be shown. 
 
SOCIAL AND INDTJSTKIAL CONDITIOlirS IN THE UNITED STATES. 11 
 
 I am sure that the strike of the coal miners in the bituminous 
 regions in 1897 would have never occurred if the mine owners had for 
 a moment imagined that the coal miners would strike almost to the 
 extent of 100 per cent. They simply declared themselves against 
 the miners . They said, ' ' Well, we will call your bluff. Now, you put 
 your strike in order. You say that the men are going to strike; now, 
 let them strike." 
 
 And much to their astonishment there were nearly 100 per cent 
 of the men who threw down their picks and quit their work. 
 
 The same is true in the anthracite regions — I think it was in 1901. 
 There are still employers who foUow in the footsteps of our friend, the 
 late Mr. Baer, who declared that the employers were trustees of God 
 to administer the welfare or to look after the welfare of the employees. 
 There were too many of them. For instance, there is Mr. Barr, the 
 president of the Founders' Association, who only a few weeks ago — 
 I think it was on the 11th or 12th of November, a day or two after 
 the armistice was signed and Germany beaten — who made the declara- 
 tion that wages must come down and the hours of labor must be 
 lengthened. The world is not yet, even in this year of grace, 1919, 
 in shape to believe that the fools were all dead 
 
 Senator McLean. Your idea is that there is nothing in the way 
 of legislation that the Government can do that employs the use of 
 force in any contingency that can be devised or thought of that 
 can prevent strikes ? 
 
 Mr. GoMPEES. I do not know whether I got one part of your 
 question, and that is that there is any contingency. Of course, it 
 is the Government's duty to maintain law and order, but an attempt 
 by law to prevent strikes will be futile and will intensify the feeling 
 engendered during strikes and make the men less respecters of the 
 law because in the exercise of their normal activities to quit their 
 work they have been made and stigmatized as lawbreakers. 
 
 Senator McLean. Your idea is that justice must be brought about 
 by a voluntary process of conciliation or arbitration? 
 
 Mr. GoMPERS. Yes, sir. 
 
 Senator McLean. There is nothing that the lawmakers can do 
 that can crystallize the support of 
 
 Mr. GoMPEES (interrupting). Mediation? 
 
 Senator McLean. Yes. 
 
 Mr. GoMPEES. I think it can do much. First, I am convinced 
 that the Department of Conciliation of the Department of Labor 
 has done good and can do a wholes lot of good, but I think that if 
 the Congress of the United States would take the Department of 
 Labor more seriously and treat it as a part of the Government, at 
 least on a par with all the other departments of the Government, 
 that it might by its initiative and by its conciliatory policies and its 
 attempts and offers of mediation, with all the other activities of 
 the department, do a wonderful lot of good. 
 
 Senator McLean. Have you any concrete suggestions in regard 
 to additional legislation affecting the Department of Labor ? 
 
 Senator Kenyon. Well, you say that the Congress does not take 
 it seriously. Don't you think that Congress does take the Depart-' 
 ment of Labor seriously ? 
 
 Mr. GoMPERS. I use that expression in continuation of what I 
 had already uttered. Yes; probably they take it seriously, but they 
 
12 SOCIAL AND INDUSTRIAL CONDITIONS IN THE tJNITED STATES. 
 
 take it suspiciously, because it is a Department of Labor. There is 
 no question when they were deahng with the Department of Com- 
 merce and Labor, when it was two departments, when they were 
 combined, but it was everything for commerce and it was Hke 
 extracting teeth to get money out of Congress for the Department 
 of Labor. 
 
 The Chairman. I would like to state that it has been very difficult 
 to get sufficient appropriations so that the Department of Media- 
 tion and Conciliation could do the work .that it was formed to do. 
 
 Senator Kenyon. We have the same trouble with the Children's 
 Bureau. 
 
 Mr. GoMPERs. Well, when a man has thousands of tons of copper, 
 or hundreds of tons of gold, or hundreds of tons of clothing, and all 
 that, all these things are in concrete form, and coxmted in dollars 
 and cents. It is the human being who is disregarded. The Depart- 
 ment of Labor deals with the human equation of the people of our 
 coimtry. You can not measure that up ia dollars and cents. In 
 too many instances the value of human life, the value of human 
 effort, is not counted. We are constantly appealing to Congress to 
 do this, to conserve human life. The most valuable thing on earth 
 is the human. What matters wealth in the bowels of the earth or 
 flying above, or in the waters, it it is not for the human, or if the 
 human is neglected ? Where is the necessity of conserving anything 
 else? 
 
 Senator Jones. Not only for the purpose of conserving life, but 
 for the purpose of conserving happiness. 
 
 Mr. GoMPERS. Yes, sir; for the purpose of conserving happiness as 
 well. Here we are a nation of a hundred millions of people, with wealth 
 tmtold, and there is at this moment threatening the people of the 
 United States a state of affairs that no one knows to what it is going 
 to lead. In the coming days and weeks and months of this winter, only 
 just broken upon us, the transition from production on a war footing 
 to a peace basis wiU be made. There may be thousands and thousands 
 and thousands of men and women unemployed. Thousands will come 
 back wounded and maimed from the battle field. Thousands have 
 remained here. Those who have given service over there, those who 
 have served here, are not going to take it kindly if they are again 
 compelled to stand in the bread line to get a morsel of bread and a 
 cup of coffee or something to sustain life ; they are not going to take 
 kindly to it. 
 
 The American labor movement is a constructive movement, be- 
 cause its men and its women believe that in the line in which we are 
 conducting our work, there is hope for protection, for improvement 
 in the conditions and standards of life of the American working 
 people. But if the toilers find they can not secure that improve- 
 ment and that protection in their standards of living, if they are to 
 be made the victims through manipulation or mistakes or blimders, 
 be that as it may, they are going to hold that they are w illin g to 
 work, that the means of livelihood is there at hand, and they are not 
 going to stand and parley when it comes to a question of bread on the 
 ■one hand, or starvation on the other. 
 
 Senator Kenyon. Now, you are getting down to the bedrock I 
 had in mind in this investigation. Now, what can Congress do in 
 any way to relieve any such situation as that you mention ? Or is 
 it a matter entirely outside of Congress ? 
 
SOCIAL AND IWDUSmiAI. COKDITIONS IIT THE UNITED STATES. 13 
 
 Mr. GoMPBRs. Largely. But Congress can help. I think you know, 
 and I believe it is the general sentiment among our people that we 
 want the Army created as the result of the war demobilized as soon 
 , as we can. I think it would be a great mistake to demobilize them 
 so abruptly as to throw them upon what is called "the labor mar- 
 ket," and to compete with those now employed in their jobs, for 
 employment. Here is this fact; here we have been bending, for a 
 year and a-half , at any rate, every energy for the production of 
 material things intended for destruction, the killing of Germans. 
 
 Senator McLean. We have got 40,000 men already turned out of 
 employmgint in the State of Connecticut, employed in the munitions 
 factories. We do not get any encouragement from the Government 
 that they can in any way extend their employment. 
 
 Mr. GoMPEES. Well, there is a concrete illustration of the general 
 situation. The ships, the wooden ships out there in the Northwest, 
 with the men employed there, working -hard for months, and then 
 without a word of warning abruptly told, in the midst of winter, that 
 the ships are going to remain as they are, hulls, 50, 60, 70 per cent 
 finished, can not continue, and only when they are 75 per cent 
 finished can they be completed. But there are tens of thousands of 
 men in all the various branches of the shipbuilding and ship furnishing, 
 in the spruce and timber industry and all the incidental industries. 
 They are the men who were employed to supply the needs of those en- 
 gaged upon shipbuilding. These men were abruptly told that they are 
 unemployed and can not work, when within a few months they were 
 worked to their fullest capacity and put into their work every ounce 
 of energy, and whenever they missed a hammer blow were stigma- 
 tized as slackers. Now they are thrown upon the streets without 
 employment, without the opportunity of employment. It will be 
 some time before conditions will adjust themselves or before the 
 industry can adjust itself to the new conditions upon a peace footing. 
 
 Senator McLean. I had supposed. that the shipping program was 
 being carried out. I knew that the munition workers were let out 
 and that the excuse was that the product could not be used, but you 
 surprise me with your statement in regard to the shipping program. 
 
 The Chairman. That applies to the wooden ships and not to the 
 iron ships. 
 
 Mr. GoMPBHS. Yes, sir; that is right; the wooden ships and not 
 the iron ships. I am not an expert on shipping, nor am I an expert 
 in ship construction, but it does seem to me that these vessels might 
 well be completed and that there would be a lesser loss of either 
 completion than the consignment of all these ships to the scrap heap. 
 
 The Chairman. There is one thing that I would like to suggest for 
 the consideration of the committee, and that is that the French 
 Government is continuing the Government activities, including the 
 manufacture of munitions of war, and will probably do it during this 
 winter, and they are doing it on money that the United States Gov- 
 ernmant is loaning to them. 
 
 Senator Kenyon. Is there any system of public work engaged in 
 by the Government and by the States at this time that would be 
 helpful • 
 
 Mr. GoMPERS (interrupting). Yes, sir. I do not believe in giving 
 men employment for shoveling water uphUl, or occupations equally 
 as useless, but in the building of the permanent improvements so 
 
14 SOCIAL AND INDUSOmiAL CONDITION'S IN THE UNITED STATES. 
 
 essential to the further development and growth of our country in 
 industry and commerce, they could be utilized. 'Pot instance, take 
 our canals, our ship canals. We have built the Panama Canal, and 
 we are proud of it. It has done a wonderful amount of good, not 
 only for our country, but for the world. When the peace shall 
 finally come to us and the commerce of the world wiU so largely pass 
 through it, it widl be wonderful. We have rivers and inland lakes 
 from which there is no emergence to the seas or the oceans. The 
 reclamation of land, the water shedding of the old-time overflows, 
 the improvement of our rivers and harbors, and so on — all these are 
 things of wonderful advantage to our country, and could weU be 
 undertaken. 
 
 Of course, I am not blind and have not been blind to what has 
 been going on, .and there is a good deal of waste in what is known as 
 the "pork barrel" — the river and harbor bill 
 
 Senator Kenyon. I am against the pork barrel, but I am not 
 against the substantial needs. 
 
 Mr. GoMPERS. Yes, those things are simply silly — those things like 
 people wanting some big appropriation for a rivulet without an end. 
 But I am speaMng of the -real thin^. I think we are reaching such a 
 stage that the probity of any Member of Congress must be like 
 Caesar's wife, above suspicion. When all shall approach these ques- 
 tions from the standpomt of our country's good, and our people's 
 advancement, there wUl be no scandal. 
 
 Senator Kenyon. And the whole country; not one section. 
 
 Mr. GoMPBRS. And the whole country. 
 
 Senator Kenyon. And not a little piece of it. 
 
 Mr. GoMPERS. I quite agree with Senator Kenyon in that. The 
 first thing is necessity and the second utility, and the utility should 
 be not for any particular section of the country. I would, if I had 
 any suggestion to make, suggest that the men in Congress utihze any 
 matters of this character, and that they should be, as they conducted 
 themselves during the war, above party. These things are the needs 
 of the people as a whole, and with our present opportunity, as a 
 result of our entrance into the war, and the conduct by which we 
 have been guided during the war, and the high purposes which we 
 are now manifesting, as being the victors, and those who have helped 
 as much as any of the alhed countries in winning the war, we have a 
 prestige in the world's affairs that might have taken 50 or ntiore 
 years without this war. 
 
 Now, we know it, and having this opportunity and havmg talked 
 in terms of money never before dreamed of in the philosophy betwixt 
 heaven and earth, speaking in billions and billions and bUlions, the 
 people, in my judgment, are wiUing to stand for anything that shall 
 make for the country's business and its development and affording 
 better opportunity for our present generation and the generation to 
 come. 
 
 We believe in America. America is more than a name; it is more 
 than a country; it is an idealism, and it is an apotheosis 
 
 Senator Jones (interrupting) . Getting at some of the concrete 
 q_uestions which will naturally arise, you have suggested the construc- 
 tion of canals and the reclamation of land, and of course, having in 
 mind, doubtless, naany other classes of public work, but what I would 
 like to get some light about is this: Take the munition workers, to 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 15 
 
 which the Senator from Connecticut, Senator McLean, has referred, 
 would it be practicable to put those workers on a job of constructing 
 a canal or an irrigation project, and if so, how, about the adjustment 
 of wages, with respect to the wages they have been receiving as muni- 
 tion workers, and the wages which we would ordinarily expect to pay 
 for the construction of a canal or irrigation plants ? In the first place, 
 would those workers be content to tajse the job of digging the canal, 
 and if so, how about the adjustment of wages ? 
 
 Mr. GoMPERs. Before we entered into the war we had the smallest 
 number of people employed at shipbuilding, as compared with any 
 other country on the face of the globe, in proportion to the population. 
 Since we have entered into the war, that has been more than a year 
 and a half, we have produced more ships than any other country on 
 the face of the globe, no matter how large it is, and have produced 
 ships, completed ships, in a shorter time than was ever known in the 
 history of the world, one ship of over 12,000 tons, a steel ship, com- 
 pleted and launched within 24 working days from the time the keel 
 was laid. I do not know the numbers of the ship men who have been 
 employed in the shipyards up to the time when we were at the point 
 of our greatest production, but I think it must have been hundreds of 
 thousands. These men were, most of them., unacquainted with the 
 art of shipbuilding, but they became shipbuilders and the most expert 
 shipbuilders in the world. There was no difficulty experienced in 
 finding the men when the opportunity was given them. 
 
 The organizations of labor, the trade unions of the various classes 
 and callings cooperated with the Government in bringing about "the 
 transition of these workers from any given point to the point to which 
 they were to be mobilized and put to work, and that was done. 
 Wages were adjusted by agreement between the representatives of the 
 Government and the representatives of the workers, formed in their 
 unions largely. The first one of those memoranda was signed by Sec- 
 retary Baker and by me, in which union wages and hours and condi- 
 tions of employm.ent should prevail, and it provided that when, due 
 to any cause there was a change in the cost of living and other mat- 
 ters, they were to be subject to such change as was required. That 
 was done. That memorandum was extended and accepted by the 
 construction work of the Navy Department and the Shipping Board, 
 and so on, and so on, and so on, and continued. That was the arrange- 
 ment. 
 
 ' There was a fair degree of justice all around, and the best feeling 
 and coopei'ation between the departments and the men under them. 
 Now, what holds good in the shipping industry, and the transition of 
 men from the character of work that they had not done before to that 
 of shipbuilding, will hold good between the mimition workers and any 
 other character of work. It is not always that these men flow from 
 the machine shop to ditch digging, but there is a flow all the way, a 
 change, a part of a turn-over, and those who are nearer the grade of 
 work of ditch digging are absorbed. That is true of the shipbuilding. 
 
 Senator McLean. I see it stated in the papers that many of the 
 soldiers who were employed in the factories went to France, and they 
 want to supply employment when they come back. I think it very 
 possible that the munition workers would be glad to do that if they 
 could get the same standard of wages 
 
 Mr. GoMPEES. That same statement was made to me by the 
 soldier boys on the other side when I met them there. 
 
16 SOCIAL AKD INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 Senator McLean. This is a difficult situation that we have to naeet, 
 and it is difficult to secure affirmative legislation providing for large 
 public improvements, which would absorb the large number of men 
 who are likely to be thrown out 'of employment. There is a large 
 demand for peace essentials. There is no doubt about that. If we 
 keep our courage up and our confidence up, we have money enough, 
 it seems to me, to support our industries that are engaged in the 
 manufacture of peace essentials. No doubt there is a large demand 
 there, if it can be adjusted; but even that takes time, and the ques- 
 tion is the immediate necessity of these men who have been notified 
 that their services are no longer wanted. I understand in your 
 judgment it would be better to extend these industries, even the 
 munition industries temporarily, rather than to discharge these men 
 and throw them upon the street at this time. 
 
 Mr. GoMPERS. If ever there was a time when want should be 
 avoided, in my judgment now is the time for everyone in the United 
 States to see to it that the men, the soldier boys coming back, and 
 our civilians, shall not sufEer during this winter. We ought not alone 
 to look at events in our own country, but as they are going along in 
 many others, and silliness, or disease, or what not, does not stop at 
 national boundary lines. 
 
 Senator Kenyon. In other words, there is no use in burying our 
 heads in the sands and not seeing ? 
 
 Mr. GoMPEES. Yes, sir; that is right. 
 
 Senator Jones. What I was going to ask was this: Now, it is 
 impossible, it seems to me, to demobolize all our soldiers within the 
 next few months, and they wiU probably be kept in the service for 
 six months or a year; that is, more than a million of men, who were 
 drawn from peace pursuits. Now, is it probable that the develop- 
 ment of peace pursuits will be sufficient to take care of all those who, 
 in all probability, will be demobolized during the winter ? They were 
 all drawn from some sort of peace employment. 
 
 Mr. GoMPERS. And due to the action of the Government as repre- 
 senting the people; but, nevertheless, the action of the Government 
 in entering into the war, and thereby creating an artificial prosperity 
 and intensity of production — an artificial one. 
 
 Senator ELenton. And concentrated in certain districts. 
 Mr. GoMPERS. And concentrated in certain districts; yes, sir; as 
 you say. Senator Kenyon. And now, when the stress of that cir- 
 cumstance no longer exists and reversion to prewar conditions 
 comes, there is no opportunity to adjust production and commerce 
 from the war footing to the peace footing as it existed prewar; and 
 between that time, it seems to me, the Government should do any- 
 thing and everything it possibly could to help tide that time over. 
 
 Senator McLean. We do not get any encouragement in our State 
 that anything is to be done. 
 
 . Senator Jones. I have in mind this condition as to some people: 
 For instance, in the army of occupation, over in Germany, there are 
 some soldiers in there who would really like to get out, because they 
 have positions awaiting them. The old peace time positions, and 
 could not this situation be in a large part met by seeing that the sol- 
 diers who have positions waiting for them shall be the ories to be 
 brought back first; should not a greater effort be made in that respect 
 than apparently is being made ? 
 
SOCIAL AND INDtrSTBIAL CONDITIONS IN THE UNITED STATES. 17 
 
 Mr. GoMPEBS. I have wondered if that could be done, but isn't it 
 true — pardon me if I ask a question — isn't it true, however, that 
 generally the position which the American soldier now in Germany 
 and part of the army of occupation, the position that he occupied 
 before he entered into the war has been wholly or in part taken by 
 some one else ? 
 
 Senator Jones. In the particular cases I have in mind that is not 
 the case. I have in mind two specific instances where the fathers of 
 the boys have gotten quite old, and, for the sake of letting the boys 
 go into the Army, have taken up the work. The fathers have not 
 been doing the work as competentl}' as it might have been done, for 
 they have reached the period of life where they wanted retirement. 
 
 Senator McLean. I think so in a great many cases. 
 
 Mr. GoMPERS. In a great many cases I know that is so. I know 
 one family of two members, they were both physicians, the father is an 
 old-time physician and had wholly retired and turned over his clien- 
 tele to his two sons. The war broke out and as his boys felt it their 
 duty to go to the front and help the fighting boys, the old gentleman^ 
 who was 64 years old, resumed the practice of medicine and took care 
 of the whole town the best that he could. I know it holds good in 
 that case. It has really done him a great deal of good by being so 
 active, but he would gladly retire again. 
 
 The Chairman. I know that over there they are doing that thing, 
 and any person who has been engaged in such work is asked to give 
 the information to the War Department, and I notice that notices to 
 that effect are carried in the English newspapers right along. 
 
 Mr. GoMPERS. Of course, it ought to be done, but we were so un- 
 prepared for war, and we are worse prepared for peace. Over a year 
 ago I urged my associates in several branches of activities in and 
 outside of the Government, "Let us consider the question of recon- 
 struction and rehabilitation; let us consider that period when the 
 war shall be over," and from very high quarters came the suggestion 
 that that would not be a good thing to do, because it \yould divert 
 the minds of the men from fighting to peace. 
 
 Senator Jones. Mr. Gompej-s, I have in mind another condition 
 which arose. Just prior to the armistice some representative of a 
 war industry, I think it was, through the Department of Labor, had 
 its representative down in my State, and he appealed to the people 
 of that State to furnish so many to go into the munitions plants. I 
 have in mind one locality, which is a small place, where they took 
 out 40 or 50 men, from Nashville, Tenn., took them to Nashville, 
 Tenn. Now that work there in NashviUe is either stopped or is use- 
 less for any peace purpose, as I understand it, and those people are 
 there. Now, they went there in response to this appeal, and I have 
 not any doubt but what if they were given their transportation hom& 
 they would go back home and get into their usual pursuits, and just 
 the other day, when we had the question of paying the transporta- 
 tion expenses of employees in the District of Columbia back to their 
 homes, some of us tried to put on to that bill an amendment giving 
 transportation to these others. It strikes me that that would have 
 a very large influence for good at this time. 
 
 Mr. GoMPERS. There is no doubt that it would, sir; no doubt of 
 it at all. We do Imow this, that at the points of debarkation of our 
 
 9992fr— 19 2 
 
18 SOCIAL AND INDUSTBIAL CONDITIONS IN THE UNITED STATES. 
 
 soldier boys, the conditions are not of the healthiest in any way at 
 all. Soldiers may have no means to go to their homes, and they 
 are thrown upon their own resources. 
 
 The Chairman. I think it was suggested that inasmuch as we 
 took these men from their homes by the draft boards, and delivered 
 them' to the place of debarkation, we should do the same thing for 
 them and deliver them back to their homes. 
 
 Mr. GoMPERS. To their own homes; yes, sir. 
 
 The Chairman. And I think that ought to be done. 
 
 Mr. GoMPERS. Yes, sir. 
 
 Senator Kenyon. And now, Mr. Gompers, I think that this is 
 about the last chance we shall have to get at you, and I am anxious 
 to hear more from you. I would be very pleased if you would take 
 up for discussion section 7. 
 
 Mr. Gompers. Well, section 6 reads: 
 
 The extension of the United States sailors' and soldiers' insurance to the civil popu- 
 lation, so that the workmen can insure against sickness, accident, and death at the 
 lowest possible rate. 
 
 The Chairman. Section 7 is the one that I spoke of. 
 
 Mr. Gompers. First let me deal with section 6. I would say 
 unqualifiedly, sir, that it would be an excellent thing to do. Let 
 me say, sir, that I take a great deal of pride in having helped in the 
 preparation of that bill when it was in the stage of preparation. 
 It was the committee of labor of the advisory commission, Council 
 of National Defense, of which I was chairman, which formulated the 
 soldiers' and sailors' and dependents' compensation bill as a substitute 
 for pensions. After it had been approved by me, it was submitted 
 to the Council of National Defense, and submitted in turn to the 
 President as approved by thepiin principle. It was in that state 
 that it went to the Treasury Department under Secretary McAdoo. 
 Actuaries and others were called in, and after long consultation with 
 those who had been working with me, this soldiers' and sailors' 
 insurance was added to that bill. I am very proud of the fact that 
 the Congress of the United States adopted it with probably as large 
 a majority as ever can vote oil any bill. In the judgment of many, 
 no greater piece of humanitarian legislation was ever enacted by any 
 legislative body in the history of the world. 
 
 Now, there are two things I want to mention. One is that I am 
 carrying in the January issue of the American Federationist a call 
 to the soldiers and sailors of the country and to the officers of the 
 organized labor movements of the various trades, asking them to 
 prevail upon the soldiers and saUors to keep up their insurance and 
 make the changes that are required. 
 
 Now, that is one proposition; the other one is that this insurance 
 is voluntarilj^ acquired. It is not a compulsory feature that the 
 Go^ernnient imposes upon the soldiers and sailors and should not 
 be for the civilian population who might want to insure. It is one 
 of the things that, 1 can take occasion to say, in my judgment, if a 
 system was maintained voluntarily, if Congress in the enactment of 
 the bill would extend it after the war to the civilian people ; but if it 
 was going to be compulsory, why, there was going to be a resentment 
 and an opposition to it. Then everybody said, "Do not say that this 
 is to be extended to the civilian people after the war, because it will 
 find greater opposition by the insurance companies, and because of 
 
SOCIAL AND INDUSa?EIAL CONDinONS IN THE UNITED STATES. 19 
 
 that fact it has not been discussed," but it is now, and 1 am very glad 
 to have the opportunity of saying that section 6, if it is put in effect, 
 as provided in that bill in the same way that the insurance of the 
 sailors and soldiers was, would be an excellent thing. 
 
 Senator Kenyon. And what is your judgment of section 7, Mr. 
 Gompers ? 
 
 Mr. Gompers. If you strike out the words " nonemployment " and 
 "disability,", and "sickness," I should be very glad to say that I 
 would favor the proposition. 
 
 Senator Kenyon. You think it should not cover nonemployment ? 
 
 Mr. GoMPEES. I think not. I take that position for the same rea- 
 sons which I have already given in the statement that I made re- 
 garding section 1 of this proposition. They are handmaids to each 
 other. 1 should be opposed— I know that my associates would be 
 opposed — to leaving it within the power of the Government or its 
 agent or agents to determine what was nonemployment, whether it was 
 justifiable or otherwise, and who would be entitled to the insurance 
 or the benefits that would result from the provisions of the law — 
 that is, insurance against nonemployment. 
 
 There was a resolution proposed by a member of the House some 
 two or three years ago covering that feature. The Member of the 
 House was present at the committee hearing, and finally stated that 
 it is true that the Government agent would have to depend, or on 
 him would rest the obligation of determining what constituted non- 
 employment as to entitle an unemployed person to receive the bene- 
 fits of the insurance. Now, that would mean, where there would be 
 any controversy with the employer, that the man would be unem- 
 ployed. Who would determine that question? Well, the answer 
 would be, by the Government agent, "There is work for you, and so 
 long as you can get work you are not entitled to this Government 
 insurance for nonemployment." 
 
 Senator McLean. Do you think that there would be practical 
 difficulty against its administration ? 
 
 Mr. Gompers. Yes, sir; there would be practical difficulty against 
 its administration. 
 
 vSenator McLean. Did I understand you to say that you ap- 
 proved — that you would eliminate what ? 
 
 Mr. Gompers. I would eliminate "disability" and "sickness." As 
 to extending it to old age, when Mr. Wilson, the Secretary of the 
 Department of Labor, was a Member of the House of Representa- 
 tives, he introduced a biU — perhaps it was rather an odd concept, 
 but it may have been practical — it was to mobilize the people of the 
 United States into a grand army of industry and commerce, and to 
 require certain service of them — ^I do not just recall the service 
 required, but in certain eventualities they were eintitled to certain 
 benefit upon death. That, if my memory serves me, was approved 
 and supported, but I imagine because of the peculiar character of the 
 biU it did not gain very many supporters. I think a copy of the bill 
 is not difficult to obtain, and it might throw a bit of light upon the 
 discussion. 
 
 (Whereupon, at 1.04 o'clock p. m., the committee adjourned until 
 11 o'clock a.m., January 4, 1919.) 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 sattteday, janttaby 4, 1919. 
 
 United States Senate, 
 Committee on Education and Labor, 
 
 WasMngton, D. C. 
 The committee met pursuant to adjournment. 
 Present: Senators Hollis (acting chairman), ,Ashurst, Kenyon, 
 Swanson, and Page. 
 Also present: Samuel Gompers. 
 
 STATEMENT OF SAMUEL GOMPERS— Resumed. 
 
 Senator Kenton. Mr. Gompers, are you going to discuss what the 
 English have done at aU in these industrisu councUs, or matters of 
 that kind, and your viewpoint about those propositions ? 
 
 Mr. Gompers. My understandiag is that in England they have 
 decided not to prematurely or abrubtly demobilize the armed forces 
 of that country, but that on the contrary, they were to demobilize 
 them gradually^ and not glut what is caUed "the labor market," but 
 that as opportunities for men were opened up, so many, or such a 
 percentage of the army would be demobilized or sent to particular 
 
 E laces, and that in the meantime between the armistice and demobi- 
 zation and the finding of opportunities for employment, the Govern- 
 ment was to pay something to the soldiers. I do not know exactly 
 the -amount the Government was to pay them. In addition there has 
 been estabhshed a sort of working organization under the Board of 
 Trade of England, composed of employers and representatives of 
 employers, for the purpose of helping work out the problems of re- 
 construction and employment. 
 
 Many of the labor unions of England were made the agencies by 
 which certain beneficiary payments were made, the Government 
 utilizing the organizations of labor as the instrumentalities or agencies 
 by which these moneys might be distributed. Perhaps one of the 
 best pieces of work performed by any committee or com'mission 
 either in that or any of the other allied countries was that of the 
 Whitley committee, commonly known as the report of the Whitley 
 committee. That is a committee created under the leadership of 
 Mr. Lloyd George before he became premier of the war cabinet and 
 while he was miaister of munitions. The reports of the Whitley 
 committee are among the best contributions of conditions of labor,- 
 industry, commerce, health, sanitation, safety, and so on, and pointing 
 in many ways a way out or improvement of existing conditions. 
 
 Senator Page. Have those records been published so that they are 
 "accessible now? 
 
 Senator Kenton. I have one here. 
 
 21 
 
22 SOCIAL AND INDUSTRIAL CONDITIONS IN THE XTNITED STATES. 
 
 Mr. GoMPERS. They were reported in full by the British Govern- 
 ment; and at the instance of the Council of National Defense and 
 Advisory Commission the Department of Labor of the United States 
 published a condensation of the British Whitley committee reports 
 in so far as the report applies to the conditions and situation in the 
 United States. 
 
 Senator Kenyon. Mr. Chairman, do you not think that it would 
 be a good idea to print those in the record here? 
 
 The Chairman. Will you furnish them? 
 
 Senator Kenton' Yes. 
 
 The Chairsian. Without objection that will be done. Is th'ere any 
 objection ? 
 
 (No response.) 
 
 The Chairman. They may, be so printed. 
 
 (The report referred to is here printed in full in the record as 
 follows :) 
 
 letter addressed by the minister op labor to the leadi>fg employers' asso- 
 ciations and tbadb-tjnions. 
 
 Ministry of Labor, Montagtte House, 
 
 Whitehall, S. W., October 20, 1917, 
 
 Sir: In July last a circular letter was addressed by the ministry of labor to all the 
 principal employers' associations and trade-unions asking for their views on the pro- 
 posals made m the Report of the Whitley Committee on Joint Standing Industrial 
 Councils, a further copy of which is inclosed. As a result of the replies which have 
 been received from a large number of employers' organizations and trade-unions gen- 
 erally favoring the adoption of those proposals, the war cabinet have decided to adopt 
 the report as part of the jpolicy which they hope to see carried into effect in the field 
 of industrial reconstruction. 
 
 In order that the precise effect of this decision may not be misunderstood, I desire- 
 to draw attention to one or two points i^hich have been raised in the communications 
 made to the ministry on the subject, and on which some misapprehension appears to 
 exist in some quarters. 
 
 In the first place, fears have been expressed that the proposal to set up industrial 
 councils indicates an intention to introduce an element of State interference which 
 has hitherto not existed in industry. This is not the case. The formation and con- 
 8|;itution of the councils must be principally the work of the industries themselves. 
 Although, for reasons which will be exiplained later, the Government are very anxious 
 that such councils should be established in all the well-organized industries with as 
 little delay as possible, they fully realize that the success of the scheme must de- 
 pend upon a general agreement among the various organizatiops within a given in- 
 dustry and a cleariy expressed demand for the creatioi of a council. Moreover, when 
 formed, the councils would be independent bodies electing their own officers and free 
 to determine their own functions and procedure with reference to the peculiar needs 
 of each trade. In fact, they would be autonomous bodies, and they would, in effect, 
 make possible a larger degree of self-government in industry than exists to-day. 
 
 Secondly, the report has been interpreted as meaning, that the general constitution 
 which it suggests should be applied without modification to eaich industry. This is 
 entirely contrary to the view of the Government on the matter. To anyone with a 
 knowledge of the diverse kinds of machinery already in operation, and the varying 
 geo^aphical and industrial conditions whicli affect different industries, it will be 
 obvious that no rigid scheme can he applied to all of them. 
 
 Each industry must therefore adopt the proposals made in the report as may seem 
 most suitable to its own. needs. In some industries, for instance, it may be considered 
 by both employers and employed that a system of works committees is unnecessary 
 owing to the perfection of the arrangements already in operation for dealing with the 
 difficulties arising in particular works between the management and the trade-union 
 officials. In other works committees have done very valuable work where they have 
 been introduced and their extension on agreed lines deserves every encouragement. 
 Again, in industries which are largely based on district organizations it will probably 
 be found desirable to assign more important functions to the district councils than 
 would be the case in trades which are more completely centralized in national bodies. 
 
SOCIAL AND IN0U8TBIAL CONDITIONS IN THE UNITED STATES. 23 
 
 AH these questions -will have to be thrashed out by the industries themselves and 
 settled in harmony with their particular needs. 
 
 Thirdly, it should be inade clear that representation on the industrial councils is 
 intended to be on the basis of existing organizations among employers and workmeii 
 concerned in each industry, although it will, of course, be open to the councils, when 
 formed, to grant representation to any new bodies which may come into existence and 
 which may be entitled to representation. The authority, and consequently the use- 
 fulness of the councils, will depend entirely on the extent to which they represent the 
 different interests and enjoy the whole-hearted support of the existing organizations, 
 and it is therefore desirable that representation should be determined on as broad a 
 basis as possible. 
 
 Lastly, it has been suggested that the scheme is intended to promote compulsory 
 arbitration. This is certainly not the case. Whatever agreement may be made for 
 dealing with disputes must be left to the industry itself to frame and their efficacy 
 must depend upon the voluntary cooperation of the organizations concerned in 
 carrying them out. 
 
 1' should now like to explain some of the reasons which have made the Government 
 anxious to see industrial councils established as soon as possible in the organized 
 trades. The experience of the war has shown the need for frequent consultation 
 between the Government and the chosen representatives of both employers and 
 workmen on vital questions concerning those industries which have been most 
 affected by war conditions. In some instances different Government departments have 
 approached different organizations in the same industry, and in many cases the 
 absence of joint representative bodies which can speak for their industries as a whole 
 and voice the joint opinion of employers and workmen has been found to render 
 negotiations much more difficult than they would otherwise have been. The case 
 of the cotton trade, where the industry is being regulated during a very difficult time 
 by a joint board of control, indicates how greatly the task of the State can be allevi- 
 ated by. a self-governing body capable of taking charge of the interests of the whole 
 industry. The problems of the period'of transition and reconstruction will not be 
 less difficult than those which the war has created, and the Government accordingly 
 feels that the task of rebuilding the social and economic fabric on a broader and 
 surer foundation will be rendered much easier if in the organized trades there exist 
 representative bodies to which the ^-arious questions of difficulty can be referred for 
 consideration and advice as they arise. 
 
 There are a number of questions on which the Government will need the united 
 and considered opinion of each large industry, such as the demobilization of the 
 forces, the resettlement of munition workers in civil industries, apprenticeship (espe- 
 cially where interrupted by war service), the training and employment of disabled 
 soldiers, and the control of raw materials; and the more it is able to avail itself of such 
 an opinion the more satisfactory and stable the solution of these questions is likely to. 
 be. 
 
 Further, it will be necessary in the national ihterest to insure a settlement of the 
 more permanent questions which have caused differenfes between employers and 
 employed in the past, on such a basis as to prevent the occurrence of fiisputes and of 
 serious stoppages in the difficult period dming which the problems just referred to will 
 have to be solved. It is felt that this object can only be secured by the existence 
 of permanent bodies on the lines suggested by the Whitley report, which will be 
 capable not merely of dealing with disputes when they arise, but of settling the big 
 questions at issue so far as possible on such a basis as to prevent serious conflicts arising - 
 at all. 
 
 The above statement of the functions of the councils is not intended to be ex- 
 haustive, but only to indicate some of the more immediate questions which they will 
 be called upon t'o deal with when set up. Their general objects are described m the 
 words of the report as being "to offer to workpeople the means of attaining improved 
 conditions of employment and a higher standard of comfort generally, and involve 
 the enlistment of their active and continuous cooperation in the promotion of indus- 
 try." Some further specific questions, which the councils might consider, were in- 
 dicated by the committee in paragraph 16 of the report, and it will be for the councils 
 themselves to determine what matters they shall deal with. Further, such councils 
 would obviously be the suitable bodies to make representations to the Government as 
 to legislation, which they think would be of advantage to their industry. 
 
 In order, therefore, that the councils may be able to fulfill the duties which they 
 may have the requisite status for doing so, the Government desire it be understood 
 that the councils will be recognized as the official standing consultative committees 
 to the Government on all future questions affecting the industries which they repre- 
 sent, and that they will be the normal channel through which the opinion and experi- 
 ence of an industry will be sought on all questions with which the industry is con- 
 
24 SOCIAL AND INDUSTRIAL CONDIIIONS IN THE UNITED STATES. 
 
 cerned. It will be seen, therefore, that it is intended that industrial councils should 
 play a definite and permanent part in the economic life of the country,^ and the Gov- 
 ernment feels that it can rely on both employers and workmen to cooperate in order 
 to make that part a worthy one. 
 
 I hope, therefore, that you will take this letter as a formal request to your organiza- 
 tion on the part of the Government to consider the question of carrying out the recom- 
 mendations of the report so far as they are applicable to your industry. The ministry 
 of labor will be willing to give every assistance in its power in the establishment of 
 industrial councils, and will be glad to receive suggestions as to the way in which it 
 can be given most effectively. . 
 
 In particular, it will be ready to assist in the convening of representative conferences 
 to discuss the establishment of councils, to provide secretarial assistance and to be 
 represented, if desired, in a consultative capacity at the preliminary meetings. The 
 ministry will be glad to be kept informed of any progress made in the direction of 
 forming council?. .Vlthough the scheme is only intended, and indeed can only be 
 applied, in trades which are well organized on both sides, I would point out that it 
 rests with those trades which do not at present possess a sufficient organization to bring 
 it about if they desire to apply it to themselves. 
 
 In conclusion, I would again emphasize the pressing need for the representative 
 organizations of employers and workpeople to come together in the organized trades 
 and to prepare themselves for the problems.of reconstruction by forming councils com- 
 ■ potent to deal with them. The Government trust that they will approach these prob- 
 lems not as two opposing forces each bent on getting as much and giving as little as 
 can be contrived, but as forces having a common interest in working together for the 
 welfare of their industry, not merely for the sake of those concerned in it, but also 
 for the sake of the nation which depends so largely on its industries for its well-being. 
 If the spirit which has enabled all classes to overcome by willing cooperation the in- 
 numerable dangers and difficulties which have beset us during the war, is applied to 
 the problems of reconstruction, I am convinced that they can be solved in a way 
 which will lay the foundation of the future prosperity of the country and of those 
 engaged in its great industries. 
 
 I am, sir, your obedient servant, 
 
 Geo. H. Roberts. 
 
 Industrial Cou>7cils— Report of the Reconstruction Committee on Relations 
 Between Employers and Employed. 
 
 The committee consisted of the following members: 
 
 The Right Hon. J. H. "Wliitley, M. P., chairman, chairman of committees. House 
 of Commons. 
 
 Mr. F. S. Button, formerly member of executive council. Amalgamated Society of 
 Engineers. 
 
 Sir G. J. Carter, K. B. E., chairman Shipbuilding Employers' Federation. 
 , Prof. S. J. Chapman, ('. B. E., professor of political economy, University of Man- 
 chester. 
 
 Sir Gilbert Claughton, Bart., chairman London & North Western Railway Co. 
 
 Mr. J. R. Clynes, M. P., president National Union of General Workers. 
 
 Mr. J. A. Hobson. 
 
 Mies Susan Lawrence, member of London County Council and member of the 
 executive committee of the Women's Trade Union League. 
 
 Mr. J. J. Mallon, secretary National Anti-Sweating League. 
 
 Sir Thos. A. Ratcliffe-EUis secretary Mining Association of Great Britain. 
 
 Mr. Robert Smillie, president Miners' Federation of Great Britain. 
 
 Mr. Allan M. Smith, chairman Engineering Employers' Federation. 
 
 Miss Mona Wilson, national health insurance Gom.misBioner. 
 
 Mr. II. J. Wilson, ministry of labor, and Mr. Arthur Greenwood, secretaries. 
 To the Right Hon. D. Lloyd Georqe, M. P., Prime, Minister. 
 
 Sir: We have the honor to submit the following interim report on joint. standing 
 industrial councils; 
 
 2. The terms of reference to the subcommittee are: 
 
 "(1) To make and C(m8ider suggestions for securing a permanent improvement 
 in the relations between employers and workmen. 
 
 "(2) To recommend means for securing that industrial conditions affecting the 
 relations between employers and workmen shall be systematically re-\dewed by those 
 concerned, with a view of improving conditions in the future." 
 
 3. After a general consideration of our duties in relation to the matters referred to, 
 We decided first to address ourselves to the problem of establishing permanently 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 25 
 
 improved relations between employers and employed in the main industiies of the 
 country, in which there exist representative Organizations on both sides. The present 
 report accordingly deals more especially with these trades. We are proceeding 
 with the consideration of the problems connected with the industries which are less 
 well organized. 
 
 4. We appreciate that under the pressure of the war both employers and work 
 people and _ their organizations are very much preoccupied; but, notwithstanding, 
 we believe it to be of the highest importance that our proposals should be put before 
 those concerned without delay, so that employers and employed may meet in the 
 near future and discuss the problems before them. 
 
 5. Theclrcumstances of the present time are admitted on all sides to offer a great 
 opportunity for securing a permanent improvement in the relations between em- 
 ployers and employed, while failure to utilize the opportunity may involve the 
 nation in grave industrial difficulties at the end of the war. 
 
 It is generally allowed that the war almost enforced some reconstruction of industry, 
 and in considering the subjects referred to us we have kept in view the need for 
 securing in the development of reconstruction the largest possible measure of cooper- 
 ation between employers and employed. 
 
 In the interests of the community it is vital that after the war the cooperation of 
 all classes established during the war should continue, and more especially with 
 regard to the relations between employers and employed. For securing improvement 
 in the latter, it is essential that any proposals put forward should offer to work people 
 the means of attaining improved conditions of employment and a higher stanclard of 
 comfort generally, and involve the enlistment of their active and continuous cooper- 
 ation in the promotion of industry. 
 
 To this end the establishment for each industry of an organization, representative 
 of emplr.yers and work people, to have as its object the regular consideration of mat- 
 ters affecting the progress and well-being of the trade from the point of view of all 
 those engaged in it, so far as this is consistent with the general interest of the com- 
 munity, appears to us necessary. 
 
 6. Many complicated problems have arisen during the war which have a bearing 
 both on employers and work people, and may affect the relations between them. It 
 is clear that industrial conditions will need careful handling if grave difficulties and 
 strained relations are to be avoided after the war has ended. The precise nature of 
 the problems to be faced naturally varies from industry to industry, and even from 
 branch to branch within the same industry. Their treatment consequently will need 
 an intimate knowledge of the facts and circumstances of each trade, and such knowl- 
 edge is to be found only among those directly connected with the trade. 
 
 7. With a view to providing means for carrying out the policy outlined above, v,-e 
 recommend that His Majesty's Government should propose without delay to the 
 various asSocations of employers and employed the formation of joint standing indus- 
 trial councils in the several industries, where they do not already exist, composed of 
 representatives of employers and employed, regard being paid to the -^'arious sections of 
 the industry and the various classes of labor engaged. 
 
 8. The appointment of a chairman or chairmen should, we think, be left to the 
 council, who may decide that these should be — 
 
 (1) A chairman for each side of the council: 
 
 (2) A chairman and vice chairman selected from the members of the council (one 
 from each side of the council) ; 
 
 (3) A chairman chosen by the council from independent persons outside the indus- 
 try; or 
 
 (4) A chairman nominated by such person or authority as the council may deter- 
 mine or, failing agreement, by the Government. 
 
 9. The council should meet at regular and frequent intervals. 
 
 10. The objects to wliich the consideration of the councils should be directed should 
 be appropriate matters affecting the several industries and particularly the establish- 
 ment of a closer cooperation between employers and employed. Questions connected 
 with demobilization will call for early attention. 
 
 ' 11. Oneof the chief factors in the problem, as it at first presents itself, consists of the 
 guarantees given by the Government, with parliamentary sanction, and the various 
 undertakings entered into by employers, to restore the trade-union rules and customs 
 suspended during the war. While this does not mean tliat all the lessons learned 
 during the war should be ignored, it does mean that the definite cooperation and 
 acquiesence by both employers and employed must be a condition of any setting 
 aside of these guarantees or undertakings, and that, if new arrangements are to be 
 reached, in themselves more satisfactory to all parties but not in strict accordance with 
 the guarantees, they must be the join t work of employers and employed . 
 
26 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 12. The matters to be considered by the councils njust inevitably differ widely from 
 industry to industry, as different circumstances and conditions call for different treat- 
 ment, but we are of opinion that the suggestions set forth below ought to be taken into 
 account, subject to such modification in each case as may serve to adapt them to the 
 needs of the various industries. 
 
 13. In the well-organized industries one of the first questions to be considered should 
 be the establishment of local and works organizations to supplement and make more 
 effective the work of the central bodies. It is not enough to secure cooperation at 
 the center between the national organizations; it is equally necessary to enlist the 
 activity and support of employers and employed in the districts and in individual 
 establishments. The national industrial council should not be regarded as complete 
 in itself; what is needed is a triple organization — in the workshops, the districts, and 
 nationally. Moreover, it is essential that the organization at each of these three- 
 stages should proceed on a common principle, and that the greatest measure of common 
 action between them should be secured. 
 
 14. With this end in \iew, we are of opinion that the follo■^^'ing proposals should be 
 laid before the national industrial councils: , 
 
 (a) That district councils, representative of the trades-unions and of the employers' 
 association in the industry, should be created, or developed out of the existing machin- 
 ery for negotiation in the various trades. 
 
 (6) That works committees, representative of the management and of the workers 
 employed, should be instituted in particular works to act in close cooperation ^\'ith the 
 district and national machinery. 
 
 As it is of the, highest importance that the scheme making provision for these com- 
 mittees should be such as to secure the support of the trades-unions and employers' 
 associations concerned, its design should be a matter for agreement between these 
 organizations. 
 
 Just as regular meetings and continuity of cooperation are essential in the case of 
 the national industrial councils, so they seem to be necessary in the case of the district 
 and works organizations. The object is to secure cooperation by granting to work- 
 people a greater share in the consideration of matters affecting their industry, and 
 this can only be achieved by keeping employers and workpeople in constant touch. 
 
 15. The respective functions of works committees, district councils, and national 
 councils will no doubt require to be determined separately in accordance ^^ith the 
 varying conditions of different industries. Care will need to be taken in each case to 
 delimit accurately their repsective functions, in order to avoid overlapping and result- 
 ing friction. For instance, where conditions of employment are determined by 
 national agreements, the district councils or works committees should not be allowed 
 to contract out of conditions so laid down, nor, where conditions are determined by 
 local agreements, should such power be allowed to works committees. 
 
 16. Among the questions with which it is suggested that the national councils 
 should deal or allocate to may be selected for special mention: 
 
 (i) The better utilization of the practical knowledge and experience of the work- 
 people. 
 
 (ii) Means for securing to the workpeople a greater share in and responsibility for 
 the determination and observance of the conditions under which their work is carried 
 on. 
 
 (iii) The settlement of the general principles governing the conditions of employ- 
 ment, including the methods of fixing, paying, and readjusting wages, having regard 
 to the need for securing to the workpeople a share 'in the increased prosperity of the 
 industry. 
 
 (iv) ']?he establishment of regular methods of negotiation for issues arising between 
 employers and workpeople, with a view both to the prevention of differences and to 
 their better adjustment when they appear. 
 
 (v) Meams of insuring to the workpeople the greatest possible security of earnings 
 and employment, without undue restriction upon change of occupation or employer. 
 
 (vi) Methods o'f fixing and adjusting earnings, piecework prices, etc., and of dealing 
 with the many difl5culties which arise with regard to the method and amount of 
 payment apart from the fixing of general standard rates, which are alrea"dy covered 
 by paragraph (iii). 
 
 (vii) Technical education and training. 
 
 (viii) Industrial research and the full utilization of its results. 
 
 (ix) The provision of facilities for the full consideration and utilization of inven- 
 tions and improvements designed by workpeople, and for the adequate safeguarding 
 of the rights of the designers of such improvements. 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 27 
 
 (x) Improvements of processes, machinery, and organization and appropriate ques- 
 tions relating to management and the examination of industrial experiments, with 
 special reference to cooperation in carrying new ideas into effect and full considera- 
 tion of the workpeople's point of view in relation to them. 
 
 (xi) Proposed legislation affecting the industry. 
 
 17. The methods by which the functions of the proposed councils should be cor- 
 related to those of joint bodies in the different districts and in the various works 
 within the districts must necessarily vary according to the trade. It may, therefore, 
 be the best policy to leave it to the trades themselves to formulate schemes suitable 
 to their special circumstances, it being understood that it is essential to secure in each 
 industry the fullest measure of cooperation between employers and employed, both 
 generally, through the national councils, and specifically, through district committees 
 and workshop committees. 
 
 18. It would seem advisable that the Government should put the proposals relating 
 to national industrial councils before the employers' and workpeople's associations 
 and request them to adopt such measures ae are needful for their establishment where 
 they do not already exist. Suitable steps should also be taken, at the proper time, to 
 put the matter before the general public. 
 
 19. In forwarding the proposals to the parties concerned we think the Government 
 should offer to be represented in an advisory, capacity at the preliminary meetings of 
 a council if the parties so desire. We are also of opinion that the Government should 
 undertake to supply to the various councils such information on industrial subjects 
 as may be available and likely to prove of value. 
 
 20. It has been suggested that means must be devised to safeguard the interests 
 of the community against possible action of an antisocial character Dn the part of the 
 councils. We have, however, here assumed that the councils, in their work of pro- 
 moting the interest of their own industries, will have regard for the national interest. 
 If they fulfill their functions they will be the best builders of national prosperity. 
 The State never parts with its inherent overriding power, but such power may be 
 least needed when least obtruded. 
 
 21. It appears to us that it may be desh-able at some later stage for the State to give 
 the sanction of law to agreements made by the councils, but the initiative in this 
 direction should come from the councils themselves. 
 
 22. The plans sketched in the foregoing paragraphs are applicable in the form in 
 which they are given only to industries in which there are responsible associations of 
 employers and work people which can claim to be fairly representative. . The case 
 of the less well-organized trades or sections of a trade necessarily needs further con- 
 sideration. We hope to be in a position shortly to put forward recommendations that 
 will prepare the way for the active utilization in these trades of the same practical 
 cooperation as is foreshadowed in the proposals made above for the more highly 
 organized trades. 
 
 23. It may be desirable to state here our considered opinion that an essential con- ' 
 dition of securing a permanent improvement in the relations between employers and 
 employed is that there should be adequate organization on the part of both employers 
 and Workpeople. The proposals outlined for joint cooperation throughout the several 
 industries depend for their ultimate success upon there being such organization on 
 both sides, and such organization is necessary also to provide means whereby the 
 arrangements and agreements made for the industry may be effectively carried out. 
 
 24. We have thought it well to refrain from making suggestions or offering opinions 
 with regard to such matters as profit sharing, copartnership, or particular systems of 
 wages, etc. It would be impracticable for us to make any useful general recommenda- 
 tions on such matters, having regard to the varying conditions in different trades. We ' 
 are convinced, moreover, that a permanent improvement in the relations between 
 employers and employed must be founded upon something other than a cash basis. 
 What is wanted is that the workpeople should have a greater opportunity of partici- 
 pating in the discussion about and adjustment of those parts of industry by which 
 they are most affected. 
 
 25. The schemes recommended in this report are intended not merely for the 
 treatment of industrial problems when they have become acute, but also, and more 
 especially, to prevent their becoming acute. We believe that regular meetings to 
 discuss industrial questions, apart from and prior to any differences with regard to 
 them that may have begun to cause friction, will materially reduce the number of 
 occasions on which, in the view of either employers or employed, it is necessary tp 
 contemplate recourse to a stoppage of' work. 
 
 26. We venture to hope that representative men in each industry, with pride in 
 their calling and care for its place as a contributor to the national well being, will 
 
28 SOCIAL AND INDUSTEIAL CONDITIONS IN THE UNITED STATES. 
 
 come together in the manner here suggested, and apply themselves to promoting 
 industrial harmony and efficiency and removing the obstacles that have hitherto 
 stood in the way. 
 
 We have the honor to be, sir, your obedient servants, 
 J. H. Yv'hitlet, J. A. HoBsoN. 
 
 Chairman. A. SusAX Lawrence. 
 
 F. S. Button. J. J. Mallon. 
 
 Geo. J. Cahtee. Thos. R. Ratcliffe-Bllis. 
 
 S. J. Chapman. Robt. Smillie. 
 
 G. H. Claughton. Allan M. Smith. 
 J. R. Clynes. , MoNA Wilson. 
 
 H. J. Wilson, 
 Arthur Greenwood, 
 
 Secretaries. 
 March 8, 1917. 
 
 APPENDIX. 
 
 The following questions were addressed by the reconstruction committee to the 
 subcommittee on the relations between employers and employed in order to make 
 clear certain points which appeared to call for further elucidation. The answers 
 given are subjoined. _ . 
 
 1. Q. In what classes of industries does the interim report propose that industrial 
 ■councils shall be established? What basis of classification has the subcommittee 
 in view? — A. It has been suggested, that, for the purpose of considering the estab- 
 lishment of industrial councils or other bodies designed to assist in the improvement 
 of relations between employers and employed, the various industries should be 
 grouped into three classes — (a) industries in which organization on the part of em- 
 ployers and employed is sufficiently developed to render the councils representative; 
 (b) industries in which either as regards employers and employed, or both, the degree 
 of organization, though considerable, is less marked than in (a) and is insufficient to 
 be regarded as representative; and (c) industries in which organization is so imper- 
 fect, either as regards employers or employed, or both, that no associations can be 
 said adequately to represent those engaged in the trade. 
 
 It will be clear that an analysis of industries will show a number which are on the 
 border lines between these groups, and special consideration will have to be given 
 to such trades. So far as groups (a) and (c) are concerned, a fairly large number of 
 trades can readily be assigned to them; group (6) is necessarily more indetermined. 
 
 For trades in group (a) the committee have proposed the establishment of joint 
 standing industrial councils in the several trades. In dealing with the various indus- 
 tries it may be necessary to consider specially the case of parts of industries in group 
 (a) where organization is not fully developed. • ' 
 
 2. Q. Is the machinery proposed intended to be in addition to or in substitution 
 for existing machinery? Is it proposed that existing machinery should be super- 
 seded? By "existing machinery" is meant joint conference and discussion between 
 employers and employed. — A. In most organized trades there already exist joint 
 bodies for particular purposes. " It is not proposed that the industrial councils should 
 necessarily, disturb these existing bodies. A council would be free, if it chose and 
 if the bodies concerned approved, to merge existing committees, etc., in the council 
 or to link them with the council as subcommittees. 
 
 3. Q. Is it understood that membership of the councils is to be confined to repre- 
 sentatives elected by employers' assocaitions and trade-unions? What is the view 
 of the subcommittee regarding the entry of new organizations established after the 
 councils have been set up? — A. It is intended that the councils should be composed 
 only of representatives of trade-unions and employers' associations, and that new 
 organizations should be admitted only with the approval of the particular side of the 
 council of which the organization would form a part. 
 
 4 (a). Q. Is it intended that decisions reached by the councils shall be binding 
 upon the bodies comprising them? If so, is such binding effect to be conditional 
 upon the consent of each employers' association or trade-union affected? — A. It is 
 contemplated that agreements reached by industrial councils should (whilst not, of 
 CQurse, possessing the binding force of law) carry with them the same obligation of 
 observance as exists in the case of other agreements between employers' associations 
 and trade-unions. A council, being on its workmen's side based on the trade-unions 
 concerned in the industry, its powers or authority could only, be such as the con- 
 stituent trade-unions freely agreed to. 
 
SOCIAL AND INDUSTEIAL CONDITIONS IN THE UNITED STATES. 29 
 
 4 (6). Q. In particular, is it intended that all pledges given, either by the Govern- 
 ment or employers, for the restoration of trade-union rules and practices after the war 
 shall be redeemed without qualificatioh unless the particular trade-union concerned 
 agrees to alteration; or, on the contrary, that the industrial council shall have power 
 to decide such question by a majority vote of the workmen's representatives from all 
 the trade-unions in the industry? — ^A. It is clearly intended that all pledges relating 
 to the restoration of trade-union rules shall be redeemed without qualification unless 
 the particular trade-union concerned agrees to alteration, and it is not intended that 
 the council shall have power to decide such questions by a majority vote of the work- 
 men's representatives from all the trade-unions in the industry. 
 
 Second Report on Joint Industrial Councils by the British Ministry or 
 
 Reconstruction. 
 
 Sir; Following the proposals made in our first report, we have now the honor to 
 present further recommendations dealing with industries in which organizations on 
 the part of employers and employed is less completely established than in the industries 
 covered by the previous report, and with industries in which such organization is 
 weak or nonexistent. 
 
 2. Before commencing the examination of these industries the subcommittee came 
 to the conclusion that it would materially assist their inquiries if they could have the 
 direct advantage of the knowledge and experience of some representative employers 
 who were connected with industries of the kind with which the committee were about 
 to deal; and it was arranged, with your approval, that Sir Maurice Levy, Mr. F. N. 
 Hepworth, Mr. W. Hill, and Mr, D. R. H, Williams should be appointed to act with 
 the subcommittee while these industries were under consideration. This arrange- 
 ment made it possible to release from attendance at the earlier meetings of the com- 
 mittee Sir Gilbert Claughton, Sir T. Ratcliffe-EUis, Sir George J. Carter, and Mr. Allan 
 Smith, whose time is greatly occupied in other public work and whose experience is 
 more particularly related to the organized trades covered by our former report. 
 
 3. It is difficult to classify industries according to the degree of organization among 
 employers and employed, but for convenience of consideration the industries of the 
 country may be divided into three groups: 
 
 Group A. — Consisting of industries in which organizations on the part of employers 
 and employed is sufficiently developed to render their respective associations repre- 
 sentative of the great majority of those engaged in the industry. These are the indus- 
 tries which we had in mind in our first interim report. 
 
 Group B. — Comprising. those industries in which, either as regards employers and 
 employed, or both, the degree of organization, though considerable, is less marked 
 then in group A. 
 
 Group C. — Consisting of industries in which organizations is so imperfect, either as 
 regards employers or employed, or both, that no associations can be said adequately 
 to represent those engaged in the industry. 
 
 The present report is concerned with groups B and C. 
 
 4. So far as groups A and C are concerned, a number of industries can be definitely 
 assigned to thejn. Group B, however, is necessarily more indeterminate. Some of 
 the industries in this group approach closely to industries in group A, while others 
 verge upon group C, Further, most industries, in whatever class they may fall, 
 possess a ' ' tail, ' ' consisting of badly organized areas, or sections of the industry. These 
 facts we have borne in mind in formulating our further proposals. 
 
 5. So far as industries in group B are concerned, we are of opinion that the pro- 
 posals of our first report should, in their main lines, be applied to those which, on 
 examination by the ministry of labor in consultation with the associations concerned, 
 are found to be relatively well organized. We suggest, however, that where in these 
 industries a national industrial council is formed there should be appointed one or 
 at most two official representatives to assist in the initiation of the council, and con- 
 tinue after its establishment to act in an advisory capacity and serve as a link with the 
 Government. We do not contemplate that a representative so appointed should be 
 a member of the national industrial council, in the sense that he should have power, 
 by a vote, to influence the decisions of the council, but that he should attend its meet- 
 ings and assist in any way which may be found acceptable to it. By so doing he 
 would acquire a continuous knowledge of the conditions of the industry of which the 
 Government could avail itself and so avoid many mistakes that under present con- 
 ditions are inevitable. 
 
30 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 The question of the retention of the official representatives should be considered 
 by the councils in the light of experience gained when an adequate time has elapsed. 
 We anticipate that in many cases their continued assistance will be found of value 
 even after an industry has attained a high degree of organization, but in no case should 
 they remain except at the express wiah of the councils concerned. 
 
 6. It may be that in some group B industries in which a national industria,l council 
 is formed certain areas are well suited to the establishment of district councils, while 
 in other areas the organization of employers or employed, or both, is too weak to be 
 deemed representative. There appears to be no good reason why in the former areas 
 there should not be district industrial councils, acting in conjunction with the national 
 industrial councils, in accordance with the principles formulated in the committee's 
 earlier report on the well-organized trades. 
 
 7. An examination of some of the industries coming within group B may show that 
 there are some which, owing to the peculiarities of the trades and their geographical 
 distribution, can not at present be brought readily within the scope of the proposals 
 for a national industrial council, though they may be quite well organized in two or 
 more separate districts. In such a case we think there might well be formed one or 
 more district industrial councils. We anticipate that in course of time the influence 
 of the district councils would be such that the industry would become suitable for 
 the establishment of a national industrial council. 
 
 8. In the case of industries in group B (as in the industries covered by our first 
 report), we consider that the members of the national councils and of the district 
 councils should be representatives of the employers' associations and trade-unions 
 concerned. In the formation of the councils, regard should be paid to the various 
 sections of the industry and the various classes of labor engaged, and the representa- 
 tives should include representatives of women's organizations. In view of the extent 
 to which women are employed in these industries, we think the trade-unions, when 
 selecting their representatives for the councils, should include a number of women 
 among those who are appointed to be members. 
 
 9. It does not appear to us necessary or desirable to suggest any fixed standard of 
 organization which should exist in any industry before a national industrial council 
 should be established. The case of each industry will need to be considered 
 separately, regard being paid to its particular circumstances and characteristics. 
 
 In the discussion of this matter we nave considered whether it would be feasible to 
 indicate a percentage of organization which should be reached before a council is 
 formed, but in view of the great diversity of circumstances in the^e industries and of 
 the differing degrees to which several sections of some of them are organized, we have 
 come to the conclusion that it is more desirable to leave the niatter to the decision of 
 the ministry of labor and the organizations concerned. Whatever theoretical standard 
 may be contemplated, we think its application should not be restrictive in either 
 direction. 
 
 10. The level of organization in industries in group C is such as to make the scheme 
 we have proposed for national or district industrial council inapplicable. To these 
 industries the machinery of the trade boards act might well be applied pending the 
 developnient of such degree of organization as would render feasible the establishment 
 of a national council or district councils. 
 
 11. The trade boards act was orio;inally intended to secm'e the establishment of a 
 minimum standard of wages in certain unorganized industries, but we consider that the 
 trade boards should be regarded also as a means of supplying a regular machinery for 
 negotiation and decision on certain groups of questions dealt with in other circum- 
 stances by collective bargaining between employers' organizations and trade-unions. 
 
 In order that the trade boards act may be of greater utility in connection with 
 unorganized and badly organized industries, or sections of industries, we consider that 
 certain modifications are needed to enlarge the functions of the trade boards. We 
 suggest that they should be empowered to deal not only with minimum rates of wages 
 but with hours of labor and questions cognate to wages and hours. We are of opinion 
 also that the functions of the trade boards should be extended so as to enable them to 
 initiate and conduct inquiries on all matters affecting the industry or the section of 
 the industry concerned. 
 
 12. If these proposals were adopted there would be set up in a number of industries, 
 or sections of industries, trade boards (consisting of representatives of employers and 
 employed, together with "appointed members") who would, within the scope of 
 their functions,, establish minimum standard rates and copditions applicable to the 
 industry or section of the industry which they represented, and consider systemati- 
 cally matters affecting the well-being of the industry. 
 
 13. Where an industry in group C becomes sufficiently organized to admit of the 
 institution of national and district councils, we consider that these bodies should be 
 
SOCIAL AND INDTJ&TBIAL CONDmONS IN THE UNITED STATES. 31 
 
 set up on the lines already indicated. Where it appears to a trade board that an 
 industrial council should be appointed in the industry concerned, they should have 
 power (a) to make application to the minister of labor asking him to approach the 
 organizations of employers and employed, and (b) to suggest a scheme by which the 
 representation of the workers' and employers' sides of the trade board could be secured. 
 
 14. Whether in industries in group C the establishment of works committees is to 
 be recommended ia a question which calls for very careful examination, and we have 
 made the general question of works committees the subject of a separate report. 
 
 15. We have already pointed out that most of the industries in groups *A and B 
 have sections or areas in which the degree of organization among the employers and 
 employed falls much below what is normal in the rest of the industry, and it appears 
 to us desirable that the' general body of employers and employed in any industry 
 should have some means whereby they may bring the whole of the trade up to the 
 standard of minimum conditions which have been agreed upon by a substantial 
 majority of the industry. We, therefore, recommend that on the application of a 
 national industrial council sufficiently representative of an industry the ministry of 
 labor should be empowered, if satisfied that the case is a suitable one, to make an 
 order either instituting for a section of the industry a trade board on which the national 
 industrial council should be represented, or constituting the industrial council a trade 
 board under the provisions of the trade boards act. These proposals are not intended 
 to limit, but to be in addition to, the powers at present held by the ministry of labor 
 with regard to the establishment of trade boards in trades and industries where they 
 are considered by the ministry to be necessary. 
 
 16. We have already indicated (par. 9) that the circumstances and characteristics 
 of each of the several industries will need to be considered before it can be decided 
 definitely how far any ( f our proposals can be applied in particular instances, and we 
 have refrained from attempting to suggest any exact degree of organization which 
 would be requisite before a particular proposal' could be applied. We think, however, 
 that the suggestion we have made in the preceding paragraph to confer upon a national 
 industrial council the powers of a trade board should be adopted only in those cases 
 in which the rainistiy of labor is satisfied that the council represents a substantial 
 majority of the industry concerned. 
 
 17. We are of opinion that most of the chief industries of the country could be 
 brought under one or other of the schemes contained in this and the preceding report. 
 There would then be broadly two classes of industries in the country — industries 
 with industrial councils and industries with trade boards. 
 
 18. In the former group the national industrial councils would be constituted either 
 in the manner we have indicated in our first report, carrying with them district 
 councils and works committees, or on the lines suggested in the present report, i. e., 
 each council coming within the scope of this report having associated with it one or 
 two official representatives to act in an advisory capacity and as a link with the 
 Government, in addition to the representatives of the employers and employed. 
 
 19. It should be noted that in the case of industries in which there is a national 
 industrial council, trade boards might, in some infitances, be associated with the 
 council in order to determine wages and hours, etc., in certain sections or areas. It 
 is possible that in some allied trades, really forming part of the same industry, both 
 sets of proposals might, in the first instance, be in operation side by side, one trade 
 having its industrial council and the other its trade board. Where these circum- 
 stances obtain, we anticipate that the trade board would be a stepping stone to the 
 full industrial council status. 
 
 20. It may be useful to present a brief outline of the proposals which we have so 
 far put forward : 
 
 (a) In the more highly organized industries (group A) we propose a triple organ- 
 ization of national, district, and workshop bodies, as outlined in our first report. 
 
 (6) In industries where there are representative associations of employers and 
 employed, which, however, do not possess the authority of those in group A industries, 
 we propose that the triple organization should be modified by attaching to each 
 national industrial council one or at most two representatives of the ministry of labor 
 to act in an advisory capacity. 
 
 (c) In industries, in both groups A and B, we propose that unorganized areas or 
 branches of an industry should be provided, on the application of the national indus- 
 trial council and with the approval of the ministry of labor, with trade boards for 
 such areas or branches, the trade boards being linked with the industrial council. 
 
 (d) In industries having no adequate organization of employers or employed, we 
 recommend that trade boards should be continued or established, and that these 
 should, with the approval of the ministry of labor, be enabled to formulate a scheme 
 for an industrial council, which might include in an advisory capacity the ' ' appointed 
 members" of the trade board. ' 
 
32 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 21. It will be obaerved that the policy we recommend is based upon organization) 
 on the part of both employers and employed. Where- this is adequate, as in group A 
 industries, there is no need of external assistance. In group B industries we think 
 that the organizations concerned would be glad to have the services of an official 
 representative who would act as advisor and as a link with the Government. In 
 unorganized sections of both groups of industries we believe that a larger measure of 
 Government assistance will be both desirable and acceptable, and we have therefore 
 suggested the adoption of the machinery of the trade boards act in this connection. 
 In group C industries we think that brganization will be encouraged by the use of the- 
 powers under the trade boards act, and where national industrial coimcils are set up 
 we recommend that the "appointed members" of the trade board should act on the 
 councils in an ad-visory capacity. Briefly, our proposals are that the extent of State 
 assistance should vary inversely with the degree of organization in industries.. 
 
 22. We do not, however, regard Government assistance as an alternative to the 
 organization of employers and employed. On the contrary, we regard it as a means 
 of furthering the growth and development of such organization. 
 
 , 23. We think it advisable in this connection to repeat the following paragraph 
 from our former report: 
 
 "It may be desu^able to state here our considered opinion that an essential con- 
 dition of secm:ing a permanent improvement in the relations between employers 
 and employed is that there should be adequate organization on the part of both 
 employers and workpeople. The proposals outlined for joint cooperation throughout 
 the several industries depend for their ultimate success upon there being such 
 organization on both sides; and such organization is necessary also to pro^dde means 
 whereby the arrangements and agreements made for the industry may be effectively 
 carried out." 
 
 24. In considering the scope of the matters referred to us we have formed the 
 opinion that the expression "employers and workmen" in our reference covers State 
 and municipal authorities and persons employed by them. Accordingly we recom- 
 mend that such authorities and their workpeople should take into consideration the 
 proposals made in this and in our -first report, -with a view to determining how far 
 such proposals can suitably be adopted in their case. 
 
 We understand that the ministry of labor has up to the present circulated our' 
 first report only to employers' and workpeople's associations in the ordinary private 
 industries. We think, however, that both it and the present report should also be 
 brought to the notice of State departments and municipal authorities employing 
 labor. 
 
 25. The proposals we have set forth above do not require legislation except on 
 three points, namely, to pro-vid^ — 
 
 (1) That the trade boards shall have power, in addition to determining minimum 
 rates of wages, to deal with hours of labor and questions cognate to wages and hours. 
 
 (2) That the trade boards shall have power to initiate inquiries, and make pro- 
 posals to the Government departments concerned, on matters affecting the industrial 
 conditions of the trade, as well as on questions of general interest to the industries 
 concerned, respectively. 
 
 (3) That when an industrial council sufficiently representative of an industry 
 makes application, the ministry of labor shall have power, if satisfied that the case 
 is a suitable one, to make an order instituting for a section of the industry a trade 
 board on which the industrial council shall be represented, or constituting the council 
 a trade board under the trade boards act. 
 
 26. The proposals which we have made must necessarily be adapted to meet the 
 varying needs and circumstances of different industries, and it is not anticipated 
 that there will be uniformity in practice. Our recommendations are intended merely 
 to set forth the main lines of development which we believe to be essential to insure 
 better relations between employers and employed. Their application to the several 
 Industries we can safely leave to those intimately concerned, with the conviction 
 that the flexibility and adaptability of industrial organization which have been 
 so lar^e a factor in enabling industry to stand the enormous strain of the war will 
 not fail the country when peace returns. 
 
 27. Other problems affecting the relations between employers and employed are 
 engaging our attention, but we believe that whatever further steps may be necessary 
 to accomplish the object we have in -view the lines of development suggested in the' 
 present report and the one which preceded it are fundamental. We believe that 
 in each industry there is a sufficiently large body of opinion willing to adopt the 
 proposals we have made as a means of establishing a new relation in industry. 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 33 
 
 Industrial Councils and Trade Boards. 
 
 In order to make clear the relations between industrial councils and trade boards and 
 to suggest certain modifications whicb the Government believes is necessary before the 
 recommendations of the second report of the committee can be put into operation, the 
 minister of reconstruction and the minister of labor have prepared a memorandum 
 which was issued under date of June 7, 1918, and is here reproduced in full: 
 
 "1. The proposals contained in the first report on joint standing industrial councils 
 (Cd. 8606) of the committee on relations between employers and employed have been 
 adopted by the Government. The stepp which have been taken to establish industrial 
 couiicils have enabled the Government to consider the proposals of the second report 
 on joint standing industrial councils (Cd. 9002) in the light of experience. This 
 report, which deals with industries other than those which are highly organized, 
 follows naturally upon the first report of the committee and develops the line of policy 
 therein proposed. It has not been found possible from the administrative point of 
 view to adopt the whole of the recommendations contained in the second report, but 
 such modifications as it seems desirable to make do not affect the principles under- 
 lying the committee's proposal for the establishment of joint industrial councils. 
 They are designed to take advantage of the administrative experience of the min- 
 istry of labor with regard to both industrial councils and trade boards. In view of 
 the growing interest which is being taken in the establishment of industrial councils 
 and of the proposed extension of trade boards, it appears desirable to set forth the 
 modifications which the Government regard as necessary in putting into operation 
 the recommendations of the second report, and also to make clear the relations between 
 trade boards and industrial councils. 
 
 "2. The first report on joint standing industrial councils referred only to the well- 
 organized industries. The second report deals with the less organized and unorgan- 
 ized trades, and suggests the classification of the industries of the country into three 
 groups: 
 
 "Group A. — Consisting of industries in which organization on the part of em- 
 ployers and employed is sufficiently developed to render their respective associations 
 representative of the great majority of those engaged in the industry. These are the 
 industries which we had in mind in our fia:st interim report. 
 
 "Group B. — Comprising those industries in which, either as regards employers, 
 employed, or both, the degree of organization, though considerable, is less marked 
 than in Group A. 
 
 "Group C. — Consisting of industries in which organization is so imperfect, either as 
 regards employers or employed, or both, that no associations can be said adequately 
 to represent those engaged in the industry." 
 
 The proposals of the committee on relations between employers and employed are 
 summarized in paragraph 20 of their second report as follows: 
 
 " ' (a) In the more highly organized industries (group A) we propose a triple organiza- 
 tion of national, district, and workshop bodies, as outlined in our first report. 
 
 ,"'(6) In industries where there are representative associations of employers and 
 employed, which, however, do not possesss the authority of those in group A industries, 
 we propose that the triple organization should be modified, by attaching to each na- 
 tional industrial, council one, or at most two representatives of the ministry of labor to 
 act in an advisory capacity. 
 
 "'(c) In industries in both groups A and B, we propose that unorganized areas or 
 branches of an industry should be provided, on the application of the national indus- 
 trial council, and with the approval of the ministry of labor, with trade boards for 
 such areas or bj-anches, the trade boards being linked with the industrial council. 
 
 "'(d) In industries having no. adequate organization of employers or employed, we 
 recommend that trade boards should be continued or established, and that these 
 should, with the approval of the ministry of labor, be enabled to formulate a scheme 
 for an industrial council, which might include, in an advisory capacity, the " appointed 
 members" of the trade board.'" 
 
 " It may be convenient to set out briefly the modifications of the above proposals, 
 which it has been found necessary to make. 
 
 "(1) As regards (6) it has been decided to recognize one type of industrial council 
 only, and not to attach ofiicial representatives to the council, except on the application 
 of the industrial council itself. 
 
 " (2) As regards (c) and (rf) the relations between trade boards and industrial councils 
 raise a number of serious administrative difficulties due to the wide differences in 
 the purpose and structure of the two types of bodies. It is not regarded as advisable 
 that a trade board should formulate a scheme for an industrial council, nor is it probable 
 
 9992&— 19 3 
 
34 SOOIAL AND INDUSTRIAL CONDITIONS IN THE T7NITED STATES. 
 
 that trade boards for unorganized areas will be set up in conjunction with a joint 
 industrial council. 
 
 " (3) It is necessa'ry at the outset to emphasize the fundamental differences between 
 industrial councils and trade boards. A joint industrial council is voluntary in its 
 character and can only be brought into existence with the agreement of the organiza- 
 tions of employers and workpeople in the particular industry, and the council itself 
 is composed exclusively of persons nominated by the employers' associations and 
 trade-unions concerned. The industrial council is, moreover, within very wide 
 limits, able to determine its own functions, miachinery, and methods of working. Its 
 functions in almost all cases will probably cover a wide range and will be concerned 
 with many matters other than wages. Its machinery and methods will be based 
 upon past experience of the industry and the existing organization of both employers 
 and employed. Industrial councils will, therefore, vary in structure and functions 
 as can be seen from the provisional constitutions already submitted to the Ministry 
 of Labor. Financially they will be self-supporting, and will receive no monetary aid 
 from the Government. The Government proposes to recognize the industrial council 
 in an industry as the representative organization. to which it can refer. This was 
 made clear in the minister of labor's circular, letter of October 20, 1917, in which it is 
 said that ' the Government desires it to be understood that the councils will be recog- 
 nized as the official standing consultative committees to the Government on all 
 future questions affecting the industries which they represent, and that they will be 
 the normal channel through which the opinion and experience of an industry will 
 be sought on all questions in which the industry is concerned.'" 
 
 "A trade board, on the other hand, is a statutory body established by the minister of 
 labor and constituted in accordance with regulations made by him in pursuance of the 
 trade boards act; and its expenses, in so far as authorized by the minister of labor 
 and sanctioned by the Treasury, are defrayed out of public money. The regulations 
 may provide for the election of the representatives of employers and workers or for' 
 their nomination by the minister of labor, but in either case provision must be made 
 for the due representation of home workers in trades in which a considerable propor- 
 tion of home workers are engaged. On account of the comparative lack of organization 
 in the trades to which the act at present applies, the method of nomination by the 
 minister has proved in practice to be preferable to that of election, and in nearly all 
 cases the representative members of trade boards are now nominated by the minister. 
 The employers' associations and trade-unions in the several trades are invited to sub- 
 mit themames of candidates for the minister's consideration, and full weight is attached 
 to their recommendation, but where the trade organizations do not fully represent all 
 sections of the trade, it is necessary to look outside them to find representatives of the 
 different processes and districts affected. 
 
 "A further distinction between trade boards and industrial councils is, that while 
 industrial councils are composed entirely of representatives of the employers' asso- 
 ciations and trade-unions in the industry, every trade board includes, in addition to 
 the representative members, a small number (usually three) of 'appointed members,' 
 one of whom is appointed by the minister to act as chairman and one as deputy chair- 
 man of the board. The appointed members are unconnected with the trade and are 
 appointed by the minister as impartial persons. The primary function of a trade 
 board is the determination of mimmum rates of wages, and when the minimum rates 
 of wages fixed by a trade board have been confirmed by the minister of labor, they 
 are enforceable by criminal proceedings, and officers are appointed to secure then 
 observance. The minimum rates thus become part of the law of the land, and are 
 enforced in the same manner as, for example, the provisions of the factory acts. The 
 purpose, structure, and functions of industrial councils and trade boards aret herefore 
 fundamentally different. Their respective areas of operation aye also determined by 
 different considerations. An industrial council will exercise direct influence only over 
 the organizations represented upon it. It will comprise those employers' associations 
 with common interests and common problems; similarly its trade-union side will be 
 composed of representatives of organizations whose interests are directly interde- 
 pendent. An industrial council therefore is representative of organizations whose 
 objects and interests, whilst not identical, are sufficiently interlocked to render 
 common action desirable. The various organizations represent the interests of em- 
 ployers and workers engaged in the production of a particular commodity or service 
 (or an allied group of commodities or services). 
 
 "A trade board, on the other hand, is not based on existing organizations of em- 
 ployers and employed, but covers the whole of the trade for which it is established. 
 As the minimum rates are enforceable by law, it is necessary that the boundaries of 
 the trade should be precisely defined; this is done, within the limits prescribed by 
 statute, by the regulations made by the minister of labor. Natural divisions of indus- 
 try are, of course, followed as far as possible, but in many cases the line of demarcation 
 
SOCIAL AND INDUSTKIAL OONDITIOlfrS IN THE UNITED STATES. 35 
 
 must necessarily be somewhat arbitrary. In the case of industrial councils difficult 
 demarcation problems also arise, but the considerations involved are somewhat differ- 
 ent, as the object is to determine whether the interests represented by given organiza- 
 tions are sufficiently allied to justify the cooperation of these organizations in one 
 industrial council. 
 
 "4. The reports received from those who are engaged in asaiating the formation of 
 joint industrial councils show that certain paragraphs in the second report of the 
 committee on relations between employers and employed have caused some con- 
 fusion as to the character and scope of joint industrial councils and trade boards, 
 respectively. It is essential to the future development of joint industrial councils 
 that their distinctive aim and character should be maintained. It is necessary, 
 therefore, to keep clearly in mind the respective functions of the joint industrial 
 council and the trade board, in considering the recommendations contained in the 
 following paragraphs of the second report: 
 
 '"(a) Paragraphs 3, 4, and 5, dealing with the division of joint industrial councils 
 into those that cover group A industries and those that cover group B industries. 
 
 '"(6) Paragraph 7, dealmg with district industrial councils in industries where no 
 national council exists. 
 
 '"(c) Paragraphs 10, 13, 15, and 16, dealing with trade boards in relation to joint 
 industrial councila. 
 
 '"(d) Paragraphs 11 and 12, dealing with trade boards in industries which are not 
 suitably organized for the establishment of a joint industrial council.' 
 
 "5. Distinction drawn between joint industrial councils in group A industries and 
 group B industries. — In paragraph 9 of the second report it ia implied that the ministry 
 of labor would determine whether the standard of ( organization in any given industry 
 has reached such a stage as to justify the official recognition of a joint industrial council 
 in that industry. It is clear, however, that it would he impossible for the ministry 
 to discover any satisfactory basis for distinguishing between an industry which falls 
 into group A and one which falls into group B. It is admitted in paragraph 9 of 
 the second report that no arbitrary standard of organization could be adopted, and it 
 would be both invidious and impracticable for the ministry of labor, upon whom 
 the responsibility would fall, to draw a distinction between A and B industries. 
 The only clear distinction is between industries which are sufficiently organized to 
 justify the formation of a joint industrial council and those which are not sufficiently 
 organized. Individual cases must be judged on their merits after a consideration 
 of the scope and effectiveness of the organization, the complexity of the industry, 
 and the wishes of those concerned. 
 
 "The experience already gained in connection with joint industrial councils 
 indicates that it would be inadvisable in the case of industries in group B to adopt 
 the proposal that 'there should be appointed one or at most two official representa- 
 tives to assist in the initiation of the council and continue after its establishment to 
 act in an advisory capacity and serve as a link with the Government.' It is funda- 
 mental to the idea of a joint industrial coimcil that it is a volimtary body set up by 
 the industry itself, acting as an independent body and entirely free from all State 
 control. Whilst the minister of labor would be willing to give every assistance to 
 Industrial councils, he would prefer that any suggestion of this kind should come 
 from the industry rather than from the ministry. 
 
 "The main idea of the joint industrial council as a joint body representative of 
 an industry and independent of State control has now become familiar and the 
 introduction of a second type of joint industrial council for B industries would be 
 likely to cause confusion and possibly to prejudice the future growth of joint indus- 
 trial coimcils. 
 
 "In view of these circumstances, therefore, it has been decided to adopt a single 
 type of industrial council. 
 
 "6. District industrial councils. — Paragraph 7 of the second report suggests that in 
 certain industries in which a national council is not likely to be formed in the immedi- 
 ate future, it might none the less be possible to form one or more 'district' industrial 
 councils. 
 
 "In certain cases the formation of joint bodies covering a limited area is probable. 
 It would, however, avoid confusion if the term 'district' were not part of the title 
 of such councils and if the use of it were confined to district coimcils in an industry 
 where a national council exists. Independent local councils might well have a 
 territorial designation instead. 
 
 "7. Trade boards in relation to joint industrial councils. — The distinction between 
 trade boards and joint industrial councils has been set forth in paragraph 3 above. 
 The question whether an industrial council should be formed for a given industry 
 depends on the degree of organization achieved by the employers and workers in the 
 industry, whereas the question whether a trade board shovdd be established depends 
 
36 SOCIAL AND INDUSTBIAL CONDITIONS IN THE UNITED STATES. 
 
 primarily on the rates of wages prevailing in the industry or in any part of the indus- 
 try. This distinction makes it clear that the question whether a trade board should 
 or should not be set up by the minister of labor for a given industnr must be decided 
 apart from the question whether a joint industrial council should or should not be 
 recognized in that industry by the minister of labor. 
 
 ' ' It follows from this that it Is possible that both a joint industrial council and a trade 
 board may be necessary within the same industry. 
 
 "In highly organized industries, the rates of wages prevailing will not, as a rule, be 
 so low as to necessitate the estabUshment of a trade board. In some cases,_ however, 
 a well-defined section of an otherwise well-organized industry or group of industries 
 may be unorganized and ill paid; in such a case it would clearly be desirable for a 
 trade board to be established for the ill-paid section, while there should at the same 
 time be an industrial council for the remaining sections, or even for the whole, of the 
 industry or industrial group. 
 
 "In the case of other industries sufficiently organized to justify the establishment of 
 an industrial council, the organizations represented on the council may nevertheless 
 not be comprehensive enough to regulate wages effectively throughout the industry. 
 In such cases a trade board for the whole industry may possibly be needed. 
 
 "Where a trade board covers either the whole or part of an industry covered by a 
 joint industrial council, the relations between them may, in order to avoid any con- 
 fusion or misunderstanding, be defined asfollows: 
 
 "(1) Where Government departments wish to consult the industry, the joint indus- 
 trial council, and not the trade board, will be recognized as the body to be consulted. 
 
 ' ' (2) In order to make use of the experience of the trade board, the constitution of the 
 industrial council should be so drawn as to make full provision for consultation between 
 the council and the trade board on matters referred to the former by a Government 
 department, and to allow of the representation of the trade board on any subcommittee 
 of the council dealing with questions with which the trade board is concerned. 
 
 "(3) The joint industrial council clearly can not under any circumstances override 
 the statutory powers conferred upon the trade board, and i'f the Government at any 
 future time adopted the suggestion contained in section 21 of the first report that the 
 sanction of law should be given on the application of an industrial council to agree- 
 ments made by the council, such agreements could not be made binding on any part 
 of a trade governed by a trade board, so far as the statutory powers of the trade board 
 are concerned. 
 
 "The minister of labor will not ordinarily set up a trade board to deal with' an indus- 
 try or branch of an industry, in which the majority of employers and workpeople are 
 covered by wage agreemeiits, but in which a minority, possibly in certain areas, are 
 outside the agreement. It would appear that the proposal in section 21 of the first 
 report was specially designed to meet such cases. Experience has shown that there 
 are great difficulties in the way of establishing a trade board for one area only in which 
 an industry is carried on, without covering the whole of a^ trade, though the trade 
 boards act allows of this procedure. 
 
 "8. Trade boards in industries which are not sufficiently organized/or the establishment 
 of a joint industrial council. — Section 3 of the trade boards act, 1909, provides that 
 ' a trade board for any trade shall consider, as occasion requires, any matter i;ef erred 
 to them by a secretary of State, the board of trade, or any other Government depart- 
 ment, with reference to the industrial conditions of the trade, and shall make a report 
 upon the matter to the department by whom the question has, been referred.' 
 
 " In the case of an industry in which a trade board has been established, but an 
 industrial council has not been formed, the trade board is the only body that can 
 claim to be representative of the industry as a whole. 
 
 " It is already under a statutory obligation to consider questions referred to it by a 
 Government department; and where there is a trade board but no industria-l council 
 in an industry it will be suggested to Government departments that they should con- 
 sult the trade board as occasion requires in the same manner as they woiild consult 
 industrial councils. 
 
 " On the other hand, for the reasons which have been fully set out above, industrial 
 councils must be kept distinct from trade boards, and the latter, owing to their con- 
 stitution, can not be converted into the former. If an industry in which a trade 
 board is established becomes sufficiently organized for the formation of an industrial 
 council, the council would have to be fornied on quite different lines from the trade 
 board, and the initiative should come, not from the trade board, which is a body 
 mainly nominated by the minister of labor, but from the organizations in the indus- 
 try. Hence it would not be desirable that trade boards should undertake the forma- 
 tion of schemes for industrial councils. 
 
SOCIAL AND liSTDUSTRIAL CONDITIONS IN THE UNITED STATES. 37 
 
 The Chairman. Have those industrial councils that were estab- 
 lished after the first Whitley report, worked out well, Mr. Gompers ? 
 
 Mr. CoMPERs. Of course, they were experimental, and while all 
 the results hoped for were not achieved, yet it has made a good 
 beginning. 
 
 Now, in section 9 of the resolution — Senate resolution 382 — "The 
 question of extending the opportunity for vocational training and 
 education to all peo^e in the United States disabled by injury or 
 sickness," I think that question is one that not only ought to be 
 investigated, but I am fi-ee to say at once that the investigation 
 would demonstrate the wisdom and the far-reaching beneficent 
 results which would follow from such extension. 
 
 Senator Kenyon. You would carry it to everyone? You would 
 take even a tramp on the train, who was injured; would you carry it 
 to him 1 • 
 
 Mr. Gompers. Yes, sir. 
 
 Senator Kenton. Human salvage ? 
 
 Mr. Gompers. Yes, sir; that is the proper phraseology, human 
 salvage. Yesterday I discussed to some extent this thought of the 
 human side of affairs. Every product can be measured; that is, as 
 to its cost and as to its production, and in its final results, its value, 
 approximately, but no one undertakes to evaluate the human, or 
 however much of the human can be conserved and saved and sal- 
 vaged. All of the' savagery and the cruelty of the recent war counts 
 as nothing when compared with the sacrifice of human life in industry 
 and commerce. 
 
 Senator Page. Do you imagine that when we get beyond this 
 salvage of those who have been afflicted by the war that we are 
 going to find the old opposition which we had so much of against 
 taking up work which some States, in fact several States, insist 
 should be taken care of by the States rather than by the Nation ?_ 
 
 Mr. Gompers. I think that the war has swept away many mental 
 cobwebs. We have been thinking so quickly, so sharply, we have 
 been made to act in a way almost incomprehensible, almost unim- 
 aginable before the war, and we have talked in sums of money that 
 would have dazzled us if we had said that it would be possible that 
 we would make such appropriations and expenditures of money as 
 we have. While in France two months ago I had the opportunity 
 of meeting people in all walks of life, from the ditch digger to the 
 President of the Republic. That is true in the other countries. I 
 met them all, the business men and all of them, the financiers and 
 
 governmental representatives, the officials, who said that if it had 
 een known to the people, or if it had been known even to themselves 
 as representatives of the Government who were for the war abso- 
 lutely, 100 per cent for the war against the German military idea, 
 that it would have involved the expenditure of money such as it 
 finally developed into, the war would never have been taken up, 
 even as a defensive measure. It staggered all of the people. They 
 could not think in those terms of money. It was simply, as time 
 went on and the needs grew greater, that the people had become 
 accustomed to large expenditures, and from large to larger and con- 
 tinually larger. The people would never have gone into the war if 
 they had imagined for a moment that the- taxes would have been 
 as great as they finally were necessary to impose. The people 
 
38 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 would never have gone into the war if they had thought or suspected 
 that the cost of hving would have risen as it has. The people would 
 never have gone into the war if they knew in advance thkt they 
 would have to be rationed, as they finally were. But these things 
 came gradually, although quickly, more quickly, of course, than at 
 any other period in the history of the world; they came gradually, 
 nevertheless. It was feeding a new danger. It was to overcome 
 that new danger that it was done. 
 
 Senator Page. You have used the word "dazzled" and the word 
 "staggered." We don't know but before we get through we are 
 going to find our expenses so great that the word "staggered" will 
 come to be usqd here. Have you any idea that there is danger that 
 our people will be staggered by the expenditure — ■ — 
 
 Mr. GoMPERS (interrupting). I do not know. Senator Page, 
 whether I have used the proper phrasing or shading of the ternis 
 "staggered" and "dazzled," but I wanted to emphasize— that is 
 why I used the terms, simply to emphasize — the situations and 
 conditions as they confronted the people in Europe, and I think it 
 applies to the people of the United States. There is one thing of 
 which I am as proud as anything else of my country and of course the 
 which I helped the country to pursue, and that is that from the 
 beginning of our entrance into the war, we began to think in big 
 terms, of the doing of the big things, for I verily believe that if we 
 had gone into the war in a picayunish manner, first that the Allies 
 could not have won, that Germany would have won, and it would 
 have been years and years before the United States could have won. 
 But the throwing of ourselves into this arena with all that we had, 
 the declaration of putting into it all that we had, if necessary, that 
 in itself was a blow to the militarist's machine of Germany. It was 
 not only the 2,000,000 men that we sent over there; it was not only 
 the immense quantities of ammunition and supplies that went over 
 there ; but it was the pledge that all our resources of man power and 
 wealth power, if needs be, would go over there, that was the thing 
 that turned the tide. 
 
 There was a thought that I had — I do not know whether you 
 would care to hear me express it, but it is something that is not 
 uninteresting, although not entirely germane to the proceedings of 
 this hearing here, i have stated this before, both in public and 
 private conferences and in addresses. I could understand the bitter- 
 ness the people of England and Continental Europe have against 
 each other, the governments and dynasties; In turn they have all 
 been wrong toward each other. They have in turn played the freer 
 hooter and the pirate against each other. No matter how much the 
 democratic countries have changed in Europe, that fact to which I 
 have just now referred is part of the history of those countries and 
 the flags of these respective countries engaged in battle array during 
 this war, meant something of bitterness and hatred toward each 
 other. But there is not any people in all the world who do not 
 respect the history and the flag of the United States- of America. 
 It meant to them, so long as they can remember, a republic, and 
 will remain to them so long as they can associate the flag of our 
 coimtry, the idea of justice and of freedom and of opportunity and 
 of hope. My judgment was and is that. a people could not fight so 
 valiantly and heroically under the banner of a monarchial institution 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 39 
 
 with the same valor and the same heroism and the same abandon- 
 ment against the people carrying the flag of the Eepublic of the 
 United States. That in itself was a blow to the morale of the army, 
 as the militarist fighting machine of Germany. 
 
 Senator Ashurst. I am very glad that Mr. Gompers digressed 
 from the main subject to put into the record this brilliant and patri- 
 otic sentiment. 
 
 The Chairman. Mr. Gompers, you have outlined the tremendous 
 effort that was made by our country, as well as the others, to meet 
 the very serious conditions of war. In your judgment, do the in- 
 dustrial conditions that now confront our Governm.ent, as well as the 
 other governments on earth, compare with the condition of the war — 
 that is, the war menace — ^to such an extent that we ought to rally our 
 forces in much the same way to meet and combat it successfully ? 
 
 Mr. Gompers. I do, sir. 
 
 The Chairman. You think that the two are decidedly comparable ? 
 
 Mr. Gompers. Yes, sir. Indeed, the problem of how to meet the 
 peace conditions is greater than the problem which confronted us in 
 meeting the conditions of war. In war, when the red blood of man is 
 easily warmed, he is interested, and he is not difficult to attract. 
 We have had more volunteer service in this war than it was dreamed 
 possible at any time, or by any man, and coming from men and 
 women in all walks of life. The patriotism of our people was not 
 confined to any class, group, or caste. While I do know that in some 
 instances, and in too many instances, some of the activities were put 
 forth for private profiteering, as a rule I have not any hesitancy in 
 saying that the voluntary patriotic and practical service given by 
 the men and women of the United States was such as I never dreamed 
 or hoped to live 1 1 see. It was a revelation to find men in the hum- 
 blest walks of life ■^jladly giving and doing anything, the ro.en and 
 women of labor giving every ounce of energy that was in them, and 
 bearing under it all with a feeling of willingness to sacrifice anything, 
 men giving up their boys in a manner which was almost unbelievable. 
 
 I have my own flesh and blood over there in quite large numbers. 
 I have over there three grandchildren, two grandsons and one grand- 
 daughter now, who have been doing their share, one in the aviation 
 service, one in the infantry, and my granddaughter in the Red Cross. I 
 I do not laiow, but I think probable, that a sacrifice was made that 
 might not have been by the death of my daughter while I was in 
 It^y; that perhaps might not have occurred — at least I am_ vain 
 enough, or fool enough, to believe ^that it might not have occurred 
 if I had been here with her. 
 
 The Chairman. You think and have indicated that the problem 
 now is much more complex than the problem of the single purpose of 
 killing off the enemy 
 
 Mr. Gompers (interrupting). Will you pardon me. Senator for a 
 moment, if you please ? I was running off into matters that ought 
 not to have gone into the record, and I omitted to complete what I 
 had in mind to say. The work and service performed by the men and 
 women of labor, by the small business men, that is also true of the 
 employers of labor to a very large extent, and I know of several 
 instances of men of independent means, men in large business, who 
 in normal times delegated their business to agents and superintend- 
 endents, vice presidents, etc., and then indulged themselves in 
 
40 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 leisure and pleasure, who immediately took on the responsibilities of 
 service for the Government during the crisis. Eepresenting as I do, 
 in addition to my citizenship, equal with every other citizen, but 
 being in a representative capacity, and possibly the spokesman of 
 the organized workers of America, I would not be true to my con- 
 science if I failed to pay a tribute not only to the men a,nd women of 
 labor, but to the men who occupied other positions in life, and I am 
 very glad to pay that tribute now. 
 
 The Chairman. You have indicated that the problem which now 
 confronts us industrially, is a more complex problem than the war 
 problem, just to kill the enemy as fast as possible. Will you say 
 something as to the necessity of lending the financial and commercial 
 resources of the country to the solution of that problem ? 
 
 Mr. GoMPERS. I think that there is not any practical proposition 
 to meet the present situation in which the people of our country find 
 themselves, that we ought not to apply. When any catastrophe 
 occurs to the' people of any section of our country, for instance, a 
 great fire or a great flood, or whatever it may be, we do not hesitate ; 
 we feel that we are a united people and that it is our duty to meet an 
 extraordinary condition which may confront any of our people, and 
 by order of the President or the head of one of the departments 
 immediately not only the strong, but beneficient hand of the Govern- 
 ment is extended and succor comes to the people of these afflicted 
 districts or States. At Galveston, Johnstown and San Francisco ■ 
 
 The Chairman. Salem, Mass. 
 
 Mr. GoMPERS. Yes; Salem, Mass., and so on, help immediately 
 given. We do these things, and if Congress is in session, the Congress 
 at once, without regard to party affiliations, responds. 
 
 Senator Kenyon. And beyond the State lines. We do not ce'ase 
 to be brothers because of State lines. 
 
 Mr. Gompers. No. All State lines are obliterated by fire or other 
 disaster. We are all concerned. The situation now is not super- 
 ficially sensational, because in a lesser degree it has happened before. 
 We can pass on for decades and by reason of our standards of life, 
 of our standards of sanitary conditions, of medical attention and 
 disease prevention, etc., epidemics are prevented, but there is no 
 interest in it at all. It does not arouse a ripple in interest. But 
 let something arise, some infection get abroad, or a people afflicted 
 by a disease, it at once causes consternation, it arouses interest. 
 TxLe prevention of fire is hot sensational at all, but a great conflagra- 
 tion arouses the interest of the pfeople at once. That is the situation 
 as between the problems of war and the problems of peace. The 
 problem.s of war are sensational; that problem is one of activity and 
 one which arouses the people to action at once. The problem of 
 peace, with its poverty and its misery and possible degradation, 
 only touches the conscience and the judgment and the action of the 
 thinking men and women, of the men who want to do and who are 
 not aroused purely by sensations, but by the consciousness of 
 doing the right thing, the consciousness of prevention of disease, of 
 fire, of war, of hunger. That is the thing to which I imagine we 
 should apply ourselves, the problem of meeting this situation. 
 
 Gentlemen, in my judgment there can not be in the United States 
 again a condition in which the masses of the people wiU find them- 
 selves the same as they were found in 1893 and 1894. The people 
 
SOCIAL AND INDTJSTBIAL CONDITIONS IN THE UNITED STATES. 41 
 
 of the United States, in my judgment, will not stand for it. I 
 remember the time in 1893 and 1894 — it was in 1893^ — when the 
 American Federation of Labor held its convention in the City Hall 
 Building in Chicago, and when, as we were wending our way down 
 the stairs in the evening after the close of the day's session, we had 
 to tread carefuUy on each step, or we would have stepped upon 
 human beings, men and some women, huddled there in misery on 
 each step. That was a time when hunger and misery stalked across 
 our country. At that time the organizations of labor were very 
 poor in numbers and in influence, and yet they helped and tried to 
 secure soine consideration for the masses of unemployed and hun- 
 gered people. There was not much done except by pure charity, 
 so-caUed. The spirit of the people had become numbed, and while 
 there was a bread riot here and there, or a looting of a shop, • there 
 were very, very few of them, very few, indeed. But with the awak- 
 ened spirit of the American people as the result of the war and with 
 the realization of the causes for which the United States entered into 
 the war side by side with the other democratic countries, I. do not 
 think we could get away with it. I do not think that the people ot 
 the United States will stand for a condition such as prevailed at 
 that time. 
 
 I think it was Cardinal Manning, who, a few years before he died, 
 made an observation something like this. I won't say that it is 
 verbally correct, but this is his observation in substance : 
 
 A poor man, Imngered, unemployed, and no food in his own home, is entitled to his 
 neighbor's bread. 
 
 The people having a concept of right and justice, the people having 
 probably undefined in their minds what these principles are, may 
 interpret their unemployment and their misery and their hunger in 
 the terms of Cardinal Manning. 
 
 We heard or saw the declaration made by one of the largest repre- 
 sentative employers in America, Mr. Barr, just a day or two aftei the 
 signing of the armistice by which autocracy and mihtarism were 
 crushed and a better opportunity given for freedom. He burst 
 into the newspapers with the flamboyant declaration that wages 
 must be reduced, hours of labor increased, conditions and standards 
 must go down; with all, not only that which was said but all that 
 was implied by it and inferred from it the hope for liberty and a freer 
 life for the people of the world with that discordant note struck to 
 disturb the entire symphony of hope for the future, with the resent- 
 ment felt aU through the country primarily and principally by the 
 men of labor. I am very glad to be able to say to you, gentlemen, 
 that I have had quite a number of opportunities of conference with 
 men of affairs, men of business, men engaged in the largest industrial 
 and commercial interests of our country, and they have attacked 
 openly the position taken by Mr. Barr. It was some comfort to me 
 to find that so many had disapproved Mr. Barr's declaration. 
 
 Mr. Chairman and gentlemen of the committee, I think that thus 
 far I have not made anything like a constructive suggestion or any 
 particularizing. I have abstained from making any suggestion of a 
 constructive' character for this reason: The American Federation of 
 Labor, concerning itself with the subject of reconstruction and reha- 
 bilitation, authorized the creation and selection of a committee to 
 consider the subject of reconstruction. That committee has been at 
 
42 SOCIAL AND INDUSTBIAL CONDITIONS IN THE UNITED STATES. 
 
 work for a considerable time. The committee has traveled to some 
 extent and has availed itself of the information obtained from other 
 sources; it has pursued its own studies and within this past week the 
 committee has concluded its report. Now, that report must be 
 submitted to the executive council of the American Federation of 
 Labor and approved by that council before it can be given out as the 
 expression of the American Federation of Labor upon that subject. 
 I expect that within a week there can be placed before your committee 
 a copy of the report of the American Federation of Labor's recon- 
 struction committee. 
 
 Senator Kenyon. Does that cover any recommendations as to 
 legislation ? 
 
 Mr. GoMPEES. It does, sir. I have had the honor to assist the 
 committee, having been in consultation with the committee, and I 
 have reason to believe that its report will be approved by the execu- 
 tive council, but it thus far is a confidential document, confidential 
 in so far that it is not the official utterance of the American Federation 
 of Labor. 
 
 Senator Jones. If it were promulgated now it would be all right 
 for it to be included in the record. 
 
 Mr. GoMPEES. Yes, sir. So, if I may have your consent to have 
 this report submitted to the committee and made a part of your 
 record, I. would like to have it as a part of the hearing which you have 
 been good enough to accord to me. 
 
 Senator Swanson. And after the committee has made its report, 
 and it has become a part of the record, would you like to be heard 
 again by this committee, in answer to any objections that might be 
 made or any questions that might be asked, or do you think the 
 report will be sufficiently full and complete to answer all purposes ? 
 
 Mr. GoMPEEs. I would like to appear before the committee. 
 Senator, but the fact is I leave for England and France on the 
 coming Wednesday, January 8. 
 
 Senator Swanson. You leave at that time? 
 
 Mr. GoMPEES. Yes, sir; and the consequence is I shall not be in a 
 position untn after my return to this country to say anything in 
 defense of the propositions submitted in that report. But there are 
 others who will be here. 
 
 Senator Swanson. You will have members of the special legislative 
 committee here? 
 
 Mr. GoMPEES. Yes, sir; we have. Mr. Sterling is a member of our 
 legisaltive committee and Mr. Sexton, who is before another commit- 
 tee this morning. Perhaps Mr. Morrison, the secretary of the 
 American Federation of Labor, will be here. I hope, of course, that 
 the committee and Congress will have adopted some of the measures 
 before my return, but if they have not, v/hen I come back I shall be 
 glad to come before you. 
 
 Senator Page. When do you expect to return, Mr. Gompers ? 
 
 Mr. GoMPEES. I could not tell you, sir. 
 
 The Chaieman. Without objection the report referred to by Mr. 
 Gompers will be made a part of the record of the hearing, and the 
 gentlemen who prepared it mil be invited to appear before the com- 
 mittee, after the report is given to the committee. 
 
 (The report referred to is here printed in full in the record as follows:) 
 
SOCIAL AND INDUSTEIAL CONDITIONS IN THE UNITED STATES. 43 
 
 Report of the Committee on Reconsteuction of the American Federation 
 OP Labor, as Indorsed by the Executive Council. 
 
 The world war haa forced all free peoples to a fuller and deeper realization of the 
 menace to civilization contained in autocratic control of the activities and destinies 
 of mankind. 
 
 It has caused a world-wide determination to overthrow and eradicate all autocratic 
 institutions, so that a full measure of freedom and justice can be established between 
 man and man and nation and nation. 
 
 It has awakened more fully the consciousness that the principles of democracy 
 should regulate the relationship of men in all their activities. 
 
 It has opened thfe doors of opportunity through whiph more sound and progressive 
 policies may enter. 
 
 New conceptions of human liberty, justice, and opportunity are to be applied. 
 
 The American Federation of Labor, the one organization representing labor in 
 America, conscious that its responsibilities are now greater than before, presents a 
 program for the guidance of labor, based upon experience and formulated with a full 
 consciousness of the principles and policies which have successfully guided American 
 trade-unionism in the past. 
 
 democracy in industry. 
 
 Two codes of rules and regulations affect the workers — the law upon the statutp 
 books and the rules within industiy. 
 
 The first determines their relationship as citizens to all other citizens and to 
 property. 
 
 The second largely determines the relationship of employer and employee, the 
 terms of employment, the conditions of labor, and the rules and regulations affecting 
 the workers as employees. The first is secured through the application of the methods 
 of democracy in the enactment of legislation, and is based upon the principle that 
 the laws which govern a free people should exist only with their consent. 
 
 The second, except where effective trade-unionism exists, is established by the 
 arbitrary or autocratic whim, desire, or opinion of the employer and is based upon 
 the principle that industry and commerce can not be successfully conducted unless 
 the employer exercises the unquestioned right to establish such rules, regulations, 
 and provisions affecting the employees as self-interest prompts. 
 
 Both forms of law vitally affect the workers' opportunities in life and determine 
 their standard of living. The rules, regulations, and conditions within industry 
 in many instances affect them more than legislative enactments. It is, therefore, 
 essential that the workers should have a voice in determining the laws within industry 
 and commerce which affect them equivalent to the voice which they have as citizens 
 in determining the legislative enactments which shall govern them. 
 
 It is as inconceivable that the workers as free citizens should remain under auto- 
 cratically made law within industry and commerce as it is that the Nation could re- 
 main a democracy while certain individuals of groups exercise autocratic powers. 
 
 It is, therefore, essential t^iat the workers everywhere should insist upon their 
 right to organize into trade-unions and that effective legislation should be enacted 
 which would make it a criminal offense for any employer to interfere with or hamper 
 the exercise of this right or to interfere with the legitimate activities 'of trade-unions. 
 
 unemployment. 
 
 Political economy of the old school, conceived by doctrinaires, was based upon 
 unsound and false doctrines and has since been used to blindfold, deceive, and defeat 
 the workers' demands for adequate wages, better living and working conditions, and 
 a just share of the fruits of their labor. 
 
 We hold strictly to the trade-union philosophy and ita developed political economy 
 based upon demonstrated facts. 
 
 Unemployment is due to underconsumption. Underconsumption is caused by low 
 or insufficient wages. 
 
 Just wages will prevent industrial stagnation and lessen periodical unemployment 
 
 Give the workers just wages, and their consuming capacity is correspondingly 
 increased. A man's ability to consume is controlled by Qie wages received. Just 
 wages will create a market at home which will far surpass any market that may exist 
 elsewhere and will lessen unemployment. 
 
 The employment of idle workmen on public work will not permanently remove 
 the cause of unemployment. It is an expedient at best. 
 
44 SOCIAL AtTD INDUSTRIAL CONDITIONS IN THE tTNltED STAtfeS. 
 
 There is no basis in fact fol- the claim that the so-called law of supply and demand 
 is natural in its operations and impossible of control or regulation. 
 
 The trade-union movement has maintained standard wages, hours, and life in 
 periods of industrial depression and idleness. These in themselves are a refutation 
 of the declared immutability of the law of supply and demand. 
 
 There is in fact no such condition as an iron law of wages based upon a natural lafr 
 of supply and demand. Conditions in commerce and industry, methods of produc- 
 tion, storing of commodities, regulation of the volume of production, banking sys- 
 tems, the flow and direction of enterprise influenced by combinations and trusts have 
 effectively destroyed the theory of a natural law of supply and demand as had been 
 formulated by doctrinaire economists. 
 
 There are no means whereby the workers can obtain and maintain fair wages except 
 through trade-union effort. Therefore, economic organization is paramount to all 
 their other activities. 
 
 Organization of the workers leads to better wages, fewer working hours, improved 
 working conditions. It develops independence, manhood, and character; it fosters 
 tolerance and real justice and makes for a constantly growing better economic, social, 
 and political life for the burden-bearing masses. 
 
 In countries where wages are best, the greatest progress has been made in economic, 
 social, and political advancement, in science, art, literature, education, and in the 
 wealth of the people generally. All low wage paying countries contrasted with 
 America is proof for this statement. 
 
 The American staTidard of life mustbe maintained and improved. The value of 
 wages is determined by the purchasing power of the dollar. There is no such thing 
 as good wages when the cost of living in decency and comfort equals or exceeds the 
 wages received. There must be no reduction in wages — ^in many instances wages 
 must be increased. 
 
 The workers of the Nation demand a living wage for all wage earners, skilled or 
 unskilled — a wage which will enable the worker and his family to live in health and 
 comfort, provide a competence for illness and old age, and afford to all the opportu- 
 nity of cultivating the best that is within mankind. 
 
 HOURS OF LABOR. 
 
 Reasonable hours of labor promote the economic and social well-being of the toiling 
 masses. Their attainment should be one of labor's principal and essential activities. 
 The shorter workday and a shorter work week make for a constantly growing higher 
 and better standard of productivity, health, longevity, morals, and citizenship. 
 
 The right of labor tp fix its hours of work must not be abrogated, abridged, or inter- 
 fered with. 
 
 The day's working time should be limited to not more than eight hours, with over- 
 time prohibited, except under the most extraordinary emergencies. The week's 
 working time should be limited to not more than five and one-half days. 
 
 WOMEN AS WAGE EARNERS. 
 
 Women should receive the same pay as men for equal work perform-ed. Women 
 workers must not be permitted to perform tasks disproportionate to their physical 
 strength or which tend to impair their potential motherhood and prevent the con- 
 tinuation of a nation of strong, healthy, sturdy, and intelligent men and women. 
 
 CHILD LABOR. 
 
 The children constitute the nation's most valuable asset. The full responsibility 
 of the Government should be recognized by such measures as will protect the health 
 of every child at birth and during its immature years. 
 
 It must be one of the chief functions of the nation through effective legislation 
 to put an immediate end to the exploitation of children under 16 years of age. 
 
 State legislatures should protect children of immature years by prohibiting their 
 employment, for gain, under 16 years of age and restricting the employment of children 
 of at least 18 years of age to not more than 20 hours within any one week and with not 
 less than 20 hours at school during the same period. 
 
 Exploitation of child life for private gain must not be permitted. 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 45 
 
 STATUS OP PUBLIC. EMPLOYEES. 
 
 The fixing of wages, hours and conditions of labor for public employees by legisla- 
 tion hampers the necessary exercise or organizations and collective bargaining. 
 
 Public employees must not be denied the right of organization, free acti-viti^s, and 
 collective bargaining, and must not 'be limited in the exercise of their rights as citizens. 
 
 COOPERATION. 
 
 To attain the greatest possible development of civilization it is essential, among 
 other things, that the people should never delegate to others thos° activitirs and re- 
 sponsibilities whish they are capable of assuming for themselves. Democracy can 
 function best with the least interference by the Stat? compatible with due protection 
 to the rights of all citizens. 
 
 There are many problems arising from production, transportation, and distribution 
 which would be r?adily solved by applying the methods of coop?ration. Unneces- 
 sary middlemen who exact a tax from the coHimunity without rendering any useful 
 service can be eliminated. . 
 
 The farmers through cooperative dairies, cannerifs, pacldng houses, grain elevators, 
 distributing houses, and other coop?rative enterprises, can secm'e higher prices for 
 their products and yet place these in the consumer's hands at lower prices than would 
 otherwise be paid. There is an almost limitl'^ss field for the consumers in which to 
 establish cooperative buying and selling, and in this most necessary development tht 
 trade unionists should take an immediate and active part. 
 
 Trade-unions secure fair wages. Cooperation protects the wage earner from the 
 profiteer. . 
 
 Participation in these cooperative agencies must of necessity prepare the mass of 
 the people to participate more effectively in the solution of the industrial, commer- 
 cial, social, and political problems which continually arise. 
 
 . THE people's final VOICE IN LEGISLATION. 
 
 It is manifestly evident that a people are not self-governing unless they enioy the 
 unquestioned power to determine the form and substance of the laws which shall 
 govern them. Self-government can not adequately function if there exists within 
 the nation a superior power or authority which can finally determine what legislation 
 enacted by the people, or their duly elected representatives, shall be placed upon 
 the statute books and what shall be declared null and void. 
 
 An insuperable obstacle to self-government in the United States exists in the power 
 •which has been gradually assumed by the Supreme Ooul-ts of the Federal and State 
 Governments, to declare legislation null and void upon the ground that, in the court's 
 opinion, it is unconstitutional. 
 
 It is essential that the people, acting directly or through Congress or State legisla- 
 tures, should have final authority in determining which laws shall be enacted. Ade- 
 quate steps must be taken, therefore, which will provide that in the event of a supreme 
 court declaring an act of Congress, or of a State legislature, unconstitutional and the 
 people acting directly or through Congress, or a State legislature, should reenact the 
 measure, it shall then become the law without being subject to annulment by any 
 court. 
 
 POLITICAL POLICY. 
 
 In the political efforts, arising from the workers' necessity to secure legislation 
 covering these conditions and provisions of life not subject to collective bargaining 
 with employers, organized labor has followed two methods, one by organizing political 
 parties, the other by the determination to place in public office representatives from 
 their ranks; to elect those who favor and champion the legislation desired, and to 
 defeat those whose policy is opposed to labor's legislative demands, regardless of 
 partisan politics. 
 
 The disastrous experience of organized labor in America with political parties of 
 its own amply justified the American Federation of Labor's nonpartisan political 
 policy. 'The results secured by labor parties in other countries never have been such 
 as to warrant any deviation from this position. The rules and regulations of trade 
 unionism should not be extended so that the action of a majority could force a minority 
 to vote for or give financial support to any political candidate or party to whom they 
 are opposed. Trade-union activities can not receive the undivided attention of 
 members and officers if the exigencies, burdens, and responsibilities of a political 
 party are bound up with their economic and industrial organizations. 
 
46 SOOIAI., AND INDUSTRIAL CONDmONS IN THE UNITED STATES. 
 
 The experiences and results attained through the nonpartisan political policy of 
 the American Federation of Labor cover a generation. They indicate that through 
 its application the workers of America have secured a much larger measure of funda- 
 mental legislation, establishing their rights, safeguarding their interests, protecting 
 their welfare, and opening the doors of opportunity than have been secured by the 
 workers of any other country. 
 
 The vital legislation now required can be more readily secured through education 
 of the public mind and the appeal to its conscience, supplemented by energetic 
 independent political activity on the part of trade-unionists than by any other method. 
 This is and will continue to be the political policy of the American Federation of 
 Labor if the lessons which labor has learned in the bitter but practical school of 
 experience are to be respected and applied. 
 
 It is, therefore, most essential that the officers of the American Federation of Labor, 
 the officers of the affiliated organizations. State federations and central labor bodies 
 and the entire membership of the trade union movement should give the most vigorous 
 application possible to the political policy of the A. F. of L. so that Labor's friends 
 and opponents may be more widely known, and the legislation most required readily 
 secured. This phase of our movement is still in its infancy. It should be continued 
 and developed to its logical conclusion. 
 
 GOVERNMENT OWNERSHIP. 
 
 Public and semipublic utilities should be owned, or operated and regulated, by 
 the Government in the interest of the public. 
 
 Whatever final disposition shall be made of the railways of the country in owner- 
 ship, management or regulation, we insist upon the right of the workers to organize 
 for their common and mutual protection and the full exercise of the normal activities 
 which come with organization . Any attempt at the denial by governmental authority 
 of the rights of the workers to organize, to petition, to representation and to collective 
 bargaining, or the denial of the exercise of their political rights is repugnant to the 
 fundamental principles of free citizenship in a republic and is destructive of their 
 best interest and welfare. 
 
 The Government should own and operate all wharves and docks connected with 
 public harbors which are used for commerce or transportation. 
 
 The American Merchant Marine should be encouraged and developed under govern- 
 mental control and so manned as to insure successful operation and protect in full the 
 beneficent laws now on the statute books for the rights and welfare of seamen. The 
 seamen must be accorded the same rights and privileges rightfully exercised by the 
 workers in all other employments, public and private. 
 
 . WATERWAYS AND WATER POWER. 
 
 The lack of a practical development of our waterways and the inadequate extension 
 of canals have seriously handicapped water traffic and created unnecessarily high cost 
 for transportation. In many instances it has established artificial restrictions which 
 have worked to the serious injury pf communities, owing to the schemes of those con- 
 trolling a monopoly of land transportation . Our navigable rivers and our great inland 
 lakes should be connected with the sea by an adequate system of canals, so that 
 inland production can be more effectively fostered, the costs of transportation reduced, 
 the private monopoly of transportation overcome and imports and exports shipped at 
 lower costs. 
 
 The Nation is possessed of enormous water power. Legislation should be enacted 
 providing that the Governments, Federal and State, should own, develop, and operate 
 all water power over which they have jurisdiction^ The power thus generated should 
 be supplied to all citizens at rates based upon cost. The water power of the Nation, 
 created by nature, must not be permitted to pass into private hands for private 
 exploitation. 
 
 REGULATION OP lAND OWNERSHIP. 
 
 Agriculture and stock raising are essential to national safety and well-being. The 
 history of all countries, at all times, indicates that the conditions which create a 
 tenant class of agriculturists work increasing injury to the tillers of the soil. While 
 increasing the price of the product to the consumer these conditions at the same 
 time develop a class of large 'land owners who contribute little, if anything, to the 
 welfare of the community but who exact a continually increasing share of the' wealth 
 produced by the tenant. The private ownership of large tracts of usable land is not 
 conducive to the best interests of a democratic people. " 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 47 
 
 Legislation should be enacted placing a graduated tax upon all usable lands above 
 the acreage which is cultivated by the owner. This should include provisions through 
 which the tenant farmer, or others, may purchase land upon the lowest rate of interest 
 and most favorable terms consistent with safety, and so safeguarded by governmental 
 supervision and regulation as to give the fullest and freest opportunity for the develop- 
 ment of land-owning agriculturists. 
 
 Special assistance should be given in the direction of allotments of lands and the 
 establishment of homes on the public domain. 
 
 Establishment of Government experimental farms and measures for stock-raising 
 i nstruction, the irrigation of arid lands and reclamation of swamp and cut-over lands 
 should be undertaken upon a larger scale under direction of the Fede'ral Government. 
 
 Municipalities and States shsuld be empowered to acquire lands for cultivation or 
 the erection of residential buildings which they may use or dispose of under equitable 
 terms. 
 
 FEDERAL AND STATE REGULATION OF CORPORATIONS. 
 
 The creation by legislative enactment of corporations, without sufficient definition 
 of the powers and scope of activities conferred upon them and without provisions for 
 their adequate supervision, regulation, and control by the creative body, has led to 
 the development of far-reaching abuses which have seriously affected commerce, 
 industry, and the masses of the people through their influence upon social, industrial, 
 commercial, and political development. Legislation is required which will so limit, 
 define, and regulate the powers, privileges, and activities of corporations that their 
 methods can not become detrimental to the welfare of the people. It is, therefore, 
 essential that legislation should provide for the Federal licensing of all corporations 
 organized for profit. Furthermore, Federal supervision and control should include 
 the increasing of capital stock and the incurring of bonded indebtedness with the 
 provision that the books of all corporations shall be open at all times fo Federal ex- 
 aminers. 
 
 FREEDOM OF EXPRESSION AND ASSOCIATION. 
 
 The very life and perpetuity of free and democratic institutions are dependent upon 
 freedom of speech, of the press, and of assemblage and association. We insist that all 
 restrictions of freedom of speech, press, public assembly, association, and travel be 
 completely removed, individuals and groups being responsible for their utterances. 
 These fundamental rights mus£ be set out with clearness and must not be denied or 
 abridged in any manner. 
 
 workmen's COMPENSATION. 
 
 Workmen's compensation laws should be amended to provide more adequately for 
 those incapacitated by industrial accidents or occupational diseases. To assure that 
 the insurance fund derived from commerce and industry will be paid in full to injured 
 workers State insurance must supplant, and prohibit the existence of, employers' 
 liability insurance operated for profit. 
 
 IMMIGRATION. 
 
 Americanization of those coming from foreign lands, as well as our standards of edu- 
 cation and living, are vitally affected by the volume and character of the immigration. 
 
 It is essential that additional legislation regulating immigration should be enacted 
 based upon two fundamental propositions, namely, that the flow of immigration must 
 not at any time exceed the Nation's ability to assimilate and Americanize the foreigners 
 coming to our shores, and that at no time' shall immigration be permitted when there 
 exists an abnormal degree of unemployment. 
 
 By reason of existing conditions we urge that immigration .into the United States 
 should be prohibited for a period of at least two years after peace has been declared. 
 
 TAXATION. 
 
 One of the Nation's most valuable assets is the initiative, energetic, constructive, 
 and inventive genius of its people. These qualities when properly applied should 
 be fostered and protected instead of being hampered by legislation, for they constitute 
 an invaluable element of progress and material development. Taxation should, 
 therefore, rest as lightly as possible upon constructive enterprise. Taxation should 
 provide for full contribution from wealth by a tax upon profits which will not discour- 
 age industrial or commercial enterprise. There should be provided a progressive 
 
48 SOCIAL AND INDUSTKIAL CONDITIONS IN THE UNITED STATES. 
 
 increase in taxes upon incomes, inheritances, and upon land values of such a nature 
 as to render it unprofitable to hold land without putting it to use, to afford a transition 
 to greater economic quality and to supply means of liquidating the national indebt- 
 edness growing out of the war. 
 
 education;. 
 
 It is impossible to estimate the influence of education upon the world's civilization. 
 Education must not stifle thought and inquiry, but must awaken the mind concerning 
 the application of natural laws and to a conception of independence and progress. 
 
 Education must not be for a few. but for all our people. While there is an advanced 
 form of public education in many States there still remains a lack of adequate educa- 
 tional facilities in several States and communities. ■ The welfare of the Republic 
 demands that public education should be elevated to the highest degree possible. 
 The Government should exercise advisory supervision over public education and 
 where necessary miantain adequate public education through subsidies without 
 giving to the Government power to hamper or interfere with the free development 
 of public education by the several States. It is essential that our system of public 
 education should offer the wage-earners' children the opportunity for the fullest 
 possible development. To attain this end State colleges and universities should be 
 developed. 
 
 It is also important that the industrial education which is being fostered and 
 developed should have for its purpose not so much training for efficiency in industry 
 as training for life in an industrial society. A full understanding must be had of 
 those principles and activities that are the foundation of all productive efforts. 
 Children should not only become familiar with tools and materials, but they should 
 also receive a thorough knowledge of the principles of human control, of force and 
 matter underlying our industrial relations and sciences. The danger that certain 
 commercial and industrial interests may dominate the character of education must 
 be averted by insisting that the workers shall have equal representation on all boards 
 of education or committies having control over vocational studies and training. 
 
 To elevate and advance the interests of the teaching profession and to promote 
 popular and democratic education, the right of the teachers to organize and to affiliate 
 with the movement bf the organized workers must be recognized. 
 
 PRIVATE EMPLOTMENT AGENCIES. 
 
 Essentials in industrjr and commerce are employee and employer, labor and capital. 
 No one questions the right of organized capital to supply capital to employers. No 
 one should question the right of organized labor to furnish workers, Private employ- 
 ment agencies abridge this right of organized labor. 
 
 Where Federal, State, and municipal employment agencies are maintained they 
 should operate under the supervision of joint committees of trade-unionists and 
 employers, equally represented. 
 
 Private employment agencies operated for profit should not be permitted to exist. 
 
 HOUSING. 
 
 Child life, the workers' physical condition, and public health demand that the 
 wage earner and his family shall be given a full opportunity to live under wholesome 
 conditions. It is not only necessary that there shall be sanitary and appropriate 
 houses to live in but that a sufficient number of dwelliugs shall be available to free 
 the people from high rents and overcrowding. 
 
 The ownership of homes, free from the grasp of exploitive and speculative interests, 
 will make for more efficient workers, more contented families, and better citizens. 
 The Government should, therefore, inaugurate a plan to build model homes and 
 establish a system of credits whereby the workers may borrow money at a low rate of 
 interest and under favorable terms to build their own homes. Credit should also be 
 extended to voluntary nonprofit making housing and joint tenancy associations. 
 States and municipalities should be freed from the restrictions preventing their 
 undertaking proper housing projects and should be permitted to engage in other- 
 necessary enterprises relating thereto. The erection and maintenance of dwellings 
 where migratory workers may find lodging and nourishing food during periods of 
 unemployment should be encouraged and supported by. municipalities. 
 
 If need should arise to expend public funds to relieve unemployment the building 
 of wholesome houses would best serve the public interests. 
 
SOCIAL AND INDXJSTBIAL CONDITIONS IN THE UNITED STATES. 49 
 
 MILITARISM. 
 
 The trade-union movement is unalterably and emphatioally opposed to ' ' militarism' ' 
 or a large standing army. "Militarism," is a system fostered and developed by tyrants 
 in the hope of supporting their arbitrary authority. It is utilized by those whose 
 selfish ambitions for power and worldly glory lead them to invade and subdue other 
 peoples and nations, to destroy their liberties, to acquire their wealth, and to fasten 
 the yoke of bondage upon them. The trade-union movement is convinced by the 
 experisnce of mankind that "militarism" brutalizes those influenced by the spirit 
 of the institution. The finer elements of humanity are strangled. IJnder "militar- 
 ism" a deceptive patriotism is established in the peoples' minds, where men believe 
 that there is nobility of spirit and heroism in djdng for the glory of a dynasty or the 
 maintenance of institutions which are inimical to human progress and democracy. 
 "Militarism" is the application of arbitrary and irresponsible forces as opposed to 
 reason and justice. Resistance to injustice and tyranny is that virile quality which 
 has given purpose and effect to ennobling causes in all countries and at all times. 
 The free institutions of our country and the liberties won by its founders would have 
 been impossible had they been unwilling to take arms and if necessary die in the 
 defense of their liberties. Only a people willing to maintain their rights and defend 
 their liberties are guaranteed free institutions. 
 
 Conditions foreig;n to 'the institutions of our country have prevented the entire 
 abolition of organized bodies of men trained to carry arms. A voluntary citizen 
 soldiery supplies what would otherwise take its place, a large standing army. To the 
 latter we are unalterably opposed as tending to establish the evils of "militarism." 
 Large standing armies threaten the existeilce of civil liberty. The history of every 
 nation demonstrates that as standing armies are enlarged the rule of democracy is 
 lessened or extinguished. Our experience has been that even this citizen soldiery, 
 the militia of our States, has given cause at times for grave apprehension. Their 
 ranks have not always been free from undesirable elements, particularly the tools of 
 corporations involved in industrial disputes. During industrial disputes the militia 
 has at times been called upon to support the authority of those who through selfish 
 interests desired to enforce martial law while the courts were open and the civil 
 authorities competent to maintain supremacy of civil law. We insist that the militia 
 of our several States should be wholly organized and controlled by democratic prin- 
 ciples so that this voluntary force of soldiery may never be diverted from its true 
 purpose and used to jeopardize or infringe upon the rights and liberties of our people. 
 The right to bear arms is a fundamental principle of our Government, a principle 
 accepted at all times by free people as essential to the maintenance of their liberties 
 and institutions. We demand that this right shall remaiil inviolate. 
 
 SOLDIERS AND SAILORS. 
 
 Soldiers and sailors, those who entered the service in the Nation's defense, are en- 
 titled to the generous reward of a grateful Republic. 
 
 The necessities of war called upon millions of workmen to leave their positions in 
 industry and commerce to defend, upon the battle fields, the Nation's safety and its 
 free institutions. These defenders are. now returning. It is advisable that they 
 should be discharged from military service at the earliest possible moment; that as 
 civilians they may return to their respective homes and families and take up their 
 peace-time pursuits. The Nation stands morally obligated to assist them in securing 
 employment. 
 
 Industry has undergone ^eat changes due to the dislocation caused by war produc- 
 tion and transportation. Further readjustments in industry and commerce must 
 follow the rehabilitation of business under peaceful conditions. Many positions 
 which our citizen soldiers and sailors filled previous to enlistment do not exist to-day. 
 
 It would be manifestly unjust for the Government after having removed the worker 
 from his position in industry and placed him in military service to discharge him from 
 the Army or Navy without having made adequate provision to assist him in procuring 
 employment and providing sustenance until employment has been secured. The 
 returned citizen soldier or sailor should not be forced by the bitter urgent necessity of 
 securing food and clothing to place himself at a disadvantage when seeking em- 
 ployihent. 
 
 Upon their discharge, transportation and meals should be supplied to their places 
 of residence. The monthly salary previously paid should be continued for a period 
 not to exceed 12 months if employment is not secured within that period. 
 
 99929—19 4 
 
50 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 The Federal and State employment bureaus should be directed to cooperate with 
 trade-union as;encies in securing employment for discharged soldiers and sailors. In 
 assisting the discharged soldier and sailor to secure employment, Government agencies 
 should not expect them to accept employment for less than the prevailing rate of wages 
 being paid in the industry. Neither stould any Government agency request or 
 require such discharged men to accept employment where a trade dispute exists or is 
 threatened. Nor should the refusal on the part of any of these discharged soldiers or 
 sailors to accept employment where trade disputes exist or are threatened or when less 
 than the prevailing wage rate is offered deprive them of a continuance of their monthly 
 pay. 
 
 Legislation also should be enacted which will give the Nation's defenders the oppor- 
 tunity for easy and'ready access to the land. Favorable inducements should be pro- 
 vided for them to enter agriculture and husbandry. The Government should assume 
 the responsibility for the allotment of such lands and supply the necessary capital for 
 its development and cultivation, with such safeguards as will protect both the Govern- 
 ment and the discharged soldier and sailor. 
 
 CONCLUSION. 
 
 No element inxiur Nation is more vitally concerned with the problems of making 
 for a permanent peace between all nations than the working people. The opportuni- 
 ties now before us are without precedent. It is of paramount importance that labor 
 shall be free and unhampered in shaping the principles and agencies affecting the 
 wage-earners' condition of life and work. ■ 
 
 By the light that has been given to it the American Federation of Labor has attracted 
 to its fold over three millions of wage-earners and its sphere of influence and helpfulness 
 is growing by leaps and bounds. By having followed safe and sound fundamental 
 principles and policies, founded on freedom, justice, and democracy, the American 
 trade-union movement has achieved successes of an inestimable value to the masses 
 of toilers of our country. By adhering to these principles and policies we can meet 
 all problems of readjustment, however grave in importance aiid difficult of solution, 
 with a feeling of assurance that our efforts will be rewarded by a still greater success 
 than that achieved in the past. 
 
 Given the whole-hearted support of all men and women of labor our organized 
 labor movement with its constructive program, its love for freedom, justice, and 
 democracy will prove the jnost potent factor in protecting, safeguarding, and pro- 
 moting the general welfare of the great mass of our people diurfng this trying period 
 of reconstruction and all times thereafter. 
 
 The American Federation of Labor has attained its present position of dignity 
 and splendid influence because of its adherence to one common cause and purpose; 
 that purpose is to protect the rights and interests of the masses of the workers and 
 to secure for them a better and a brighter day. Let us therefore strive on and on to 
 bring into our organizations the yet unorganized. Let us concentrate our efforts 
 to organize all the forces of wage earners. Let the Nation hear the united demand 
 from the laboring voice. Now is the time for the workers of America to come to the 
 stand of their unions and to organize as thoroughly and completely and compactly 
 as is possible. Let each worker bear in mind the words of Longfellow: 
 
 "In the world's broad field of battle. 
 In the bivouac of Life, 
 Be not like dumb, driven cattle. 
 Be a hero in the strife." 
 Bespectfully submitted. 
 
 John P, Frey, Chairman. 
 B. M. Jewell. 
 John Moore. 
 G. W. Perkins. 
 Matthew Woll, Secretary. 
 
 Mr. GoMPEES. May I submit this, Mr. Chairman and gentlemen: 
 I think you are aware that there was a labor conference held in 
 London September 17, 18, 19, and 20, 1918, of the representatives 
 of the labor movements of the allied countries. It was the first 
 one in which the American Federation of Labor participated since 
 the outbreak of the war in 1914. The conferences held by these 
 labor movements of the allied countries were regarded by them- 
 
SOCIAL AND INDXJSTBIAL CONDITIONS IN THE 'UNITED STATES, 51 
 
 selves as ineffective or impotent to deal with the subject, because 
 of the fact that the American Federation of Labor M^as not repre- 
 sented. We declined to go to Stockholm; we declined to go to Berne; 
 we declined to participate in these conferences in which the repre- 
 sentatives of labor of the enemy countries would be permitted to 
 participate. We would not meet them so long as the war was on. 
 In August a delegation of five of us went over to the other side, and 
 in addition to the other work we tried to do in the interest of uniting 
 the people of the various allied countries, the labor movement to 
 stand by their respective Governments until was war was won, in 
 addition to that effort, which was no mean job, we attended this 
 allied labor conference in London. We made some propositions, some 
 of them of a patriotic character, and some of them of a practical 
 character, suggestions and propositions, which we expressed the 
 hope would be made part of the treaties between the countries of 
 the world at the peace table, I would like, if I may be permitted, 
 to read these propositions. 
 
 The Chaieman. We should be very glad to have you do so, Mr. 
 Gompers. 
 
 Mr. GoMPEES. Thej^ are the "Proposals of American Federation 
 of Labor delegates to interallied labor conference," London, Septem- 
 ber 17, 18, 19, and 20, 1918. 
 
 We recognize in this world war the conflict between autocratic and democratic 
 institutions; the contest between the principles of self-development through free 
 institutions and that of arbitrary control of government by groups or individuals for 
 selfish ends. 
 
 It is therefore essential that the peoples and the governments of all countries should 
 have a full and definite knowledge of the spirit and determination of this interallied 
 conference representative of the workers of our respective countries with reference 
 to the prosecution of the war. 
 
 We declare it to be our unqualified determination to do all that lies within our 
 power to assist our allied countries in the marshaling of all of their resources to the end 
 that the armed forces of the central powers may be driven from the soil of the nations 
 which they have invaded and now occupy; and, furthermore, that these armed forces 
 shall be opposed so long as they carry out the orders or respond to the control of the 
 militaristic autocratic governments of the central powers which now threaten the 
 existence of all self-governing people. 
 
 With your permission, I shall continue to read this in a few mo- 
 ments, but I want at this point to say that that declaration was 
 adopted at that labor conference, in a conference composed of the 
 same men who, in February of the same year, declared that it was 
 necessary for their Government to open up negotations with Germany 
 and with , Austria. That declaration in itself, proposed by the 
 American Federation of Labor delegates, and adopted by that con- 
 gress, changed the entire phase of the situation. 
 
 The Chairman. Do you mean the September declaration ? 
 
 Ml". GoMPERS, Yes, sir; this declaration of September, as pro- 
 posed by lis. ■ 
 
 Senator Swanson. You substituted that for their proposition to • 
 open up negotiations with Germany and Austria? 
 
 Mr. GoMPERS. Yes, sir. 
 
 The Chairman. And, Mr. Gompers, are you wilhng to say that as 
 the result of the proposition of the American delegates that came 
 about, or can you say that ? 
 
 Mr. Gompers. I hope I am not vainglorious or vain, and I have 
 said that an overindulgence of modesty is a species of vanity, but I 
 
52 SOCIAL AND INDUSTBIAL CONDITIONS IN THE UNITED STATES. 
 
 think I am justified in saying that it was due wholly to the American 
 Federation of Labor delegates that that declaration was adopted at 
 the London Interallied Labor Conference of September, 1918. 
 
 Senator Ashurst. That is, the American Federation of Labor 
 offered it, and it was adopted ? 
 
 Senator Page. And you took the initiative in this matter ? 
 
 Mr. GoMPERs. Yes; we took the initiative in the matter, and a 
 conference of men who five months before met and declared for a 
 negotiated peace and not for the winning of the war against autocracy 
 and militarism adopted this proposal. 
 
 I may say this, that one of the first things for which we contended 
 was that there should be open sessions of the conference. Thereto- 
 fore they had held executive meetings, or secret meetings, and gave 
 out what they wanted — ^probably all that they did — but we took the 
 position that inasmuch as labor was denouncing and attacking secret 
 diplomacy, or diplomacy by the underground route, we could not 
 hold our meetings without the public having an opportunity to gaze 
 in upon us, and I, for one, think that it made possible our ability 
 to carry this but. 
 
 Senator Page. Have you ever considered in this meeting — I was 
 not here yesterday — this proposition contained in No. 9 of Senate 
 resolution 382, which has ' reference to. the extension of the oppor- 
 tunity for vocational training and education to all the people in the 
 United States disabled by injury or sickness ? 
 
 Mr. GoMPERS. Yes, sir; I have spoken of that this morning, 
 Senator. ' That has to do with the conservation and salvage of human 
 life and human effort, whether private or public. 
 
 Senator Page. And in your absence will it be possible for us to 
 have men from the Federation of Labor, who will be accessible, and 
 ,who will discuss the problem that you have mentioned here this 
 morning ? 
 
 Mr. GoMPEES. Yes; the legislative committeemen, whose names 
 I have already given, and Mr. Morrison, the secretary of the I'eder- 
 ation; they would be able to do that. 
 
 The further proposal of the American Federation of Labor delega- 
 tion to the conference was as follows : 
 
 This conference indorses the 14 points laid down by President Wilson as conditions 
 uj^on which peace between the belligerent nations may be established and main- 
 tained, as follows: 
 
 "(1) Open covenants of peace openly arrived at, after which there shall be no 
 private international understandings of any kind, but diplomacy shall proceed always 
 frankly and in the public view. 
 
 " (2) Absolute freedom of navigation upon the seas outside territorial waters alike 
 in peace and in war, except as the seas may be closed in whole or in -part by inter- 
 national action for the enforcement of international covenants. 
 
 "<3) The removal, so far as possible, of all economic barriers and the establishment 
 of an equality of trade conditions among all the nations consenting to peace and 
 ' associating itself for its maintenance. 
 
 "(4) Adequate guarantees, given and taken, that national armaments will be 
 reduced to the lowest point consistent with domestic safety. 
 
 "(5) A free, open-minded, and absolutely impartial adjustment of all colonial 
 claims, based upon a strict observance of the principles that in determining all such 
 questions of sovereignty the interests of the populations concerned must have equal 
 weight with the equitable claims of the Government whose title is to be determined. 
 
 " (6) The evacuation of all Russian territory, and such a settlement of all questions 
 affecting Russia as will secure the best and freest cooperation of the other nations of 
 the world in obtaining for her an unhampered and unembarrassed opportunity for the 
 independent determination of her own political development and national policy 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 53 
 
 and assure her of a sincere welcome into the society of free nations under institutions 
 of her own choosing, and more than a welcome assistance also of every kind that she 
 may need and may herself desire. 
 
 ' The treatment accorded Russia by her sister nations in the months to come will be 
 the acid test of their good will, of their comprehension of her needs, as distinguished 
 from their own interests, and of their intelligent and unselfish sympathy. 
 
 " (7) Belgium, the whole world will agree, must be evacuated and restored w;ithout 
 any attempt to limit the sovereignty which she enjoys in common with all other free 
 nations. No other single act will serve, as this will serve, to restore confidence among 
 the nations in the laws which they have themselves set and determined for the govern- 
 ment of their relations with one another. Without this healing act the whole structure 
 and validity of international law is forever impaired. 
 
 "(8) All French territory should be freed and the invaded portions restored, and the 
 wrong done to France by Prussia in 1871 in the matter of Alsace-Lorraine, which has 
 unsettled the peace of the world for nearly 50 years, should be righted in order that 
 peace may once more be made secure in the interest of all. 
 
 "(9) A readjustment of the frontiers of Italy should be effected along clearly 
 recognizable lines of nationality. 
 
 "(10) The peoples of Austria-Hungary, whose place among the nations we wish to 
 see safeguarded and assured, should be accorded the first opportunity of autonomous 
 development. 
 
 "(11) Roumania, Servia, and Montenegro should be evacuated, the occupied 
 territories restored, Serbia accorded free and secure access to the sea, and the relations 
 of the several Balkan States to one another determined by friendly coijnsel along 
 historically established lines of allegiance and nationality, and international guaran- 
 tees of the political and economic independence and territorial integrity of the several 
 Balkan States should be entered into. 
 
 "(12) The Turkish portions of the present Ottoman Empire should be assured a 
 secure sovereignty, but the other nationalities which are now under Turkish rule 
 should be assured an undoubted security of life and an absolutely unmolested oppor- 
 tunity of autonomous development, and the Dardanelles should be permanently 
 opened as a free passage to the ships and commerce of all nations under international 
 guarantees. 
 
 "(13) An independent Polish State should be erected, which should include the 
 territories inhabited by indisputably Polish populations, which should be assured a 
 free and secure access to the sea, and whose political and economic independence and 
 territorial integrity should be guaranteed by international covenant. 
 
 "(14) A general association of nations must be formed under specific covenants for 
 the purpose of affording mutual guarantees of political independence and territorial 
 integrity to great and small States alike. 
 
 You see, gentlemeti, that we indorse the 14 points laid down by- 
 President "Vnlson. 
 
 The Chairman. And they were set out verbatim. 
 
 Mr. GoMPERS. Yes, sir; verbatim. Our proposal continued as 
 follows: 
 
 The world is requiring tremendous sacrifices of all the peoples. Because of their 
 response in defense of principles of freedom the peoples have earned the right to 
 wipe out all vestiges of the old idea that the government belongs to or constitutes 
 a "governing class." In determining issues that will vitally affect the lives and 
 welfare of nullions of wage earners, justice requires that they should have direct 
 representation in the agencies authorized to make such decisions. We therefore 
 declare that "In the official delegations from each of the belligerent countries 
 which will formulate the peace treaty, the workers should have direct official 
 representation." 
 
 In connection with that I will say that in the countries of our 
 allies, while the unity of the working people has not been up to the 
 standard of the unity and the character of the-services of the Amer- 
 ican labor inovement, in those countries representatives of labor 
 will be a part of the official peace commission. 
 
 Our proposal continues as follows: 
 
 We declare in favor of a world-labor congress to be held at the same time and place 
 as the peace conference that will formulate the peace treaty closing the war. 
 
54 SOCIAL AND INDUSTUIAL CONDITIONS IN THE UNITED STATES. 
 
 The document continues: 
 
 We declare that the following essentially fundamental principles must underlie the 
 peace treaty: 
 
 A league of the free peoples of the world in a common covenant for genuine and 
 practical cooperation to secure justice and therefore peace in relations between 
 nations. 
 
 No political or economic j:estrictions meant to benefit some nations and to cripple 
 or embarrass others. 
 
 No reprisals based upon purely vindictive purposes or deliberate desire to injure, 
 but to right manifest wrongs. 
 
 Eecognition of the rights of small nations and of the principle "No people must be 
 forced under sovereignty under which it does not wish to live." 
 
 No territorial changes or adjustment of power except in furtherance of the welfare 
 of the peoples affected and infurtherance of world peace. 
 
 Ill addition to these basic principles there should be incorporated in the treaty, 
 which shall constitute the guide of nations in the new period and conditions into 
 which we enter at the close of the war, the following declarations fundamental to the 
 best interests of all nations and of vital importance to wage earners: 
 
 That in law and in practice the principle shall be recognized that the labor of a 
 human being is not a commodity or article of commerce. 
 
 Involuntary servitude shall not exist except as a punishment for crime whereof 
 the party shall have been duly convicted. 
 
 The right of free association, free assemblage, free speech, and free press shall not 
 be abridged. 
 
 That the seamen of the merchant marine shall be guaranteed the right of leaving 
 their vessels when the same are in safe harbor. 
 
 No article or commodity shall be shipped or delivered in international commerce 
 in the production of which children under the age of 16 years have been employed or 
 permitted to work. 
 
 It shall be declared that the basic workday in industry and commerce shall not 
 exceed eight hoiors per day. 
 
 Trial by jury should be established. 
 
 And that is signed by the members of the American Federation of 
 Labor delegation. 
 
 You will observe that there were two principles submitted which 
 have become^one the law of our land, and the other a constitutional 
 provision; the labor of the human being in law and in fact shall be 
 regarded not as a commodity or article of commerpe; the other, the 
 constitutionalprovision, "involuntary servitude shall not exist ex- 
 cept as a. punishment for crime whereof the party shall have been 
 duly convicted." Then, there is the "right of free association, free 
 assemblage, free speech, and free press shaU not be abridged." Then, 
 there is the law protecting the rights of seamen. 
 
 I believe that these proposals which I submit now as having been 
 approved by our movement and which have my whole-hearted sup- 
 port, together with the report of the reconstruction committee of 
 the American Federation of Labor, I think will form a fairly good 
 basis of suggestions for legislation by Congress. 
 
 Senator Swa!nson. Can you give us the nations that were repre- 
 sented in this conference at London in September? 
 
 Mr. GoMPEES. England, Scotland, France, Italy, Belgium, Canada, 
 Serbia; I can not think of any others. 
 
 Senator Swanson. They had delegates there representing the or- 
 ganized labor in those respective countries ? Was that the nature of 
 the representation ? 
 
 Mr. GoMPEES. Yes, sir. 
 
 Senator Swanson. And organized labor, like the American Feder- 
 ation of Labor, 'which sent you as an official delegate to appear in 
 these conferences, organized labor in other countries sent their 
 delegations ? 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 55 
 
 Mr. GoMPERs. Except this, sir, that American labor was repre- 
 sented by the American Federation of Labor delegates ; the delegates 
 from England were composed of a parliamentary committee ; that is, 
 the executives 
 
 Senator Swanson (interposing). In England it is a political party? 
 
 Mr. GoMPERS. No, not entirely so; not by any means. As a mat- 
 ter of fact, I think I ought to explain the situation in England, as it 
 is not comparable with some of the other countries. In England 
 there are 4,000,000 workmen organized in the trade-unions, and they 
 have formed what they call the British Trade Union Congress; that 
 is, the trade-union movement. The trade-union congress deals 
 purely with legislative matters; the tradesrunions, as such, deal with 
 trade matters. Now, in England they organized as a result of the 
 decision in the Taff-Vail case a political party to secure the remedy, 
 the remedy for the trades dispute act of 1906. They organized this 
 
 f)arty and the party really is the dominating factor of the British 
 abor movement, including the trade-union congress. There were 
 equal representatives — that is, equal voting power — of the British, 
 Trade Union Congress, and the British Labor Party; whereas, the 
 British Labor Party is largely made up of the same membership, it 
 was quite noticeable that in all of the procedure, private conferences 
 or public, that the Labor Party dominated — that is, that the Labor 
 Party leaders dominated. The votes were, as I say, divided between 
 the executives of the Trade Union Congress and the executives of the 
 Labor Party. 
 
 In France there 'vvas the Confederation Generale du Tra;vail, which 
 was represented by delegates. That is the trade-union movement of 
 France ; and then they had the representatives ol the Socialist Party 
 of France. That Socialist Party was represented by a majority group 
 and a minority group. The votes of the French delegation to the 
 conference were divided up a^ between these three groups. 
 
 The Chairman. Mr. Gompers, I believe that the Socialists have a 
 large majority in the Chamber of Deputies, have they not? They 
 are called by that name? 
 
 Mr. Gompers. They are called Majority Socialists and Minority 
 Socialists, but upon any important declaration the minority vote 
 with the majority and for public reasons they submit to the declara-- 
 tion and declare their adherence to the majority declaration. By 
 the way, in the current issue of the American Federationist I have 
 an editorial upon the French Socialists and the Bolsheviki. It 
 ought not to be a part of this record, but I commend that spring 
 poem to your respectful consideration. You will find in it a series 
 of resolutions adopted by the Socialist Party in France that will 
 open the eyes of many men who have not had an opportunity to 
 see them. 
 
 Senator Page. That is in your last issue? 
 
 Mr. Gompers. This current issue. 
 
 Senator Kenyon. Will you furnish us with that ? I ask that it be 
 made a "part of the record. 
 
 The Chairman. It is suggested that it be made a part of the 
 record. Is there any objection? The chair hears none, and it will 
 be so ordered. 
 
 (The editorial referred to is here printed in full in the record as 
 follows :) 
 
56 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 THE FEBNCH SOCIALISTS AND THE BOLSHBVIKI. 
 
 The political party which claims to represent French labor has indorsed Boisne- 
 ■vism; strong influences are at work within the Confederation Generale du Travail 
 working in the same direction. The French anti-war fanatics and pro-Bolshevists 
 practically obtained control of the French Socialist party at the end of last July. At 
 that time and up until the very day of German defeat the slogan was " Peace without 
 victory " and a compromise with German Kaiserism and militarism. At the national 
 congress of the party in October their control was reafErmed, and the official party 
 organ passed from the hands of the so-called pro-war politician Renaudel into the 
 hands of the antiwar politician Longuet, the grandson of Karl Marx. 
 
 In spite of all that the French, Socialist Party could do to prevent it, the war was 
 continued until the German defeat, which brought with it the German revolution. 
 Did the Socialists then confess their tremendous blunder or wrong? Not in the least. 
 On the contrary, they claimed that Germany was not defeated by the valiant and 
 heroic armies of the world's democracies, but by an impending German revolution, 
 due to the Soviet aaitation in that country. , They took the armistice as a, sign of the 
 failure of democratic internationalism and the victory of Soviet internationalism. 
 
 The armistice had not been signed three days when the executive committee of the 
 French Socialist Party met and passed the following amazing resolutions: 
 
 "The French Socialist Party welcomes the German Republic and the taking over 
 of the power in Prussia and the Confederated States by the working class. 
 
 " As in the Russia of the Soviets, Socialism has appeared in all central Europe as the 
 proper liquidator of the political and social situation left by the war. 
 
 "The party thus sees justified the confidence which it has always had in the action 
 of peoples." 
 
 "Considering that certain of the conditions of the armistice leave the sharply 
 defined fear that the allied Governments have the intention of further extending the 
 criminal military intervention against revolutionary Russia, the party declares that 
 it will appeal to all the forces of the French proletariat to prevent the socialism which • 
 is being born in Russia, as well as in Germany and Austria, from being crushed by 
 coalitions of foreign capitalisms. 
 
 "The party urges the French working people most rigorously to rally to the support 
 of their unions and socialist groups, to sustain their class jourpals, and to keep them- 
 selves ready to make socialism triumph in France as it has in the other countries of 
 Europe." 
 
 This resolution, which betrays not only France but also the democratic league of 
 nations now in process of formation at Versailles is as remarkable for what it says as 
 what it omits to say. The only revolution it recognizes in Russia is the counter 
 revolution by which the Bolsheviks overthrew the democratic government of Kerensky 
 and by force of arms dissolved the constitutional assembly. It is assumed that the 
 new government of Germany will be of a similar character and it is demanded that 
 the socialist minority, representing less than 25 per cent of the French people, should 
 bring about a soviet revolution in France. 
 
 All the achievements of the democratic revolutions of the past in France, America, 
 and England are ignored or perverted. It is held that there is ;preciBely the same need 
 for revolutions in those countries as there was in Russia and in Germany when the 
 Czar and Kaiser were thrown out. There never was such a thing as a. Declaration oi 
 Independence, or a French declaration of the rights of man. The universal suffrage 
 of France, England and the United States is ignored as if it had never existed. The 
 growing power of labor in America, as well as in France and England, is implicitly 
 denied. The assumption is that labor and the masses generally are in the same 
 position in the world's great democracies to-day as they were under the Kaiser and 
 the Czar. 
 
 If this is not treason to democracy and treason to internationalism, then we would 
 better take the word "treason" out of the dictionary. 
 
 Since the peace conference is being held in France, the French situation has a new 
 importance, and deserves close attention. While the Longuet faction controls the 
 party there is a strong opposition and the party is split down the middle, but unfortu- 
 nately politicians are almost as common in the so-called prowar 'opposition as they are 
 in the controlling pacifist element. It is especially unfortunate that even the most 
 able and honorable Socialist leader, Albert Thomas, formerly minister of munitions, 
 signed the Renaudel resolution. Cachin, formerly a strong prowar man. has now be- 
 come the editor of "L'Humanite," under the thumb of Longuet. Other leaders of the 
 prowar faction like Sambat, formerly a member of the war cabinet, are still less reliable. 
 Even the group of 40, composed of Socialist members of the Chamber of Deputies, who 
 opposed the war under the leadership of Varenne and Compere-Morel, are apparently 
 tied hard and fast to the principle of "party unity." 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 57 
 
 It is under -this banner of party unity that the politicians have flourished. The 
 party is obviously divided not into two, but into many groups of politicians who 
 change their position from day to day. But it is always possible to justify anyposition 
 "whatever under the pretext of party unity — "my party, right or wrong," and party 
 unity implies absolutely blind and unthinking support of the Socialist International. 
 Thus, loyalty to this "International" replaces loyalty to labor. The Socialist 
 International, as we see in Longuet's resolution, is now in control of the Russian and 
 German Governments, and the French Socialists accept the leadership of these enemies 
 of the common cause of freedom, 'justice', and democracy. 
 
 The last hope of the French working class is with the Confederation Generale du 
 Travail. Jouhaux, the Secretary of the Confederation, who partly followed Longuet 
 against the American Federation of Labor at the interallied conference of London, in 
 September, now shows some signs of suffering from an overdose of this Bolshevism. 
 He has recently issued a scathing denunciation of revolutionary phrases, appealing 
 for a positive program of reconstruction'. 
 
 Further evidence of a return of wholesome common sense and of a sound labor 
 instinct is given by a proclamation issued jointly by the Confederation General du 
 Travail and the Socialist partj? during' the armistice negotiations. This proclamation 
 originated with the prowar wmg of the Socialist party and the Cbnfederation General 
 du Travail. It was adopted by the whole party, however, and then by another 
 important political organization called the Union Republicaine.. 
 
 Here is the importance of this resolution. It developed for the first time in several 
 months a cooperation between labor organizations and other honest ' and radical 
 democratic elements. But an even greater significance arises from the fact that merely 
 because the Union Republicaine— ^a non-Socialist organization — signed the manifesto, 
 the Socialist party met and the pacifist wing obliged it to pass a resolution attempting 
 to withdraw the proclamation. However, the Conf^d&ation G^n^ral du Travail 
 refused to join in the withdrawal and the manifesto was posted all throughout France. 
 This proclamation has a high value as showing the attitude of the Confederation 
 General du Travail on peace terms. We, therefore, reproduce some of its important 
 statements: 
 
 "The organizations which represent the most active forces of labor and democracy 
 declare their entire agreement with the fundamentals formulated two years ago and the 
 acts accomplished in the last fortnight by President Wilson. To employ the expression 
 of the Confederation Generale du Travail, we declare that he has formulated the 
 guarantees necessary to bring to the allied countries ' the certainty that the injuries 
 which have been done shall be repaired, that the peoples at present subject to the law 
 of force shall be liberated, that the possibilities of a fresh war shall be definitely 
 eliminated.' 
 
 "This conception, cominon to our democracy, which has arisen from the French 
 Revolution, and to President Wilson, excludes all ideas of conquest and annexation 
 as it rejects any peace by the abandonment of justice." 
 
 The pro-Bolshevik element in control of the Socialist party wished to withdraw this 
 proclamation. They have never dared to make open attack on President Wilson or 
 to repudiate him in any important feature. They profess, hypocritically, to follow 
 him. But at the same time they conduct a ceaseless agitation in favor of the Russian 
 Soviets and of a Soviet revolution in France! They are fully aware that Mr. Wilson 
 has personally vouched for the documents showing the secret alliance between the 
 Bolshevik of Russia and the Kaiser and they know that he has successfully appealed 
 to all civilized governments to repudiate the same Soviets. But they still profess to 
 follow the leadership of President Wilson. 
 
 Longuet's daily organ, "Le Populaire," contains almost daily columns of defense 
 ■of the Soviets and of all of their deeds and policies! Of course, about once a month 
 Longuet writes a pro-Bolshevik article in which he is careful to state he does not 
 indorse absolutely everything the Soviets do, but he is well aware that his paper 
 daily gives the opposite impression, namely, of an indorsement which is not only 
 unqualified but fanatically enthusiastic. 
 
 It is evident that these French Bolsheviki are in earnest as to their proposed insur- 
 rection. Nobody can doubt that they will take the first favorable opportunity — if 
 any opportunity occurs — to attempt it.^ They will tardly act while President Wilson 
 is still in Europe but there is every indication that they will attempt something 
 immediately after his departure. 
 
 The next few weeks will show whether the sane and loyally democratic elements in 
 the French Federation of Labor will be able to resist this mischievous movement. 
 At the beginning of the war the French Confederation Generale du Travail not only 
 supported this war for democracy by an overwhelming majority but agreed to an 
 International Labor Conference at the end of the war from which all' politicians, 
 
58 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 whether socialist or nonsocialist, shall be excluded. The French Socialist party has 
 never secured any indorsement of the French Federation of J^abor as having the sole 
 and exclusive right to represent the working people politically. If the French 
 Federation is true to its own highly creditable past of the last quarter century and 
 especially to its splendid record during the first three years of the war, it will yet be 
 able to foil this mad movement which can only result in putting back French labor 
 for many years and possibly in wrecking the league of nations which President Wilson 
 is striving so desperately to bring into being. 
 
 Mf. Gompees. In the issue of this American Fede»ationist for 
 January, this current issue, I carry an address which I made to a 
 conference of two committees, which were appointed by authority 
 of the last convention of the federation, to which I invited a number 
 of labor men in and around New York. I wanted to sneak to them 
 and use that as an opportunity to discuss the subject of the creation 
 . of a new political labor party. I am discussing that — the conference 
 of about 45 or 50 people — and they urged and passed by an informal 
 vote, requesting that inasmuch as it was stenographically taken 
 down, it ought to be published. I publish it in the American Federa- 
 tionist, and in that issue I address each of the committee to which I 
 have referred upon the subject which they were created to consider, 
 and then address them generally upon the question of a new political 
 party. I brought the matter to the attention of the executive 
 council last week. The council indorsed my address by a unanimous 
 vote, and directed that it be published in pamphlet form and be 
 spread broadcast. That has been done, and I am expecting in the 
 course of a day or two that pamphlet will be ready; the address 
 referring to the particular subjects with which the two committees 
 will have to deal has been eliminated in the pamphlet. The simple 
 question is the matter of the political party. It also contains the 
 fact that it was indorsed by, and the terms in which the executive 
 council indorsed my address. This is not because of its political or 
 economical value' that I bring this matter to your attention, gen- 
 tlemen; but simply to give you some idea of the situation in reference 
 to the questions upon which I am addressing you on to-day, as to the 
 peculiar practices when a political party dominates the purely labor 
 movement. 
 
 (The address referred to is here printed in full in the record as 
 foUows:) 
 
 Should a Political Labor Pabty be Foumed? 
 
 an address by samuel gompers, president american federation of labor. 
 
 The following address by President Gompers was fully considered by the executive 
 council of the American Federation of Labor and unanimously indorsed. The address 
 expresses the judgment of the executive council to protect and to promote the best 
 interests of the workers and of the labor movement of America. It conforms to the 
 letter and spirit of the provisions of the constitution of the American Federation of 
 Labor, Article III, section 8; 
 
 "Party politics, whether they be 'Democratic, Republican, Socialistic, Populistic, 
 Prohibition, or any other, shall have no place in the conventions of the American 
 Federation of Labor." 
 
 While local and central bodies and State federations may enter into the political 
 field, either independently or otherwisa, it is not within their province to form or 
 bepome part of a national political party. (Adopted by the executive council of the 
 American Federation of Labor at its meeting held inNew York City on Dec. 28, 1918.) 
 
 Mr. GoMPEKS. And now, a consideration of the subject I have in mind and for 
 which I have asked the gentlemen of the committees and the ladies and gentlemen 
 of labor to participate in tliis conference. 
 
 In the last few weeks there have been published certain situations which exist 
 and certain movements which were abdut to be inaugurated. In a few of the cities 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 59 
 
 that situation and that movement have become accentuated. In Chicago, New 
 York City, and two or three places the labor movement has expressed itself through 
 the central bodies in favor of the formation of a political labor party. 
 
 No man has the right to look upon such a move lightly, or without deep considera- 
 tion or deep concern. Either the proposed movement about to be inaugurated for 
 the establishment of a political labor party is good, or it is bad. Either it is advan- 
 tageous or it is injurious, and the purpose of my asking that we meet this afternoon 
 is to present to you some facts upon that subject. 
 
 You who were in the movement of long ago will remember that to which I refer. 
 We had in the United States a fairly growing labor movement of some tra-de unionists 
 in some form of a federation called the National Labor Union. That organization 
 went along, inspired good spirit and activity among the workers, and then called a 
 national convention for the piurpose of nominating a President of the United States. 
 That convention met and nominated Justice David Davis, a justice of the Supreme 
 Court of the United States, as its candidate for President, and after nominating Mr. 
 Davis adjourned and never met again. The trade unions then in existence fell off 
 in membership until the organizations became very weak and ineffective. Some 
 organizations fell by the wayside. Labor was in a most deplorable condition, without 
 opijortunity for defenge and robbed entirely of any power to press forward its rightful 
 claims. 
 
 In 1885-86, after a few years of precarious early existence, the American Federa- 
 tion of Labor tried to build up and extend its influence and organize the workers 
 into their, unions. 
 
 In 1884 the American Federation of Labor declared for the introduction of the eight- 
 hour workday. May 1, 1886. It proposed negotiations with the employers to the 
 accomplishment of that high purpose. The movement gained great impetus and large 
 advantages followed, but on May 2 or 3, 1886, a bomb was thrown at a meeting which 
 was being held at Haymarket Square, Chicago, which killed and maimed more than 
 20 policemen. The meeting was supposed to have been held in the interest df the 
 eight-hour movement. The wrath of the people which was aroused against those in 
 charge of the Haymarket meeting gave the eight-hour day a severe blow a,nd set-back. 
 However, the eight-hour day was secured for the workers in several industries and a 
 reduction in the hours of labor from 16 to 12 or from 12 to 10 became almost universal 
 in the United States. But the eight-hour movement as such was destroyed for the 
 time being. 
 
 Due in part to that incident and to the resentment of the workers because they had 
 lost so much that they could have obtained and due to certain local conditions, political 
 rather than economic, in various cities the local movement undertook political cam- 
 paigns and organized a political party in Chicago, Milwaukee, St. Louis, Boston, and 
 New York. This resulted in the organized labor movement of New York City launch- 
 ing into a campaign which nominated Henry George as mayor of the city. It was my 
 privilege to enter into that campaign with the men (there are a few of them in this 
 room now) who were active at the time. I aided to the very best of my anility. 
 Henry George received 68,000 votes and came very near election. Some claim that 
 he was really elected, but that in the last hours many of the supporters of Theodore 
 Roosevelt who was the mayoralty candidate of the Republican Party abandoned him 
 and cast their votes for Abram S . Hewitt, who was the Democratic candidate for mayor. 
 
 After the campaign closed and the election was held, the movement took on another 
 phase. It was called the Progressive Labor Party. They admitted to membership 
 not only the pien of organized labor but what had popularly been called by a great 
 many the "brain with brawn" or "brain with labor." The campaign was carried 
 on with such scandalous results, that nearly all the men of labor who had some self- 
 respect had to hold themselves in the background for fear that they might be 
 besmirched with the incidents which occurred in the campaign. 
 
 A man, an extremely rich man, in business in the city of New York at the time, 
 was induced to become the candidate for mayor as the representative of labor. I 
 think it was Mr. Coogan, a man engaged in the furniture business. Mr. Ooogan had, I 
 was informed, wonderful experience in financial transactions of which he was not 
 entirely and fully aware until it was all over. By the way, there was a popular phrase 
 which came into effect right at that time, " Wass ist loos mit Ooogan." (What is the 
 matter with Coogan.) 
 
 I mention these things of our own country, and now I want to mention a few things 
 of other countries of which I have been a personal, intimate, and close observer. 
 
 In Germany, the trade-union movement having been dissolved by Bismarck and 
 the organizations of labor not having the right to exist, went to its death for the time. 
 Then, when there was a slight moderation of that order, the trade-union movement of 
 that country was organized from the top down. There were executive officers who 
 imposed their will upon the rank and file. There was no democracy of administra- 
 
60 SOCIAL AND INDUSTRIAI, CONDITIONS IN THE UNITED STATES. 
 
 tion, of construction, or of the right of the membership to determine policies. Benefits 
 were paid by the officers of the general organization. These officers had the power to 
 , determine whether the workers were entitled .to the insurance and other benefits. 
 It W£(a a matter of power vested in the executives. You can imagine how necessary 
 it was for the rank and file to endeavor to curry favor with the executives in order 
 that they might not be discriminated against unfairly. 
 
 In 1905 I was in Hamburg and Bremen, in consulatation with the' officers of the 
 general labor movement of Germany. Among whom were Legien and Von Elm. 
 They were not permitted to hold public meetings dealing with any subject affecting 
 labor or the government. Before I reached there Mr. Von Elm, with whom I had 
 • been in correspondence because he belonged to the Cigarmakers' International Union 
 here of which I am a member, invited me to deliver an address in German in a public 
 meeting before 5,000 or 10,000 persons, but it was necessary for me to address them in 
 German, because an address in any other language but German would not be permitted. 
 I could speak and read German but I did not feel Competent to deliver an address in 
 the German language before a gathering of 5,000 or 10,000 people. I was afraid of my 
 own. weakness and that possibly by reason of grammatical errors some might say: 
 "Well, if he can not speak he ought not to try to speak to us," and thereby discount 
 anything I might say. Therefore, I declined it. 
 
 They agreed, however, to call a social gathering. Invitations were sent out to 132 
 people to attend. The full number responded. I spoke to them in the German 
 language, but the meeting was secret. The unions were struggling for the right to 
 meet as unions and to have the guaranty of the law for their legal right to maintain 
 their organizations and to hold such meetings; in other words, the right of free asso- 
 ciation. I had the assurance of Von Elm, Leguen and others that the Socialist Political 
 Party of Germany denied the demand made by the trade-unions to work to secure 
 from the Government a law guaranteeing the workers the right to organize as a free 
 association of workers. The Socialist Political Party of Germany, which is the only 
 political party claiming to be the workmen's party, denied the union-labor movement 
 of Germany the right to take political action in order to secure the lawful right for 
 its existence. 
 
 The French organized-labor movement is not extensive. Some of the most com- 
 pletely organized linions are wholly out of touch with the Confederation Generate 
 du Travail — that is, the French Federation of Labor^ — because they want to exercise 
 their individual right of trade-unionisms and trade-union action. To interallied 
 labor conference in London in September there came a delegation from France of 
 three or four men representing the French Federation of Labor and then a delegation 
 of about 7, 8, or 10 representing the Majority Socialist Party of France and about 
 that same number representing the Minority Socialist Party. The vote of the dele- 
 gation was divided between the Majority and Minority Socialist Parties and the 
 French Federation of Labor. The political party dominates the trade-union move- 
 ment of France. 
 
 In England there is the British Trade Union Congress, the British Federation of 
 Trade Unions, and the Labor Party. For the discussion of business when the con- 
 ventions of either pa,rty are not in session, they meet jointly in conference through 
 the parliamentary committee of the British Trade Union Congress and the executive 
 cominittee of the Labor Party. Quite a number of the members of the parliamentary 
 committee of the British Trade Union Congress are members of the Labor Party, and 
 quite a number of them who hold their seats in Parliament are members of the Labor 
 Party. As a matter of fact, the executive committee of the Labor Party dominates 
 the entire movement of England, 
 
 At a conference held at Derby, England, in September, 1918, the executive officers 
 of the I/abor Party presided and dominated the proceedings. And all the time that 
 I was in England I never heard of a phrase like this: "The British trade-union move- 
 ment and the Labor Party." I never heard it 'said: "The parliamentary committee 
 of the British Trade Union Congress and the executive committee of the Labor Party." 
 It was always the Labor Party and the Trade Union Congress. The Labor Party of 
 England dominates the labor movement of England. 
 
 When the interallied labor conference opened in London, September 17, early in 
 the morning there were sent over to my room at the hotel cards which were intended 
 to be the credential cards for our delegation to sign and hand in as our credentials. 
 The card read something like this: "The undersigned is a duly accredited delegate 
 to the interallied socialist conference to be held at London," etc., and giving the dates. 
 
 I refused to sign my name, or permit my name to be .put upon any card of that 
 character. My associates were as indignant as I was and refused to sign any such 
 credential. We went to the hall where the conference was to be held. There was 
 a young lady at the door. When we made an effort to enter she asked for our cards. 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 61 
 
 We said we liad no cards to present. "Well," the answer came, "yoii can not be 
 admitted." ' We replied: "That may be true, we can not be admitted, but we will 
 not siffn any such card. We have our credentials written out, signed, and sealed, 
 and will present them to any committee of the conference for scrutiny and recommen- 
 dation, but we are not going to sign such a card." 
 
 Mr. Charles Bowerman, secretary of the parliamentary committee of the British 
 trade-union congress, at that moment emerged from the door. He asked why we had 
 not entered. I told him the situation, and he persuaded the young lady to permit 
 US to pass in. We e;itered the hall and presented our credentials. Mr. James Sexton, 
 officer and representative of the Dockers' Union of Liverpool, arose and called the 
 attention of the conference to this situation, and declared that the American Federa- 
 tion of Labor delegates refused to sign any such document. He said that it was not 
 an interallied Socialist conference, but an interallied Socialist and labor conference. 
 
 Mr. Arthur Henderson, of the Labor Party, made an explanation something to this 
 effect, if my memory serves me: 
 
 "It is really regrettable that such an error should have been made, but it has been 
 made. It was due to the fact that the old card of credentials which had been used 
 in former conferiences was sent to the printer, no one paying any attention to it, and 
 thinking it was all right." 
 
 I want to call your attention to the significance of that explanation. That is, that 
 the trade-union movement of Great Britain was represented at these former con- 
 ferences, but at this conference the importance of labor was regarded as so insignifi- 
 cant that everybody took it for granted that it was perfectly all right to have the 
 credential card read, "Interallied Socialist conference," and with the omission of 
 this more important term "labor." 
 
 The fact is that an independent political labor party becomes either radical, so 
 called, or else reactionary, but it is primarily devoted to one thing, and that is vote 
 getting. Every sail is trimmed to the getting of votes. The question of the condi- 
 tions of labor, the question of the standards of labor, the question of the struggles and 
 the sacrifices of labor to bring light into the lives and the work of the toilers — all that 
 is subordinated to the one consideration of votes for the party. 
 
 I have read the 14 points which have been formulated for the proposed labor party 
 here. Is there one of them of an essential character to the interests and welfare of the 
 working people of the United States which is not contained in the curriculum, the 
 work and the principles of the bona fide labor movement of our country? 
 
 Which movement, economic or political, in any country on the face of the globe has 
 brought more hope and encouragement, more real advantage, to'the working people 
 than the trade-union movement of America has brought to the wage earning masses of 
 our country? 
 
 The organization of a political labor party would simply mean the dividing of the 
 activities and allegiance of the men and women of labor between two bodies, such as 
 would often come in conflict. 
 
 In the British Trade-Union Congress at Derby there were divergent views. There 
 were four different points of view upon one subject before the congress. In order to 
 try to unite the thought a committee of four was appointed for the_ purpose of trying to 
 bring in some agreed proposition and recommendation for adoption by the congress. 
 In the course of a few days the committee reported a resolution. For the purpose of 
 conserving time the four members of the committee representing the divergent views 
 were called upon in turn to express their views. Each in turn expressed his own view 
 and placed his own construction upon the resolution recommended. Then each 
 declared that he, was going out to fight for his own view. 
 
 In our movement we have done some things. We have brought together more than 
 3,000,000 workers, organized into our trade-unions and belonging to the American 
 Federation of Labor. In addition there are between four and five hundred thousand 
 workmen in the railroad brotherhoods not affiliated with us but yet in accord with our 
 work and our policies. In other words, there are nearly 4,000,000 of organized trade- 
 unionists in the United States. 'There is not always harmony; there is disagreement; 
 there is opposition, all of it important, all of it tending to crystallize the sentiment 
 of unity and devotion to the cause of labor. The Anierican labor movement occupies 
 the field of activity without yielding one inch to any other body. 
 
 Mr. Longuet, representing the majority Socialists of France at the interallied labor 
 conference in London, expressed his regret that what he called the American Socialist 
 Party was not represented in the conference . He proposed that the votes of the Amer- 
 ican Federation of Labor delegates should be reduced because the American Socialist 
 Party was not represented. 
 
 Who are we going to have as the leaders of this new political labor party here? I 
 understand that there is impatience among our fellows. It is creditable to them that 
 
62 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 they are impatient. There is not any man in all America, or in all the world, more 
 impatient than I with the progress that has been made, with the position we occupy. 
 I want more, more, more for labor. I think I have tned and am trying to do my 
 share. My associates of the executive council have tried to do their share, but there 
 is such a thing as attempting to overrun, and by overrunning to defeat the object we 
 would gain for the wage earners and to throw them into the hands of those who do 
 not know the honest aspirations of labor or who would- direct them for personal 
 aggrandizement. ^ 
 
 I have been the president of the American Federation of Labor for many, many 
 years. I regard that position as the most exalted that I could occupy. I have no 
 aspirations to hold this or that position. It is not that I ask you to follow me. I ask 
 that the trade-union movement be given its fullest opportunity for growth and devel- 
 opment so that it may be the instrumentality to secure better and better .and better 
 and constantly better conditions for the workers of our country. 
 
 Here we are in this transition period from war into peace, with all that it may mean. 
 A week ago last evening — that is, on Sunday evening, December 1— at theOentury 
 Theater, I delivered an address. I am proud of the address I delivered there on that 
 night. I do not think that anyone realizes all the dangers which I felt and tried to 
 express aa to the situation now and which may arise in the near future. I ask you 
 whether the creation of a political labor party, and particularly at this time, would 
 help to solve these problems and meet these dangerous conditions? If ever unity was 
 needed for the toilers it is now. 
 
 It is not true, as some carping critics allege, that the American Federation of Labor' 
 is a nonpolitical organization. As a matter of fact, the workers of the United States 
 and the organized labor movement act voluntarily in the exercise of their political 
 right and power. We have changed the control of our government from the old-time 
 interests of corporate jpower and judicial usurpation. We have secured from the 
 Government of the United States the labor provision of the Clayton antitrust law, 
 the declaration in the law that the labor of a human being is not a commodity or 
 article of commerce. In that law we have secured the right of our men to exercise 
 functions for which, under -the old regime our men were brought before the bar of 
 justice and fined or imprisoned. We have secured the eight-hour workday, not only 
 as a basic principal but as a fact. We have secured the seamen's law, giving to the 
 seamen the freedom to leave their vessels when in safe harbor. Thte seamen of 
 America are now free men and own themselves. We have secured a child-labor law, 
 and although it has been declared unconstitutional, we are again at work to secure 
 a law for the protection of our children. Better than all, we have established the 
 concept in law and in administration that the interest and welfare of the workers are 
 paramount, and this not only in the laws of our Republic but in the laws of our States 
 and municipalities. 
 
 There are other laws in the interest of labor which we have secured, more than I 
 can mention offhand, but far above all these are the imprvements brought into thee 
 lives and work of the toilers by their own actions as organized workers. We have 
 established unity of spirit; we have brought about the extension of organization 
 among the formerly unorganized, and our organized free existence to fimction and 
 to express ourselves is now practically unquestioned. 
 
 Suppose in 1912 we had had a labor party in existence; do you think for a moment 
 that we could have gone as the American labor movement to the other political parties-^ 
 and said: "We want you to inaugurate in your platform this and this declaration." 
 If one of the parties had refused and the other party consented and took its chance, 
 would the American Federation of Labor have been permitted to exercise that inde- 
 pendent political and economic, course if the labor party had been in existence? 
 How long would we have had to wait for the passage of a law by Congress declaring 
 law, in practice and in principle that the labor of a human being is not a commodity 
 or an article of commerce — the most far-reaching declaration ever made by any gov- 
 ernment in the history of the world. 
 
 I say this to you. I am 68 years of age. I have been tried and seared as few men 
 have. I have almost had my very soul burned in the trials of life. With my two 
 associates, Mr. Mitchell and Mr. Morrison, I have suffered the indignity of being 
 brought before the courts of our country and adjudged guilty and sentenced to impris- 
 onment. Our eyes were wide ojien. I do not think that it is improper for me to say 
 that I led in the thought and activity of that work, of that willingness to suffer, but it 
 was not a very nice thing to have the endeavor made to besmirch our honor by a sen- 
 tence of imprisonment — Mr. Morrison 6 months, Mr. Mitchell 9 months, and I 12 
 months. We fought that sentence, fought it and fought it, supported by the activity 
 of the organized labor movement in all the States and' towns ot our country, until the 
 principle for which we were contending through that action brought about the incor- 
 
• SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 63 
 
 poration of those provisions in the Clayton antitrust law which confirmed and legalized 
 the very things for which we were sentenced to imprisonment. They were legalized 
 not for us alone hut for labor. 
 
 I repeat, we have secured the enactment of the seamen's law, the right of a seaman 
 to quit his vessel whenever his vessel is in safe harbor in any part of the world, a law 
 which does not exist in any other country — secured it by our political activity and 
 by our economic powers. Has anything like that been accomplished in any country 
 of the world? Our delegates proposed it at the interallied labor conference in Sep- 
 tember, and there was not a hearty agreement to stand for it as an international 
 demand. 
 
 I think you know that I have been most cruelly hurt in the recent past. Somehow 
 or other I believe that there are yet considerable years of fight in me for labor. I have 
 said that I hold the position of president of the American Federation of Labor in the 
 most exalted estimation, but it is not that for which I am contending; it is not that 
 which I would want to keep one moment beyond the time when I can no longer be of 
 service to my fellows. The only thing that I can leave to my fellow men is that I 
 have helped in trying to bring about a labor movement in our country that is better, 
 more comprehensive, and more united than in any other country on the face of the 
 globe . 
 
 I wanted to present these thoughts to you. I did. not have in mind any particular 
 theme or course to present to you. I know I feel arid understand and apprehend the 
 danger which is involved in the project which is now being so very actively agitated 
 in some quarters of the labor movement of our country. I fear no danger, I am just 
 as good a follower, perhaps a better follower, that I am a leader, and I am perfectly 
 willing to occupy either position. I would be recreant to the great labor movement 
 and all it portends now and for the future if I did not take you into my confidence, 
 men and women of labor, and tell you what I have told you. I am apprehensive, 
 justly so, justified by every event in the whole history of labor, that a great mistake 
 may be made, a great injury inflicted upon our fellows, not for a day, not for a year, 
 not for a decade, but perhaps for many, many, many years to come . I want to present 
 that view to you so that you may understand the situation clearly. 
 
 I have spoken calmly and without ceremony or attempt to touch your feelings, 
 but simply to touch the innermost recesses of your minds and to lay before you the 
 responsibility which rests upon you. 
 
 Senator Swan SON. 'Now, what was the delegation from Italy at 
 that conference ? ^ 
 
 Mr. GoMPERS. In Italy the movement is made up of what they call 
 Confederacion Generale de Lavoro d'ltalia, which is practically the 
 same thing as a Confederation of Labor of Italy. The movenient is 
 dominated there absolutely by the official Socialists. They have a 
 newspaper called the Avanti, or Advance. The paper was anti- 
 ally, or pro-German, and under the pretense of patriotism. There is 
 a new organization started in Italy, made up purely of labor men and 
 exclusively of labor men, and there is a conflict going on now right 
 there between this newly, firmly established organization, exclusively 
 of working people, and this official Socialist party made up of the 
 "Intellectuals." • ' 
 
 I doubt if any man has ever had greater receptions and more cordial 
 and hearty receptions among the people of Italy than were accorded 
 to my associates and myself on our visit there. The masses of the peo- 
 ple, the government of the people, the public generally were spontane- 
 ous and enthusiastic in their manifestations of cordial, hearty, sympa- 
 thetic appreciation. The Avanti, being the official organ of the 
 Socialists of Italy, vetoed the agreement entered into between the 
 representatives of the Confederation of Labor of Italy and myself, 
 to resume the conference in Milan, and as a consequence, instead of 
 receiving the delegates from that Confederacion Generale de Lavoro 
 d'ltalia, they sent me a letter. 
 
 In that letter they said that inasmuch as they were a political party 
 and there were differences between us, it would seem there womd be 
 
64 SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 no necessity for our meeting. I took up that letter and analyzed it 
 at a public meeting and answered it. I said that I was under the im- 
 pression that there were other things than politics which the repre- 
 sentatives of the Confederation of Labor of Italy, and the repre- 
 sentatives of the American Federation of Labor of the United States 
 could discuss, questions such as wages, hours of employment, condi- 
 tions of employment, standards of safety, sanitation, and so on, and 
 mutual recognition of the fraternity, which should exist, etc. There 
 was a' commission, a munition commission, or some other com- 
 mission, in Milan, and there had been arrangements made that five 
 representatives of employers and five representatives of workmen 
 should constitute the commission. It was a reception by the per- 
 fect and mayor or other national officials and other organizations, 
 which acted upon their own volition, but the Socialists forbade the 
 mayor of Milan to participate in that reception ^-he was a member 
 of their party — and forbade the labor men to come to that reception. 
 Three of them came anyway, but two of them stood under the ban 
 and would not come. So that from Italy there came representatives 
 from the new organization, but the Socialists or the Comederation of 
 Labor of Italy, were not represented. 
 
 Getting to Italy, the Avanti, which is the mouthpiece or spokesman 
 of those elements to which I have referred, declared that the London 
 Labor Conference of September, from whose proceedings I have just 
 read, was a Gompers conference. My answer was that we were hut 
 5 delegates out of 82 delegates, and we had neither the power nor 
 the desire to dominate, but we presented what we believed to be the 
 declarations from which no man or group of men loyal to the cause 
 of labor, loyal to the principles of freedom and democracy, could 
 escape, and that was the reason why we won. It was not a Gompers 
 conference, but it was a conference which could not escape the force 
 of doing right. 
 
 Now, the American Federation of Labor was represented by the 
 American Federation of Labor. A Mr. Longuet, the representative 
 of the Socialists of France, expressed a great regret that the Socialist 
 Party of America was not represented, and wanted that the conference 
 should refuse the votes to which the American Federation of Labor 
 was entitled, because the American Socialist Party was not repre- 
 sented. My answer was that we recognized but one organization of 
 labor in America to speak in the name of labor and to represent the 
 American labor, and that was the American Federation of Labor; 
 that quite apart from that featme of it, the Socialist Party in America 
 was not an American Socialist Party, but a German adjunct in the 
 United States. 
 
 Belgium was represented by Vandervelde, and the Sociahst Party 
 of the Belgian Government by Hysmanns. 
 
 The Chairman. Vandervelde is on the Belgian Peace Conference 
 Commission, is he not ? 
 
 Mr. Gompers. Yes, sir. 
 
 Senator Swanson. And Serbia was represented by whom? 
 
 Mr. Gompers. Serbia was represented by a man by the name of 
 Popovitch, and he was an irreconcilable. 
 
 Senator Jones. You mean by that that he was a warm friend of 
 the aUies and against any German propaganda, when you say that he 
 was an irreconcilable ? 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 65 
 
 Mr. GoMPERs. No ; just the opposite. He was about on a par with 
 Kneesaw, of Scotland. 
 
 The Chairman. Now, the conference that is going to be held in 
 Paris, will that be similar to the oiie held in London? What will ba 
 the nature of that conference? 
 
 Mr. GoMPEES. It is a bit indefinite yet. I see that there are 
 several attempts being made for people to hold conferences. Mr. 
 Henderson has been in cable communication with me for quite some 
 time, or in the recent past, in which he is evidently assuming to act 
 in the capacity of having political parties of these countries^ called 
 labor parties— some of them are— dominate the conference and called, 
 a conference at Luzerne. I am not so sm-e that we shall go there.- 
 What we want to do is to be helpful to the American Commission. 
 We want to be helpful to the commissioners of the allied countries^ 
 and, if possible, 'to the peace conference itseK; and in addition, we 
 want to establish an international federation of the workers of the' 
 various countries of the world. The war started in 1914 broke up' 
 our international labor movement. We declined to send any money;: 
 that is, our regular semiannual contribution; we declined to send/ 
 that to Germany or any other beligerent country. We were neutral. 
 I mean that the United States was a neutral Nation, and we were, 
 not going to do anything to invalidate or impair that neutrality. 
 No matter what the sympathies of any of us may have been, the 
 sending of money to any one of the beligerent countries was, in our 
 judgment, an act violating^ neutrality. The headquarters were 
 located in Berlin, and we proposed that they be taken to some neutral 
 country, and that did not work because, as a matter of fact, there 
 were no neutral countries. They may have put upon themselves the- 
 cloak of neutrality, but they wei'e not neutral. So that our inter- 
 national movement was really severed and broken, and that is one- 
 of the things that we want to do. I have in mind the meeting with 
 my associates in New York on Monday and Tuesday, and we will 
 consider this situation, and then we will probably have seven or 
 eight or nine days on board ship, in which we can discuss the subject. 
 
 Senator Kenyon. To get back to this great question here, Mr., 
 Gompers; you say that we have spent all this money, and we have 
 grown accustomed to big things in money, and money seems to be 
 the cheapest thing in the world how. Have not we got to think along 
 big lines and new hnes in regard to the labor question? 
 
 Mr. GoMPEKS. Yes) indeed. 
 
 Senator Kenyon, And not be dazzled by what might be called 
 radical legislation in the past ? 
 
 Mr. Gompers. Yes, sir. There must come new concepts of the 
 rights of men, and not only in glittering genera! terms, but m concrete 
 action. The divine right of mastership m industry has passed away, 
 as the divine right of rulers has passed away. The men of labor have 
 been given an opportunity for the free exercise of normal conditions 
 that tend to their improvement, the general improvement of the 
 standards of life, conditions of work and employment; if these oppor- 
 tunities are given there can be no question that in our country, at 
 least, we are going to work out the problems in a way that will bring 
 great good and with the least possible friction. , The men or the- 
 group of men ,who stand in the, way of that orderly, natural, and 
 
 99929—19 5 
 
66 SOCIAi AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 rational development, will be in the position of the cow in that 
 answer made by Stevenson, the inventor of the locomotive, when 
 he was questioned by a farmer. If a cow were on the tracks and this 
 machine was coming along, this locomotive was coming along, what 
 would happen? And Stevenson answered, "Well, it would he bad 
 for the cow." It wiU not be for their good to place themselves in the 
 way of the rational development of the ideas and the ideals and the 
 aspirations of the workers for a better hfe. I can say, without violat- 
 ing a confidence, that the report of the Committee on Reconstruction 
 of the American Federation of Labor will deal with that subject, too, 
 sir. 
 
 Senator Kenyon. And that will show what, in their judgment. 
 Congress can do to help along a solution of this problem ? 
 
 Mr. GoMPEES. Congress and the States; yes, sir. 
 
 Mr. Chairman, I do not know whether it has ever been pubhshed 
 either in the hearings of any of the committees of Congress or in the 
 Congressional Record, but I have in my hand a copy of a declaration 
 made by the representatives of labor of the United States, made at a 
 conference March 12, 1917, held in Washington, D. C. It is a' 
 declaration made, as the date shows, three weeks before President 
 Wilson appeared before Congress and delivered his address indicting 
 the German Imperial Government for high crimes and misdemeanors. 
 It was nearly four weeks, before the Congress declared that a state of 
 war existed between the United States and the Government of 
 Germany. I am of the opinion that the declarations, passed by a 
 unanimous vote at that conference, should be perpetuated, not only 
 for its free vision upon existing conditions and conditions in per- 
 spective, but also for the declaration it made of loyalty to our country, 
 whether we shall remain at peace, or be dragged into the malestrom 
 of the war. 
 
 The Chairman. Without objection, it wiU be incorporated in the 
 record. I hear no objection, and it will be incorporated at this point. 
 
 (The document referred to is here printed in the record in full, as 
 follows:) 
 
 AMERICAN labor's POSITION IN PEACE OR IN WAR. 
 
 Washington, D. C, March 12, 1917. 
 
 A conference of the representatives of the national and intamational trade-unions 
 of America, called by the executive council of the American Federation of Labor, 
 was held in the American Federation of Labor Building March 12, 1917, in which 
 conference the representatives of affiliated national and international trade-unions 
 and the railroad brotherhoods participated. 
 
 The executive council of the American Federation of Labor had the subject matter 
 for three days under advisement prior to the conference, and submitted a declaration 
 to the conference. The entire day was given over to a discussion of the recommenda- 
 tion and such suggestions as were submitted. After a thorough discussion the follow^ 
 ing document was adopted by a unanimous vote: 
 
 We speak for millions of Americans. We are not a sect. We are not a party. We 
 represent the organizations held together by the pressure of our common needs. We 
 represent the part of the Nation closest to the fundamentals of life. Those we repre- 
 sent wield the Nation's tools and grapple with the forces that are brought under con- 
 trol in our material civilization. The power and use of industrial tools is greater thaji 
 the tools of war and will in time supersede agencies of destruction. 
 
 A world war is on. The time has not yet come when war has been aboUshed. 
 
 Whether we approve it or not, we must recognize that war is a situation with which 
 we must reckon. The present European war, involving as it does the majority of 
 civilized nations and affecting the industry and commerce of the whole world, threat- 
 ens at any moment to draw all countries, including our own, into the conflict. Our 
 immediate problem, then, is to bring to bear upon war conditions instructive fore- 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 67 
 
 thought, vision, principles of human welfare and conservation that should direct our 
 course in every eventuality of Ufe. The way to avert war is to establish constructive 
 agencies for justice in times of peace and thus control for peace situations and forces 
 that might otherwise result in war. 
 
 The methods of modern warfare, its new tactics, its vast organization, both military 
 and industrial, present problems vastly different frorii those of previous wars. But 
 the nation's problems afford an opportunity for the establishment of new freedom and 
 wider opportunities for all the people. Modem warfare includes contests between 
 workshops, factories, the land, financial and transportation resources of the countries 
 involved; and necessarily applies to' the relations between employers and employees, 
 and as our own country now faces an impending peril, it is fitting that the masses of 
 the people of the United States should take counsel and determine what course they 
 shall pursue should a crisis arise necessitating the protection of our Republic and 
 , defense of the ideals for which it stands. ' 
 
 In the struggle between the forces of democracy and special privilege, for just and 
 historic -reasons the masses of the people necessarily represent the ideals and the 
 institutions of democracy. There is in organized society one potential organization 
 whose purpose is to further these ideals and institutions — the organized labor move- 
 ment. 
 
 In no previous war has the organized labor movement taken a directing part. 
 
 Labor has now reached an understanding of its rights, of its power and resources, 
 of its value and contributions to society, and must make definite constructive proposals. 
 
 It is timely that we frankly present experiences and conditions which m former 
 times have prevented nations from benefiting by the voluntary, whole-hearted 
 cooperation of wage earners in war time, and then make suggestions how these hin- 
 drances to our national strength and vigor can be removed. 
 
 War has never put a stop to the necessity for struggle to establish and maintain 
 industrial rights. Wage earners in war times' must, as has been said, keep one eye on 
 the exploiters at home and the other upon the enemy threatening the National Govern- 
 ment. Such exploitation made it impossible for a warring nation to mobilize effec- 
 tively its full strength for outward defense. 
 
 We maintain that it is the fundamental step in preparedness for the Nation to set 
 its own house in order and to establish at home justice in relations between men. 
 Previous wars, for whatever purpose waged, developed new opportunities for exploit- 
 ing wage earners. Not only was there failure to recognize the necessity for protecting- 
 wage earners. Not only was there failure to recognize the necessity for protecting 
 rights of workers, that they might give that whole-hearted service to the country 
 that can come only when every citizen enjoys rights, freedom, and opportunity, but 
 under guise of national necessity labor was stripped of its means of defense against 
 enemies at home and was robbed of the advantages, the protections, the guarantees- 
 of justice that had been achieved after ages of struggle. For these reasons workers 
 have felt that, no matter what the result of war, as wage earners they generally 
 lost. 
 
 . In previous times labor had no representatives in the councils authorized to deal 
 with the conduct of war. The rights, interests, and welfare of workers were auto 
 cratically sacrificed for the slogan of "national safety." 
 
 The European war has demonstrated the dependence of the Governments upon the 
 cooperation of the masses of the people. Since the masses perform indispensable 
 service, it follows that they should have a voice in determining the conditions upon 
 which they give service. 
 
 The workers of America make known their beliefs, their demands, and- their pur- 
 poses through a -voluntary agency which they have established— the organized-labor 
 movement. This agency is not only the representative of those who directly consti- 
 tute it, but it is the representative of all those persons who have common problems 
 and purposes, but who have not yet organized for, their achievement. 
 
 Whether in peace or in war the organized labor- movement seeks to make all else 
 subordinate to human welfare and human opportunity. The labor movement stands 
 as the defender of this principle and undertakes to protect the wealth-producers- 
 against the exorbitant greed of special interests, against profiteering, against exploita- 
 tion, against the detestable. methods of irresponsible greed, against the inhumanity 
 and crime of heartless corporations and employers. 
 
 Labor demands the right in war times to be the recognized defender of wage-earners 
 against the same forces which in former wars have made national necessity an excuse 
 for more ruthless methods. 
 
 As the representatives of the wage earners we assert that conditions of work and 
 pay in government employment and in all occupations should conform to principles, 
 of human welfare and justice. 
 
68 SOCIAL AND INDUSTMAL CONDITIONS IN THE UNITED STATES. 
 
 A nation can not make an effective defense against an outside danger if groups of 
 iritizens are asked to take part in a war though smarting with a sense of keen injustice 
 inflicted by the government they are expected to and will defend. 
 
 The cornerstone of national defense is justice in fundamental relations of life- 
 economic justice. 
 
 The one agency which accomplishes this for the workers is the organized labor 
 movement. The greatest step that can be made for national defense is not to bind 
 :and throttle the organized labor movement, but l^o afford its greatest scope and oppor- 
 tunity for voluntary effective cooperation in spirit aHd in action. 
 
 During the long period in which it has been establishing itself, the labor movement 
 has become a dynamic force in organizing the human side of industry and commerce. 
 It is a great social factor, which must be recognized in all plans which affect wage 
 earners. 
 
 Whether planuingfor peace or war the Government must recognize the organized- 
 la;bor movement as the agency through which it must cooperate with wage earners. 
 
 Industrial justice is the right of those living within our country. With this right 
 there is associated obligation. In war time obligation takes the form of service in 
 defense of the Republic against enemies. 
 
 We recognize that this service may be either military or industrial, both equally 
 'essential for national defense. We hold this to be incontrovertible that the Govern- 
 ment which demands that men and women give their labor power, their bodies or their 
 lives to its service should also demand the service, in the interest of these human 
 Ijeings, of all wealth and the products of human toil — property . 
 
 We hold that if workers may be asked in time of national peril or emergency to 
 give more exhausting service than the principles of human welfare warrant, that 
 service should be asked only when accompanied by increased guaranties and safe- 
 guards, and when the profits which the employer shall secure from the industry in 
 -which they ai-e engaged have been limited to fixed percentage.'?. 
 
 We declare that such determination of profits should be based on costs of processes 
 actually needed for product. 
 
 Workers have no delusions regarding the policy which property owners and exploit- 
 ing employers pursue in peace or in war, and they also recognize that wrapped up 
 with the safety of this Republp^c are ideals of democracy, a heritage which the masses 
 of the people received from our forefathers, who fought that liberty might live in this 
 country — a heritage that is to be maintained and handed down to each generation 
 with undiminished power and usefulness. 
 
 The labor movement recognizes the value of freedom, and it knows that freedom: 
 and rights can be maintained only by those willing to assert their claims and to 
 defend their rights. The American labor movement has always opposed unnecessary 
 conflicts and all wars for aggrandizement, exploitation, and enslavement, and yet 
 it has done its part in the world's revolutions, in the struggles to establish greater 
 freedom, democratic institutions, and ideals of human justice. 
 
 Our labor movement distrusts and protests against militarism, because it knows 
 that militarism represents privilege and is the tool of special interests, exploiters, 
 and despots. But while it opposes militarism, it holds that it is the duty of a nation 
 to defend itself against injustice and invasion. 
 
 The menace of militarism arises through isolating the defensive functions of the 
 state from civic activities and from creating military agencies out of touch T^dth masses 
 of the people. Isolation is subversive to democracy; it harbors and nurtures the 
 germs of arbitrary power. 
 
 The labor movement demands that a clear differentiation be made against mili- 
 tary service for the nation and police duty and that military service should be care- 
 fully distinguished from service in industrial disputes. 
 
 We hold that industrial service shall be deemed equally meritorious as military 
 service. Organization for industrial and commercial service is upon a different basis 
 from military service; the civic ideals still dominate. This should be recognized in 
 mobilizing for this purpose. The same voluntary institutions that organized indus- 
 trial, commercial, and transportation workers in times of peace will best take care of 
 the same problems in time of war. 
 
 It is fundamental, therefore, that the Government cooperate with the American 
 organized labor movement for this purpose. Service in Government factories and 
 private establishments, in transportation agencies, all should conform to trade-union 
 standards. 
 
 The guarantees of human conservation should be recognized in war as well aa in 
 peace. Wherever changes in the organization of industry are necessai-y upon a war 
 Ijasis, they should be made in accord with plans agreed upon by representatives of 
 the Government and those engaged and employed in the industry. We recognize 
 that in war, in certain employments requiring high skill, it is necessary to retain in 
 
SOCIAL AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 69 
 
 industrial service the workers specially fitted therefor. In any eventuality when 
 women may be employed, we insist that equal pay for equal work shall prevail without 
 regard to sex. 
 
 Finally, in order to safeguard all .the interests of the wage earners organized labor 
 should have representation on all agencies determining and administering policies 
 for national defense. It is particularly important that organized labor should have 
 representatives on all boards authorized to control publicity during war times. The 
 workers have- suffered much injustice in war times by limitations upon their right to 
 apeak freely and to secure publicity for their just grievances. 
 
 Organized labor has earned the ri^ht to make these demands. It is the agency that, 
 in all countries, stands for human rights and is the defender of the welfare and inter- 
 ests of the masses of the people. It is an agency that has international recognition 
 which is not seeking to rob, exploit, or corrupt foerigll governments but instead seeks 
 to maintain human rights and interests the world over, nor does it have to dispel sus- 
 picion nor prove its motives either at home or abroad. 
 
 The present war discloses the struggle between the institutions of democracy and 
 those of autocracy. As a natioA we should profit from the experiences of other nations. 
 Democracy can not be established by patches upon an autocratic system. The founda- 
 tions of civilized intercourse betweei individuals must be organized upon principles 
 of democracy and scientific principles of human welfare. Then a national structure 
 can be perfected in harmony with humanitarian idealism — a structure that will stand 
 the tests of the necessities of peace or war. 
 
 We, the officers of the National and International Trade Unions of America in national 
 -conference assembled in the Capital of our Nation, hereby pledge ourselves in peace or in 
 war, in stress or in storm, to stand undeservedly by the sta,ndards of liberty and the 
 safety and preservation of the institutions and ideals of our Bepublic. 
 
 In this solemn hour of our Nation's life it is our earnest hope that our Republic may 
 be safeguarded in its unswerving desire for peace; that our people may be spared the 
 horrors and the burdens of war; that they may have the opportunity to cultivate 
 and develop the arts of peace, human brotherhood, and a higher civilization. 
 
 But, despite all our endeavors and hopes, should our country be drawn into the 
 maelstrom of the European confiict, we, with these ideals of liberty and justice herein 
 declared as the indispensable basis for national policies, offer our services to our 
 countrjr in every field of activity to defend, safeguard, and preserve the Republic of 
 the United States of America against its enemies whomsoever they may be, and we 
 call upon our fellow workers and fellow citizens in the holy name of Labor, Justice, 
 Freedom, and Humanity to devotedly and patriotically give like service. 
 
 Mr. GoMPERS. I should like to have added to this a resolution 
 adopted by the American Federation of Labor, immediately succeed- 
 ing this conference, in which the declaration was unanimously 
 adopted and indorsed and a pledge made to keep the faith. 
 
 The Chairman. That will be done. 
 
 (The resolution referred to is here printed in the record in full, as 
 follows:) 
 
 Whereas at no time in the history of the labor movement have conditions been more 
 fraught with dangerous situations than at present, this because of our entrance into 
 the world's war; and 
 Whereas the slightest misstep or mistake in commission or omission, or an error in 
 judgment, would have placed organized labor in a position that it wo«'d take years 
 to overcome. > The situation not of our seeking led to conditions over which we had 
 no control, and required strong, clear-sighted, and courageous leadership; and 
 Whereas, President Samuel Gompers and the executive council proved equal to the 
 occasion, and proved their loyalty to the trade-union movement, to labor in -general, 
 and to our country as well : Therefore, be it 
 
 Resolved, That this convention in regular session assembled fully indorse and concur 
 in the course pursued by President Gompers and the executive council in calling a 
 conference of the national and international officers on March 12, nearly one month 
 Tjefore the war was declared, and concur in the action taken at that conference at 
 which the representatives of labor declared their unswerving loyalty and fidelity to 
 the labor movement and to our common country in peace or in war, and while assert- 
 ing that in so fai- as lies within its power labor would suffer none of the successes 
 achieved as a result of years of sacrifice and struggle to be taken away from labor on 
 any pretext, and while hoping for an honorable peace, they declared that if our 
 country were drawn into the maelstrom we would stand squarely behind the admin- 
 istration and our country, and urged that all members of organized labor do likewise. 
 
70 SOCIAI. AND INDUSTRIAL CONDITIONS IN THE UNITED STATES. 
 
 Moreover, we unreservedly indorse the action of President Gompers and the execu- 
 tive council in all of their actions in connection with the war and all other labor men 
 in accepting positions of trust upon boards, commissions, and committees, and declare 
 that in their so doing the best interests of organized labor have been advanced, safe- 
 gfuarded, and protected. 
 
 Senator Kenton. There are a number of things that have been 
 brought out, and which may be brought out, which go beyond this- 
 Senate resolution we are discussing, and I will say I sincerely hoped 
 they would be brought out. This resolution which we have been, 
 discussing was merely a basis for us to start on. 
 
 The Chairman. Does any member of the committee wish to ask 
 Mr. Gompers any questions ? 
 
 (No response.) 
 
 The Chairman. Then, we will consider the hearing adjourned. 
 1 wish to thank Mr. Gompers, on behalf of the committee, for the very 
 valuable information he has given us, and I wish to wish him bon 
 voyage. 
 
 Mr. Gompers. I thank you for your indulgence and your kindness 
 and your good wishes. Those wishes are entirely reciprocated, I 
 assure you. 
 
 (Thereupon, at 12.55 o clock p. m., the committee adjourned until 
 10.30 o'clock a. m., Thursday, January 9, 1919.) 
 
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 Social and industrial conditions in the 
 
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