StJfaca, Sfem ^atk 
 
 BOUGHT WITH THE INCOME OF THE 
 
 SAGE ENDOWMENT FUND 
 
 THE GIFT OF 
 
 HENRY W. SAGE 
 
 1891 
 
Cornell University 
 Library 
 
 The original of tiiis book is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924032459772 
 
INDUSTRY AND HUMANITY 
 
INDUSTRY 
 AND HUMANITY 
 
 A STUDY 
 
 IN THE PRINCIPLES UNDERLYING 
 
 INDUSTRIAL RECONSTRUCTION 
 
 BY 
 HON. W. L. MACKENZIE KING, C.M.G. 
 
 M.A., LL.B. {Toronto); Ph.D. {Harvard) 
 
 FELLOW OF THE ROYAL SOCIETY OF CANADA 
 
 FORMER MINISTER OF LABOR, CANADA 
 AUTHOR OF "the SECRET OF HEROISM* 
 
 BOSTON AND NEW YORK 
 
 HOUGHTON MIFFLIN COMPANY 
 1918 
 
^fsi^sr 
 
 COPYRIGHT, 19:8, BY W, L. MACKENZIE KING 
 ALL RIGHTS RESERVED 
 
 Puhlished No-vemher IQ18 
 
 V 
 
TO THE MEMORY 
 
 OF 
 
 MY FATHER AND MY MOTHER 
 
' Science will have tried, by obeying 
 the law of Humanity, to extend the 
 frontiers of Life." 
 
 LOUIS PASTEUR 
 
PREFATORY NOTE 
 
 I AM indebted to the Rockefeller Foundation for the 
 opportunity which has made possible the writing of 
 this book. When I was invited by the Foundation, 
 in June, 1914, to undertake a study of industrial 
 relations, it was expected that I would visit dif- 
 ferent countries, make first-hand investigations, 
 and, as a result of these inquiries, offer construc- 
 tive suggestions concerning industrial and social 
 poKcies. The War not only prevented me from 
 making studies abroad, but so completely changed 
 the industrial situation in all countries that I was 
 compelled to modify my plans considerably. 
 
 Hopeful of being constructively helpful, not- 
 withstanding changed conditions, I decided to 
 make a personal investigation into the root causes 
 of some of the existing industrial controversies 
 in America, and to contribute, by suggestion or 
 otherwise, as opportunity offered, to working out 
 improvements in the relations between Capital and 
 Labor. I also decided to prepare, on the basis of 
 my own experience and the Uterature available, a 
 statement of underlying principles which are find- 
 ing expression in the organization of industrial so- 
 ciety, and which should obtain in all efforts at 
 
X PREFATORY NOTE 
 
 reconstruction. This volume marks the completion 
 of that endeavor. 
 
 The War has done more than change the pre- 
 sent. It has forced the consideration of the future 
 on a scale never before attempted. The countries 
 of Europe are already formulating comprehensive 
 programmes of national reconstruction which in- 
 clude industry, housing, health, and education. The 
 Governments of the different countries, including 
 the United States, have constituted Commissions 
 and Departments on reconstruction. In these cir- 
 cumstances, the Rockefeller Foundation deemed it 
 fitting, at the commencement of the present year, 
 to discontinue studies of industrial relations, and 
 to devote itself primarily to the programme of 
 medical education, pubhc health demonstration, 
 and war work co-operation to which it has become 
 increasingly committed. 
 
 The Foundation has granted me permission to 
 pubUsh, as my own property, any part of the result 
 of the study of industrial relations. The present 
 volume is therefore published as a personal con- 
 tribution to this important subject. The Founda- 
 tion is in no way to be identified with views or 
 opinions expressed. ResponsibiUty must be wholly 
 mine. I trust that some of the ideas may be of serv- 
 ice in the task of industrial reconstruction with 
 which the world is confronted. Where deductions 
 or opinions are erroneous, or inapplicable to exist- 
 
PREFATORY NOTE xi 
 
 ing conditions, their limitations are pretty certain 
 to be exposed under public criticism. The truth 
 may be expected, of itself, to defend itself. Magna 
 vis veritatis quae facile se per se ipsa defendat. 
 
 I should Hke to record my grateful appreciation 
 of the opportunity of study afforded me by the 
 Rockefeller Foundation, and my acknowledgment 
 of unfailing consideration on the part of all its offi- 
 cers and members. I wish it were possible to ac- 
 knowledge what I owe to sources drawn upon in 
 the course of my study. I have sought to indicate 
 this obhgation by references which appear in the 
 text itself or in the several footnotes. In a few in- 
 stances, I have not hesitated to make use of lan- 
 guage more exact and expressive than any at my 
 command. All such occasions will, I think, be 
 apparent. I should, perhaps, make special mention 
 of the Memorandum on the Industrial Situation 
 After the War by the Garton Foundation, of Lon- 
 don, England. The researches of members of the 
 Garton Foundation paralleled in a way my own. 
 Their conclusions and mine were similar in so many 
 particulars that in the revision of my manuscript I 
 found it impossible not to adopt some of the more 
 adequate and definitive expressions contained in 
 the Memorandum. Mr. F. A. McGregor, B.A., has 
 assisted me throughout in the work of investiga- 
 tion. He has also been most helpful in the prepara- 
 tion of this volume for pubhcation. 
 
xii PREFATORY NOTE 
 
 I must ask my readers to concede to the pub- 
 lishers whatever measure of thanks or censure is to 
 be incurred because of references to personal inci- 
 dents which the book contains. It was written 
 without more than a single personal mention. I 
 was told that illustration from personal experiences 
 gained from a contact with labor problems more or 
 less intimate over twenty years, might help to dis- 
 close the importance of some of the principles set 
 forth, and thereby add to the authority and useful- 
 ness of the book. If there has been error of judg- 
 ment in yielding to a temptation which hitherto I 
 have sought to avoid, I trust it will be believed 
 that the error would not have been conunitted but 
 for a desire to emphasize some truths of which I 
 have personal knowledge. In days when the hves 
 of men are being sacrificed in the cause of the 
 world's freedom, I have felt that the danger of be- 
 ing misunderstood should not be allowed to stand 
 in the way of any contribution it may be possible 
 to make to the removal of human injustice. One 
 of the aims of the book is to show that the War, 
 in the last analysis, is but the expression upon a 
 world scale of conflicting forces also at work in the 
 relations of Industry. 
 
 W. L. Mackenzie King 
 The Roxborough, 
 
 Ottawa, Canada, 
 October 3, 1918 
 
CONTENTS 
 
 Introduction xv 
 
 I. Industrial and International Unrest . . 1 
 
 II. The World Aspect 29 
 
 HI. The Human Aspect 59 
 
 IV. Confusion or Progress 91 
 
 V. The Parties to Industry 127 
 
 VI. The Basis of Reconstruction .... 149 
 
 VII. Principles Underlying Peace .... 167 
 
 VIII. Principles Underlying Work .... 233 
 
 IX. Principles Underlying Health . . . 304 
 
 X. Representation in Industry .... 364 
 
 XI. Government in Industry 391 
 
 XII. Education and Opinion 430 
 
 Appendix: Charts and Diagrams illustrative 
 of Industrial Relations 531 
 
 Index 561 
 
INTRODUCTION 
 
 The existing attitude of Capital and Labor toward 
 each other is too largely one of mistrust born of 
 Fear. That was the position of the nations of 
 Europe before the War. If Industry is to serve 
 Humanity, this attitude must be changed to one 
 of trust inspired by Faith. An industrial system 
 characterized by antagonism, coercion, and resist- 
 ance must yield to a new order based upon mutual 
 confidence, real justice, and constructive good-will. 
 The change will involve patience, but nothing short 
 of it will solve the problems to which Industry 
 gives rise. 
 
 Christianity differs from Heathenism in that its 
 attitude is founded upon Faith, not upon Fear. 
 Despite contrary appearances, the transition from 
 Fear to Faith is being wrought out slowly in inter- 
 national and industrial affairs. Wherever it has 
 progressed, an attitude of militancy has given way 
 to one of co-operation. The transition has been 
 accompanied by changes in outer form and or- 
 ganization, but the indwelling spirit has been its 
 one sustaining reality. Where the spu-it fails, the 
 whole fabric becomes dismantled. Witness Europe 
 to-day ! 
 
 The infusion of a new spirit into Industry will 
 
xvi INTRODUCTION 
 
 come, as a new attitude in Science and Religion 
 came, only through a behef in some order with 
 which all things should accord, and through the 
 appUcation of principles founded on this belief. 
 As respects the phenomena of Industry, the per- 
 ception of such an order demands, above all else, 
 fine discernment between economic and human 
 values; between the ends which Wealth and the 
 ends which Life were meant to serve. The un- 
 plumbed depths of contrasts so profound are to 
 be estimated only by the unfathomable difference 
 between matter and spirit. It is impossible to ex- 
 press relationships born of such distinctions in 
 terms of either class or nationaUty. A material 
 versus a spiritual interpretation of Life alone de- 
 fines the issue. 
 
 Many-sided comprehension is essential to any 
 intelUgent understanding of industrial relation- 
 ships, however circumscribed. Some conception 
 such as underlies the words Industry and Hu- 
 manity is needed to afford a true perspective of 
 the industrial problem as a whole. These words 
 invite reflection upon the number, magnitude, and 
 complexity of factors and forces of which account 
 ought to be taken. They also suggest the difficul- 
 ties attendant upon industrial reconstruction at- 
 tempted under influences which, more than ever, 
 are world-wide in their operation. 
 
 The infinite possibiUties for good or evil which 
 
INTRODUCTION ' xvii 
 
 lie in the immediate trend of industrial develop- 
 ment, no words can adequately convey. In the 
 community spirit and corporate consciousness 
 which the War has helped to arouse, and the co- 
 operation it has furthered between men and nations, 
 there should be found the necessary impetus to a 
 new order. If the transition the War has wrought 
 in international relations is to be effected also in 
 Industry, the habit of mind which resolves its 
 problems sectionally, in terms of class, or even of 
 country, must be abandoned, and its place taken 
 by a world outlook. For their ultimate solution, 
 international and industrial problems, alike, await 
 the inspiration of an universally accepted faith in 
 human brotherhood. 
 
 Much of the progress of civilized countries hes 
 prostrate to-day under the iron heel of MiUtarism. 
 Through the estabhshment of right relations in 
 Industry, Labor and Capital have it in their power 
 to end competitive arming between nations, and 
 to secure to the world immunity from further wars. 
 They have the even greater opportunity of releas- 
 ing Industry from the servitude in which it is held 
 by war and the fear of war; and of making of forces 
 hitherto utilized in the work of destruction, instru- 
 ments for the reUef of Mankmd. Industry has 
 been used to destroy Humanity. If the world is to 
 be spared further witness of such colossal tragedy, 
 there must be a vision of industrial relationships 
 
xviii INTRODUCTION 
 
 broader than that which seeks the exclusive ad- 
 vancement of special interests. Industry must be 
 made to serve and to save Humanity through a 
 recognition of common interests between men of 
 all classes and of all countries. 
 
 Already there is ample evidence that readjust- 
 ment of industrial relations in accordance with 
 right ideas may mean to many countries the differ- 
 ence between a better social condition and a con- 
 dition of national disorder hardly less frightful 
 than that occasioned by the War itself. If the 
 higher civilization for which men have fought and 
 died is to be maintained, and the vast expenditure 
 of human and material resources is not to have 
 been in vain, Industry must be freed of forces 
 and influences which have proven so disastrous in 
 Nationality. In such circumstances, the measure 
 of individual obligation and personal responsibility 
 is very great. 
 
 '. In no way is progress likely to be so appreciably 
 affected as in the attitude of those who are respon- 
 sible for the conduct of Industry, especially Em- 
 ployers and Leaders of Organized Labor, and per- 
 sons concerned in the direction of Government. 
 There can be no higher form of patriotism than 
 the honorable discharge of this responsibility; no 
 neglect more criminal than indifference to it. To 
 adjust industrial relations with advantage to the 
 immediate parties to Industry and to the good of 
 
INTRODUCTION xix 
 
 the Community, is, at the present time, as never 
 before, a most useful and necessary form of pubUc 
 service. To emphasize and help to enforce the 
 reciprocal responsibility of the Community for in- 
 dustrial conditions is equally important and pa- 
 triotic. 
 
 It is the main purpose of this study to point the 
 way to a change of attitude in industrial relations, 
 and to suggest means whereby a new spirit may 
 be made to permeate Industry through the appli- 
 cation of principles, tried by time, and tested by 
 experience. 
 
 In the accompanying pages, I have attempted to 
 give glimpses of the industrial problem as a whole, 
 and to render apparent the inseparabihty of Peace, 
 Work, and Health in all that pertains to Industry. 
 In the same connection, I have also sought to dis- 
 close the ever-present bearing of Discovery and 
 Invention, Government, Education, and Opinion. 
 The underlying causes of industrial unrest; the 
 evolution of industrial phenomena; the significance 
 and functions of the respective parties to Industry; 
 the essential features of industrial processes : — all 
 these are touched upon, as well as methods by 
 which, from time to time, improvement and ameU- 
 oration of existing conditions have been sought. 
 The major portion of the treatise is devoted to the 
 principles underlying right relations in Industry, 
 and to a consideration of rules of conduct and 
 
XX INTRODUCTION 
 
 methods of organization by which fundamental 
 principles may be practically apphed. 
 
 In the desire that what is written may occasion 
 reflection, I have purposely avoided a dry-as-dust 
 and mechanical exposition, and have substituted 
 therefor a method of expression and treatment 
 which, I trust, may cause the truth to make its 
 appeal to the imagination, as well as to the reason, 
 of those who peruse these pages. At the same 
 time, I have endeavored not to be indifferent to 
 accepted methods of dispassionate research, but 
 have sought, by orderly arrangement, critical an- 
 alysis, and graphic classification, to disclose some- 
 thing of inter-relations and proper adjustments, 
 and something of a unity underlying the elements 
 of industrial life as comprehensive as they them- 
 selves are intricate and vast. 
 
INDUSTRY AND HUMANITY 
 
INDUSTRY 
 AND HUMANITY 
 
 CHAPTER I 
 INDUSTRIAL AND INTERNATIONAL UNREST 
 
 It was just a century ago that Mrs. Shelley wrote 
 "Frankenstein." No subsequent novel has sur- 
 passed its conception in hideousness. A youth of 
 fine sensibilities, conversant with the knowledge of 
 philosophers and the discoveries of scientists, is 
 portrayed as having created, by mechanical means, 
 a living monster, endowed with powers which 
 prove greater than his own. Like himself, this 
 creature possesses, at the outset, "thoughts that 
 are filled with the sublime and transcendent visions 
 of the beauty and the majesty of goodness." 
 Finding itself feared and abhorred by others, its 
 nature changes; it feels that it could rush among 
 mankind, and perish in the attempt to destroy. 
 In time, demoniacal design becomes an insatiate 
 appetite. To his horror, Frankenstein is unable to 
 endure the aspect of the being he has created. In 
 the ' agony of witnessing its first monstrous deed, 
 he recognizes that he has turned loose into the 
 world a depraved wretch, a man-machine, whose 
 
2 INDUSTRY AND HUMANITY 
 
 delight is in carnage and misery. The murder of 
 his brother is not alone the measure of his despair. 
 Frankenstein is doomed to see all whom he has 
 most loved die under the demon's grasp ; to realize 
 that its joy is to shed their blood, and to revel in 
 their groans. He discovers he has unchained an 
 enemy devoted to the destruction of beings who 
 possess exquisite sensations, happiness and wis- 
 dom; and beholds man's very existence a condi- 
 tion precarious and full of terror. 
 
 Nor is Frankenstein's horror and grief greater 
 than that of the monster he has created. In the 
 tortures of remorse, this being recalls that he has 
 murdered the lovely and the helpless; has stran- 
 gled the innocent as they slept; has grasped to 
 death the throat of one who never injured him 
 or any other living thing; and that he has con- 
 demned his creator to misery, and pursued him 
 to irremediable ruin. "All my speculations and 
 hopes," he cries, "are as nothing; and like the 
 archangel who aspired to Omnipotence, I am 
 chained in an eternal hell!" 
 
 What is this weird tale but a parable, all too 
 reahstic, of the War that has destroyed so large a 
 portion of mankind? Where, but in the studies of 
 pohtical philosophers, were conceived those ideas 
 which have found expression in efforts at world 
 domination? And where, but in chemical and me- 
 chanical laboratories, were invented those prod- 
 
INDUSTRIAL UNREST 3 
 
 ucts of modern Industry which have led to the 
 destruction of Humanity on a scale so appalUng? 
 The instruments which man has created appear to 
 have become more powerful than human genius to 
 control its own inventions. It will ever be so, as 
 long as men are unwilUng to recognize that the 
 whole is greater than its parts, and that Human- 
 ity has rights superior to those of Industry or of 
 NationaUty. 
 
 To all who beUeve that the War happened be- 
 cause a certain theory of the State was held and 
 apphed by the few men who controlled policy and 
 armaments, and because the ordinary people, 
 whom the War has massacred and ruined by mil- 
 lions, had not the knowledge, nor the education of 
 heart and mind, nor the organization, to control 
 those men, the militarist State will appear as the 
 monster, and its rulers as Frankenstein. The su- 
 preme tragedy is that any people should have 
 permitted the development of a militarist system 
 with powers beyond their control, and which in 
 being loosed upon the world has proven the author 
 of their own undoing, and a scourge to all mankind. 
 
 To those who think primarily of Industry in its 
 relation to Humanity, the parable will acquire 
 even greater significance. They will behold at what 
 cost Industry has been directed to the transfor- 
 mation of the world's resources into instruments 
 of human destruction. Who can say the extent 
 
4 INDUSTRY AND HUMANITY 
 
 to which the appUcation of scientific knowledge, 
 and the inventions of science, have been devoted 
 to augmenting and perfecting means of human 
 slaughter, on land, and sea, and in the air? Who 
 can estimate the percentage of the world's capital 
 and labor that has been applied to forging the 
 weapons and amassing the munitions which have 
 made possible the awful carnage of our day? 
 Surely, Industry is something other than was 
 intended by those who contributed to its creation, 
 when it can be transformed into a monster so 
 demoniacal as to breed a terror unparalleled in 
 human thought, and bring desolation to the very 
 heart of the human racel 
 
 ^ Let us turn from Fiction to Science. On the 
 occasion of the inauguration of the Pasteur Insti- 
 tute in Paris, Louis Pasteur, in whose honor the 
 Institute was founded, enlarged upon the signifi- 
 cance of scientific research. Overcome at the recep- 
 tion accorded him by the scholars and statesmen of 
 France, this great benefactor of mankind asked 
 his son to read for him from a manuscript he had 
 prepared. In that notable document, there ap- 
 peared the following epoch-marking paragraph: 
 
 "Two contrary laws seem to be wrestling 
 with each other nowadays: the one, a law of 
 blood and of death, ever imagining new means 
 
INDUSTRIAL UNREST 5 
 
 of destruction, and forcing nations to be 
 constantly ready for the battlefield — the 
 other, a law of peace, work, and health, ever 
 evolving new means of delivering man from 
 the scourges which beset him. The one seeks 
 violent conquests, the other the relief of 
 Humanity. The latter places one himian life 
 above any victory; while the former would 
 sacrifice hundreds of thousands of lives to the 
 ambition of one." 
 
 This was in 1888, over a quarter of a century 
 ago ! The utterance was unheeded prophecy then. 
 In what measure that prophecy has been fulfilled, 
 the world now discerns through its tears. 
 
 Mankind looked differently upon disease when 
 Pasteur's work was ended. The germ theory, with 
 its interpretation of many ills in terms of invading 
 organisms, marked a new epoch in the history of 
 Medicine. And so will a new era in the progress of 
 Industry and Nationality begin, when, in all that 
 begets strife and hatred in human relations, men 
 come to see disorder and ferment akin to that 
 evidenced by disease. Pasteur required the aid of 
 the microscope to discover the devastating germs 
 within the blood; his finely trained intelligence 
 enabled him to perceive like factors and forces at 
 work in the world. In the light of his preciously 
 acquired scientific knowledge, he saw the same 
 
6 INDUSTRY AND HUMANITY 
 
 conflict between individuals, and between nations, 
 as he had found within the human organism. The 
 Law of Blood and of Death was there, striving in- 
 sidiously to undermine the Law of Peace, Work, 
 and Health! 
 
 What of the Nations that were unwilling to 
 heed Pasteur's warning, and waited to see how 
 far-reaching in their operation contending forces 
 might be! The War, with all its death and desola- 
 tion, is no matter of Circumstance or Chance; no 
 evil suddenly drawn, like an infected veil, over 
 the face of a fair world at peace. It is the hideous 
 manifestation of contrary laws wrestUng in human 
 society, and working the destruction of civilization 
 from within. Europe, patient and smiUng, till the 
 fatal moment came, 
 
 "let concealment, like a worm i' the bud. 
 Feed on her damask cheek!" 
 
 If the War has revealed aught, it is that there 
 are fundamental principles which should underlie 
 all conduct and organization; and that such prin- 
 ciples cannot be ignored in human relations. 
 
 Fortunately, the War has disclosed, in equal 
 measure, man's readiness to recognize the illimit- 
 able services of Science. It has demonstrated also 
 man's genius, even amid the wreck of nations, to 
 preserve a guiding control, as marvellous as it has 
 been disastrous. In this titanic struggle, where 
 forces have contended on land, beneath and upon 
 
INDUSTRIAL UNREST 7 
 
 the sea, and in the air, not for days, but for years, 
 nothing has been left to Chance. Not a weapon has 
 been forged, not a shot fired, not a command given, 
 not a manoeuvre executed, but in the mind of 
 some one, some law of mechanical action or chemi- 
 cal change has been observed, and some principle 
 of the science of military, naval, or aerial strategy 
 obeyed. 
 
 If men of different origins have been able, with 
 consummate skill, amidst the fury of war, to or- 
 ganize and direct mighty physical and intellec- 
 tual forces to serve the ends of Death, are the same 
 men not equally capable of so organizing and du-ect- 
 ing identical forces, that Life, instead of being de- 
 stroyed, may be conserved; and that Life's possi- 
 bilities may be realized, instead of being forever 
 extinguished? Does Science exist only that Death 
 may triumph? Rather, is it not the supreme aim 
 of Science, "by obeying the law of Humanity to 
 extend the frontiers of life"! 
 
 But for some chart and compass, presupposing 
 an order somewhere beneath all the apparent con- 
 fusion, effort at reconstruction of human relations 
 in their international and industrial aspects might 
 well be abandoned. In a world devoid of unity, 
 save in the forces that bind its jarring elements 
 together, the task of reconstruction would be so 
 vast as to be impossible. Fortunately, the whole of 
 History is replete with the evidences of an under- 
 
8 INDUSTRY AND HUMANITY 
 
 lying order. Philosophic thought, combined with 
 scientific discovery, is as powerful to serve benefi- 
 cent as malignant ends. 
 
 There is no romance more fascinating, in the 
 annals of industrial economy and national polity, 
 than the well-known story of James Watt and 
 Adam Smith. Watt, the machinist, had been re- 
 fused permission by the hammersmiths of Glas- 
 gow to practise his trade in the city, because he 
 was not a member of their privileged corporation. 
 Smith, at the time professor of Moral Philosophy 
 at Glasgow, gave him permission to establish a 
 workshop within the buildings of the University. 
 While Smith pursued his studies, and wrote "The 
 Wealth of Nations," Watt carried on experiments 
 which demonstrated the power of steam and led to 
 the invention of the steam engine. The social out- 
 look of the professor made possible the invention 
 of the man he sought to befriend; and the inven- 
 tion of Watt, more than all else, made inevitable 
 the spread of those liberal doctrines which fol- 
 lowed the pubUcation of "The Wealth of Nations." 
 In the case of Adam Smith and James Watt, the 
 study and the laboratory combined to promote 
 ideas and agencies which have furthered a world- 
 wide development of human intercourse; and 
 which, as respects both Industry and the State, 
 have helped to substitute cosmopolitan for purely 
 national ideals. 
 
INDUSTRIAL UNREST 9 
 
 The two are inseparable: the problem of the 
 State, and the problem of Industry! They are but 
 different aspects of the one world problem, the 
 essence of which is the right relation between In- 
 dustry and Humanity. 
 
 The power of Good and Evil in whatever pertains 
 to human relations cannot be too clearly recog- 
 nized; neither can the truth that such control as 
 may be exercised concerning them dwells, not in 
 things, but in human beings. There is nothing in- 
 herently beneficial or baneful in any factor, force, 
 or form of organization to be found in the whole 
 phenomena of Industry or the State, Everything 
 depends upon whether its use is, or is not, made to 
 accord with right ideas of social progress. 
 
 It is to man, in his relations with his fellow men, 
 that we have to look for the accord of forces and 
 institutions with right ideas; to man, "at once so 
 powerful, so virtuous and magnificent, yet so vi- 
 cious and base"; appearing "at one time a mere 
 scion of the evil principle, and at another as all that 
 can be conceived of as noble and god-Uke." It is 
 this dual capacity which distinguishes man from 
 the brute, and from God. Were man never to fall, 
 he would be a God; were he never to aspire, he 
 would be a brute. The genius which makes man 
 god-like in his powers of human service enables 
 him to become more frightful than the monsters of 
 the brute creation. Without genius, he could be 
 
10 INDUSTRY AND HUMANITY 
 
 neither. It is the control of his genius, the wisdom 
 of its direction, that determine which of opposing 
 ends man's actions are to serve. It is equally so 
 with the objects and forces his genius controls. 
 
 There would appear to be no power or capacity 
 for good without some corresponding power or 
 capacity for evil, and vice versa. The larger the 
 potential service where a force is made to operate 
 in accord with right ideas, the greater its power of 
 injury where there is not this accord. Electricity 
 uncontrolled or miscontroUed may destroy a com- 
 munity; properly controlled and directed, it may 
 transform cities and towns with heat and light, 
 rapid means of transit and communication, and 
 a thousand and one useful and ornamental de- 
 vices. The purpose and the effectiveness of the 
 control are everything. That is why, in Industry 
 and Pohtics, with human nature what it is, control 
 should be shared in by all the interests involved; 
 why it should be broadly representative, and not 
 narrowly autocratic. 
 
 There is nothing mysterious about the funda- 
 mental cause of war. In the last analysis, it is not 
 class, nor race, nor nationality: — these may hin- 
 der, as well as foster war. Neither is it adverse 
 events, nor even bad conditions : — they are only 
 signs and symptoms. It is what William James 
 calls "a certain bhndness in human beings," the 
 
INDUSTRIAL UNREST 11 
 
 blindness with which we all are afflicted in regard 
 to the feelings of creatures and peoples different 
 from ourselves. 
 
 So clear and all important is the late Professor 
 James's exposition, that I hasten to quote a signifi- 
 cant passage or two from his essay on this subject. 
 "We are," he writes, "practical beings, each of us 
 with limited functions and duties to perform. Each 
 is bound to feel intensely the importance of his own 
 duties and the significance of the situations that 
 call them forth. But this feeling is in each of us 
 a vital secret, for sympathy with which we vainly 
 look to others. The others are too much absorbed 
 in their own vital secrets to take an interest in 
 ours. Hence the stupidity and injustice of our 
 opinions, so far as they deal with the significance 
 of alien lives. Hence the falsity of our judgments, 
 so far as they presume to decide in an absolute way 
 on the value of other persons' conditions or ideals."* 
 
 Described in so simple a way, this blindness 
 seems a very obvious and little thing. Yet the 
 forgetting of it lies at the root of all our intolerance, 
 social, religious, and political. In the final sum- 
 ming up of things, it is responsible for all unrest; 
 for all conflict of nations as well as of men. 
 
 Self-conceit and selfishness make human blind- 
 ness greater than it ordinarily is; environment 
 
 ^ Talks to Teachers on Psychology: and to Students on Some of Life's 
 Ideals, p. 23i. New York, Henry Holt & Co., igiS. 
 
12 INDUSTRY AND HUMANITY 
 
 sometimes aggravates it; ambition always intensi- 
 fies it. Thus it comes about, in the course of every 
 day's affairs, that some men become hardened, 
 arrogant, and despotic; the significance of other 
 hves ceases to have a meaning for them. All human 
 life may lose its value through the lust after power. 
 Men of the type described come in time to ignore 
 every principle of just and humane relations. It 
 matters not whether the incentive be pride or 
 prejudice, a mistaken zeal or a vile hate — to such 
 men, once powerful enough, class, and race, and 
 nationaUty become but instruments for the out- 
 working of fanatical or devilish wills. In some ab- 
 stract theory which furthers their own greed or 
 ambition, they find grounds for the elimination of 
 all human considerations. The purer the instincts, 
 the nobler the purposes of other lives, the more 
 they prey upon these virtues to selfish ends. To 
 other men and to other nations, they attribute their 
 own desires and rapacity. And so, ever imagining 
 new means of destruction, they force nations to 
 be constantly ready for the battlefield; and once 
 entering upon violent conquest, compel those who 
 would rid mankind of the scourges that beset it, to 
 rise, regardless of sacrifice, and defend the Law of 
 Peace, Work, and Health against the Law of Blood 
 and of Death. 
 
 With industrial strife it is just as with interna- 
 tional conflict. Speaking of the Labor Question, 
 
INDUSTRIAL UNREST 13 
 
 Professor James says: "One half of our fellow- 
 countrymen remain entirely blind to the internal 
 significance of the lives of the other half. They 
 miss the joys and sorrows, they fail to feel the 
 moral virtue, and they do not guess the presence 
 of the intellectual ideals. They are at cross-pur- 
 poses all along the line, regarding each other as 
 they might regard a set of dangerously gesticu- 
 lating automata, or, if they seek to get at the inner 
 motivation, making the most horrible mistakes." * 
 In the course of a decade, during which time I 
 was associated with the Department of Labor of 
 the Government of Canada, first as Deputy Min- 
 ister of the Department, and subsequently as 
 Minister, I was called upon to act as a mediator 
 in over forty strikes important enough to warrant 
 Government intervention. The disputes arose in 
 different parts of the Dominion from the Atlantic 
 to the Pacific. The industries concerned embraced 
 agencies of transportation and communication 
 such as railroads, ocean transport, street railways, 
 the telegraph and telephone; coal and metaUifer- 
 ous mining; and manufacturing establishments of 
 various kinds. At that time, I was brought into 
 close touch with a much larger number of con- 
 troversies. Quite often, ever since, I have been privi- 
 leged to see something of important industrial dis- 
 
 ' Talks to Teachers on Psychology : and to Students on some of Life's 
 Ideals, p. 297. 
 
14 INDUSTRY AND HUMANITY 
 
 putes from behind the scenes. I believe I can say 
 that, without exception, every dispute and contro- 
 versy of which I have had any intimate knowledge 
 has owed its origin, and the difficulties pertaining 
 to its settlement, not so much to the economic 
 questions involved as to this "certain blindness 
 in human beings" to matters of real significance 
 to other hves, and an unwillingness to approach 
 an issue with any attempt at appreciation of the 
 fundamental sameness of feelings and aspirations 
 in all human beings. 
 
 Men there are in the ranks of both Capital and 
 Labor, and among the professed friends of each, 
 who care for nothing quite as much as their own 
 position and importance. They see naught of the 
 natural desire of other men to govern themselves; 
 they are ever ready to sacrifice principle, and to 
 foster prejudice, in order to gain power, whether 
 its expression be found in position, in the acquisi- 
 tion of wealth, or in a multitude's applause. Such 
 men, in control, sooner or later bring disaster upon 
 others; and very often upon themselves. Men have 
 to be trained in the use of power, as they have to 
 be trained in all else that requires skill and judg- 
 ment. Nowhere is skill of a high order more re- 
 quired than in whatever affects the well-being and 
 destiny of human lives. 
 
 The investor who is indifferent concerning the 
 methods of realizing profits; the manager who 
 
INDUSTRIAL UNREST 15 
 
 refuses to meet representatives of Labor, or who 
 disclaims responsibility for the acts of subordinate 
 officials; the contractor who permits sub-contrac- 
 tors to resort to "sweating"; and the corporation 
 which balances dividends against life and limb — 
 one and all are blind to the sensibihties of other 
 lives. They permit evil forces to gather momen- 
 tum, and destroy the very agencies by which alone 
 order and progress are maintained. 
 
 Himian nature does not change when men be- 
 come members of boards of directors, or sit in con- 
 claves or cabinets. An autocratic man will be a 
 tyrant, whether he be an emperor, the manager 
 of an industrial corporation, or the leader of a 
 Labor organization. Unfortunately, evil forces, 
 like beneficent ones, expand. Control becomes in- 
 creasingly powerful as the area of its authority 
 widens. 
 
 Here is the explanation of how men in large 
 numbers, and nations as a whole, are drawn into 
 conflict with each other, and come to hate each 
 other, when their interests are, in reality, com- 
 mon rather than antagonistic. A few men gain 
 the positions of control. They have, for the time 
 being, immediate power over other men. They 
 command the resources. They take the decisive 
 action which brings conflict in its wake. The many 
 whose wishes have never been sought, and whose 
 voices have never been heard, find themselves 
 
16 INDUSTRY AND HUMANITY 
 
 opposed by forces that demand resistance. Out 
 of this attitude, into which, all unconsciously, 
 whole multitudes are drawn, are bred the fears 
 and the hatreds that solidify effort in the face 
 of a common danger. In like manner are bred 
 the mortal enmities which become a part of the 
 thought of a class, a race, or a nation. ^ 
 
 No nation, and no organization, is wholly bad, 
 any more than any individual is wholly bad. 
 "The angels of light and darkness do not preside 
 over different nations. They contend in each for 
 victory." Within nations and organizations, as 
 within the lives of individuals, Good and Evil are 
 forever contending. In some nations, and in some 
 organizations, as in the lives of some individuals, 
 evil influences are permitted to gain control. In 
 other nations and organizations, they are held 
 in check. The horror of the situation is that, in 
 individuals, organizations, and nations alike, the 
 Good, itself, once contaminated, may turn to Evil. 
 The fallen angel may become a malignant devil. 
 Germs and vice increase in virulence in propor- 
 tion to numerical support and organization. When 
 Evil is the master, whether in the human body or in 
 the body politic, the infection is certain to spread. 
 It cannot be controlled till the forces that contend 
 against it are able to hold their own. 
 
 1 Vide The War and the Way Out, by G. Lowes Dickinson. The 
 Atlantic Monthly Co., igiS. Reference to this source is hereby ac- 
 knowledged. 
 
INDUSTRIAL UNREST 17 
 
 The time may come when communities as a 
 whole will be so sensitive to social views that it 
 may be possible to differentiate their conflicting 
 elements as accurately as, in the human body, 
 scientists differentiate blood corpuscles from path- 
 ological germs. By a minute regard for actions and 
 tendencies, it may become possible to brand those 
 individuals who are life-destroying germs in human 
 society. When that time comes, the corpuscles of 
 the body politic may combine as effectively to 
 destroy its pathological germs, as, in the human 
 body, white corpuscles combine, and seek to de- 
 stroy the germs of disease. Meanwhile, it is well 
 to realize that, for Good to triumph in human 
 affairs. Evil somehow must be held in check. In 
 this conflict, there can be no such thing as neu- 
 trahty. In the last analysis, each member of so- 
 ciety, by his every act, is consciously or uncon- 
 sciously augmenting one or other of the opposing 
 forces Pasteur has revealed. 
 
 Which of the Contrary Laws will ultimately pre- 
 vail will depend upon the outcome of their wres- 
 tling in human hves, and upon the outcome of the 
 wrestUng of individual wills one with another. 
 Resistance to evil is strengthened by struggle. 
 Without persistent endeavor, atrophy is certain to 
 follow. Not to act heroically in whatever pertains 
 to pohtical and industrial well-being, is, by so 
 much, to forsake the forces which seek to reheve 
 
18 INDUSTRY AND HUMANITY 
 
 mankind from the scourges that beset it, and to 
 aid the forces which seek their satisfaction in 
 Blood and Death. It is not to a hfe of repose, but 
 to one of vigorous action, that the call comes to 
 the men and women who love Peace, Work, and 
 Health, and who would conserve these blessings 
 for mankind. 
 
 If, through apathy or other cause, any people 
 permit the control of Government, or the control 
 of forces that sway Government, in either the 
 State or Industry, to pass into the hands of those 
 who seek domination, and who are prepared to 
 play upon passions, prejudices, and fears, rather 
 than appeal to just sentiments in the breasts of 
 men, one consequence only can result: Freedom 
 will be instantly imperilled. 
 
 The unrelenting operation of the Contrary Laws 
 discloses wherein the cause of Humanity is one. 
 With agencies furthering destruction and seeking 
 conquest, active or latent in the world, no nation 
 can afford to be indifferent to its own security, or 
 to the security of other nations that cherish ideals 
 of freedom similar to its own. Let the forces of 
 Blood and of Death have their way in one quarter 
 of the globe, and the forces that make for Peace, 
 Work, and Health are everywhere threatened. 
 
 The situation cannot be too fearlessly stated, 
 nor its possibilities too conspicuously pointed out. 
 After the world's tragic experience in its interna- 
 
INDUSTRIAL UNREST 19 
 
 tional relations, countries may well pray to be 
 spared like affliction from like cause in the domain 
 of Industry. With any similarity between the 
 causes underiying industrial and international 
 strife, to fail to look squarely at every fact and 
 possibility, is to be shamefully indifferent to the 
 well-being of mankind. It is wise, therefore, to re- 
 member that intermittent evidences of industrial 
 unrest are symptomatic of the workings of hidden 
 forces, prolonged indifference to which may sooner 
 or later provoke unparalleled disaster. 
 
 Countries cannot continue to watch antagonistic 
 groups in Industry assume the proportions and 
 attitudes of vast opposing armies, without some 
 day witnessing conflict commensurable with the 
 strength of these rival aggregations. If, to-day, 
 nation can rise against nation, under the incitement 
 of ambition, or fear, or cherished ideals; if, over- 
 night, men of all classes can be led to forget differ- 
 ences and remember only the flag which typifies 
 unity; with human nature what it is, is there not 
 also the possibility that men may be equally willing 
 to sacrifice their lives, through forgetting unity 
 and remembering only differences, under impulses 
 of fear, of love, and of hate, not one whit less real, 
 and which have been cherished just as ardently, 
 just as secretly, and just as long? In many par- 
 ticulars, the horrors of international war pale 
 
20 INDUSTRY AND HUMANITY 
 
 before the possibilities of civil conflicts begotten 
 of class hatreds. This, the world is witnessing, 
 even now! 
 
 To assume that anything so appalUng as wide- 
 spread industrial war may not come to pass, in 
 any country, is to be wilfully bhnd to present 
 occurrences. It is to overlook the temper which 
 the War, itself, is helping to create. It is to forget 
 how quickly a wave of passion may sweep over an 
 entire continent and that congestion in densely 
 populated cities makes possible the worst atroci- 
 ties of revolution. For most communities, isola- 
 tion, once a factor in limiting destruction, no longer 
 exists. 
 
 At a gathering of the Economic Club in New 
 York City, on the 11th of December, 1916, the 
 president of one of the Railroad Brotherhoods did 
 not hesitate to speak, before some twelve hundred 
 persons, of the possibility of vast industrial conflict 
 at the present time. The circumstance that the 
 speaker, himself, was known to be one of the truest 
 and best of men; that the Labor Organization he 
 represented was one of the largest, and generally 
 conceded to be one of the most conservative in 
 America; and the fact that the address had refer- 
 ence to the probable enactment of legislation pro- 
 posed to Congress by the President of the United 
 States, all indicate that the words spoken were in- 
 tended as significant in a national crisis. 
 
INDUSTRIAL UNREST 21 
 
 "Industrial war," said this Leader of Organized 
 Labor, "is precisely of the same character as 
 actual war. No battle has been fought in establish- 
 ing the rights of mankind, either real or fancied, 
 where the hospital has n't been filled afterwards, 
 and the corpses left upon the field. And it is just 
 so in industrial war. If you complain that four 
 hundred thousand men held up the Government, 
 what will eighty millions of them do, if they can, 
 to hold up the Government?" Referring then to 
 the possibility of immediate industrial war, the 
 speaker added: "If it comes, it will come in a way 
 that will make it overshadow all former industrial 
 upheavals, precisely as the present war blots out 
 of existence virtually all of the wars that preceded 
 it."i 
 
 In the formation of their stupendous organi- 
 zations. Labor and Capital are acting under the 
 stress of economic pressure. Each is quite sincere 
 in asserting that its ever-increasing power is be- 
 gotten of no ill-intention toward the other, but 
 only of a natural desire for protection of itself. 
 This, however, does not alter the momentous fact 
 that, listening to precisely the same professions 
 from nations which year by year continued to 
 perfect organization and increase potential fight- 
 ing strength, the world has witnessed the most 
 
 ' "Garretson Warns of Revolution if Military Law to Prevent 
 Rail Strikes ia passed by Congress." The Evening Mail, New York, 
 December 12, igi6. ; 
 
22 INDUSTRY AND HUMANITY 
 
 profound tragedy in the whole of human history. 
 Can mankind be indifferent to the possibihty of 
 further sacrifice? Shall Industry, the basis of 
 material existence, like Nationality, the largest, 
 and, thus far, the noblest expression of social or- 
 ganization, be permitted a perverse development 
 which may make of it, likewise, an all-powerful 
 agency in human destruction? 
 
 The parallel between the enmities of rival states, 
 fostered by and fostering fear and suspicion, and 
 the enmities of gigantic aggregations of Capital 
 and Labor, similarly begotten and fostered, is so 
 plain that one wonders how it can possibly be over- 
 looked. I know that the analogy between states 
 and groups of individuals is not perfect. But where 
 all the significant and essential features are iden- 
 tical, is there not sufficient analogy to occasion 
 pause? How ominous, in every detail, is the par- 
 allel between international conflict and industrial 
 conflict ! There is no parallel of like import any- 
 where. In origin, in method of procedure, and in 
 consequences, industrial and international strife 
 are akin. Differences, where they occur, are in 
 degree rather than in kind. Even the language 
 and artifices of their diplomacies are the same! 
 
 The assassination, at Sarajevo, on June 28, 
 1914, of the Grand Duke Ferdinand by a youth 
 of eighteen, became by July 23 the pretext for the 
 ultimatum handed by the Austrian Government 
 
INDUSTRIAL UNREST 23 
 
 to Serbia. That ultimatum marks the commence- 
 ment of the War. It contained demands known to 
 be excessive. It was designed for rejection. How 
 many industrial conflicts have had beginnings pre- 
 cisely analogous! The arrogance of some "petty 
 boss," the presence of some "walking delegate," 
 the arbitrary dismissal of an employee, or the re- 
 fusal to reinstate an officer of a Trade Union : — 
 one or other of these, and many a lesser incident, 
 has been made, after the lapse of weeks, a pretext 
 for the presentation of demands never believed 
 nor intended to admit of acceptance. As with 
 Austria's peremptory proposal to have her judges 
 given authority in the courts of Serbia, a demand 
 which touched Serbia's very existence as an inde- 
 pendent state, so in many an industrial ultimatum, 
 requests have been made which obviously could 
 not have been conceded without humiUating sur- 
 render. 
 
 It will be recalled how the Austrian ultimatum 
 included a time-limit, so short (forty-eight hours) 
 as to leave diplomacy little opportunity to avert 
 war. So brief was the time, that all attempts by 
 the Powers at concihation, mediation, and arbitra- 
 tion were rendered nugatory. How often has this 
 been the method of presentation of ultimatums 
 in labor troubles! Indeed, it has not infrequently 
 been considered the only method once a strike or 
 lockout was decided upon. And the alleged reasons 
 
24 INDUSTRY AND HUMANITY 
 
 for frustrating intervention, have they not been 
 the same; namely, that delay would afford the 
 other side opportunity to prepare for the fight? 
 
 As was the case with the nations in Europe, do 
 not the parties to industrial conflicts, till the very 
 moment of severed relations, profess a desire for 
 peace; a wish to avoid strife; a willingness to allow 
 friendly mediation? Does not one party, very 
 often, concern itself solely with its own intentions, 
 just as deliberately as Austria and as Germany did, 
 wholly indifferent to the overtures of the other? 
 Are not evasive replies always a part of the whole 
 wretched business? Does not one or other of the 
 parties, just as Germany did, so shift its position 
 as to make all intervention impossible? Further- 
 more, are not the parties to industrial conflicts as 
 indifferent to the rights of the public as belligerents 
 sometimes are to the rights of neutrals? And does 
 not the sympathetic strike or lockout resemble al- 
 lied support between nations? Back of most of 
 the great labor conflicts, has there not been, as 
 respects each of the parties, just as with the par- 
 ticipants in the present War, a behef in abihty to 
 command resources in men and money sufficient 
 to win, no matter how prolonged the struggle? In 
 the one case as in the other, do not a very few 
 men have the determining voice; and does not the 
 fate of all hang upon the ambitions, actions, and 
 decisions of these few? 
 
INDUSTRIAL UNREST 25 
 
 It is unnecessary to carry the parallel further. 
 Once the struggle has begun, be the conflict in- 
 ternational or industrial, the effort to gain victory 
 through loss inflicted is the same. Loss may be 
 greater in war between nations, since war means 
 avowedly the loss of life, as weU as of property; 
 but, in each case, what fundamentally is aimed at is 
 a loss of power, whether effected positively through 
 active destruction, or negatively, through thwart- 
 ing production. Unfortunately, it cannot be said 
 that even this difference is always maintained. 
 There have been industrial conflicts in which the 
 methods of warfare employed have been identical 
 with those in international strife. America has 
 witnessed conflicts between Capital and Labor 
 where strikers have been nearly as well provided 
 with rifles and anmiunition, as the State Militia 
 that opposed them. The presence of encampments 
 and the use of machine guns have helped to accord 
 opposing factions an appearance differing but httle 
 from that of army detachments in times of actual 
 war. Where in such cases Ufe has been taken, what 
 compensation has equalled the loss? 
 
 Legacies of hatred and ill-will, whether inherited 
 from industrial or from international strife; dis- 
 tress and debt, whether incurred by the one or the 
 other, differ in degree only, and not in kind. What 
 of it aU finally? Sooner or later, peace must be 
 restored, for war cannot go on forever, whether it 
 
26 INDUSTRY AND HUMANITY 
 
 be industrial or international. Capital and Labor, 
 Nation and Nation, must come to terms of settle- 
 ment or all alike be ruined. Ultimately, Force 
 must give way to Reason. Common as contrasted 
 with opposed interests must be recognized. But 
 where has there been settlement of any great 
 conflict which has not meant much of loss to each 
 of the parties? And where are the gains which 
 have come through conflict, that would not have 
 been the greater if otherwise obtained? At what 
 cost always is Reason denied her rightful sway! 
 
 So far have men in this age reverted to a worship 
 of Moloch, and mistaken gods of their own making 
 for the higher ends of existence, that sacrifice of hu- 
 man lives is commonly asserted to be essential to 
 the needs of Nationahty and Industry. Sacrifice of 
 life to noble and imperative ends is, and ever will 
 remain, an inevitable incident of Progress. There is 
 a vast difference, however, between lives given that 
 a principle may be maintained, and lives taken that 
 Ambition may be fed. If Progress worthy of the 
 name is to be achieved, it will never be through 
 gains reaped by some at the expense of others. It 
 will be in the sacrifice and the advance which have 
 regard for the well-being of the whole. 
 
 For Industry and Nationahty alike, the last 
 word hes in the supremacy of Humanity. "Over 
 all nations is Hiraianity." Of more worth than all 
 
INDUSTRIAL UNREST 27 
 
 else man can achieve is the well-being of mankind. 
 The national or industrial economy based on a 
 lesser vision, in the final analysis, is anti-social, 
 and lacks the essentials of indefinite expansion 
 and durability. The failure to look beyond the 
 State, and beyond Industry as a revenue-produc- 
 ing process, has brought chaos instead of order. 
 To glorify institutions, regardless of the men, 
 women, and children whose individual existences 
 they were meant to serve, is to negative, not to 
 promote progress. 
 
 The sacredness of human personality is more 
 important than all other considerations. Without 
 infinite regard for individual life, however obscure 
 or deformed, expressions of social values are mean- 
 ingless. Estimates of national power, pride in in- 
 dustrial growth, forecasts of world expansion: — 
 any and all of these which reckon material gains 
 apart from the human losses they involve, mistake 
 for Life itself the coarse texture of but a part of 
 the garment of Life. 
 
 Because the peoples of the world are affected 
 more generally, and more continuously and inti- 
 mately, by industrial relations than by international 
 relations, it may well be that the solution of in- 
 ternational problems will come about only with 
 the solution of the problems of Industry. Nations 
 have failed through conflict to widen the circle of 
 
28 INDUSTRY AND HUMANITY 
 
 international good-will. In the co-operation of the 
 parties to Industry along intelligent lines, they 
 may yet be led to an application of principles 
 which, governing in all human relations, will best 
 promote the well-being of mankind. 
 
CHAPTER II 
 
 THE WORLD ASPECT 
 
 The War, momentous in every way, has helped 
 to demonstrate the unity underlying human rela- 
 tions. Its world scale but reflects the expansion 
 in Industry and International PoUty. It is essential 
 to recognize the cosmopoUtan trend in order to 
 view the problem of Labor and Capital in true 
 perspective. It is no longer a local problem, or 
 even a national problem, as often assumed, but 
 an international problem of the first magnitude. 
 Industrial and international relations are the 
 warp and woof of modern world intercourse. They 
 constitute the obverse and reverse of a world 
 problem of human relations in which political 
 and industrial considerations are inseparably inter- 
 twined. It is the scale and intimacy of this rela- 
 tionship that distinguishes the Labor Problem of 
 to-day from the problem as it has existed at any 
 previous time. 
 
 Nor is the problem of Labor and Capital any 
 longer one which concerns only, or even mainly, 
 these two essential , parties to production. As 
 never before, it is a Community problem, and a 
 Community gradually expanding to the utmost 
 
30 INDUSTRY AND HUMANITY 
 
 limits of human society. ' The expressions, "the 
 Labor Problem," "the Problem of Capital and La- 
 bor," are wholly inadequate to suggest the com- 
 prehensive nature of considerations of which ac- 
 count must be taken, if the well-being of persons 
 engaged in Industry is to be promoted with any 
 promise of enduring results. They are equally in- 
 sufficient to convey any idea of the bearing of the 
 problems of Industry upon the whole of social Ufe. 
 Industry does not affect wage-earners merely as 
 persons possessing labor which they dispose of on 
 a basis of time, skill, and energy. For most men 
 and women, the conditions which surround In- 
 dustry, and the output of Industry, represent all 
 that is possible for them in the way of health, 
 happiness, and life itself. Both as consumers and 
 producers, they are affected by all that affects 
 production. Their position, industrially, touches 
 at some point, and usually more than touches, 
 is indeed interwoven with, every relationship of 
 their hves. It is as members of communities that 
 the workers experience the pressure of economic 
 
 1 Industries and countries, as regards their social problems, can 
 no longer be studied as isolated phenomena. In a consideration of 
 social problems the place of the Nation must be taken by some other 
 term; one that will admit of contraction and expansion as existing 
 circumstances demand. The term "Community" possesses merits 
 superior in this regard to those of any other available word. It 
 is, in fact, the only really appropriate term to employ in seeking to 
 emphasize the area within which a people share a common interest 
 with respect to the subject under consideration. In this sense it is 
 employed throughout the present treatise. 
 
THE WORLD ASPECT 31 
 
 conditions. As the community circle widens, the 
 sum of influences affecting the well-being of its 
 members is increased. As the circle of industrial 
 relations widens, the sensitiveness of the inter- 
 relationship between Industry and the Commu- 
 nity is correspondingly increased. As both expand 
 beyond the radius of local and national bounds, 
 and become increasingly cosmopolitan in charac- 
 ter and scope, world influences hitherto unknown 
 come into play. Whole communities and whole 
 industries are affected, with surprising suddenness, 
 by influences sometimes favoring, sometimes jeop- 
 ardizing the employment of tens and even hun- 
 dreds of thousands. Against world movements, 
 affecting both Capital and Labor, local barriers 
 avail not at all, and national barriers tend to 
 avail less and less. For Capital and Labor and 
 the Communities to which they belong, the large 
 adjustment of industrial relations has become a 
 world problem. 
 
 Two years before the United States entered the 
 War, Mr. Owen Wister wrote: "To speak of the 
 Old World and the New World is to speak in a 
 dead language. The world is one. All humanity is 
 in the same boat. The passengers multiply but 
 the boat remains the same size. And people who 
 rock the boat must be stopped by force. America 
 can no more separate itself from the destiny of 
 Europe than it can escape the natural laws of the 
 
32 INDUSTRY AND HUMANITY 
 
 universe." 1 And so it proved, to the extent of 
 America's participation in the War. Altered con- 
 ditions in any one part of the world soon produce 
 changes elsewhere. The expansion of Industry has 
 rendered this inevitable. 
 
 The inseparableness of industrial and political 
 considerations, of industrial well-being and foreign 
 poUcy, is a consequence of the gradual evolution 
 toward world expansion in Industry, and inter- 
 nationalism in PoUtics. A glance at this evolution 
 may help to reveal the significance of changed con- 
 ditions, and the necessity of meeting new con- 
 ditions by new methods. So long as the Labor 
 Problem was a local one, or even a problem involv- 
 ing communities of appreciable size, the attempt to 
 solve differences by a trial of strength between the 
 parties may have been crude, primitive and unjust, 
 but the ill-effects and injustices of such a method 
 were more or less confined to the immediate par- 
 ticipants. To-day, it is not individuals or isolated 
 localities, but very often entire countries that are 
 affected by disputes between Capital and Labor 
 where strikes and lockouts are the methods em- 
 ployed to bring about industrial adjustments.^ 
 
 1 The Pentecost of Calamity. 
 
 2 I desire to acknowledge the free use made, in the outline of the 
 evolution of Industry and Nationality which follows, of notes taken 
 while at Harvard University from coiu-ses of lectures deUvered dur- 
 ing i8g8-99 by Rev. William Cunningham, D.D., LL.D., Fellow 
 
THE WORLD ASPECT 33 
 
 In the increased "mobility" of Capital and 
 Labor which Discovery and Invention have ef- 
 fected, will be found the key to expansion and 
 internationaUsm in Industry and Politics. Ancient 
 and mediaeval civilizations differ from modern in 
 that their many activities were markedly circum- 
 scribed. Contrasted with the present, theirs was 
 a society essentially stationary. In a thousand 
 and one respects, whether for good or ill, variety 
 has replaced monotony in community interests, 
 and in the daily round of living; in industrial re- 
 lations especially, there was, until comparatively 
 recent times, a "fixity" very different from the 
 "fluidity" of to-day. It is this transition from an 
 unchanging social order to one permeated with 
 constant change, a transition in industrial relations 
 from "certainty" to "uncertainty," from "stabil- 
 ity" to "instability," that makes the Labor Prob- 
 lem of to-day wholly different in kind from the 
 comparatively simple one where the issues between 
 employer and employee were such as arose in the 
 immediate personal relations of master and jour- 
 neyman, master and servant, or master and slave. 
 
 The change in industrial relations has paralleled 
 a change in civic and national polity. Which has 
 
 and Lecturer of Trinity College, Cambridge, England, and of the 
 following treatises by that distinguished author: Outlines of Eng- 
 lish Industrial History, New York, Macmillan Co., 1896; Western 
 Civilization — Modern Times, Cambridge, The University Press, 
 1900; Western Civilization — Ancient Times, Cambridge, The Uni- 
 versity Press, 191 1. 
 
34 INDUSTRY AND HUMANITY 
 
 determined the other, it would be impossible to 
 say. They are, and always have been, inextricably 
 interwoven. Sometimes far-sighted pubhc poUcy 
 has produced a development in Industry which has 
 left its impress on world affairs. At other times, 
 industrial changes have shattered the restrictions 
 of policy, and have revolutionized theory as well 
 as conditions. 
 
 The basis of industrial organization has under- 
 gone continuous expansion. Originally, the small- 
 est unit of society for economic purposes was the 
 self-sufTicing household. This basis has broadened 
 through the centuries until the bounds of nation- 
 ality no longer suffice to give it unity. The family, 
 the city, and the nation has each, in the order named, 
 been outstanding as a main type of social struc- 
 ture; each, at one time or another, has been the 
 unit of industrial organization. Each remains a 
 contributing factor to the well-being of society, 
 but as controlling units of economic organization, 
 the smaller entities have become more or less ab- 
 sorbed in the larger. The largest of all, the na- 
 tional, has ceased to be a final form in economic 
 development, and is gradually being superseded 
 by a cosmopolitan type. It is hardly to be doubted 
 that the War will mark the transition to a con- 
 scious international polity. 
 
 In Europe it is possible to trace the expansion 
 as it developed in the course of the centuries. 
 
THE WORLD ASPECT 35 
 
 The "City State" of the Greeks is classic as the 
 illustration of Greek civilization at its highest. 
 The self-sufficing towns and cities, wherever they 
 superseded the self-sufficing households, continued 
 as the centres of social and industrial activity al- 
 most until modern tunes. We speak of countries 
 and of empires, but in the ancient and mediaeval 
 world, as Dr. WiUiam Cunningham, of Cambridge, 
 England, has pointed out, they represent, in any 
 true sense of the word, geographical rather than 
 political entities.! The unity that underlay the 
 Roman Empire was one of law and order and mil- 
 itary organization, and the unity that underlay 
 mediaeval Christendom was one of clerical organi- 
 zation and a common religious life and sentiment. 
 It was not until the fourteenth and fifteenth cen- 
 turies that the concentration of civilization in the 
 towns and cities began to give way to the rise of 
 nationaUties, and the question of national unity 
 came to be one of supreme importance. Not until 
 Columbus had discovered America, and Vasco de 
 Gama had rounded the Cape of Good Hope, did the 
 towns and cities of Europe cease to exercise exclu- 
 sive jurisdiction or to be the units of industrial 
 and commercial organization which gave similarity 
 in type to the mediaeval and ancient worlds. The 
 nation as the basis of economic regulation is a dis- 
 tinguishing feature of the modern world. 
 
 ' Western Civilization — Modern Times, Introduction. 
 
36 INDUSTRY AND HUMANITY 
 
 The rise and development of the large-scale 
 organization of Industry paralleled the rise and 
 growth in power of individual nations. The one 
 has been inseparable from the other, and each has 
 been linked to the progress of Trade. The discov- 
 ery of America and the new route to the East Indies 
 revealed unparalleled opportunities of increase in 
 wealth and trade, and unthought-of possibilities of 
 commercial intercourse and colonization. 
 
 The Era of Discovery of the world's continents, 
 by opening up distant parts as sources of treasure 
 and raw materials and as markets for the sale of 
 manufactured and other products, was followed 
 by a period of expansion in Commerce and Col- 
 onization. Commerce, from being locaUzed and 
 pursuing accustomed routes, expanded in all di- 
 rections, and from being European only, became 
 world-wide. By 1760 England had gained a world- 
 wide Commerce. The reaction upon Industry was 
 inevitable. The increase in wealth consequent 
 upon distant trading tended to further the growth 
 of capital and to promote national economic pol- 
 icies, and in turn was itself furthered by them. 
 Distant trading stimulated the desire to manu- 
 facture on a large scale and more cheaply; and 
 with new markets opening in every direction, and 
 opportunities thereby afforded of working on a 
 large scale. Industry, from being organized to serve 
 local needs, came more and more to develop on a 
 
THE WORLD ASPECT 37 
 
 capitalistic basis. Restrictions were broken down, 
 and commercial policies changed from being con- 
 cerned with home markets to having in view the 
 development of export trade. In contemplating 
 industrial relations, this world development of in- 
 dustrial organization is of the utmost significance. 
 Any plan or policy which ignores it, omits a fun- 
 damental consideration. 
 
 Dr. Cunningham has shown how comparatively 
 recent has been the consummation of the change 
 from payment of dues in kind and personal service, 
 to their payment in money, and the change from 
 a barter to a money system in exchange. ' He 
 has observed that, till the substitution had come 
 about, "capital," as we understand the term, could 
 and did play but little part in the development of 
 Industry. Once treasure and accumulations came 
 to discharge the functions which savings are put 
 to in the present day, and wealth instead of be- 
 ing hoarded began to be "invested," a new power 
 arose of vast significance to Industry and Inter- 
 national Polity alike. Capital, says Dr. Cunning- 
 ham, implies the existence of a fund of money 
 which can be utilized in any direction and trans- 
 ported with comparative ease from place to place. 
 So long as a natural economy prevailed, there 
 might be accumulations of wealth, stores of many 
 
 1 Western Civilization, chap, n, " Natural and Money Economy; " 
 Outlines of English Industrial History, chap, vn, " Money, Credit, and 
 Finance." 
 
38 INDUSTRY AND HUMANITY 
 
 kinds and stocks for carrying on Industry, but 
 there was not capital or commercial credit in the 
 modern usage of these terms. A money economy 
 made possible the far-reaching development of the 
 capitaUstic or large-scale organization in Industry. 
 It was in the fourteenth and fifteenth centuries 
 that capital began to emerge, and in the fifteenth 
 and sixteenth that commerce came to be a recog- 
 nized object not only of local but of national im- 
 portance. Wherever an industry was drawn into 
 the circle of distant trading interests, there was 
 a tendency in favor of the introduction of the 
 capitalistic organization. Where Industry was or- 
 ganized with regard to the requirements of the city 
 market, small independent masters might hope 
 so to regulate existing trade as each to share in 
 rather than extend it; but once trade ceased to 
 be local and came to have relation to other and 
 distant markets, it was inevitable that the form 
 of industrial organization should also change and 
 the small masters be superseded by the capitalist 
 employer. 
 
 Important as was the Era of Discovery upon 
 Commerce, Industry, and National Policy, its sig- 
 nificance in all these respects was enhanced by 
 the age of Invention of which it was the forerun- 
 ner, and to which it contributed. As an epoch of 
 change and development, the age of Invention 
 
THE WORLD ASPECT 39 
 
 was of even greater importance in the world's his- 
 tory than the Era of Discovery. The discoveries 
 of the fourteenth and fifteenth centuries gave new 
 knowledge of the surface of the globe, and its 
 resources and possibilities. The remarkable series 
 of inventions which came in the latter half of the 
 eighteenth century afforded new knowledge of the 
 physical forces of nature and their practical ap- 
 plication. Nature and its inherent powers were 
 brought as never before under man's control, to be 
 made more and more the servants of his will. 
 In the light of the new knowledge consequent upon 
 the advance in the physical and chemical sciences, 
 new mechanical appliances and new industrial 
 processes were introduced, and with them new 
 methods of organization and business administra- 
 tion. Industry and Society became reconstructed 
 on a capitaUstic basis. 
 
 So important and far-reaching were the changes 
 which mechanical inventions effected, that wher- 
 ever they have been generally applied, they have 
 revolutionized Industry. Theu- application came 
 first in England, during the latter half of the 
 eighteenth century. By 1850 the new industrial 
 forces had become generally apphed. The period 
 of transition has come to be known as that of the 
 Industrial Revolution. From England, the knowl- 
 edge of these inventions and their practical applica- 
 tion has spread to other lands. Its diffusion still 
 
40 INDUSTRY AND HUMANITY 
 
 continues. Gradually, it is extending throughout 
 the globe. Wherever it has spread, so vast have 
 been the changes in the methods of production, 
 that they have altered the whole face of Industry, 
 and with it the relations between its contributing 
 parties. Here is another fundamental factor of 
 which account must be taken in considering indus- 
 trial relations. The hand of Invention cannot be 
 stayed. 
 
 The changes which, taken collectively, have 
 revolutionized modern Industry may be grouped 
 broadly as changes in the mechanical arts, in in- 
 dustrial organization, in the division of industrial 
 processes, and in industrial areas. The mechanical 
 changes, which constitute changes in the mechani- 
 cal arts, are by far the most important. They are, 
 in the main, of three kinds: the use of new tools 
 and implements, the adoption of new processes, 
 and the application of new powers. 
 
 In the course of invention, the hand tool long 
 preceded the machine. The hand tool augments 
 and transfers force generated by the body; the 
 machine harnesses the forces of nature, and makes 
 them serviceable to the will of man. Of all natural 
 powers, electricity is the greatest. Steam and elec- 
 tricity have occasioned the vast application of 
 physical and chemical force that has made In- 
 dustry what it is to-day. 
 
 The invention of the mariner's compass and the 
 
THE WORLD ASPECT 41 
 
 invention of printing preceded the mechanical in- 
 ventions of the eighteenth century by some four 
 hundred years. Both were far-reaching in their 
 effects upon Industry and Commerce. The one 
 aided exploration, the other the diffusion of knowl- 
 edge. It was not till the steam engine was in- 
 vented, however, that their latent uses were af- 
 forded all but unlimited scope. 
 
 Of changes in industrial organization, the most 
 important has been the rapid spread in many 
 trades of the severance between Capital and 
 Labor: the rise of a distinct employing class and 
 a distinct laboring class working for wages. As 
 the Industrial Revolution advanced, this severance 
 extended more and more. A moment's reflection 
 will show wherein that was inevitable. 
 
 Under the old domestic system, many a man 
 worked in his own home with his own tools, pro- 
 cured the materials needed for the work, and then 
 sold the product. But once production and manu- 
 facturing ceased to be for local markets, once the 
 demand was no longer limited, but developed upon 
 an ever-expanding scale, the domestic laborer, in 
 competition with the merchant trader, found him- 
 self handicapped in two respects: first, he had not 
 access to the new and large markets, and secondly, 
 he could not procure materials for manufacture 
 in anything like the quantities necessary. When, 
 under the spell of Invention, machines, vastly out- 
 
42 INDUSTRY AND HUMANITY 
 
 stripping the efficiency of tools, began to be intro- 
 duced, he was more handicapped than ever. The 
 merchant trader being possessed of capital was 
 able to obtain materials for manufacture, and was 
 able to obtain access to new and distant markets. 
 He was in a position, moreover, to take advantage 
 of and utilize the new kinds of powers, and to sub- 
 stitute machine for hand labor. Thus, there gradu- 
 ally arose a capitalistic class commanding markets, 
 controlling the sources of production and power, 
 and controlhng labor. The domestic system in 
 Industry gave way to the factory system, and 
 large-scale organization; a regime of hand tools 
 gave way to a regime of machines, and there fol- 
 lowed the enormous growth of capitalism in In- 
 dustry and the development of banking, credit, 
 and other financial institutions as they have come 
 to be at the present time. 
 
 The introduction of machinery and the oppor- 
 tunity to manufacture on a large scale made the 
 division of industrial processes both possible and 
 profitable. It made possible and profitable also 
 the substitution of one class of labor for another, 
 the substitution of labor of an inferior or less 
 highly skilled grade for labor more or less highly 
 skilled. As an example: under the domestic sys- 
 tem, where spinning and weaving were carried 
 on in the home, master, journeyman, and appren- 
 tices worked together, co-operating in the art of 
 
THE WORLD ASPECT 43 
 
 spinning and weaving. With the introduction of 
 the spinning-jenny and the power loom, and the 
 transference of the industry from the home into 
 factories, machines did the work which formerly 
 required personal skill; the;industrial processes be- 
 came divided, and boys, or women and children, 
 were employed to attend or "pohce" the machines. 
 How far this division of industrial processes, and 
 the division of labor within single processes, has 
 been carried in our day surpasses the imagination; 
 it is an all-important feature of Industry with 
 which most persons are more or less familiar. 
 
 Division of industrial processes and division of 
 labor increased with the wider use of hand tools; 
 they increased many fold with the extended use 
 of machines. As furthering an increase in output, 
 division of processes and division of labor are 
 highly advantageous to employers; as tending to 
 cheapen the cost of production, they are advanta- 
 geous to the public; in their effects upon Labor, 
 they are not without grave consequences. They 
 mean a continual displacement of one class by 
 another, and a tendency to lessen skill by more 
 and more reducing the services to be performed 
 to single acts in single processes. Division of proc- 
 esses and division of labor ignore personality, and 
 are "dehumanizing" to the extent to which. they 
 make Labor's part in Industry mechanical, and 
 tend to destroy initiative and resource. On the 
 
44 INDUSTRY AND HUMANITY 
 
 other hand, and this cannot be too strongly em- 
 phasized, they call into being a new kind of skill 
 in the mechanical ability required to handle tools 
 and control machines; and they occasion new 
 classes of employment in the manufacture of tools 
 and machines themselves. However, whether the 
 change be one involving less or more skill, there 
 is, with divisions of processes and of labor, a con- 
 tinual shifting of labor from one kind of employ- 
 ment to another, and seldom in the transition is it 
 possible to avoid hardship and suffering. Wherever 
 transitions and readjustments in Industry have 
 taken place on any considerable scale, they have 
 been accompanied by vast suffering and distress. 
 There are few pages in history sadder than the 
 appalling misery which in some countries has ac- 
 companied the transition from the hand system of 
 Industry to modern methods of manufacture. 
 
 Most serious of all, perhaps, of the effects of the 
 changes described has been that produced upon the 
 attitude of Labor and Capital towards each other. 
 Under the domestic system, it was possible for 
 both Labor and Capital to recognize their common 
 interest, and for each to comprehend the work of 
 production more or less in its entirety, as well as 
 the significance of particular acts in relation to 
 individual processes. Between world expansion at 
 the one extreme and minute subdivision of proc- 
 esses and employment at the other, this recog- 
 
THE WORLD ASPECT 45 
 
 nition of a common aim in a common undertak- 
 ing has been lost, as well as the understanding 
 by Labor of the industrial processes of which its 
 work is a part, and the bearing of its particu- 
 lar services in relation thereto. This has led to a 
 change of attitude; to the behef in opposed as con- 
 trasted with common interests, and accounts in 
 no small measure for the antagonism and resist- 
 ance which find expression in the militant attitude 
 of organizations of Capital and Labor toward each 
 other. 
 
 Along with the division of industrial processes 
 has gone the change in industrial areas consequent 
 upon the application of new powers and the sub- 
 stitution of new processes. In England, the substi- 
 tution of coal for wood in the smelting of iron ore, 
 within a brief period led to a transfer of the iron 
 industry from one part of the country to another. 
 It deserted the forest centres for the coal areas. 
 Once the power loom replaced the hand loom, 
 weaving forsook the cottages in rural districts 
 for the banks of rivers and streams. The appli- 
 cation of steam brought about yet other distribu- 
 tion of the iron and textile industries. These are 
 commonly cited examples from earlier days. The 
 changes consequent upon the extended use of steam 
 and electrical power are going on about us from 
 day to day. It may be that electricity will yet 
 effect a return of manufacturing to rural areas. 
 
46 INDUSTRY AND HUMANITY' 
 
 Changes in industrial areas have not been con- 
 fined within the boundaries of countries. The dis- 
 tribution of Industry on all continents has been af- 
 fected. Who can begin to estimate the changes 
 in industrial areas, and the migrations of popu- 
 lations and industries due to the wide diffusion 
 of agencies of transportation and communication, 
 and the application of new powers! It is a trans- 
 formation so vast as to defy description; so vast 
 that it is a part of the world magic of modern 
 times. 
 
 It is bewildering to seek to trace the evolution 
 of the industrial world as it has come into being 
 out of the changes in industrial and national or- 
 ganization of the Eras of Discovery and Invention. 
 It is more important to appreciate the significance 
 of the transformations they have wrought. 
 
 Discovery and Invention have minimized the 
 effects of Space and Time as separating factors. 
 In populations and resources, the ends of the 
 earth have been brought together; and so ad- 
 vanced are the facilities for transmitting intelli- 
 gence, that the diffusion of information on world 
 affairs may outdistance the course of the sun. 
 The development of organization of large-scale In- 
 dustry has not stopped at international frontiers. 
 It has scarcely even halted. Concerned primarily 
 
THE WORLD ASPECT 47 
 
 with resources and markets, it has spread hither 
 and thither over the surface of the globe, searching 
 new sources of material wealth and new avenues for 
 its distribution, as water seeks its level upon the 
 sea. Thus have come into being the world move- 
 ments in immigration, the world commerce, the 
 world markets, the world finance; all, aspects of 
 the world industry which is the foundation of 
 modern cosmopoUtan Ufe. We may care for none 
 of these developments; we may shudder at their 
 immensity; most of all, we may dishke the vast 
 organization of Industry they compel. But they 
 are here. We can help in their onward evolution; 
 but regrets concerning their existence are vain. 
 
 World industry, as it suggests itself to the im- 
 agination, resembles nothing quite so much as a 
 kaleidoscopic or cinematographic presentation. It 
 may be comprehended vaguely in its entirety, 
 but it is in ceaseless motion, and is undergoing 
 continuous change. It is the story of the world's 
 natural resources being transformed through man's 
 mental and physical energy into commodities 
 and services available for human use. It is one 
 vast process of continuous transformation, wrought 
 out of ever-changing methods of production, dis- 
 tribution, and exchange, and involving interweav- 
 ing of human effort on a scale increasingly vast, 
 but also increasingly minute. Everywhere, over 
 the whole surface of the globe, is witnessed move- 
 
48 INDUSTRY AND HUMANITY 
 
 ment of human beings hither and thither pursuing 
 activities as varied as human need; everywhere, 
 a world-wide human intercourse rendering the 
 whole of Industry more and more one, and, simul- 
 taneously, more and more sensitive to whatever 
 affects any of its parts. 
 
 Not to recognize the tendency toward world 
 expansion in Industry with its innumerable inter- 
 relations and interdependences, its countless re- 
 actions and inter-reactions, over ever-widening 
 circles, is to be indifferent to the past and present 
 alike. Developments in no two countries have 
 been the same. In some countries, decades have 
 sufTiced to effect transitions which in others have 
 taken centuries. It is not possible to say of any 
 one country, just when the lesser circle broadened 
 into the wider, any more than it is possible to say 
 of any night, just when it emerged into day. 
 Nevertheless, in the predominant and determin- 
 ing characteristics of all social, political, and 
 economic institutions, there has been a gradually 
 expanding evolution toward world relations, for 
 which an ever-growing commercial intercourse 
 has been in the main responsible. Modern devel- 
 opments in the agencies of transportation and 
 communication, themselves a part of the large- 
 scale organization of Industry, have hastened this 
 evolution. They have done more than any other 
 single factor to diffuse a knowledge of invention 
 
THE WORLD ASPECT 49 
 
 through distant lands, and to subject remote 
 continents to the transforming influences of the 
 Industrial Revolution. 
 
 Wherever capital has gone, it has been a dis- 
 integrating factor. Manufacturing became di- 
 vorced from its association with Agriculture, once 
 Industry, under the factory system which capital 
 encouraged, forsook rural cottages for the work- 
 shops and the factories of urban centres. As 
 capital in its quest of materials and markets dis- 
 tributed production over the surface of the globe, 
 industrial processes became subdivided, new indus- 
 trial areas appeared, old areas vanished. In vain 
 national policies have striven to confine Industry 
 within national bounds. Government regulation 
 has supplemented motives of patriotism in an en- 
 deavor to restrict foreign investments, but capital 
 has proven as intractable as mercury, and has 
 sought its returns in fields of promise wherever 
 they lay. Wherever capital has gone, it has intro- 
 duced something of the large-scale organization of 
 Industry and therewith some of the cosmopolitan 
 aspects of modern civilization. The very expres- 
 sions, the "opening up" of new territories, the 
 "exploitation" of new resources, are significant 
 of the manner in which capital pursues its way. 
 It refuses to be hampered by restrictions; sooner 
 or later it circumvents or overrides every obstacle 
 in the path of prospective reward. 
 
50 INDUSTRY AND HUMANITY 
 
 It is essential, in a consideration of industrial 
 relations, and to an understanding of the Labor 
 Problem, that this "mobility" and "fluidity" 
 characteristic of capital should be appreciated at 
 its full value. The inherent ubiquity of capital 
 sets limits to what may be possible under regu- 
 lation, acquiesced in voluntarily or imposed by 
 authority of the municipality, the state, or the 
 nation. It reveals perils that threaten every 
 endeavor to improve conditions. To advanced 
 industrial communities, it suggests wherein the 
 maintenance of acquired standards is a most 
 important consideration. It shows why, in their 
 efforts to attain a full citizenship, the working 
 classes have need of enlightened action on the part 
 of Government, and are deserving of all the as- 
 sistance they can obtain from the well-wishers 
 of mankind. With ever-increasing knowledge of 
 world conditions, ever-expanding facihties for in- 
 vestment, and ever-growing keenness in indus- 
 trial rivalries, to maintain and advance standards 
 in countries which are in the van of industrial 
 progress is one of the problems ahead. How ex- 
 ceedingly difficult of solution the problem has be- 
 come, will be apparent once it is seen how the War 
 has helped to reduce standards of hving in coun- 
 tries within competing areas, and how hitherto 
 unexplored and undeveloped areas are being con- 
 tinually brought within the circle of world compe- 
 
THE WORLD ASPECT 51 
 
 tition. The mobility and fluidity of capital lie at 
 the root of most of the problems of Industry. 
 
 For the workingmen of the British Isles and of 
 the continent of America, facing, on the one side, 
 the competition of the impoverished populations 
 of Europe, and on the other side, the competition 
 of the Orient, as through western capital it be- 
 comes gradually acquainted with western methods 
 of production and manufacture, the question is 
 a serious and imminent one. Without powerful 
 controlling influences wisely directed, world rivalry 
 in Industry and Trade has in it all the elements of 
 a struggle fraught with endless misery to countless 
 numbers of innocent people. In the absence of 
 intelligent direction in world affairs, multitudes 
 are destined, in the clash of competing interests, 
 to be sacrificed to a condition scarcely less ruthless 
 than that of war. The sufferings of the victims 
 of economic pressure are not so dramatically dis- 
 played as are the sacrifices of men in war. They 
 are none the less real, through being silently, 
 slowly, and obscurely borne. The Labor Problem 
 of the twentieth century is, indeed, the problem 
 of Industry and Humanity. To comprehend this 
 truth adequately is a necessary first step towards 
 a solution. 
 
 In deaUng with influences which are world-wide 
 in scope and bearing, it is perhaps unreasonable to 
 
52 INDUSTRY AND HUMANITY 
 
 expect that even an obvious trend should be appar- 
 ent save to the very few whose business, or habit 
 of thought, incUnes them toward a consideration 
 of world affairs. Arnold Toynbee once said that 
 under the dome of St. Paul's, we are awed by the 
 feeUng of vastness, of space, because it is "the 
 infinite made finite"; that under the canopy of 
 heaven "the sense is lost in infinitude." This truth 
 is as apphcable to industrial relations as to art 
 and religion. The very magnitude and sweep of 
 operating forces causes their presence to be over- 
 looked. 
 
 Much of the inabihty to interpret aright the 
 industrial problems of our day is due to a habit of 
 mind which inclines men to be local and sectional, 
 and not to look beyond appearances or environ- 
 ment. Even in the search for underlying causes, 
 vision is all too frequently arrested by some asser- 
 tive factor which projects itself on the horizon. 
 It is only gradually, and, thus far, but faintly, that 
 the impotence of local influences, and the world- 
 nature of competing forces have come to be recog- 
 nized as distinguishing characteristics of modern 
 Industry. After all, it is not strange that this 
 should be so. The whole evolution toward world 
 expansion in. Trade, Finance, and Industry, has 
 been gradual and unpremeditated; and, besides, it 
 has been very recent. It is far from being com- 
 plete even yet; if, indeed, it is not only just begin- 
 
THE WORLD ASPECT 53 
 
 ning. Like the breaking of dawn in mountainous 
 regions, its approach has been obscured in many 
 a part, and retarded by many a barrier. Early 
 morning Ught disperses its rays first through one 
 valley, then through another, emerging impercept- 
 ibly in ever-widening areas. Likewise, as knowl- 
 edge has become diffused, and transportation and 
 communication have f aciUtated movement, as larger 
 accmnulations of capital have made fresh invest- 
 ments possible, and increased daring or security 
 has fostered new ventures. Competition has scat- 
 tered industrial enterprises now in this direction, 
 now in that, and has ever combined them anew 
 over vaster surfaces. This phenomenon of the cease- 
 less expansion of Competition in Industry; of dis- 
 covery succeeding discovery; invention supersed- 
 ing invention; industrial art rivalhng industrial art; 
 — all in an endeavor to make possible greater and 
 cheaper production, is without parallel among the 
 many and varied activities of mankind. 
 
 Before America or Africa was discovered, or the 
 Orient was explored, men and women employed 
 in the hand and home industries of Europe had 
 little occasion for thought concerning the migra- 
 tions of peoples from foreign lands or the invest- 
 ment of capital abroad. In Industry limited by 
 hand tools and human energy, there was no need 
 of concern on Labor's part because of the con- 
 stant reduction toward a single act in a single 
 
54 INDUSTRY AND HUMANITY 
 
 process which modern invention, with its use of 
 machinery and natural powers, its subdivision of 
 processes, and division of labor within" a single 
 process, has made a distinctive feature of the In- 
 dustry of to-day. Neither could there be the same 
 indifference to the skill of the worker as such, as is 
 possible where numbers may be a more important 
 consideration than even industrial equipment. 
 
 It has been the ever-increasing mobility and 
 fluidity of both Labor and Capital which has 
 compelled a recognition of the world-wide nature 
 of Competition under modern industrial develop- 
 ment. Finding, wherever there was human Ufe, 
 that there also was the possibility of increased 
 competition in the struggle for existen^ce. Labor, 
 through unremitting efforts to fortify itself, has 
 become conscious of the world-wide nature of this 
 force. Like an onward surf, the tide of human life 
 has surged toward industrial opportunity. Labor, 
 in its thought of self, has been compelled to see 
 that it must have regard for Hmnanity as a whole. 
 
 Labor has come to recognize its interests as 
 akin to those of Humanity, because most work- 
 men no longer are owners of their own tools, no 
 longer obtain employment in their own shops, no 
 longer work upon materials which for the time 
 being are their own, and no longer sell the prod- 
 ucts of their own labor. They find themselves, on 
 the contrary, possessed of little save their skill and 
 
THE WORLD ASPECT 55 
 
 energy; human beings who work with equipment 
 which belongs to others, in estabUshments owned 
 by others, upon materials the property of others, 
 and who leave to others the disposition of the 
 wealth they have helped to produce. Working- 
 men and women have come to realize that, in the 
 ever-changing conditions of Industry, they exist 
 as atoms in a human tide so vast, and subject to 
 such ceaseless ebb and flow, that the effort to secure 
 collective stability becomes the first requisite of 
 existence itself. 
 
 For reasons precisely analogous, Capital also has 
 come to seek its security in consohdation, as under 
 the unifying influences of Discovery and Inven- 
 tion, the circles'of industrial competition have con- 
 tinued to expand wider and wider. No longer do 
 men of limited means find it possible to reap large 
 gains in isolated ventures. For one who succeeds, 
 a thousand fail. Demand is no longer local; supply 
 is no longer local. Development has gone on and 
 on from the day when locaUty competed with 
 locahty, and industry with industry, to the present 
 time, when markets are world markets and con- 
 tinent competes with continent. 
 
 Before the advent of the telegraph and the cable, 
 to say nothing of the time ere the locomotive sup- 
 planted the road coach, and the steamship the sail- 
 ing vessel, the Stock Exchange played httle or no 
 part in international transactions. To-day it has the 
 
56 INDUSTRY AND HUMANITY 
 
 important news of the world ahead of parhaments 
 and embassies. Through the Exchange, fortunes 
 may be won and lost on the outcome of battles, 
 before it is known by participating regunents to 
 which army victory or defeat has come. The inter- 
 dependence of Industry between continents was 
 apparent half a century and more ago, when fac- 
 tories in Lancashire closed because of conditions 
 affecting the cotton crop in the Southern States, 
 and drought in Egypt and India brought depres- 
 sion to trade in Britain. This interdependence 
 has intensified ever since. Panic in New York 
 or London creates financial depression throughout 
 the world. Industrial difficulties in any one coun- 
 try may affect all. The War has shown us that no 
 longer can any man live to himself alone, or any 
 nation. 
 
 The world-wide nature of forces at work upon 
 Capital is reflected in the world's commerce. It 
 also, like a mighty tide sweeps now in this direc- 
 tion, now in that; deepening or deserting former 
 channels; nowhere constant, everywhere seeking 
 or forsaking anew. Capital has sought in different 
 ways, to fortify itself against the cross-currents of 
 this ceaseless change. At first, its countless com- 
 peting units struggled one against another; little 
 by little, they began to coalesce, and the process 
 has so continued. Industry no longer resembles the 
 innumerable stars of the sky by night, as it once 
 
THE WORLD ASPECT 57 
 
 did with its distribution of power in a multitude 
 of hands. More and more, through its consoUda- 
 tions, Industry has come to bear resemblance to 
 the' earth's physical distribution. Its combinations 
 of influence and interests are so vast that isolated 
 enterprises are but as islands of the sea compared 
 to continents that yield a power as one. 
 
 But while Labor and Capital have become 
 conscious of the world-wide scope of the forces of 
 competition to which each finds itself increasingly 
 subjected, neither seems to have come as yet to 
 realize the degree to which the other is being 
 affected in a manner similar to itself. Each is still 
 preoccupied with the gigantic proportions of its 
 own problem. Labor appreciates the ever-increas- 
 ing competition affecting itself. It has been slow 
 to recognize the subtlety and magnitude of forces 
 which divert capital from one industry to another, 
 and which occasion its movement from one conti- 
 nent to another. Capital, likewise, has keen regard 
 for the world influences which render necessary its 
 constant watch for new avenues of quick and sure 
 returns. It is ready and willing enough to secure 
 itself in ever-growing aggregations against the haz- 
 ards of smaller units. It gives little heed to the 
 individual lives that suffer or are sacrificed by its 
 rapid transitions; and is slow to concede to La- 
 bor, in Labor's struggle against world forces, facili- 
 ties of combination like unto its own. 
 
58 INDUSTRY AND HUMANITY 
 
 Appreciation by Labor of the fact that the forces 
 of competition against which Capital has to con- 
 tend operate on a world scale, and appreciation by 
 Capital of the fact that the forces of competition 
 against which Labor has to contend also operate 
 on a world scale, would materially further mutual 
 recognition of common as contrasted with opposed 
 interests; and aid in an understanding, by each of 
 the parties, of the difficulties with which the other 
 is beset. Such an outlook would go a long way 
 toward the solution of differences that arise. Like 
 appreciation by nations of the nature and magni- 
 tude of forces of which all are obUged to take ac- 
 count, would tend toward wider sympathy and 
 understanding, and clearer discernment of the 
 common enemies of mankind. In industrial and 
 international relations, recognition of like diffi- 
 culties and uncertainties will do more than any- 
 thing else to promote the spirit of co-operation and 
 constructive good-will by which alone estrange- 
 ments and antagonisms are to be overcome. 
 
CHAPTER III 
 
 THE HUMAN ASPECT 
 
 A NEW world of Industry came into being in the 
 epoch which witnessed the transition from the re- 
 gime of hand tools to the regime of machines. 
 Individuals and locahties were lost to sight in an 
 expansion which compelled regard for continents 
 in the movements of labor and of capital alike. 
 In the disappearance of the personal relationships 
 between the parties to Industry, and in the growth 
 of impersonal attitudes occasioned by vast and 
 complex organization, lies the crux of the Labor 
 Problem. Where machines and natural powers 
 can be substituted for human beings and human 
 energy; where the entire world presents one vast 
 field for investment, in which, by a stroke of the 
 pen, millions of dollars of capital may be trans- 
 ferred from one industry to another, and from one 
 hemisphere to another; it is perhaps inevitable that 
 Labor should be regarded, in the markets of the 
 world, not as representative of individual lives, 
 to whom all that existence holds dear is of para- 
 mount concern, but as a commodity to be valued 
 solely on an economic basis, or, at best, as the 
 expression of so much human effort. 
 It is wholly natural that men, preoccupied with 
 
60 INDUSTRY AND HUMANITY 
 
 the world aspect of competition as it affects re- 
 sources and markets, should overlook the far- 
 reaching consequences of the altered relations 
 between employer and employee. Under condi- 
 tions of world competition, the problems of organ- 
 ization and finance are so large that those who are 
 concerned with them necessarily hesitate to assume 
 the obhgation of giving thought also to personal 
 contacts. The Une of least resistance is to leave 
 the frictional aspects of industrial relations to be 
 dealt with as they arise. Where ready and frequent 
 touch between the parties has continued, common 
 understanding and a sense of reciprocal obliga- 
 tion have also continued. All expansion, however, 
 renders more difficult and remote the continual 
 contacts characteristic of Industry in its simpler 
 forms. Recognition of personality, and what it 
 involves, is none the less of first importance. A 
 wholly new problem in the understanding and 
 management of Labor is thus created. 
 
 Were men actuated by like motives, and did 
 they entertain similar conceptions of human worth 
 and destiny, the problem of industrial relations, 
 even in its present complicated form, would be less 
 perplexing. The world, however, is composed of all 
 kinds and conditions of people, and it is the "all 
 kinds and conditions" who meet in the world 
 markets, and who are one another's rivals. The 
 man of high ideals is confronted by the man who 
 
THE HUMAN ASPECT 61 
 
 laughs at ideals; the man of honor has to compete 
 with men of low cunning; the man who would 
 make material progress serve spiritual ends finds 
 hunself surrounded by men who would sacrifice 
 every spiritual aspiration to material aggrandize- 
 ment. This, unhappily, is not a local condition; 
 it would appear to exist wherever men congregate. 
 
 Moreover, human nature is frail. Many begin 
 with lofty motives, and descend to lower ones. 
 They come to mistake the means for the end. 
 Especially is this true of the pursuit of wealth. 
 The high purposes it may be made to serve, and 
 even the capacity for its enjoyment, have time 
 and again been lost in efforts at acquisition. Man 
 is forever erecting altars to the glory of God, and 
 forever worshipping at them in pride of self. 
 
 The problem, too, would be freed of some of its 
 perplexities were conditions the same within com- 
 peting areas. How much easier it would be to 
 take adequate account of human values, were 
 employers guaranteed equal privileges and bound 
 by identical restrictions; were there for all hke 
 accessibility to resources and markets; were intelli- 
 gence and skill invariable; and were the standards 
 of living the same throughout the world ! Instead 
 of similarity, however, there is diversity every- 
 where. Not only do regulations governing Indus- 
 try differ as between locality and locality; but as 
 between the laws of the several states within any 
 
62 INDUSTRY AND HUMANITY 
 
 one country, there are amazing differences; and 
 there are even wider differences between the laws 
 of one country and those of another. Not only do 
 standards of living differ as between peoples in- 
 habiting the same country; there are actual differ- 
 ences in civilizations between competing countries. 
 All the while the cosmopolitan trend of modern 
 times is helping to intensify international compe- 
 tition. 
 
 While in China in 1909, I learned that steel 
 ingots were being exported from the Iron and 
 Steel Works at Woochang to the United States. 
 Woochang is on the left bank of the Yang-tse 
 River, opposite Hankow, and is a journey inland 
 from Shanghai of about six hundred miles. From 
 this port in China, the weighty cargoes were car- 
 ried by sea thousands of miles around the Horn 
 to the eastern coast of America. After the payment 
 of customs dues, the ingots were distributed by 
 rail to different points in Pennsylvania and New 
 York. It was stated that, later on, some of this 
 steel found its way to Canada. The motive of the 
 several parties to these transactions was not 
 philanthropic. It paid the Chinese to export, and 
 it paid the Americans and Canadians to import, 
 or these shipments would not have been made. 
 Except for the handicaps of tariff and transporta- 
 tion, the laborers in the iron, and steel industries of 
 New York and Pennsylvania might as well have 
 
THE HUMAN ASPECT 63 
 
 had their Chinese brethren working in adjoining 
 plants, with no regulations as to hours or other con- 
 ditions of labor, and with standards of hving the 
 reverse of such as are maintained by legislation in 
 advanced communities. 
 
 The coohe laborers in Woochang were receiving 
 the equivalent of $3.20 to $4.00 a month, the la- 
 bor attending furnaces the equivalent of $8.00 a 
 month, and the skilled workmen $8.00 to $16.00 
 a month. Foremen received $24.00 a month. 
 Nearly all worked twelve hours, by day, or by 
 night, except at the weekly intervals when the 
 shifts were made from day to night work, and from 
 night to day work. At such times, there were 
 continuous stretches of eighteen hours. Except 
 for the Chinese New Year, there were no holidays. 
 The mills were being operated 364 days in the 
 year, and over the greater part of the plant there 
 was no stoppage of work on Sundays. The capital 
 invested in the industry had little or nothing to 
 lose through demands from Labor for increases in 
 wages or reductions in hours; or from interrup- 
 tions to work through scarcity of labor or from 
 strikes. So plentiful was labor that the Company 
 at Woochang found it more profitable to employ 
 cooUes to work by hand than to install labor-sav- 
 ing devices to load and unload the ships which 
 carried iron ore from the mines to the works. In 
 the labor markets of America, there may have been 
 
64 INDUSTRY AND HUMANITY 
 
 hundreds of laborers, possibly thousands, to draw 
 from; in China there were milhons. Moreover, 
 Chinese women were just as proficient as men in 
 getting coal out of the mines, and in performing 
 other kinds of unskilled labor, and were as exten- 
 sively employed. Some of the workers of both sexes 
 were as young as from twelve to fourteen. 
 
 This picture suggests considerations serious 
 enough with respect to foreign competition, where 
 foreign labor is confined to its own countries. 
 Unfortunately for domestic labor, the competition 
 of foreign labor is not thus confined. In some of 
 the industrial areas of America, there are com- 
 munities much more suggestive of a Federation 
 of European States than of the United States of 
 America. There are even Asiatic communities 
 of not inconsiderable size. These foreign colonies 
 compete, in ways immediate or remote, with men 
 and women born to citizenship in the Union. The 
 legacy bequeathed through the importation of col- 
 ored races from Africa and the Indies represents 
 but one of the many competitive strata which 
 American Labor has encountered as a consequence 
 of poMcies which have ignored considerations other 
 than economic. 
 
 It is across this universe of competing civiliza- 
 tions, of competing races, of competing standards; 
 across this world arena in which men, women, and 
 children, of all kinds of upbringing, and all degrees 
 
THE HUMAN ASPECT 65 
 
 of intelligence, vie with machines in carrying on 
 the world's production, that financiers distrib- 
 ute accumulated wealth as it becomes available 
 for investment. The Stock Exchange is quick to 
 make known opportunities abroad, as well as at 
 home. And so the circle of competition widens, 
 and within it, from centre to circumference, pefsist 
 the varying conditions, the fluctuating tendencies, 
 the remorseless and never-ending change. 
 
 In the reign of Queen Elizabeth, an official 
 named Gresham observed that where different 
 metals were in circulation as coinage and some 
 were better than others of the same nominal value, 
 the coins made of the inferior metal tended to 
 drive the better out of circulation. The better 
 coins were either hoarded or melted down and 
 sold as bullion, were used in the fine arts, or were 
 absorbed in the foreign exchanges. In other words, 
 what Gresham discovered was that cheaper money 
 tends to drive out dearer; that when people begin 
 to discriminate between two coinages, they will 
 invariably pay out the inferior and hoard the bet- 
 ter, thus removing the better from circulation. 
 This phenomenon once generally observed came to 
 be described as a "Law," and was identified with 
 Gresham' s name, since it was Gresham who was 
 first successful in drawing public attention to it. 
 Amongst money-changers, Gresham' s Law of the 
 
66 INDUSTRY AND HUMANITY 
 
 precious metals is better known than the Ten Com- 
 mandments. 
 
 Something analogous to Gresham's Law will be 
 found to obtain in the case of competing standards 
 in Industry. Assuming there is indifference in the 
 matter of choice between competing commodities 
 or services, but that in the case of such commodi- 
 ties or services the labor standards involved vary, 
 the inferior standard, if brought in this manner 
 into competition with a higher standard, will drive 
 it out, or drag the higher down to its level. This is 
 effected by the opportunity of under-selling which 
 comes, where in such cases human well-being is 
 sacrificed to material ends. The superior standard, 
 not being recognized or demanded, is unable to 
 hold its own, and in time disappears. This Law is 
 just as real and relentless in its operation in In- 
 dustry as Gresham's Law of the precious metals is 
 with respect to money and the mechanism of ex- 
 change. Indeed, a more accurate exposition would 
 describe both as manifestations of one and the 
 same law, which I propose to call the Law of 
 Competing Standards. I see no reason why econo- 
 mists should not recognize the existence of such a 
 law, and incorporate it immediately in economic 
 science as being quite as significant as the Law of 
 Supply and Demand, the Law of Diminishing Re- 
 turns, or any other Law accorded a place in its 
 nomenclature. 
 
THE HUMAN ASPECT 67 
 
 The Law of Competing Standards is doubtless 
 a part of the general Law of Competition, under 
 which the cheaper of two commodities gains in 
 competition a preference over the dearer. What 
 Gresham discovered was an important sequence 
 of the Law of Competition as appUed to coinage; 
 namely, the disappearance, in the course of time, 
 of the superior metals. Observance of a hke se- 
 quence in the case of standards in Industry is 
 highly desirable. As respects labor standards, I 
 beUeve that recognition of the operation of the 
 Law of Competing Standards over ever-widening 
 areas would do more than aught else to clear up 
 the most baffling problems with which Industry 
 is confronted, and to point the way to a solution 
 of many situations which hitherto have seemed 
 incapable of solution. Let me cite one or two ex- 
 amples from investigations with which I have had 
 to do. 
 
 During the winter of 1896-97, while attending 
 the Graduate School of the University of Chicago, 
 I hved at the Hull House Social Settlement. I was 
 preparing, at the time, a thesis upon labor organi- 
 zation in theUnited States and trade-union meth- 
 ods.' The Settlement and its surroundings and 
 my studies brought me into touch with such con- 
 crete problems as those presented by the tendency 
 
 ^ "Trade-Union Organization in the United States," Journal 
 of Political Economy, March, 1897; "The International Typographi- 
 cal Union," Journal of Political Economy, September, 1897. 
 
68 INDUSTRY AND HUMANITY 
 
 of foreign populations in large cities to become 
 grouped into "colonies" representative of different 
 nationalities; and by the tendency of home Ufe to be 
 transferred from single dwellings into overcrowded 
 tenements, allied too often, through opportunities 
 of social intercourse, with some neighboring saloon 
 and its light, warmth, music, and boon compan- 
 ions. The problem of "the sweated trades" was 
 another of the problems confronted. 
 
 Reflecting since upon the significance of much 
 that I saw while at Hull House, it has seemed to 
 me that every one of the undermining processes 
 commonly observed in the slum areas of cities is 
 but a manifestation, in one form or another, of 
 the workings of the Law of Competing Standards. 
 Take the foreign populations: without drawing 
 invidious distinctions, it is apparent in every city 
 that when certain races get possession of particu- 
 lar localities, the other races disappear. Take the 
 problem of housing: the tenement, brought into 
 competition with the single dwelling, will soon 
 supplant it. Every large industrial city has seen its 
 streets of humble homes transformed by degrees 
 into overcrowded tenement districts. The lower 
 standard dwelling, once brought into effective 
 competition with the dwelUng of a superior class 
 causes the latter to vanish. As respects tenants, 
 if different classes are permitted to compete, the 
 lower class once in possession eventually drives out 
 
THE HUMAN ASPECT 69 
 
 the higher. It is in this way that slums are created. 
 They represent the low ebb to which communities 
 are brought where inferior standards have been 
 permitted to drive out the superior. The tendency 
 that creates a slum intensifies as the conditions 
 that occasion it develop. 
 
 Having observed these tendencies in Chicago, 
 on my return to Canada in the summer of 1897, 
 I wrote a series of articles for the "Mail and 
 Empire," Toronto, on possible similar develop- 
 ments in Canadian cities. Among topics dealt 
 with were, the foreign populations of Toronto, the 
 housing of the working people, and sweating in 
 industry. In visiting the homes of workers in the 
 garment trades in company with a Labor friend, 
 I came across letter carriers' uniforms being made 
 up under contracts awarded by the Post OfTice 
 Department of Canada. On questioning one of the 
 workers as to the remuneration she was receiving 
 for sewing machine and hand work, I found that it 
 came to a very few cents an hour. I shall never for- 
 get the feeling of pained surprise and indignation 
 I experienced as I learned of the extent of that 
 woman's toil from early morning till late at night, 
 and figured out the pittance she received. The 
 circumstance that it was Government work, and 
 that the contracting firm was one of high repute in 
 the city, did not lessen the resentment I felt. As 
 I visited other homes and shops, I found the con- 
 
70 INDUSTRY AND HUMANITY 
 
 dition of this woman's employment to be in no 
 sense isolated, but all too common. 
 
 Mr. Mulock ^ was Postmaster General at the 
 time. He was a member of the Liberal Administra- 
 tion formed by Sir Wilfrid Laurier after the Gen- 
 eral Elections of 1896. He resided in Toronto, and 
 was in the habit of coming from Ottawa to Toronto 
 at the week-ends. Mr. Mulock and my father were 
 friends. Both for many years had been members 
 of the senate of the University of Toronto. I 
 thought the conditions of which I had knowledge 
 should be brought to the Postmaster General's 
 attention. In the University association, there was 
 a bond on which I felt I could rely. I decided, at 
 all events, not to pubhsh the article on "sweat- 
 ing" till the Government had had its chance. 
 
 On the ensuing Sunday afternoon, my father 
 and I called on Mr. Mulock. It was even better 
 than I had anticipated. The Postmaster General 
 walked the floor Uke a caged Hon, and wanted to 
 know what should be done to remedy immediately 
 such an abuse of pubhc patronage. I suggested 
 that conditions might be inserted in pubhc con- 
 tracts to ensure to the Labor employed a mini- 
 mum wage which would be a fair compensation 
 for the work performed; that wherever work for 
 the Government was being executed, the premises 
 
 • Now Sir William Mulock, Chief Justice of the Exchequer 
 Division of the Supreme Court of Ontario. 
 
THE HUMAN ASPECT 71 
 
 should be open to inspection; and that sub-con- 
 tracting hkely to lead to sweating on Government 
 contracts should be prohibited. Mr. Mulock asked 
 me to write out the conditions there and then, and 
 to meet him the following morning at the offices 
 of the firm holding the contract with his Depart- 
 ment. He said he would see that matters were so 
 altered as to give to labor conditions a place in 
 existing and all future contracts of the Post Office 
 Department. He was as good as his word. 
 
 A day or two later, I received from Ottawa an 
 official communication asking if I would make a re- 
 port to the Government upon the methods thereto- 
 fore adopted in Canada in the carrying out of Gov- 
 ernment clothing contracts. Special mention was 
 made of the manuf actiire of uniforms for Canadian 
 Post Office officials, the MiUtia, and the North- 
 West Mounted Police. Early in January, 1898, I 
 submitted a report to the Government. ^ It re- 
 vealed in no uncertain fight the evils incident to 
 unregulated Government contract work during the 
 preceding ten years, and the need of Government 
 intervention to prevent the continuance of like 
 abuses in connection with future contracts. 
 
 I mention this investigation and report because 
 of what they disclose of the operation of the Law 
 of Competing Standards. The inferior standards of 
 
 * "Report to the Honorable the Postmaster General on the 
 methods adopted in Canada in the carrying out of Government 
 Clothing Contracts." King's Printer, Ottawa, 1898. 
 
72 INDUSTRY AND HUMANITY 
 
 industry in one Province had been played off 
 against the better standards in others. Within the 
 separate Provinces, the workshop standard had 
 been played off against the factory standard, and 
 the home standard against the workshop standard. 
 Machines operated by power had been played off 
 against machines operated by the worker without 
 mechanical aid; machine work had been played off 
 against hand work; work by the piece, against work 
 by the day or week; and the work of women and 
 girls, against the work of men. Even the unpaid 
 work of "learners" had been set over against the 
 work of expert hands. More than that, the sub- 
 contractors of one nationality had been placed in 
 competition with those of another, and the bids of 
 sub-contractors had been played off against each 
 other. Pin-money earnings of one class of workers 
 had been played off against the extreme necessities 
 of other classes. With what result upon labor stand- 
 ards? In some instances, women and girls had been 
 working excessive hours, under unwholesome sani- 
 tary conditions, and had been receiving for actual 
 work performed payment at the rate of three and 
 four cents an hour! Contractors, in one or two in- 
 stances I learned of, had received profits, on the 
 contracts the Government had awarded, as high as 
 one hundred per cent! The lowest standard came 
 to prevail wherever economic conditions permitted 
 its apphcation. The mean man was enabled to 
 
THE HUMAN ASPECT 73 
 
 profit because of his meanness. As inferior stand- 
 ards came into effective competition with superior 
 standards, the efficient and faithful worker was re- 
 duced, nttle by httle, to lower levels. 
 
 Incidentally, it may be of interest to mention 
 that action subsequently taken by the Government 
 to suppress sweating was made the occasion, in 
 March, 1900, of the introduction by Mr. Mulock, 
 in the House of Commons of Canada, of what is 
 known as The Fair Wages Resolution, whereby all 
 Government contracts are required to contain con- 
 ditions which will prevent abuse arising from sub- 
 letting, and which will secure to Labor on Govern- 
 ment cbntract work the payment of such wages as 
 are generally accepted as current in each trade for 
 competent workmen in the district where the work 
 is carried out. It was the adoption of this resolu- 
 tion as a part of Government pohcy that, amongst 
 other things, led in the same year to the creation 
 of the Department of Labor of Canada by the 
 Laurier Administration. 
 
 The anti-Asiatic riots which occurred on the 
 Pacific coast in 1907, first in California, and later 
 in British Columbia, have been referred to as fore- 
 bodings of "the Japanese menace" and "the yel- 
 low peril." Though the riots themselves were httle 
 more than momentary outbursts of passion, they 
 evidenced an underlying feehng of fear and anta- 
 gonism on the part of Labor in America toward 
 
74 INDUSTRY AND HUMANITY 
 
 the Oriental races, a feeling which, under sufficient 
 provocation, might engender at any time the most 
 serious of international problems. Many circum- 
 stances combined to bring me into intimate touch 
 with the problems arising out of the competition 
 of Oriental Labor, and to compel a close study of 
 fundamental considerations. After the trouble in 
 British Columbia, I was appointed to investigate 
 the losses sustained by the Japanese and Chinese 
 populations in that Province. * Subsequently, I 
 received a commission to inquire into the broad 
 question of immigration to Canada from the Ori- 
 ent.^ The year following I was sent to England as 
 the representative of the Government of Canada 
 to confer with Lord Morley, Secretary of State for 
 India, on the subject of immigration to Canada 
 from India, and to negotiate an understanding with 
 the British and Indian Governments with respect 
 thereto.^ These missions were followed by visits 
 to India, China, and Japan, and official conferences 
 with the authorities in those countries on the rela- 
 tions of the peoples of the Orient and America. 
 About the same time, on the invitation of Mr. 
 Roosevelt, then President of the United States, I 
 visited England expressly for the purpose of con- 
 
 ' Vide Reports Nos. 74-f and 74-g. King's Printer, Ottawa, 
 1908. 
 
 2 Report of Royal Commission. Government Printing Bureau, 
 Ottawa, 1908. 
 
 ' Report No. 36-a. King's Printer, Ottawa, 1908. 
 
THE HUMAN ASPECT 75 
 
 veying messages from the United States to Japan, 
 through the British Foreign Minister, Sir Edward 
 Grey, respecting the significance to America of 
 unrestricted immigration from the Orient. The 
 mission at the time was wholly confidential; it has 
 since been referred to pubUcly by Mr. Roosevelt. 
 
 At the root of the strained situations in every 
 one of the important transactions mentioned, lay 
 the insidious workings of the Law of Competing 
 Standards, creating unrest of the most grievous 
 kind, and threatening the gravest sort of interna- 
 tional complications. It was estabUshed standards 
 that Canadian and American Labor were jealous 
 of; — standards, bestowed in part by Nature, but 
 won also in part through struggle and self-denial. 
 
 The problem of immigration from the Orient 
 can be solved with satisfaction to the peoples of 
 the Orient, as well as with justice to Labor in 
 America, if it is dealt with as an economic problem, 
 which it is; not as a problem of race, or color, or 
 creed, which it is not. It is a question of compet- 
 ing labor standards, and its solution, alike for the 
 Orient and America, Ues, not in permitting the 
 highest standards to be brought to the level of 
 the lowest, but in seeking to raise the lowest to the 
 level of the highest. In this vast undertaking, the 
 Orient and the Occident have each much to learn 
 from the other. The Occident may help to spread 
 knowledge of the industrial arts and sciences, and 
 
76 INDUSTRY AND HUMANITY 
 
 gain acceptance for a conception of the value of 
 human Ufe which will dignify labor, raise the status 
 of women and children, put limits upon excessive 
 toil, and awaken a wider interest in world affairs. 
 The Orient may teach something of thrift and 
 frugality, of the happiness which comes from plain 
 living and high thinking, and of obligation in 
 family and social relations. 
 
 The Japanese, once they understood our motives, 
 showed themselves as ready to meet us half-way, 
 as we were to go haK-way to meet them. A half- 
 way meeting was essential. Because the Chinese 
 have been less assertive, we have presumed upon 
 our superior position to ignore their feelings. The 
 exclusion of any class of any friendly people by 
 the imposition of a poll-tax, in this day of inter- 
 national co-operation, can only reflect upon the 
 peoples who impose it. Let the operation of the 
 Law of Competing Standards be explained sym- 
 pathetically to the Chinese, as it has been to 
 the Japanese and the Indians, and as respects 
 emigration, they as readily will find means of ac- 
 comphshing a restriction of numbers, in a man- 
 ner which in no way reflects upon their race or 
 citizenship. 
 
 I am glad to mention here a fact not hitherto 
 made pubhc. Before leaving for China as a member 
 of the International Opium Commission, ^ which 
 
 ' A phase of the problem of Oriental immigration illustrative of 
 
THE HUMAN ASPECT 77 
 
 met at Shanghai in 1909, I was authorized by Sir 
 Wilfrid Laurier, then Prime Minister of Canada, 
 to confer with the Chinese Government respect- 
 ing an arrangement between China and Canada 
 whereby immigration from China to Canada 
 might be regulated by international agreement. 
 At the time, Chinese immigration to Canada was 
 being restricted, as it still is, by a revenue-pro- 
 ducing poll-tax, which serves to sell into slavery 
 thousands of coohe laborers, and which meets 
 with questionable efficiency the restriction of num- 
 bers at which it is aimed. The project of finding 
 a substitute for the obnoxious poll-tax had the 
 hearty endorsation of the British Government, 
 and in negotiating the terms of an agreement, for 
 matters developed propitiously to that point, I 
 had the counsel and support of Sir John Jordan, 
 the British Minister in Peking. There remained 
 little more than the formal acceptance by the 
 Governments of the two countries of the terms of 
 the agreement tentatively reached, when the ques- 
 tion of Reciprocity in Trade between Canada and 
 the United States came up as the burning ques- 
 
 one of the many bearings of the Law of Competing Standards upon 
 national conditions and international relations, will be found in a 
 report I prepared for the Government of Cemada in 1908 on The Need 
 for the Suppression of the Opium Traffic in Canada (King's Printer, 
 Ottawa, No. 36-b, 1908). This report was followed by the enactment 
 by Parliament, in the same year, of An Act to Prohibit the Importa- 
 tion, Manufacture, and Sale of Opium for Other than Medicinal 
 Purposes (7-8 Edward VII, c. 5o). 
 
78 INDUSTRY AND HUMANITY 
 
 tion in Canadian Politics. It was decided by the 
 Prime Minister to defer final action until after 
 this question had been disposed of. The Canadian 
 General Elections followed in September, 1911, and 
 the Government of Sir Wilfrid Laurier was de- 
 feated on the Reciprocity issue. About the same 
 time, the Chinese Revolution occurred, and the 
 Government in China with which I had had ne- 
 gotiations disappeared with the overthrow of the 
 Monarchy and the estabUshment of the Chinese 
 Repubhc. It would be hard to imagine negotia- 
 tions more effectually terminated ! However, what 
 the negotiations revealed of appreciation by the 
 Chinese of the significance of the Law of Compe- 
 ting Standards as affecting international relations, 
 and what they expressed of good-will between the 
 British and Chinese peoples is not apt to be for- 
 gotten. Some day, like efforts will be resumed, and 
 a happier expression given to professions of inter- 
 national amity and respect than that which the 
 poll-tax suggests. 
 
 However much the tendency toward the level- 
 hng of labor standards has been hitherto restricted, 
 from now on, under the facihties for world trans- 
 portation, the activities of world finance, and the 
 stress of the many other forms of world competi- 
 tion, the tendency is certain to make itself increas- 
 ingly felt, not only as between state and state, 
 and nation and nation, but also as between con- 
 
THE HUMAN ASPECT 79 
 
 tinent and continent. In new countries, the tend- 
 ency has been obscured by the exploitation of 
 virgin resources, and by the definite limits placed 
 upon competition, where population is sparse at 
 home and capital insecure abroad. In advanced 
 communities, it has been offset by regulation, 
 legislation, and organization aimed directly against 
 it. Until, however, regulation in Industry becomes 
 uniform and world-wide, until industrial standards 
 in all countries, and among all peoples, approxi- 
 mate equality, inventive genius may be expected 
 to provide capital with facilities for linking the 
 earth's resources with the world's markets, regard- 
 less altogether of the effect upon higher standards. 
 Once capital is secure in foreign investment, Indus- 
 try may be expected to find its way more and more 
 into those parts of the globe where mercenary 
 rather than humane considerations are determin- 
 ing factors. For years before the War, much of 
 the hand embroidery on Parisian gowns had been 
 the iivork of women, not in France, but in Southern 
 China! 
 
 The same Law of Competing Standards operates 
 in international relations. Nations that are without 
 regard for the sanctity of obligation make difRcult 
 the development of an international poUty upon 
 a basis of contract. The War is deciding whether 
 future international relations are to be on a basis 
 of contract to which honorable and peace-loving 
 
80 INDUSTRY AND HUMANITY 
 
 nations may expect adherence, or whether civiliza- 
 tion is to revert back to the ethics of the Stone Age, 
 where status and not contract, Might and not 
 Right, are determining factors. The country that 
 adopts a miUtarist type of organization compels 
 other countries to follow its example, or submit to 
 its insults. The undermining influence of lower 
 standards upon higher has no more conspicuous 
 example in international affairs than the reluctant, 
 though necessary resort to armed force by the 
 United States in order to maintain its sovereign 
 rights against German ruthlessness upon the high 
 seas. 
 
 In considering standards, whether within Indus- 
 try or between nations, there cannot be too clear 
 discernment between personnel and materiel; and 
 between what is to be regarded as a means to an 
 end and what as an end in itself. Industry as an 
 end in itself has regard only for material values. 
 Industry as a means to an end is concerned with 
 human life. As an end in itself. Industry stops 
 short at production, and its output is estimated in 
 material terms; as a means to an end, the purpose 
 of Industry extends beyond production to distribu- 
 tion. Its value to human society can be rightly 
 estimated only in terms of the effect of its distri- 
 bution upon the well-being of mankind. 
 
 All Industry is but the transformation of sub- 
 
THE HUMAN ASPECT 81 
 
 stances through human effort aided by natural 
 forces. From the earth, the air, and the water, 
 substances are extracted and transformed through 
 human effort into services and commodities avail- 
 able for human use. By exchange, involving dis- 
 tribution, these substances pass in theu" various 
 stages of transformation from one lot of workers to 
 another, to be possessed and used in divers ways 
 of satisfying human desire and need.i 
 
 It is as a transforming process, that the path 
 of Industry is beset with human tragedy, for it is 
 there that too often the workers are mistaken as 
 means to an end, instead of being regarded as ends 
 in themselves. It may well be that the co-opera- 
 tion of human beings with machines in the work 
 of production is responsible for this. As, however, 
 production is a necessary prehminary to distribu- 
 tion, the methods employed, and the existing labor 
 standards become matters of first concern. In 
 their effect upon human well-being, standards of 
 employment and working conditions are of even 
 greater significance than the subsequent distrib- 
 ution of wealth produced. If the path of Indus- 
 try as a transforming process can be made clear 
 of injustices, the more equitable distribution of 
 wealth will have ah-eady begun. It is in attempt- 
 
 ^ For a careful exposition of the nature of Industry, the reader is 
 referred to a volume by Logan Grant McPherson, entitled How the 
 World Makes Its Living. New York, The Century Co., 1916, refer- 
 ence to which in these pages is hereby acknowledged. 
 
82 INDUSTRY AND HUMANITY 
 
 ing to clear the path that the trend toward world 
 expansion in Industry presents such overwhehning 
 difficulties. It becomes apparent at last that the 
 well-being of the workers in one part of the world 
 is bound up with the well-being of workers every- 
 where, and that the maintenance of labor stand- 
 ards in any one country comes, sooner or later, to 
 depend upon their extension in some measure to 
 all. 
 
 As sharers in the transforming process, workers 
 in Industry are a means to an end. They differ 
 from other means, however, in remaining also 
 always ends in themselves. As instruments of 
 production, machines may become of equal and 
 even of superior value to many of the individuals 
 who contribute effort of body or of mind to their 
 operation. But there the comparison necessarily 
 ceases. To estimate relative values in any com- 
 prehensive way, a standard wholly different in 
 kind is required. The two are not the same. In 
 the one case, it is matter or material substance 
 that is being gauged; in the other, it is human life. 
 
 What value we will place upon individuals 
 engaged in the processes of Industry will depend 
 upon the estimate we put on human life. That in 
 turn will depend on the conception we entertain 
 of the nature of human existence and its destiny. 
 "Spiritual perceptions precede an understanding 
 of social and economic problems." The Christian 
 
THE HUMAN ASPECT 83 
 
 ideal of human existence is the highest, since it 
 endows man not with rational qualities alone, but 
 also with an immortal nature. It is in the image 
 of God Himself, not after the pattern of some in- 
 dustrial model, that all men, from the himiblest 
 to the greatest, have been created. There can be 
 no higher conception of the dignity of manhood, 
 nor of the possibiUties of human nature. How wide 
 the gulf between men and machines under such 
 a beUef! How unmistakable the difference be- 
 tween the material wealth which Industry creates, 
 and the spiritual ends it is intended to serve! 
 Other views may compel a regard for human hfe, 
 but none can inspire the reverence for it that the 
 Christian conception does. Beyond all that pro- 
 duction can do, there comes the demand for a 
 fuller hfe, — a life not of greater wealth, but of 
 larger vision; a hfe not of richer rewards, but of 
 keener perceptions and of kindUer feeUngs; not a 
 life of material satisfactions, but a hfe of purer 
 aims and nobler realizations; and this, not only 
 for the holders of stocks and bonds, but also for 
 the multitudes of workers whose identities are 
 obUterated in the industrial processes amid which 
 their years are spent. 
 
 Standards that fail to distinguish between per- 
 sonnel and materiel, and that ignore the sacred- 
 ness of human life, are without meaning as factors 
 in the ultimate solution of industrial problems. 
 
84 INDUSTRY AND HUMANITY 
 
 Wherever men and nations, in their industrial 
 and international relations, have failed to reahze 
 the fundamental difference between material ac- 
 cumulations and the higher purposes of human 
 existence which material things are intended to 
 serve, sooner or later conflict has followed. No 
 portion of Humanity, any more than the beings 
 of which it is composed, can long endure a divided 
 allegiance. Mankind cannot serve two masters. 
 The human spirit will rise supreme over material 
 considerations, or material aims will destroy the 
 human spirit. Until one is subservient to the other, 
 confHct will never cease. Material force may con- 
 quer material force, but where there is conflict 
 between the material and the spiritual, because 
 God-like in his nature, man will never rest until 
 spirit is supreme. 
 
 If a remedy is to be found for industrial and 
 international ills, the search must be illumined by 
 some behef in a lofty destiny. We must start from 
 a point of view wholly different from that in which 
 we have been silently acquiescing. In determining 
 our standards, emphasis must be laid, first, last, and 
 always, not upon material, but upon human con- 
 siderations. And our conception of the human 
 must have something of the spiritual about it. 
 
 Our failure to work out a satisfactory solution of 
 international and industrial problems is because 
 we have mistaken completely the nature of the 
 
THE HUMAN ASPECT 85 
 
 substances with which we have to deal. Especially 
 in Industry have we sought to sever the laborer 
 and his labor; to take account of labor as a com- 
 modity, and as so much material value. We have 
 been willing to ignore all that the recognition of 
 personality demands. We have based our reason- 
 ing on this as a material universe, when, in fact, so 
 far as human personality and its possibilities go, 
 the universe is meaningless apart from the life 
 of the spirit. We have thought of Industry as an 
 institution of purely material significance, of Na- 
 tionality simply as an abstraction; whereas the un- 
 folding of spiritual capacities, which both should 
 fxuther is the only true end of Life. 
 
 ' Industry and Nationality exist for the sake of 
 Humanity, not Humanity for the sake of Industry 
 or NationaUty. The production and use of material 
 wealth, and the political organization of society, 
 can be of enduring value to mankind only in so far 
 as they serve to advance human well-being. This 
 seems so obvious, one wonders it could anywhere 
 have been overlooked. How comes it, then, that 
 nowhere in human affairs has indifference to funda- 
 mental considerations occasioned greater injustice 
 than in Industry? 
 
 Because Industry has become a great world 
 affair, it is inevitable, as has already been sug- 
 gested, that those who are responsible for its 
 
86 INDUSTRY AND HUMANITY 
 
 management and direction should concentrate 
 their thought primarily upon quantity of output, 
 and accept as unavoidable, sacrifices in human 
 well-being involved. Moreover, directors and offi- 
 cers of industrial corporations are usually in the 
 position of trustees. The capital which, for the 
 time being, they control, represents the savings of 
 men and women, who expect returns secured by 
 business methods and unimpaired by philanthropy. 
 What is business, and what philanthropy, is 
 sometimes difficult to decide. Justice as a criterion 
 gives way very often to prevailing practice and 
 customary procedure. The dictum, "Business is 
 business," is sometimes cited in support of practices 
 which, apart from business, would be regarded 
 as immoral. Unfortunately, what to appearances 
 may be regarded as successful business may be, 
 from the point of view of the well-being of society, 
 the gravest of calamities. How often a good show- 
 ing on the year's business becomes the all-impor- 
 tant consideration! Where economies have to be 
 effected, instead of regarding Labor as the factor 
 in production entitled to first consideration, the 
 short-sighted and mistaken policy not infrequently 
 obtains of viewing Labor as of less importance 
 than organization and equipment. Where ma- 
 chines become impaired, their replacement be- 
 comes a direct charge upon the cost of production. 
 How often competition makes possible the substi- 
 
THE HUMAN ASPECT 87 
 
 tution of fresh workers for those whose energies 
 have been exploited ! 
 
 The science of wealth has all too readily been 
 accepted as a science of well-being. Because Po- 
 litical Economy has had to do with Labor and 
 Capital, and with the production, distribution, and 
 exchange of wealth, it has been assumed that what 
 Political Economy sets forth as laws or principles 
 governing the production of wealth are necessarily 
 laws and principles which should govern men in 
 all the relationships arising in Industry. Pohtical 
 Economy, as a consequence, has come to be viewed 
 as a heartless and dismal science. The fault is not 
 with the science of Political Economy, but with 
 those who have confounded its nature. 
 
 In considering Labor and Capital as factors in 
 the production of wealth, and in taking account 
 primarily of their economic, as distinguished from 
 their human values. Political Economy is but con- 
 fining its scope to its own province. Political Econ- 
 omy is not an art having as its objective the im- 
 provement of society, or the lot of the individuals 
 of which society is composed. In combination with 
 other sciences, it may contribute towards this end, 
 but as a science of wealth, it is with wealth alone, 
 its production, distribution, and exchange, that Po- 
 litical Economy is concerned. 
 
 The failure to remember that Political Economy 
 is concerned with only one aspect of hirnian rela- 
 
88 INDUSTRY AND HUMANITY 
 
 tions, and that it therefore necessarily excludes 
 many others, is responsible for much human injus- 
 tice. Some of the best of men hesitate to adopt 
 methods or permit changes dictated by humanita- 
 rian considerations, because of a more or less hon- 
 est conviction that, as the methods or changes do 
 not appear to accord with the precepts of Pohtical 
 Economy, they cannot be of enduring value. Such 
 persons forget that Political Economy is not con- 
 cerned with morals. So far as Pohtical Economy 
 bears a relation to moraUty, it is non-moral. As 
 a matter of fact, being avowedly the science of 
 wealth, Pohtical Economy of itself affords the 
 strongest of reasons for adopting, as respects hu- 
 man well-being, courses of action quite at vari- 
 ance with assumptions and principles which relate 
 primarily to material considerations. 
 
 Terminology, also, is responsible for a lack of 
 adequate appreciation of the essential importance 
 of the human factor m Industry. Labor and 
 Capital are abstract terms; so abstract, that they 
 provoke indifference to the very considerations 
 their usage should beget. To Capital, concerned 
 primarily with production. Labor signifies an eco- 
 nomic source to be drawn upon as opportunity and 
 circumstances permit. It is one of the "items" in 
 the cost of production. Only remotely does it sug- 
 gest individual human hves. Identified as Cap- 
 ital has become with corporate entities which 
 
THE HUMAN ASPECT 89 
 
 have neither souls to be saved, nor bodies to be 
 kicked, the thought that capital, with a small 
 "c," may also be entitled to a large "C" as repre- 
 sentative of human Uves swayed by like emotions, 
 subject to like passions, and influenced by ideals 
 similar to those which sway and influence the rest 
 of mankind, is a thought which seldom presents it- 
 self to Labor. 
 
 Of course, there is a profound distinction be- 
 tween the use of the words Capital and Labor as 
 apphed to the individuals they represent. Capital 
 is power controlled by an individual, and power 
 which is wholly separable from any particular 
 being. The capitahst and his capital may be 
 separated; not so the laborer and his labor. They 
 are inseparable. The laborer must go where his 
 labor is wanted. His life and person are a part of 
 his service. The power his labor represents can- 
 not be transferred to another. Apart from himself, 
 it is meaningless. The power of control exerciseable 
 through capital can be transferred. The transfer, 
 however, cannot be effected to any except other in- 
 dividuals. Apart from control by some individual, 
 capital is meaningless. This is an all-important 
 circumstance too often overlooked. The conditions 
 which bring capital into being, and the considera- 
 tions which determine its uses, are of concern only 
 in so far as they are affected by human motive, 
 and as they affect human hfe. In this way, capital 
 
90 INDUSTRY AND HUMANITY 
 
 becomes entitled to its large "C," and, apart from 
 the human factor, has little or no significance. 
 
 The real import of the human aspect of the 
 problems of Industry is only gradually coming to 
 be understood. As was the case with the world 
 aspect, Labor and Capital are as yet a long way 
 from realizing that what is common to human 
 nature is somethmg which is as deserving of con- 
 sideration in the other as in itself. When Labor 
 and Capital, and, equally also, nation and nation, 
 agree to set aside abstractions; when all learn to 
 distinguish between wealth and well-being; when 
 each sees the other sensitive to that to which it 
 is most sensitive itself; when, beneath the circum- 
 stances of fortune, men look no longer to the pas- 
 sions that divide, but rather to the sympathy that 
 unites, recognize the common sway of like im- 
 pulses and feelings, of like endeavors and aspira- 
 tions, then will the way be opened to a better 
 appreciation by each of the many difficulties of 
 the other, and a long stretch be taken on the road 
 that leads to common understanding, mutual for- 
 bearance, and enduring peace. 
 
CHAPTER IV 
 CONFUSION OR PROGRESS 
 
 In the ancient world, the mystery of existence 
 found one of its many expressions in the Sphinx. 
 In Greece, which gave to Art its finest conceptions 
 of strength and beauty, this creature was often- 
 est represented by the winged body of a Hon, and 
 the head of a woman. In Egyptian antiquity, the 
 figure was of somewhat similar shape, having the 
 body of a lion and most generally a human head. 
 We may be in doubt as to what these images sym- 
 bolized to the Ancients; but it will do them no 
 injustice to assume that, like ourselves, the peoples 
 of these former civilizations recognized the god- 
 like and the brute in man, and appreciated the 
 power of good and evil in all human beings. It is 
 related in Greek myth that this she-monster pro- 
 posed a riddle to the Thebans and killed all who 
 were not able to guess it; but that it was at last 
 solved by (Edipus, whereupon the Sphinx slew 
 herself. The modern world professes to have over- 
 thrown heathen superstition and idolatry. We 
 may well ask ourselves whether the image of the 
 Sphinx might not fittingly find a place at the doors 
 of our temples of Nationality and Industry! 
 If through Discovery and Invention, and the 
 
92 INDUSTRY AND HUMANITY 
 
 ever-expanding organization of Industry, the indus- 
 trial areas of the world are to go on shifting, and 
 existing industrial processes are to be replaced 
 continuously by other processes and methods; if 
 physical forces newly appUed on earth, and in the 
 air, and upon the sea, are to occasion movements 
 of men and materials in ever-changing directions, 
 and lead to continuous displacement of one class 
 of labor by labor of some other class, and the 
 dilution of labor of all classes by the utilization 
 of new powers or machines; if a kind of Gresham's 
 Law is ruthlessly at work insidiously dragging 
 higher standards in Industry down to the level of 
 lower ones; if capital is as capricious as fancy, 
 and as sensitive as mercury; above all, if the 
 individual worker has become a mere atom con- 
 tending against titanic powers, whilst local influ- 
 ences avail but Uttle against the sway of world 
 forces, — wherein, it may well be asked, lies the 
 hope of any solution of the problem of Labor ? Is a 
 kind of social anarchy not inevitable ? Can there 
 be any effective method of adjustment between 
 Capital and Labor, where a conflict of interest 
 arises, other than that of opposing Force by Force, 
 of offsetting the power of increasing accumula- 
 tions of capital, by increasing aggregations of la- 
 bor equally powerful? It would seem almost as 
 if, in industrial relations, the hopeless view might 
 become the accepted one, just as the idea that 
 
CONFUSION OR PROGRESS 93 
 
 national well-being is inseparable from military 
 power and domination has helped in the councils 
 of nations to inspire rivalry in armaments — 
 with what direful consequences the world is wit- 
 nessmg to-day! 
 
 Fortunately, the facts of Industry admit of con- 
 clusions quite the opposite. There is not a change 
 in the evolution of Industry, judged by what it 
 contains of potential service to Humanity, that 
 has not brought possibilities of ultimate social good 
 far outweighing immediate or apparent evil. There 
 is scarcely a change that has not made possible 
 more rapid and far-reaching spread of ideas. 
 
 Ideas are the determining factors. The minds 
 of men are interchanging thought to-day as never 
 hitherto in the history of the world. Never before 
 was there like growth in knowledge and intelU- 
 gence. Never before did the spheres of organized 
 social effort give promise of so rapid and vast ex- 
 pansion. Herein hes the way of escape from what, 
 in the maze of ever-changing conditions, seems to 
 render the Labor Problem impossible of solution. 
 It rests with man to determine his own fate. The 
 social order is not unchangeable. Like all the rest, 
 the social order is itself subject to change in accord- 
 ance with ideas that may be made to prevail. 
 
 Take, first of all, Discovery: the discovery of the 
 earth's surface, its resources and powers. Every- 
 
94 INDUSTRY AND HUMANITY 
 
 where under its sway, the world has had to read- 
 just former notions. Schools of thought, systems 
 of philosophy and organization, vast commercial 
 and industrial enterprises, have had to change, or 
 go by the board, and with them, the ruin of reputa- 
 tions and of men. Who is there, possessing aught 
 of the increase of knowledge Discovery has brought, 
 would wiUingly see the world return to its former 
 ignorance? Advance is of the very essence of Dis- 
 covery. It is in the nature of revelation. All prog- 
 ress is but a forward movement into wider vistas 
 of light and truth. 
 
 If the discovery of America meant the disap- 
 pearance of the North American Indian, it meant 
 also the planting of a higher civilization on the con- 
 tinent that divides the great oceans of the world. 
 If it made possible the importation of slaves from 
 Africa, it made possible also the migration of the 
 Puritans, and the ultimate abolition of slavery in 
 America, and in many another part of the world. 
 All that we mean by enlightenment is the fruit of 
 Discovery, and upon Discovery the spread of en- 
 hghtenment throughout the world depends. 
 
 Is not greater ultimate good true also of Inven- 
 tion? It has been well said that "it is the nature 
 of Invention to create surpluses"; that "an inven- 
 tion means that the same results are got with less 
 outlay of resources. Either more sources of supply 
 are found, or the existing supphes go further, so 
 
CONFUSION OR PROGRESS 95 
 
 that in either case there is a surplus for new use. 
 Or else there is a surplus of effort, less work being 
 needed to get the suppUes and make them avail- 
 able. And quite usually there are both kinds of 
 surpluses at once, so that more suppUes are got for 
 less effort." ^ In how many directions and on how 
 unlimited a scale has this been the case, and how 
 salutary are many of the consequences that have 
 flowed from it! Yet every new invention threatens or 
 injures some one. As is well known, the apphcation 
 of new inventions to Industry has been the occasion 
 of much friction and indeed of serious uprisings. 
 
 When natural power was first apphed to weaving 
 in England, riots occurred, and the power looms 
 and frames were smashed. It was thought by the 
 weavers that they were about to have their means 
 of hveUhood taken from them. Weaving deserted 
 the cottages and forsook the farms for factories 
 and towns. For the tens and hundreds whose loss 
 of employment was temporary, thousands secured 
 permanent employment later on. Multitudes have 
 been clothed ever since who would have gone 
 scantily clad, had weaving remained the hand in- 
 dustry it once was. 
 
 Some years ago a foreign syndicate sought to 
 introduce railroads into China. Permission to com- 
 mence construction was obtained from the author- 
 ities only upon the condition that a horse rail- 
 
 ' D. H. Macgregor, The Evolution of Industry, p. 3i. London. 
 
96 INDUSTRY AND HUMANITY 
 
 road and not a steam railroad was to be built. The 
 road was intended to be a model one, and the route 
 selected was from Shanghai to Woosung, a distance 
 of twelve miles. When it was completed, the syn- 
 dicate, beUeving opposition would soon be silenced, 
 put on a steam engine, the parts of which had been se- 
 cretly brought into China and assembled at Shang- 
 hai. Immediately riots occurred, and the property 
 of the company was destroyed to such an extent 
 that, to avoid complications with foreign govern- 
 ments, the Government of China was obliged to 
 purchase the road. It was disposed of to the Chi- 
 nese Government on the condition that it should 
 be operated for a year. The Chinese Government 
 executed the contract in good faith. At the expira- 
 tion of the year, however, they ripped up the road, 
 rails and ties, and together with other equipment 
 and rolUng stock placed the whole enterprise 
 on shipboard, and transported it to the Island of 
 Formosa. There it was dumped upon the beach 
 and left, a thing of dread to the soUtudes of the 
 great waste. Doubtless the act was, in part, one of 
 protest against the deception of foreigners. It was 
 even more an exhibition of hatred against a foreign 
 invention. The foreign syndicate's mistaken course 
 delayed the introduction of railways into China 
 for a number of years; but the Chinese themselves 
 have since come to recognize raihoads as the pio- 
 neers of a new civilization. 
 
CONFUSION OR PROGRESS 97 
 
 The behavior of Invention is one vast paradox. 
 It gives by seeming to withhold. Not infrequently 
 it reduces the inventor to poverty, while it en- 
 riches hundreds who have never heard mention of 
 his name. If it robs one man of a hving, by the 
 same act it may lessen the cost of hving to thou- 
 sands. Whilst it cuts off employment in one direc- 
 tion, in others it opens whole avenues of fresh op- 
 portunity. If it has made machines competitors 
 with men, it has also, through machines, reheved 
 labor of much of its drudgery. If it lessens the 
 quantities of materials and labor required for pro- 
 duction, articles affected thereby may be so re- 
 duced in cost as vastly to enhance the demand 
 for Uke materials and labor. Moreover, changes in 
 one trade stimulate other trades. 
 
 At the time of its introduction in England, the 
 steady blast in furnaces, made possible by the ap- 
 plication of power, saved sixty-six per cent, of the 
 coal required. It led within a very few years to a 
 greatly increased demand for coal, through the 
 vastly increased manufacture of iron. In the latter 
 part of the eighteenth century, the substitution of 
 coal for wood gave a stimulus to mining. It also 
 led to expansion in the iron trades. The iron trade 
 led to an expansion of the canal system; which in 
 turn led to the development of new industries. Es- 
 pecially has this kind of effect been true of the in- 
 ventions that have gone to cheapen the cost of 
 
98 INDUSTRY AND HUMANITY 
 
 transportation and communication. Trade has been 
 so stimulated as to increase demand all round. As 
 human power was replaced by water power, and 
 water power by steam and electricity, the output 
 of Industry ceased to be restricted by the numbers 
 of individuals to be found in particular localities, 
 or to be limited by their proximity to the sources 
 of power, fuel, and materials. The possibilities of 
 production increased indefinitely. Changes of the 
 kind have gone on developing, and the circle of 
 their influence has widened until they have be- 
 come operative on a world scale. It is the story of 
 industrial expansion. It has meant a vast increase 
 in quantity, an improvement in quaUty, and a les- 
 sening in cost of both services and conunodities 
 available for human use. 
 
 If antagonism to Invention has been considera- 
 ble, how much greater has been the opposition 
 aroused by the development of the organization of 
 Industry on a large-scale! Possibly no prejudice 
 has surpassed in intensity that which has been felt 
 against " CapitaUsm." Nor are there lacking ample 
 grounds for the prejudice. In the first place, the 
 substitution of large-scale organization in Industry 
 for the domestic system, made possible by capital- 
 ist direction in the last century and a half, has 
 wrought more change in the social order than the 
 combined forces of many preceding centuries. The 
 
CONFUSION OR PROGRESS ' 99 
 
 transition has been accompanied by inconceivable 
 hardship and injustice. The large-scale organiza- 
 tion of Industry has been mainly, if not all but ex- 
 clusively, responsible for the shifting of industrial 
 areas, the subdivision of industrial processes, the 
 divorce between agriculture and manufacturing, 
 the congestion of cities, the rivalry between men 
 and machines, the increased competition of for- 
 eign with domestic labor, and the competition of 
 women and children with men. It has helped to 
 break up communities and households, and to 
 scatter their famihes over all quarters of the globe. 
 Worst of all, it has occasioned the instabiUty charac- 
 teristic of modern industrial hfe, and has rendered 
 inevitable the commercial depressions, the financial 
 panics, and the violent industrial crises which have 
 become recurring phenomena of our times. 
 
 Under the domestic system, trade was localized, 
 production was for the home market. If employed 
 in manufacturing, the worker, through being asso- 
 ciated with the land, had another string to his bow : 
 he had the opportunity of raising products and using 
 pubhc pasture. If engaged in agriculture, he had 
 the possibility of adding to his earnings through 
 weaving in his own home. In agriculture and 
 manufacturing there were two sources of income. 
 One or the other gave way with the divorce of In- 
 dustry from the land, which was coincident with 
 the divorce of Labor and Capital. 
 
100 INDUSTRY AND HUMANITY 
 
 Once Industry was organized on a basis of com- 
 petition with the outside world, and a vast external 
 trade developed, it was inevitable that the sudden 
 cutting off of one trade should produce great suffer- 
 ing. Wherever there is expansion, there is neces- 
 sarily the possibihty of contraction. Where raw 
 materials are brought from abroad and the markets 
 for the sale of material are distant or foreign, in- 
 stead of proximate and local, shortage of materials 
 or closing of markets inevitably disturbs the whole 
 system of trade and industry. Workers are thrown 
 out of employment. If dependent solely on wages, 
 their lot is doubly precarious. Such is the nature of 
 Industry as it exists in large part to-day. 
 
 With fluctuations in wages, have come also fluc- 
 tuations in prices. In the middle ages, both as re- 
 gards food and fuel, the artisan was certain of little 
 change. Under the stress of world competition and 
 fluctuations in trade, the cost of hving has become 
 subject to constant variations. Sometimes it is 
 lower, sometimes it is higher than at others, but it 
 is never wholly stable. So, as respects both income 
 and outlay, the modern worker lives subject to the 
 play of forces wholly beyond his control. Real 
 wages are dependent upon prices that are subject 
 to fluctuations; nominal wages are dependent upon 
 employment, which fluctuates with the fluctuations 
 in trade. 1 Fluctuations in trade are influenced by 
 
 ' Adam Smith says: "The real wages of labour may be said to 
 
CONFUSION OR PROGRESS 101 
 
 fluctuations in credit; and credit is so sensitive as 
 to be affected by variations in policies and even in 
 opinion ! 
 
 Most men are compelled to experience some of 
 the hardships incidental to the instability of mod- 
 ern Industry, Simultaneously they witness the se- 
 curity wealth affords its possessors. They realize 
 that large-scale enterprise has helped to create 
 fabulous fortunes. Is it any wonder they should 
 come to identify a form of industrial organization 
 with but some of its effects, and overlook other 
 consequences more important in their social bear- 
 ings? Being sensitive to immediate needs, and 
 knowing little of world conditions, is it strange the 
 majority of men should fail to see that a form of 
 Industry suited to self-contained conmiunities is no 
 longer possible under a transition which has sub- 
 stituted world for local markets, and interdepend- 
 ence for seK-sufficiency in Industry and Trade? 
 
 Men have rightly recognized the power for evil 
 which lies in the control of vast organization in In- 
 dustry, and of vast wealth. They have been horri- 
 fied by exposures of manifest wrongs. What so many 
 fail to see is that large organization of Industry and 
 vast wealth are in themselves neither good nor evil. 
 
 consist in the quantity of the necessaries and conveniences of life 
 that are given for it; its nominal wages in the quantity of money. . . . 
 The labourer is rich or poor, is well or ill rewarded, in proportion to 
 the real, not to the nominal, price of his labour." Wealth of Nations, 
 
 I, V. 
 
102 INDUSTRY AND HUMANITY 
 
 The control of either may contribute to vast injus- 
 tice; it equally affords opportunity for the largest 
 measure of service to mankind. Under present-day 
 conditions, both accumulations of wealth and large- 
 scale organization in Industry would be neces- 
 sary were every individual capitalist to be deposed, 
 and his possessions forfeited to and administered 
 by the State. Were the socialist state to come into 
 being to-morrow, under a regime of world competi- 
 tion the capitalist form of industrial organization 
 would still be necessary. The "State" might in 
 theory own all; the existing wage-system might 
 disappear; individual capitaUsts might cease to 
 exist. In actual practice, "pohtical managers" 
 would be substituted for "capitaUst managers." 
 Though differently controlled, the capitalist form 
 of large organization of Industry, with its division 
 of labor, its division of industrial processes, and its 
 divisions of industrial areas, would still remain. 
 
 It is not against the form, but against the possi- 
 ble abuses, of industrial organization, whatever 
 the system, that protests should be uttered. The 
 nation that sought to abandon its present for 
 earlier forms would lose its industries altogether. 
 No form of Industry unadapted to conditions of 
 world competition can any longer hope to survive. 
 Against the abuses which large and powerful or- 
 ganization makes possible, against evils to which 
 it may give rise, too much in the way of criticism 
 
CONFUSION OR PROGRESS 103 
 
 cannot be directed. Clear discernment between a 
 form of organization and possible abuses under it, 
 whether the control be individual or collective, will 
 save much confusion, and make possible speedier 
 adjustment of existing wrongs. 
 
 The problem of the distribution of wealth pre- 
 sents considerations separate and distinct from 
 those of the problem of the production of wealth. 
 It is well that this should be discerned. It is only 
 by clear and definite perceptions that it is at all 
 possible to hope to thread the industrial maze 
 towards the goal of ampler justice in human rela- 
 tions. Vast production of wealth makes a wider 
 distribution at least possible. With unlimited pro- 
 duction there may be marked inequaUties in in- 
 dividual fortunes; the lot of the many, notwith- 
 standing, may be improved. With population ever 
 increasing, increased production alone makes possi- 
 ble general improvement. How distribution is to be 
 more equitably effected is a problem of Education 
 and Government. Humanity stands to-day in re- 
 lation to world production where man stood, at the 
 beginning, in relation to Nature, only their posi- 
 tions are reversed. Man, not Nature, is now in 
 control. The problem of the possible production of 
 all but unlimited wealth is ah-eady solved. Growth 
 in human intelligence has wrought this achieve- 
 ment. Surely human intelligence may be reUed 
 upon to see that the problem of distribution, to 
 
104 INDUSTRY AND HUMANITY 
 
 which the production of wealth is a necessary pre- 
 liminary, will also find an equitable solution. 
 
 Most important of all the results of large-scale 
 organization of Industry has been its effect upon 
 production. It has gained the world-sway it holds 
 because it has rendered possible an all but unlim- 
 ited output. Under the domestic system, only a very 
 limited production was possible. The total wealth 
 resulting from Industry could never exceed what 
 human labor, assisted by such implements and tools 
 as human ingenuity had devised, could produce 
 from the materials at hand. With scanty resources, 
 small markets, and restricted methods of manu- 
 facture, every individual might be busily employed, 
 and the total wealth of an industrial community 
 continue comparatively small. Once Discovery 
 disclosed resources in all parts of the globe, once 
 man's inventive genius taught him how to harness 
 the powers of Nature, and improved means of 
 transportation and communication enabled him. to 
 traverse all lands and seas in search of materials 
 and markets, nothing, save the amount of capital 
 available for investment in Industry, could longer 
 place a Umit on total production. By facihtating 
 the development of resources wherever found, 
 and furthering the manufacture of commodities 
 and their distribution to markets the world over, 
 large-scale organization of Industry has made pos- 
 sible production of wealth wherewith to meet the 
 
CONFUSION OR PROGRESS 105 
 
 needs of mankind in a measure which surpasses 
 the dreams of by-gone centuries. It is in this very 
 form of organization of Industry that the hope, 
 not the despair, of Labor lies. 
 
 Large-scale organization is the one thing that 
 makes possible effective control of Industry by the 
 State. What would the problem of State control 
 be at the present time were individual control of 
 transportation, shipbuilding, fuel, power, muni- 
 tions, and foodstuffs distributed as it was a cen- 
 tury ago ! 
 
 Large-scale organization of Industry, by render- 
 ing possible increased production with gradual les- 
 sening of human effort, has paved the way for the 
 substitution of Democracy for Serfdom. Where 
 production was carried on under a regime of tools, 
 it was limited by individual human effort. Under 
 such conditions, constant and unremitting toil was 
 necessarily the lot of the many; opportunity of 
 leisure, the privilege of a favored few. In the 
 Greek city-state, which represented the highest 
 degree of culture in the ancient world, citizenship 
 was restricted to those in a position to live upon 
 the fruits of the labor of others. The workers were 
 not even freemen; they were slaves, politically as 
 well as industrially. During the Middle Ages, the 
 economic position of Labor improved with the 
 gradual introduction of money payments. Yet 
 wherever the manorial system prevailed, or the 
 
106 INDUSTRY AND HUMANITY 
 
 towns and cities remained the units of social organi- 
 zation, and Industry was regulated by the guild, 
 the mass of men had little or no voice in the affairs 
 of government. Not until barriers were broken 
 down in a multitude of directions did the proleta- 
 riat know aught of political freedom. Some leisure 
 to consider the problems of the State, some freedom 
 of movement both in time and place, the rudiments 
 of an education, and a measure of economic inde- 
 pendence, — all these are essential to a proper ex- 
 ercise of the rights of citizenship. For the mass of 
 men these possessions may still be far from what 
 they should be, but they are enjoyed at the pres- 
 ent time in fuller measure than at any previous 
 period in history. Whilst other factors have con- 
 tributed, it has been the production of wealth on 
 the scale rendered possible by the capitalist or- 
 ganization of Industry which has permitted the 
 shortening of the hours of labor and made possible 
 the rewards of effort, the educational and other 
 faciUties, which account in such large measure 
 for increased political activity under the enlarged 
 franchise of to-day. 
 
 Sir Henry Maine has shown that it is the move- 
 ment from status to contract in organized society 
 which distinguishes advanced communities from 
 barbarous. As respects the countries of the world 
 in their international relations, a Uke evolution, 
 as already pointed out, would seem to be in prog- 
 
CONFUSION OR PROGRESS 107 
 
 ress at the present time. Above all else, it is to be 
 hoped that as an outcome of the present war, na- 
 tions hereafter will recognize contract as the basis 
 of world civilization, and that an end will be put to 
 the barbarity which seeks justification in the doc- 
 trine that Might makes Right. If such a condition 
 of international polity should be effected, the or- 
 ganization of Industry on an ever-expanding scale 
 will have contributed in no small measure to the re- 
 sult. The interdependence of modern nations which 
 arises from the division of industrial processes and 
 the geographical distribution of Industry, demands 
 the recognition of the contractual basis as the 
 only basis on which Industry can hope to prosper. 
 More and more, international interdependence be- 
 gotten of large-scale organization in Industry will 
 compel respect for the sanctity of obligation on the 
 part of nations. From a recognition of contract as 
 the fundamental condition of world civilization, it 
 is but a step to an International Court of Justice 
 with authority to decide on controversies that 
 arise, and to a League of Nations supported by an 
 international police sufficiently powerful to enforce 
 all decrees. 
 
 Whilst the change from a natural to a money 
 economy, and the severance of Capital and Labor, 
 destroyed the immediate personal relations existing 
 under the old domestic system, they helped bring 
 
108 INDUSTRY AND HUMANITY 
 
 to workingmen a wider measure of personal inde- 
 pendence. If the cash nexus has broken the bond 
 of personal security, it has broken also the yoke of 
 personal subordination. The relations of master 
 and journeyman were those of superior and in- 
 ferior; the relations of employer and employee are 
 becoming more and more those of citizens in In- 
 dustry. The employer sells opportunity of service, 
 which brings him a return in the form of interest on 
 capital invested; the employee sells his services,' 
 which bring him a return in the form of wages. In 
 selhng his services, the employee does not necessa- 
 rily sell himself. This was too often the case under 
 a system surrounded by restrictions as to move- 
 ment both in place and time, and of which the 
 personal relationship was the outstanding feature. 
 The position of the workingman has changed in 
 modern communities from one based on status to 
 one based on contract. No longer does the obliga- 
 tion to labor arise from the inferior status of serf, 
 permitting no freedom of choice on the part of the 
 worker as to where and by whom his services are 
 to be employed. The present-day relationship of 
 employer and employee is one of obligation arising 
 out of contract, and one which presupposes equal- 
 ity of the parties before the law. Too often the 
 contract remains imphed; too often it is a one-sided 
 affair, so that the semblance to status remains in 
 many cases stronger than it otherwise should be. 
 
CONFUSION OR PROGRESS 109 
 
 Theoretically, however, the idea of duties based on 
 status has been superseded by a conception of con- 
 tractual rights as well as duties in all industrial 
 relations. The freedom of movement afforded by 
 modern agencies of communication and transpor- 
 tation, and increasing opportunities of voluntary 
 association, are tending to make practice and the- 
 ory more and more conform. 
 
 If Capital has been a disintegrating factor, 
 breaking up families, and scattering individuals as 
 atoms to the ends of the earth, more than any other 
 agency it has also been responsible for bringing to- 
 gether individuals in groups and communities, and 
 making possible an ever-increasing measure of as- 
 sociated effort. The right and power of voluntary 
 association has been made possible by Capital 
 through the change from a system of industrial re- 
 lations based on status to one based on contract. 
 The Trade Union and Co-operative movements, 
 the growth of Friendly Societies, developments in 
 Co-partnership and Profit-sharing, these and other 
 forms of associated effort have come into being in 
 virtue of the very forces which have occasioned 
 also a change from stabiUty to instability in the 
 position of the worker, and which severed the per- 
 sonal relationships that were an outstanding fea- 
 ture of the old order. Nor has voluntary association 
 been restricted to groups within any one nation. 
 The Trade Union and the Co-operative move- 
 
no INDUSTRY AND HUMANITY 
 
 merits have become international. Federations, Con- 
 gresses, and Conventions representative of many 
 countries, have become a feature of nearly all social 
 movements. As the chmax of co-operative effort, 
 the world has seen the free nations of the earth 
 sharing like sacrifices in the preservation of human 
 hberty. The transfer at will of capital from one 
 portion of the globe to another has made pos- 
 sible the co-operation of the aUied nations in the 
 present war. The power of united, co-operative 
 effort, convincingly demonstrated against a com- 
 mon enemy in time of war, is equally a factor for 
 social amelioration in times of peace. 
 
 With Labor restricted to one locahty or estate, 
 there may have been stability, but very often there 
 was also stagnation. In what it has permitted of 
 freedom in the management of time, and of facility 
 of movement from place to place. Capital has 
 tended to promote personal liberty. It is true that 
 while the serf was bound to the soil, the soil was 
 also bound to the serf. In this particular, as well 
 as in the personal responsibiUty which masters had 
 for the care of their slaves, many a serf and many 
 a slave of former times was better off than some of 
 the toilers in Industry to-day. If instead of regard- 
 ing only the high lights in the one case and the 
 shadows in the other, we take a bird's-eye view, 
 there can be no doubt that by facilitating change in 
 employment and the severance of uncongenial re- 
 
CONFUSION OR PROGRESS 111 
 
 lationships, Capital has greatly helped to remove 
 what is often most irksome, if not most burden- 
 some, in human lives. Capital not only makes it 
 possible for Labor in one locality or calling to take 
 advantage of better opportunities in other localities 
 and callings, but it actually searches out Labor to 
 this very end. By its very power of disintegration. 
 Capital has helped to diffuse the arts and indus- 
 tries in a manner destined to raise the level of hu- 
 man well-being throughout the globe. The world 
 over, it has helped to destroy barriers to progress. 
 The advance of civilization is measured no longer 
 by the favored position of the privileged few, but 
 by the improved condition in the lot of the many. 
 Xhe loss of stability which characterizes modern 
 industrial conditions may seem to outweigh, at 
 times, the advantages of the combined gains. Un- 
 certainty in anything is trying. Its terrors are most 
 of all felt where they relate to health and subsist- 
 ence. No words can do justice to sufferings endured 
 from these causes by workers the world over. In 
 normal times, uncertainty in some measure is ever 
 present. It is impossible to conceive what must be 
 the anxieties of f amiUes, dependent upon precarious 
 earnings, in times of industrial depression, or panic. 
 Still at no previous period in the world's history 
 have the problems of inconstancy of employment 
 and the causes of unemployment received hke at- 
 tention from investigators and governments. Con- 
 
112 INDUSTRY AND HUMANITY 
 
 siderable advance has been made, both by volun- 
 tary and State action, in preventing and meeting 
 the emergencies to which modern Industry gives 
 rise. More and more as voluntary effort has proven 
 inadequate, the State has exhibited a tendency to 
 come to the reUef of the worker in the perils of his 
 isolated position. 
 
 Under conditions of world-wide competition, Hu- 
 manity, not less than Industry, is becoming in- 
 creasingly sensitive over ever-widening areas. Never 
 before were the wants of one locality so quickly 
 known to others, or the resources of all parts made 
 so readily available to meet particular needs. Never 
 were the agencies of reUef what they are in number 
 and strength at the present time. There is this 
 about powerful combination, whether it be of Capi- 
 tal, of Labor, or of Government, that its knowledge 
 of conditions and its command of resources where- 
 with to cope with difficulties are greater than those 
 of lesser units. The record of actual occurrences 
 goes to show that where the call upon any of these 
 agencies has been urgent, it has seldom failed of 
 quick response. It is not to be doubted that, as 
 there comes a fuller understanding of the world 
 scale on which economic forces operate, regulation 
 more and more on a world scale will also follow. If 
 for no reason other than that of maintaining their 
 own standards, the advanced nations may be ex- 
 pected to share with increasing zeal in the task of 
 
CONFUSION OR PROGRESS 113 
 
 « 
 
 raising standards elsewhere, and of bringing about 
 that measure of effective co-operation which will 
 best promote the common interests of mankind. 
 
 The forces which have brought the peoples of 
 the world into competition are also the forces which 
 are helping to further a world unity. They are the 
 forces that have compelled recognition of Human- 
 ity's common interests. As respects fundamental 
 human needs, they will yet break all barriers of 
 class and nationality. All that has tended to make 
 the world increasingly one, and to render interna- 
 tional conflict on a world scale possible, has within 
 itself also the power to create a world harmony under 
 the spread of right ideas. Industry and the wealth 
 that Industry creates are means to this mighty 
 end. A Commonwealth founded on Industry, not a 
 World-Empire maintained by Force, will prove the 
 last word in industrial and poUtical development. 
 
 If changes in Industry which have occasioned 
 despair have also revealed grounds for the highest 
 hope, is there not somewhere in this remarkable 
 paradox a clue to the riddle propounded by the 
 modern Sphinx? Is it not that the brute instinct of 
 Fear must give way to the Sublime quality of Faith? 
 It is to the head, not to the body of the Sphinx, we 
 must look for inspiration. Reason, not Force, must 
 control. The Perfect Man, not the Perfect Brute, 
 is the purpose back of all creation. 
 
114 INDUSTRY AND HUMANITY 
 
 Poetical expression has been given this thought 
 in the following beautiful lines by the late Wilham 
 Wilfred Campbell : — 
 
 "Teach me the lesson that Mother Earth 
 Teacheth her children each hour, 
 When she keeps in her deeps the basic root, 
 And wears on her breast the flower. 
 
 "And as the brute to the basic root 
 In the infinite cosmic plan, 
 So in the plan of the Infinite Mind 
 The flower of the brute is man." ' 
 
 The flower of civilization lies in the perfection of 
 manhood, not in vast increase of material wealth 
 or material force. Industry exists for the sake of 
 Humanity, not Humanity for the sake of Industry. 
 As already observed, this is equally true of Na- 
 tionality. The root of the world's present distress 
 is to be found in a fundamentally wrong philos- 
 ophy. How different the story of the world's rela- 
 tions would be to-day had the Brute in the name of 
 the State not been permitted to control the Man ! 
 
 In human relations, whether poUtical or indus- 
 trial, the Contrary Laws described by Pasteur have 
 found expression, in one form or another, in the 
 age-long struggle of freedom against domination. 
 Indifferent to the sacrifice of human life, and regard- 
 
 ' " Invocation." The Sagas of Vaster Britain. The Musson Book 
 Co., Toronto, igid- 
 
CONFUSION OR PROGRESS 115 
 
 less of the burdens placed upon it, domination has 
 wrought out its will in accordance with the Law of 
 Blood and of Death. Freedom, on the other hand, 
 has sought to extend its sway in obedience to the 
 Law of Peace, Work, and Health, cherishing all hu- 
 man life, and scrupulously seeking to unfold its 
 every capacity. The brute seeks domination ; man, 
 an ampler freedom. Man ascends from his lower to 
 his higher nature as within himself the love of free- 
 dom transforms the desire for domination. So also 
 in the domain of Pohtics and Industry, all progress 
 is to be measured by the degree to which a desire 
 for domination is overborne by a love of freedom. 
 Freedom means the elimination of Fear. As Fear 
 diminishes, Freedom becomes a reality. Nations 
 and men become free as their fears vanish. This 
 has been true at all periods in history, and is true 
 of all departments of life. The fear begotten of ar- 
 bitrary power delayed constitutional government; 
 the fear of the inquisition withheld religious liberty; 
 the fear of imprisonment checked the freedom of 
 the press and public assembly. In a thousand and 
 one directions, men have less to fear to-day for 
 their property and their persons than they had a 
 few centuries ago; freedom has increased to that 
 extent. And yet Fear, in industrial and interna- 
 tional relations, is far from having fled this world. 
 At how great cost to freedom the fear of war has 
 been maintained, the desolation of Europe tells! 
 
116 INDUSTRY AND HUMANITY 
 
 In Industry, new fears have arisen, begotten of 
 the changes which Industry has undergone, and 
 the conditions it has helped to create. The growth 
 of cities and congested industrial areas has in- 
 creased the dangers of conflagration, infection, 
 and contagion. The use of machinery and of the 
 powers of steam and electricity has enhanced the 
 possibilities of accident and of sudden death. The 
 rapid and exacting nature of mechanical proc- 
 esses, and the unwholesomeness of many industrial 
 occupations and surroundings have lessened op- 
 portunities to advancing years and have brought 
 new risks to vitaUty and health. The increase in 
 the employment of women and young persons has 
 occasioned new problems of nervous strain and of 
 parentage. The interdependence of industries, the 
 subdivision of industrial processes, business depres- 
 sions, and financial crises have added, to seasonal 
 changes, far-reaching causes of inconstancy and ir- 
 regularity in employment. At the same time these 
 several factors react, as we have seen, upon wages 
 and prices. All that has lessened stability in Indus- 
 try has helped to beget new occasions of alarm. 
 
 And so, while some of the former fears remain, 
 new fears have come into being which circumscribe 
 the freedom of multitudes of men and women on 
 whose unremitting efforts the prosecution of Indus- 
 try depends. Fear of accident and sickness and 
 invalidity, fear of over-strain, and of unemploy- 
 
CONFUSION OR PROGRESS 117 
 
 ment, fear of sweating and of dependence; — all 
 these are vastly more real to men and women en- 
 gaged in Industry to-day than they were to former 
 generations. To these fears is now to be added fear 
 of industrial strife on a scale hitherto unparalleled. 
 Like the fear of war, this fear may seem ephemeral 
 until it is reahzed; but, hke war itself, industrial 
 conflict may be all the more frightful because of 
 hidden causes, long neglected, and possibilities al- 
 together unforeseen. 
 
 If such are the many fears of to-day, how are 
 they ever to be eliminated? What hope is there 
 of so regulating Industry, and of so influencing in- 
 ternational polity, that industrial and interna- 
 tional development may serve, not scourge, Hu- 
 manity? 
 
 It may well be that we shall have to strike deep; 
 that we shall, in fact, have to reject the theories 
 upon which we have been proceeding. Reahzing 
 that the materiaUstic interpretation of the universe 
 has brought death and confusion, we have ample 
 scientific grounds for beginning anew with the only 
 possible alternative, and attempting a solution of 
 our international and industrial problems in ac- 
 cordance with a spiritual interpretation of Ufe. 
 
 Nothing has occasioned more confusion than a 
 wrong application of the doctrine of the Survival of 
 the Fittest. Humane men, recognizing its obvious 
 
118 INDUSTRY AND HUMANITY 
 
 operation in the physical world, and deeming it 
 generally applicable, have striven, as respects in- 
 dustrial and political development, to reconcile 
 its seeming implications with teachings which ap- 
 pear quite contrary, and which alone appeal to 
 their nobler sensibilities. In the curious juxtapo- 
 sition of ideas thus presented, the struggle has 
 seemed to be between Christianity on the one side 
 and Material Force on the other; a struggle, in the 
 last analysis, between the Perfect Man and the 
 Perfect Brute. Into such strange dilemmas are the 
 minds of men led by a logic that overlooks funda- 
 mental differences! 
 
 The Law of the Survival of the Fittest is a biologi- 
 cal law, concerned solely with the relationship be- 
 tween organisms and their environments. It is not a 
 rule of conduct, nor a moral law. The struggle for 
 existence which the fit alone survive is a struggle 
 in the physical world between physical organisms 
 and their physical environments. Organisms that 
 are suited or able to adapt themselves to their en- 
 vironments survive, are called "fit"; the others 
 perish. But the struggle is one between organism 
 and environment, not between organism and or- 
 ganism of the same type. A struggle between hke 
 organisms of which the fittest alone survive would, 
 if indefinitely prolonged, wipe out the entire species. 
 Organisms suited or adapted to their environments 
 survive, whether their number be few or legion- 
 
CONFUSION OR PROGRESS 119 
 
 That is the real significance of the doctrine of the 
 " survival of the fittest" and the part it plays in 
 the "struggle for existence."* 
 
 So far as this biological law is appUcable to hu- 
 man beings, the organism of which account has to 
 be taken is not man as an isolated individual, but 
 mankind as a whole. Mr. Norman Angell has made 
 this apparent by pointing out that man as an indi- 
 vidual, apart from association with his fellows, 
 would die; and that it is through co-operation with 
 his fellow men that man becomes part of a living 
 organism, an organism that develops in vitality as 
 co-operation between its members becomes effec- 
 tive.^ In this view, any right application of the 
 struggle antecedent to the survival of the fit will be 
 seen to lie inman's struggle with his physical environ- 
 ment, not in any conflict between individual human 
 beings one with another. Mankind as a whole is the 
 complete social organism, and the planet or uni- 
 verse its environment. To this environment, man 
 is more and more adapting himself, not, however, 
 through conflict with his fellow man, but through 
 combined effort on the part of collective groups 
 against the forces of nature that thwart human 
 progress. Where there is strife and confusion, in- 
 stead of intelligent co-operation, between the hu- 
 man elements of which society is composed, man- 
 
 * Vide Social Progress and the Darwinian Theory, by Gieorge 
 Nasmyth, Ph.D. G. P. Putnam's Sons, New York, 1916. 
 2 Prassianism and its Destruction; also The Great Illusion. 
 
120 INDUSTRY AND HUMANITY 
 
 kind as an organism weakens itself, and in its strug- 
 gle against environment suffers proportionately. 
 The fact of man destroying his fellow man is con- 
 clusive evidence of itself that the organism exhibit- 
 ing such a condition has not attained its highest 
 form. An organism in conflict with itself is not 
 fitted to survive. A state of war, whether indus- 
 trial or international, long enough continued would 
 cause mankind to perish. 
 
 A world at peace in its international and indus- 
 trial relations, each part co-operating with the 
 others and effecting a co-ordination of effort aimed 
 at destroying every obstacle to perfect manhood, 
 would reveal a social organism rendering itself 
 "fittest to survive." It would not be a world de- 
 void of struggle for existence. Indeed, the true 
 meaning of existence being at last apparent, the 
 struggle would be keener than ever; but, as re- 
 spects the human beings that comprise Humanity, 
 it would be, not one against another, but all to- 
 gether in mortal combat against the common en- 
 emies of mankind. When the last chapter of the 
 story of man upon this earth is written, it will not 
 be the eras that have witnessed the fiercest human 
 struggles between nations and in Industry that will 
 disclose human society as best fitted to survive, 
 but the periods of history in which effective co- 
 operation and co-ordination of human effort have 
 been most extensive; and in which the law of hu- 
 
CONFUSION OR PROGRESS 121 
 
 man brotherhood, and not the law of the jungle, 
 has governed most widely in the relations of na- 
 tions and of men. Regarding mankind as one, self- 
 destruction, not self-preservation, characterizes the 
 epochs of strife. 
 
 The error that has given rise to so great confu- 
 sion of thought with respect to the doctrine of " the 
 survival of the fittest" in relation to Industry and 
 NationaUty is graver even than the error of its ap- 
 plication to the constituent elements of the social 
 organisms instead of to human society as a whole. 
 It Ues, as already pointed out, in any application 
 of a purely biological law to phenomena that are 
 other than biological. Consider the phenomena! 
 What is it that we wish to survive? Is it Matter, 
 or Spirit? The two are entirely different. If it be 
 Matter, then some brute method may enable us to 
 override all finer sensibihties for the sake of mate- 
 rial gain; and humane standards which help to pre- 
 serve and unfold human hfe may well give way to 
 standards of ruthless competition which take no 
 account of hfe. Even then, material loss will come 
 in the end. If, however, it be not Matter, but Life, 
 that we wish to preserve, then the standard that 
 is inferior must make way for the superior stand- 
 ard, whether the struggle be between competing 
 methods in Industry, or rival methods in matters 
 of international concern. Who will say that Prus- 
 sian MiUtarism is fitter to survive than the spirit 
 
122 INDUSTRY AND HUMANITY 
 
 of the free peoples who have opposed it? None, save 
 he who has a Prussian heart. 
 
 How the world in its thinking has fallen so 
 largely into the error of faiUng to distinguish be- 
 tween what are material and what are spiritual con- 
 siderations, is a part of the sequence of modern in- 
 dustrial evolution as already outhned. 
 
 The epoch of discovery and the epoch of inven- 
 tion which gave birth to modern Industry were 
 aUke related to a physical world. So vast, so al- 
 most overwhelming, was the new knowledge of the 
 globe, and of its illimitable natural resources; so 
 wonderful, marvellous in fact, the new knowledge 
 of the physical forces of nature and their practical 
 appUcation, that human thought became engrossed 
 in a world of matter, created, as it were, anew. An 
 epoch of scientific research succeeded the epochs 
 of discovery and invention, and occupied itself 
 primarily, and almost exclusively, with material 
 phenomena. The physical and chemical sciences, 
 because they could be practically and profitably ap- 
 phed, gained a commercial value which helped to 
 enhance their significance. Inventive genius turned 
 its energies to the discovery of mechanical appli- 
 ances and industrial processes. With the expansion 
 in Industry, came fresh developments in organiza- 
 tion and administration, all alike related to the new 
 material development, and all alike fostered by the 
 
CONFUSION OR PROGRESS 123 
 
 vast accumulations of wealth which it made possi- 
 ble. In the teachings of the universities, "Apphed 
 Science" gained a foremost place. Even Progress 
 itself came to be measured in material terms. ' 
 
 Strange, unexpected, but, withal, natural conse- 
 quences have followed this spread of materiaUsm so 
 generally accepted in theory and in practice. Un- 
 der the domination of thought concerned primarily 
 with a world of matter, ideals of personal obhga- 
 tion, earher conceptions of right and wrong in 
 human relations, while never wholly abandoned, 
 came, in the practical world, to receive an empha- 
 sis wholly secondary to that of the new knowledge 
 which spoke of "the struggle for existence" and 
 "the survival of the fittest." With almost child- 
 like simpUcity these new conceptions were every- 
 where apphed, whether the application related to 
 physical phenomena, to the study of which they 
 owed their origin, or to human conduct, the ethics 
 of which it is impossible to define in physical terms. 
 Such has been the unconscious drift towards the 
 material in all things, and away from a regard for 
 the spiritual, which a century ago men of fewer 
 possessions but of profounder natures held. The 
 logical result has followed; the inevitable crash has 
 come. A universe that is not a material universe 
 
 1 The reader is referred to a little volume entitled Whither? pub- 
 lished anonymously by Houghton Mifflin Co., igiB. Reference to this 
 source and use of its expressive phraseology are hereby acknowl- 
 edged. 
 
124 INDUSTRY AND HUMANITY 
 
 but a spiritual universe has refused to be ordered 
 and directed by material forces and ideas. To-day, 
 a world crushed beneath the weight of the material 
 ruin it has heaped upon itself, once more seeks to 
 fan into flame the spark which illumines man with 
 a true sense of his immortal destiny. 
 
 When all is over, and the ruin is complete, man 
 will once again survey his world. He will find the 
 universe unchanged, but his knowledge of it will be 
 other than what it was. The epoch of scientific re- 
 search will be followed by an epoch of reflection, 
 and of search, perhaps, after the invisible reahties 
 of life. In the thoughts and aims of men, the world 
 of matter, let us pray, will find a place subordinate 
 to the world of spirit which discloses its existence 
 not by means of chemical reactions, but through a 
 following after the Perfect Life. The world of mat- 
 ter, men will not deny; neither will they any longer 
 deny the world of spiritual reaUty, whatever theo- 
 ries they may entertain of its origin and destiny. 
 For it is spirit, not matter, that gives meaning to 
 " the sum of things entire " ; and the import is slight 
 or momentous as spiritual vision is dim or clear. 
 
 The universe of spirit, not the material universe, 
 needs now to be explored. Matter knows nothing 
 of aspiration and despair, of love and hate, of faith 
 and fear. Yet these are the chords of human sensi- 
 biUties upon which all the joy, all the passion, and 
 all the pathos of human hfe are expressed. The 
 
CONFUSION OR PROGRESS 125 
 
 materialistic interpretation of life has failed to give 
 us progress according to any true meaning of the 
 word. It has brought only death and desolation in 
 colossal measure. We must begin anew with a 
 spiritual interpretation of Ufe, and out of the hu- 
 man service which it inspires seek to reconstruct 
 our dismantled world. 
 
 The problem of the nature of the universe is 
 necessarily bound up with the parallel problem of 
 human personaUty. Abundance of Ufe is to be at- 
 tained, not through any brute struggle on the part 
 of men or nations in accord with some biological 
 law of the survival of the fittest, but through mutual 
 service in accord with the principles of a higher 
 law, the law of hiunan brotherhood which finds its 
 subUme expression in Christian sacrifice and love. 
 
 UnUke the Law of the Survival of the Fittest, the 
 operation of this higher Law of Christian Service 
 impUes social effort and is dependent upon an ex- 
 ercise of choice. In the struggle of the physical or- 
 ganism with its environment, it is, as we have seen, 
 the isolation of the organism, and the final impos- 
 sibihty of the exercise of any option, which deter- 
 mine its fate. Purely material things are incapable 
 of co-operation. Were spirit the same as matter, 
 there would be no difference between the living and 
 the dead. It is the fundamental difference between 
 man and animal or plant life, expressed in co-opera- 
 
126 INDUSTRY AND HUMANITY 
 
 tive effort based upon voluntary choice, that renders 
 the biological analogy inapplicable to the condi- 
 tion of human progress. This fundamental differ- 
 ence also explains how the tendency operating as a 
 sort of Gresham's Law with respect to standards 
 in Industry is capable of being overcome. Through 
 co-operative effort based on choice, higher stand- 
 ards may be made to prevail over inferior ones. 
 The choice, however, must be exercised in relation 
 to conditions as they affect life, not as they affect 
 forms of organization and material substances. 
 
 Industry may be a source of strength and vitality 
 to the individuals it employs; or it may be a whited 
 sepulchre, outwardly beautiful, fulfilling a seem- 
 ingly exalted mission, but within, a thing of rot- 
 tenness and filled with the dying and the dead. 
 The same is equally true of the State. In both 
 cases it is a matter of standards based upon recog- 
 nition of the fundamental distinction between ma- 
 terial and human values. The Law of Competing 
 Standards is a law applicable to material values, in 
 which human considerations are ignored. The Law 
 of Christian Service, everywhere expressed in mutual 
 aid, is a moral law. Its application is to human 
 life, which regards material considerations of value 
 only as they minister to human need. 
 
CHAPTER V 
 THE PARTIES TO INDUSTRY ' 
 
 Industry is the process by which the resources 
 of Nature are transformed through human effort 
 into services and commodities available for use. 
 Agriculture, fishing, lumbering, mining, manufac- 
 turing, transportation and communication, trans- 
 mission of light, heat, water and power, work of 
 construction of various kinds, all that pertains to 
 trade and commerce, and to skilled and unskilled 
 labor, are component elements of this vast process, 
 of which production is the basis, and exchange and 
 distribution derivative and contributing factors.^ 
 
 The effort necessary to effect the transformation 
 of natural resources into services and cormnodities 
 is the muscular and mental effort of human beings, 
 aided by the labor of brutes and by natural forces 
 which human beings control and direct, and by 
 
 1 While the principles enimierated in this treatise are applicable 
 to Industry in any and all of its branches, it is to branches of Industry 
 in which large-scale organization has most developed that reference 
 is primarily made. In many parts, agriculture, lumbering, and fishing 
 are still organized on lines resembling those of the old domestic sys- 
 tem. If the word Industry, as used, appears to refer primarily to such 
 branches as manufacturing, mining, and transportation, it is not 
 because the vast significance of other branches of Industry has been 
 overlooked, but simply that attention may be given more particu- 
 larly to problems which owe their origin in large measure to modem 
 developments. , 
 
128 INDUSTRY AND HUMANITY 
 
 tools, appliances, and machines, themselves the 
 result of human effort in the past. With the cease- 
 less expansion of Industry, this interweaving of 
 effort has developed on a world scale, and is shared 
 in by human beings in all quarters of the globe. 
 Industry is thus expressive of activities common to 
 Humanity, and its expansion is Humanity's Com- 
 mon task. So inexhaustible are natural forces and 
 other resources of Nature that the only hmit to 
 the possible development of Industry is the extent 
 and ingenuity of human effort. The extent of hu- 
 man effort is a matter of co-operation between the 
 parties to Industry; ingenuity, a matter of intelli- 
 gent co-ordination of functions. 
 
 Whilst Industry, as a whole, may be described 
 as one vast process, it is made up, in reaUty, of 
 an infinite series of processes constantly increasing 
 in number and variety. These processes are in- 
 cidental to the various stages of transformation 
 through which the resources of Nature necessarily 
 pass before being changed into services and com- 
 modities available for use. 
 
 At every stage in each of the several processes. 
 Labor is required to supply necessary effort. Be- 
 cause of the geographical distribution of Industry, 
 the division of employment within given areas, the 
 still further division of labor within particular em- 
 ployments, and the minute subdivisions consequent 
 
THE PARTIES TO INDUSTRY 129 
 
 upon the use of tools and machines, there is spe- 
 cialization of effort all along the Une. Through 
 this extensive and intensive specialization, the 
 work of multitudes of individuals is necessarily cir- 
 cumscribed and of different degrees of effectiveness. 
 Mr. L. G, McPherson, in a volume entitled "How 
 the World Makes Its Living," admirably describes 
 the essential differences in this detailed specializa- 
 tion. He says: "At one extreme are those whose 
 effort is hardly more than muscular, and is effective 
 only when exercised under direction of others as to 
 time, place, manner, and extent of application. At 
 the other extreme are those who by effort of the 
 brain take account of complicated factors and cir- 
 cumstances in guiding and directing the industrial 
 processes. Between the two extremes are work- 
 ers of varying degrees of effectiveness, into whose 
 physical and mental make-up different characteris- 
 tics enter in a myriad of combinations." 1 Knowledge 
 and skill in his particular work is the first requisite 
 of a worker; an appreciation of the relation of his 
 work to the process of which it is a part is the 
 next requisite; and this, together with an apprecia- 
 tion of the aim which he and the other parties to 
 Industry have in common, is essential to maximum 
 efficiency. 
 
 To carry on the several processes and effect the 
 
 ' Vide previous reference to this source. 
 
130 INDUSTRY AND HUMANITY 
 
 requisite transformations, capital, or, in other words, 
 the results of previous effort, must be contin- 
 uously available. Materials to be worked upon 
 are required, such as raw material, or materials 
 partially transformed ; articles to work with, such as 
 tools, appliances, and machines; and commodities 
 in the nature of food, clothing, and shelter to sus- 
 tain the workers. To render these various sub- 
 stances available in forms, quantities, and places 
 required, money is necessary for their purchase. 
 
 Money and credit are sometimes spoken of as 
 capital. They are such, not of themselves, however, 
 but in virtue of what their possession commands; 
 they indicate power of control because exchange- 
 able for desired commodities or services. So far as 
 the actual processes of production go, money is a 
 matter of figures in books, and insignia and figures 
 on metal and paper. The only real wealth is in the 
 nature of commodities and services which money 
 controls. All substances used in production for the 
 purt)Ose of further production are in the nature of 
 surplus wealth and are definable as capital.^ In 
 business, in speaking of capital, little or no dis- 
 tinction is drawn between wealth in the form of 
 money and surplus wealth in the form of other 
 
 ' Capital throughout this treatise is accorded its business signi- 
 ficance, and includes material possessions of any and every kind 
 which have exchangeable value or are in the nature of stuplua 
 wealth available for investment in Industry. It includes land where 
 immediately or incidentally related to industrial processes. 
 
THE PARTIES TO INDUSTRY 131 
 
 substances utilized to further production. This free- 
 dom of expression is quite permissible so long as 
 it is accompanied by an understanding of the es- 
 sential difference of function between money and 
 other forms of capital wherever the diiference is 
 material. 
 
 Not only are labor and capital necessary to In- 
 dustry, but at every stage, in fact at every point 
 throughout the entire process, there is need also of 
 co-ordination of effort, which imphes direction, 
 either self -direction on the part of the worker and 
 owner of capital, or direction on the part of others. 
 Direction of effort begins with the appUcation of 
 intelligence of the lowest order, in simply applying 
 force to matter through muscular effort, and ascends 
 through an infinite number of gradations to intelU- 
 gence of the very highest order, such as is necessary 
 in originating and devising means and methods of 
 co-ordinating and of increasing the value of human 
 effort. Whatever conserves human effort and ma- 
 terials, makes possible increased production. The 
 effective utilization of the forces of nature under 
 human direction, and the successful combining of 
 the activities of vast numbers of individuals, ac- 
 count for the enormous production of the world 
 to-day. Effort of itself is of httle value; it is effort 
 inteUigently directed that counts. 
 
 Where the capacity of directing and co-ordinating 
 
132 INDUSTRY AND HUMANITY 
 
 effort does not lie within the brain of the worker, 
 it must be supphed by direction of another. As 
 operations become more difficult and complex, as 
 the effort of the individual requires to be directed 
 toward many ends, and the effort of several indi- 
 viduals requires to be combined toward one or sev- 
 eral ends, a still higher order of skill and of directing 
 and organizing intelligence is required. A supreme 
 intelhgence would be required to direct and co- 
 ordinate "the efforts of all peoples of all stages 
 of advancement, in all parts of the world." Such 
 would be the task of co-ordination were Industry 
 throughout the world to be conducted on a basis of 
 completest efficiency. 
 
 Directing intelligence is a form of labor. It is 
 mental labor of a kind necessary to the co-ordination 
 of effort, as distinguished from labor that is mostly 
 muscular, which consists in the appUcation of 
 force to material substances. Whilst some element 
 of directing intelhgence is essential to the crudest 
 kinds of muscular effort, and some element of mus- 
 cular effort is essential to directing intelligence of 
 the highest order, the service rendered by direct- 
 ing intelligence, which is concerned mainly with 
 the co-ordination of effort and is largely divorced 
 from muscular effort, is so different in kind and de- 
 gree from the service of labor that is mainly muscu- 
 lar that the two may be regarded as separate and 
 distinct factors in production. In its distinctive 
 
THE PARTIES TO INDUSTRY 133 
 
 character, directing intelligence is referred to as 
 Management. In Industry, Management is con- 
 cerned with the disposition of the capital provided, 
 the erection and employment of machinery and 
 plant, the employment and direction of the work- 
 ing forces, the placing and acceptance of contracts, 
 the purchase of the raw material, and the sale of 
 the finished product. The performance of these 
 functions requires a wide knowledge of business, of 
 markets, of methods of distribution, of financial 
 conditions, and of human nature. 
 
 It is customary for economists to end the analy- 
 sis of the factors in production at -this point, and 
 to limit the parties to Industry to Labor, Capi- 
 tal, and Management, distinguishing, however, be- 
 tween land and capital, and admitting the own- 
 ers of land as an additional separate and distinct 
 party. In this treatise, customary business usage 
 has been sanctioned, and land and capital have 
 been combined under the heading of capital as 
 representing forms of wealth used for the produc- 
 tion of further wealth, a classification which, while 
 theoretically insufficient, is nevertheless accurate 
 enough to serve most practical pmposes in a discus- 
 sion on the problems of Industry. So long as it is 
 remembered that what is said of the ownership of 
 capital in the strict sense of that word appUes 
 equally to the ownership of land, and that when 
 
134 INDUSTRY AND HUMANITY 
 
 interest as a reward for the use of capital is referred 
 to, thought must also be had of rent as the reward 
 for the use of land, the single classification may 
 help to avoid needless repetition of thought and 
 expression.! 
 
 There is a party to Industry, however, which 
 economists are wont to overlook, a party which 
 furnishes opportunity to all the others, and with- 
 out whose impUed sanction and co-operation the 
 other parties could effect nothing. That party is 
 the Community ,2 and of the Community account 
 must also be taken if industrial relations are to be 
 viewed in their entirety. If Labor, Capital, and 
 Management are to be described as co-operating 
 in production, and therefore as partners in Indus- 
 try, and if the grounds of partnership are those of 
 necessary co-operation in all industrial processes, 
 
 1 Rent as a reward for the use of land is strictly in the nature of 
 Interest and differs from "rent" in the economic sense which is in the 
 nature of increment accruing from position, etc. 
 
 * While the Community comprises the three parties to Industry 
 known as Labor, Capital, and Management, it is not the sum of the 
 three. It is not only something more; it is something different. It is, 
 in reality, a separate and distinct entity. There is good reason, on 
 account of the services the Community renders Industry, for regard- 
 ing it as a distinct party and deserving of separate consideration. 
 
 The use of the word "Community" seems preferable to the use of 
 the word "Public," though the two are often interchangeable. There 
 is greater definiteness about the word "Community." At the same 
 time, it is sufficiently flexible to lend itself to contraction and expan- 
 sion in meaning where it is necessary to emphasize the area within 
 which a people share a common interest with respect to the subject 
 under consideration. 
 
THE PARTIES TO INDUSTRY 135 
 
 then the Community must also be admitted to the 
 partnership. Perhaps the Community might, with 
 appropriateness, be designated "the silent part- 
 ner," since most of its contributions, though sub- 
 stantial, pass unheralded. Let the Community 
 once fail in doing what is expected of it, and Labor, 
 Capital, and Management also necessarily fail in 
 the due performance of their respective services. 
 Industry becomes like some vast mechanism out of 
 gear. The processes of Industry jangle; sooner or 
 later they become silenced altogether. 
 
 It is the Community which provides the natural 
 resources and powers that underlie all production. 
 Individuals may acquire title by one means or 
 another, but it is from the Community, and with 
 the consent of the Community, that titles are held. 
 It is the Community, organized in various ways, 
 which maintains government and foreign relations, 
 secures law and order, fosters the arts and in- 
 ventions, aids education, breeds opinion, and pro- 
 motes, through concession or otherwise, the agen- 
 cies of transportation, communication, credit, bank- 
 ing, and the like, without which any production, 
 save the most primitive, would be impossible. It 
 is the Community which creates the demand for 
 commodities and services, through which Labor is 
 provided with remunerative employment, and Capi- 
 tal with a return upon its investment. Apart from 
 the Community, inventive genius, organizing ca- 
 
136 INDUSTRY AND HUMANITY 
 
 pacity, managerial or other ability would be of lit- 
 tle value. Turn where one may, it is the Commu- 
 nity that makes possible all the activities of Indus- 
 try, and helps to determine their value and scope. 
 
 The parties to Industry, then, are four in num- 
 ber: Labor, Capital, Management, and the Com- 
 munity. Five they would be, were Land to be 
 distinguished from Capital, and separately desig- 
 nated. By the joint co-operation of all four. In- 
 dustry is carried on and wealth produced. Out of 
 the wealth produced comes the reward of each of 
 the several contributing factors. "Wages" is the 
 term applied to the reward Labor receives for 
 its contribution to production; "interest" denotes 
 the reward Capital receives; "rent," the reward 
 paid its owners for the services rendered by Land; 
 and "salary," the reward of Management. The re- 
 ward to the Community, though not obtainable in 
 the same manner, is not unhke the reward of the 
 other parties. What Labor, Capital, and Manage- 
 ment receive as reward is in reality so much pur- 
 chasing power wherewith to obtain commodities 
 and services. The Community receives its reward 
 in increase of quantity or improvement of quality 
 of services and commodities available in exchange 
 for purchasing power. This gain, it will be seen, 
 is the equivalent of additional purchasing power. 
 The Community is also entitled to reward in the 
 
THE PARTIES TO INDUSTRY 137 
 
 shape of an orderly organization in the develop- 
 ment and conduct of Industry. This is but return 
 in kind for the service the Community renders 
 the other parties to Industry in preserving law 
 and order and promoting orderly organization and 
 peaceful behavior throughout the State. 
 
 Whilst doubt and debate may arise as to the ex- 
 tent of the relative services of the several parties 
 to production, and the consequent appropriate re- 
 ward of each, there can be no question concern- 
 ing the essential nature of the services themselves, 
 and their absolute interdependence. There can be 
 no doubt concerning the aim which, as parties to 
 production, they have in common. Labor, Capi- 
 tal, Management, and the Community are as de- 
 pendent one upon the other for the results which 
 their combined efforts produce, and from which all 
 receive the rewards of their services, as a chain is 
 dependent for its strength upon each of its individ- 
 ual links. The quantity and quaUty of the output 
 from which the parties to Industry are rewarded are 
 as entirely matters of the successful co-operation 
 and co-ordination of their effort as the total of a sum 
 in arithmetic is the result of the figures added to- 
 gether. 
 
 Wages, interest, rent, salaries, are paid out of 
 total production, which is never constant, but is an 
 ever-increasing or diminishing flow. The commodi- 
 
138 INDUSTRY AND HUMANITY 
 
 ties and services for which wages, interest, rent, 
 and salaries, in the form of purchasing power, are 
 exchangeable represent the sum total of produc- 
 tion. On production depends the quantity and 
 quaUty of output, and on output depends the 
 amount of wealth available for distribution. The 
 total community, production determines the total 
 community income. It can be neither more nor 
 less. However opposed the interests of the par- 
 ties may seem to be as respects the distribution of 
 income derivable from total production, as respects 
 production itself they are concurrent, since it is to 
 the advantage of each that the total available for 
 distribution should be as large as possible.^ 
 
 In conventional treatises on political economy, 
 the factors essential to Industry, and their re- 
 spective functions would be enlarged upon under 
 the main divisions of production, distribution, and 
 exchange. It is beyond the scope of this work to 
 attempt any such review of economic theory. This 
 study is necessarily confined to a consideration of 
 the single problem of the proper adjustment of the 
 immediate relations which arise between persons 
 engaged in Industry, and to the enunciation of a 
 few fundamental principles, regard for which is 
 in the interest of the parties to Industry, and the 
 
 1 Vide Memorandum on the Industrial Situation After the War, 
 par. i44- The Garton Foundation, 1916. 
 
THE PARTIES TO INDUSTRY 139 
 
 well-being of society. Inasmuch, however, as all 
 that contributes to efficient production, or indeed 
 to efficiency of any and every kind, makes possible 
 a more perfect adjustment of industrial relations, 
 it may be well to point out that the field for con- 
 structive effort in this connection is well-nigh un- 
 limited. 
 
 Wise governmental policy in the encouragement 
 and direction of Industry, and in the cultivation 
 of domestic and foreign markets, improved meth- 
 ods of distribution, secure and adequate banking, 
 credit, and investment facilities, prudent regulation 
 of taxation and land values, good patent laws, 
 scientific industrial research, industrial training 
 and technical education, — these and many an- 
 other means of increasing the supply and the re- 
 ward, as well as the opportunity of Labor, Capital, 
 and Management, and the effective demand of 
 the Community, are, one and all, incentives to in- 
 creased production, and therefore far-reaching in 
 their possible effects upon the successful adjust- 
 ment of industrial relations. 
 
 A country's population, its area, location, re- 
 sources, and climate help to determine the nature 
 and distribution of its industries, which are also 
 affected by the position of the arts and sciences, 
 and the stage of development of industrial proc- 
 esses and powers. Policies of government with 
 respect to industry, to trade and commerce, to 
 
140 INDUSTRY AND HUMANITY 
 
 transportation and communication, to immigra- 
 tion, education, and finance, are scarcely less im- 
 portant as factors in determining industrial condi- 
 tions than the ground work which Natiu-e herself 
 provides. Most important is the relative propor- 
 tion of rural and urban populations. It bears upon 
 the social problems to which overcrowding and 
 congested areas give rise, and upon the cost of 
 living which is mainly a matter of food, fuel, cloth- 
 ing, rents, and taxation. Problems of iUiteracy, 
 intemperance, pauperism, unemployment, and the 
 like affect and are affected by industrial conditions. 
 All such problems are partly ethical, and partly 
 economic. As contributing factors to industrial 
 unrest, they are partly pohtical as well. At no 
 point are industrial conditions or industrial rela- 
 tions separable from the influence of Government, 
 Education, and Opinion, or all that immediately 
 or remotely contributes to the direction of these 
 agencies in accordance with what is wise, honest, 
 and just. Nor are industrial conditions and rela- 
 tions between the parties to Industry separable at 
 any point from the play of Discovery and Invention 
 which operates constantly and begets continuous 
 change. 
 
 Fundamental beyond all other considerations is 
 the attitude of the parties to Industry toward one 
 another. If the relationship be one of antagonism or 
 hostility, of a regard for opposed as contrasted with 
 
THE PARTIES TO INDUSTRY 141 
 
 common interests, it matters little what the poUcies 
 or methods governing production may be, the 
 foundations of economic and social development 
 will be insecure. The basic problem of relations be- 
 tween the parties to Industry is one of attitude. 
 On a satisfactory solution, through the elmiination 
 of Fear and the estabUshment of Faith, depends 
 the successful working out of all the rest. 
 
 A striking illustration of the degree to which all 
 else is dependent upon the attitude of the parties to 
 Industry toward each other, was foreshadowed in 
 a statement issued to the parties to an industrial 
 controversy in England, on February 1, 1918, by 
 the Right Hon. Arthur Henderson, the Leader of 
 the Labor Party in British politics and former 
 member of the War Cabinet. Referring to a threat- 
 ened strike of members of the Amalgamated Soci- 
 ety of Engineers, and the hesitancy of the British 
 Government in conceding a separate conference, 
 Mr. Henderson said, "The temper of the workmen 
 is most dangerous; the unyielding attitude of the 
 Government is bringing the country to the verge of 
 industrial revolution, and unless a nlore just and 
 reasonable attitude is adopted, I am seriously ap- 
 prehensive that an irreparable break between an 
 important section of industrial labor and the Gov- 
 ernment will result." The reference is the more 
 significant in that the parties mentioned are not 
 Labor and Capital, as is generally the case, but 
 
142 INDUSTRY AND HUMANITY 
 
 Labor and the Government; in other words, Labor 
 and the Community, assuming, that is, that Gov- 
 ernment as constituted in these abnormal times 
 may be regarded as representative of the people as 
 a whole. 
 
 It must always be remembered that, while La- 
 bor, Capital, Management, and the Community 
 are abstract terms, in the concrete each is con- 
 cerned with individual human beings, possessing, 
 controUing, or constituting a part of one or more 
 of the essential factors of production. Since all in- 
 dustrial relations are necessarily interwoven with 
 community activities, it follows that the personal 
 contacts of which Industry is required to take ac- 
 count are well-nigh innumerable. Obviously the 
 attitude of the parties toward each other is every- 
 thing when it comes to a matter of the adjustment 
 of relations between them. Co-ordination of func- 
 tion as regards the several factors is a small prob- 
 lem compared with the interminable adjustments 
 in the relations of individuals on the satisfactori- 
 ness of which all co-operation necessarily depends. 
 To effect co-operation and co-ordination of effort 
 between the parties to Industry, httle more than 
 ordinary human inteUigence is required, where there 
 is beUef in a common aim and in common justice. 
 Without some such underlying confidence, the 
 highest intelligence may be set at naught. 
 
THE PARTIES TO INDUSTRY 143 
 
 Assuming the existence of a right attitude to- 
 ward each other, on the part of the several par- 
 ties to Industry, the rest is so simple as to be almost 
 a matter of mathematical calculation. Were the 
 available Labor and the available Capital to be 
 graphically portrayed in circles so described as 
 to be of equal area, the representation would be 
 inadequate to afford a conception of the possible 
 extent of Industry and consequent total produc- 
 tion. That would depend upon the relation of 
 these two circles to each other, and upon their 
 joint relation to circles representative of the other 
 two parties, Management and the Community. 
 If, likewise, all the Intelligence available for the 
 direction and co-ordination of effort could be por- 
 trayed in a circle so described as to equal in area 
 the circles representative of the available Labor 
 and the available Capital, then if the three circles 
 could be so related that at all points they bore 
 an equal relation to a circle representative of the 
 Community, there would be a graphic presenta- 
 tion suggestive of the possible extent of production 
 of Industry, and of its perfect co-ordination as 
 well.i 
 
 What, theoretically, the possible extent of out- 
 put and the effective co-ordination of effort in In- 
 dustry at any given moment may be depends upon 
 
 1 The reader is here referred to the Appendix, Chart No. I, illus- 
 trative of the nature of industrial relations. 
 
144 INDUSTRY AND HUMANITY 
 
 the position of each of four circles representative of 
 the parties to Industry in its relation to the other 
 three. If any of the four circles be removed in area 
 from the other three, that is to say, if, in the 
 conduct of Industry, available Labor or available 
 Capital, or Intelligence available for directing and 
 co-ordinating effort, or the Community's contribu- 
 tion, diminishes relatively to any one or two or 
 three of the others, co-ordination of effort within 
 Industry and possible production will be adversely 
 affected thereby. Some Labor, some Capital, some 
 Directing Intelligence, or some portion of the 
 Community's contribution will be rendered rela- 
 tively superfluous. Whether the whole be viewed, 
 or only a part, the output of Industry depends 
 upon the extent to which available effort is success- 
 fully directed and co-ordinated with the results of 
 previous effort, and upon their joint-relationship 
 to the Community. In other words, the output of 
 Industry is a matter, first of all, of the available 
 Labor and the available Capital, and their adjust- 
 ment by available Management in relation to the 
 contribution and needs of the Community. 
 
 Where there is no Community, there can be no 
 production. Where Labor, Capital, or Manage- 
 ment is unavailable, to that extent production will 
 be hmited. Available Labor and available Capi- 
 tal are not sufficient unto themselves. Neither are 
 available Labor and available Management, nor 
 
THE PARTIES TO INDUSTRY 145 
 
 available Capital and available Management. All 
 are essential. All must co-operate; the functions 
 of all must be properly co-ordinated. Otherwise 
 they become negative or opposing factors. In a 
 word, in so far as relations between Labor, Capital, 
 Management, and the Community are not prop- 
 erly adjusted, production is adversely affected; and 
 in so far as they are ill-adjusted they make for con- 
 fusion, not for progress.* 
 
 It is only necessary to contemplate the number, 
 extent, and variety of industrial processes as car- 
 ried on in this age of world-wide competition to 
 realize how essential is continuous co-operation 
 between the parties to Industry, and of what mag- 
 nitude is the work of intelligent and effective co- 
 ordination. At the one extreme he the resources of 
 nature scattered over the surface of the globe, 
 much as they have been through the silent cen- 
 turies of the past. At the other extreme are the 
 innumerable commodities into which natural re- 
 sources have been transformed. It is the aim of 
 Industry so to transform the resources of Nature 
 that they may be made adequately to satisfy hu- 
 man need and desire. At the beginning of the proc- 
 ess there is Uttle if any relation between natural re- 
 sources and the needs and desires they ultimately 
 
 * The reader is here referred to the Appendix, Charts Nos. II, III, 
 and IV, illustrative of the several parties to production, progress in 
 Industry, and contributing factors and forces in industrial relations. 
 
146 INDUSTRY AND HUMANITY 
 
 serve. At the end, they are related to human need 
 and desire, in form, in quantity, in quaUty, in time, 
 and in place. Between the two extremes there is 
 endless interweaving of human effort expressive of 
 activities of the most varied kind. 
 
 Out of the several classes of activities have de- 
 veloped industrial establishments of all sizes and 
 descriptions, including plants and their equip- 
 ments, warehouses, retail stores, and the many 
 agencies and vast systems of transportation and 
 communication. There have also been evolved nu- 
 merous agencies of government and all those insti- 
 tutions and practices which have to do with money 
 and the mechanism of exchange, the systems of 
 banking and credits, the stock exchange, broker- 
 age, insurance, speculation; in a word, all that per- 
 tains to finance on a national and international 
 scale. No one of these myriad agencies and insti- 
 tutions distributed and operating over all quar- 
 ters of the globe is self-sufiicing. In greater or less 
 degree, each is dependent for its continued exist- 
 ence upon co-operation with many of the others. 
 
 Wherever, within the myriad processes of this 
 vast and complex maze of world-wide, inter-related 
 human effort, there is active co-operation and in- 
 telligent co-ordination, there progress in Industry 
 is being made. Wherever co-operation and co-ordi- 
 nation of effort fail, there production is inhibited or 
 confusion results. 
 
THE PARTIES TO INDUSTRY 147 
 
 Community activities of all kinds are dependent 
 upon the maintenance of Industry, just as the 
 maintenance of Industry is dependent on Com- 
 munity activities. Consequently co-operation and 
 co-ordination of effort, between the activities con- 
 cerned primarily with Industry and the activities 
 of the Community apart from Industry, are second 
 in importance only to co-operation and co-ordina- 
 tion of effort within Industry itself. Industry sus- 
 tains life, and no form of Community activity is 
 possible for long without it. If this be compre- 
 hended in its full significance, it will be seen that 
 the common aim of the parties to Industry is 
 vaster than merely that of joint-production in or- 
 der that the total wealth available for distribution 
 may be as large as possible; and that Industry is 
 not to be regarded as a mere revenue-producing 
 process pursued for purposes of private gain. In- 
 dustry will be recognized as the most necessary of 
 all the institutions human ingenuity has devised. 
 Participation in the processes of Industry will be 
 seen to be in the nature of social service; and social 
 service of the very highest order, since it is of a 
 kind on which all other service whatsoever depends. 
 
 Clearly, in an objective so stupendous, no foTui 
 of organization is sufficient of itself to guarantee 
 the co-operation and co-ordination of effort which 
 will serve to unite the parties to Industry in a per- 
 fect harmony and in the furtherance of their com- 
 
148 INDUSTRY AND HUMANITY 
 
 mon aim. A solution of the problems of Industry is 
 not to be looked for in forms; something more vital 
 than forms is needed. A new spirit alone will suf- 
 fice. This spirit must substitute Faith for Fear. It 
 must breathe mutual confidence and constructive 
 good-will. It must be founded on a beUef in an un- 
 derlying order which presupposes between individ- 
 uals, not conflict, but community of interest in all 
 that pertains to human well-being. Once such a 
 spirit is imparted to the parties to Industry, once 
 it is accepted with all that it presages of individual 
 gain and pubhc service. Industry itself will win a 
 new position and a new vitaUty, and prosperity will 
 follow in the wake of industrial enterprise. Such 
 will be the outcome whether we think of Industry 
 as limited to men engaged in a single process, or 
 as comprising the races and the nations which em- 
 brace mankind. 
 
CHAPTER VI 
 
 THE BASIS OF RECONSTRUCTION 
 
 Some years ago, I brought to my summer home at 
 Kingsmere, in the province of Quebec, a sun-dial 
 which I had come across in Boston, in what was 
 formerly the basement of a church. In the changes 
 which cities undergo, the church basement had be- 
 come a place of business, a transformation more or 
 less characteristic of the modern world since the 
 days of the Industrial Revolution. The dial bore 
 the significant date, 1777. It was evidently made 
 in the first years of American Independence, after 
 the severance of relations between Great Britain 
 and her kin beyond the seas. 
 
 Kingsmere lies amid the Laurentian Hills. The 
 Laurentians are the earth's oldest hills, the first 
 mountains that emerged above the waters by 
 which at one time the earth was covered. Geolo- 
 gists say that nowhere else in the world can the 
 early geological periods be studied with so much 
 ease and precision. Upon the exposed surface of 
 the Laurentians is to be found the oldest form of 
 hfe traceable in the past history of the globe. 
 There, among these ancient associations, on the 
 edge of a slope, overlooking a sequestered lake, I 
 placed the new-found sentinel of Time. 
 
150 INDUSTRY AND HUMANITY 
 
 There was something romantic in all that the 
 dial, thus placed, suggested of historic interest and 
 the mutations of the years. The fires of the forge 
 in which it was made had been hot in their resent- 
 ment toward Britain, With changed location, its 
 pedestal had become the near companion of a staff 
 flying the British flag. It belonged to the oldest in- 
 struments Invention had designed for recording 
 time. Kingsmere seemed to afford it an abiding 
 place amid surroundings which were eminently fit- 
 ting. It was of the very part of the Laurentian 
 Hills in which it stood that Francis Parkman, him- 
 self a citizen of Boston, and a graduate of Harvard 
 University, wrote: "In these ancient wilds, to 
 whose ever verdant antiquity the pyramids are 
 young and Nineveh a mushroom of yesterday; 
 where the sage wanderer of the Odyssey, could he 
 have urged his pilgrimage so far, would have sur- 
 veyed the same grand and stern monotony, the 
 same dark sweep of melancholy woods, — here, 
 while New England was a soUtude, and the settlers 
 of Virginia scarcely dared venture inland beyond 
 the sound of a cannon-shot, Champlain was plant- 
 ing on shores and islands the emblems of his 
 faith." 1 
 
 The dial seemed to suggest thoughts such as 
 these of Canada's historic background. It was 
 
 ' Pioneers of France in the New World, vol. n, p. 199. Frontenac 
 Edition. Toronto, 1900. 
 
THE BASIS OF RECONSTRUCTION 151 
 
 equally a source of delight in what it recalled of 
 Harvard days. I had yet to see it was to witness 
 the English-speaking peoples reunited in the cause 
 of Freedom, and to see wherein it, too, was to prove 
 a mighty emblem of Faith. 
 
 As all who are familiar with sun-dials know, 
 they consist of two parts — the style or gnomon, 
 usually the edge of a plate of metal or a small rod, 
 always, when in position, parallel to the axis of 
 the earth, and pointing to the north pole; and the 
 dial-face, on which are marked the numerals de- 
 scriptive of the hours of the day. The time is 
 shown by means of the shadow cast by the sun 
 from the style upon the graduated surface of the 
 dial-face. The forms which may be given to dials 
 are almost infinite. The most common form is the 
 horizontal dial, having the plane of the dial parallel 
 to the horizon, and constantly making with the 
 style an angle equal to the latitude of the place, 
 since the style must always point to the north pole. 
 
 Marvellous as is the precision with which this 
 little instrument records the hours of the day, 
 more wonderful still is the fact that it simultane- 
 ously discloses with accuracy the points of the 
 compass in an exact relationship to the hours. At 
 mid-day, the sim's shadow is directly over the 
 hour XII. The Une made by the shadow points 
 like a slender arrow with equal precision to the 
 north. Once in true position, the dial not only 
 
152 INDUSTRY AND HUMANITY 
 
 suggests, but is irrefutable evidence of a perfect 
 order and a complete harmony in all that per- 
 tains to Time and Space throughout the physical 
 universe. 
 
 If such an order exists in Nature; if, looking 
 upon the face of a dial, we are able to know at a 
 glance the hour of the day, the points of the com- 
 pass, the direction of the earth's axis, and the lati- 
 tude of the place in which we stand; if all material 
 things of the heavens and of the earth are thus re- 
 lated in a perfect harmony which the human in- 
 telligence is able to grasp; is it conceivable, is it 
 rational to believe that underlying the social rela- 
 tions of men and of nations, an order is not discov- 
 erable somewhere, obedience to which will bring as 
 perfect a harmony? 
 
 In the chaos which envelops human relations 
 throughout the world to-day, has the time not 
 come for search after such an order? When the 
 War is over, if reconstruction is to be in accord- 
 ance with methods which afford promise of endur- 
 ing results, will it suffice to return to attitudes 
 and practices which have brought unparalleled suf- 
 fering to mankind? Is not all that Humanity has 
 been called upon to endure, evidence of a wanton 
 departure somewhere from the purpose of God 
 among men? We know whence the deviation has 
 arisen. It is in our industrial and international re- 
 lations. We have turned the dials of human con- 
 
THE BASIS OF RECONSTRUCTION 153 
 
 duct to commercial uses when they were intended 
 as guides to the divinity which Ues everywhere 
 about us. Consecrated as we now are to a higher 
 service, can we not begin anew, this time with be- 
 lief in Divinity, and accepting some law which evi- 
 dences a divine order, seek out the rules of conduct 
 and methods of organization which accord with 
 the principles it suggests. The sun-dial reveals to 
 us that, in the physical universe, position is the se- 
 cret to the discovery of design. Why should we 
 not commence with what in human relations corre- 
 sponds to position in Nature, and try first of all a 
 new attitude, an attitude of Faith instead of the 
 time-worn attitude of Fear. The conception of In- 
 dustry as in the nature of social service affords us 
 the foundations of such an attitude. A behef in 
 our fellow men equal to that which we have in our- 
 selves is all that is necessary to remove the human 
 blindness which for so long has made us strangers 
 to one another, and ofttimes enemies as well. 
 
 A right attitude of the parties to Industry toward 
 each other is essential to the success of any efforts 
 at reconstruction. Given an attitude of mutual 
 confidence and constructive good-will, industrial 
 reconstruction becomes the problem of effecting 
 co-operation between the parties to Industry and 
 co-ordination of their functions so as to ensure 
 the utmost freedom in the interweaving of human 
 
154 INDUSTRY AND HUMANITY 
 
 effort. In a process so vast and infinitely detailed 
 as Industry, this is possible only through gen- 
 eral adherence to rules of conduct and methods of 
 organization based upon principles which accord 
 with some law sufficiently comprehensive to bring 
 all essential elements within its operation. 
 
 The Law of Peace, Work, and Health, discovered 
 and enunciated by Pasteur, is such a law.^ It points 
 the way to co-operation between the parties to In- 
 dustry, and to co-ordination of human effort, on 
 a scale as enduring as it is universally apphcable. 
 It is a law applicable alike to Industry as a whole, 
 and to the minutest relations arising in its indi- 
 vidual processes. Moreover, it is as applicable to 
 international as to industrial relations. This is true 
 both of the principles founded upon this law, and 
 of the rules of conduct and methods of organiza- 
 tion based on these principles. 
 
 Some will say the Law of Peace, Work, and 
 Health is a mere abstraction. To this it may be 
 answered, the Law of Peace, Work, and Health is 
 not more of an abstraction than the Law of Gravi- 
 tation, the Law of the Conservation of Energy, or 
 the Law of Evolution, upon which Science has pro- 
 ceeded to interpret the physical universe. In the 
 case of each of these so-called "laws," Science has 
 
 1 The reader will find the passage in which the phrase "The Law 
 of Peace, Work, and Health" appears, and which is quoted at page 
 4 of this book, in The Life of Pasteur, by Rene Vallery-Radot, vol. 
 n, p. 222. Constable, London, 191 1. 
 
THE BASIS OF RECONSTRUCTION 155 
 
 ventured to explain certain facts of the material 
 universe by means of hypotheses which make these 
 facts intelligible and reasonable. In each case she 
 has put forth a proposition in accordance with 
 which it is possible to give sequence, orderly rela- 
 tion, and meaning to what otherwise would be 
 unrelated and inchoate elements. If the physical 
 universe is rational and can be understood, is it not 
 reasonable to suppose that, in the field of human 
 relationships, as respects human right and obliga- 
 tion, there are also laws which govern conduct in 
 accordance with previous thought? ^ 
 
 Pasteur, who first used the expression "the Law 
 of Peace, Work, and Health," was as famihar with 
 the methods and the significance of the terminology 
 of Science as any man who ever lived. When he 
 spoke of this law, and of "the Law of Blood and of 
 Death" to which it was opposed, he was seeking, 
 not to coin abstract phrases, but to give to mankind 
 a working hypothesis whereby in the study of hu- 
 man life a meaning might be accorded social rela- 
 tions which would be intelhgible and reasonable 
 in a universe the outcome not of Chance, but of 
 Mind. 
 
 The Law of Gravitation asserts that there is 
 operating throughout the universe a force by which 
 bodies are drawn or by which they tend toward the 
 
 ' The reader is referred to part n, chapter in. The Assurance 
 of Immortality, by Harry Emerson Fosdiok (New York, Macmillan 
 Co., 1916), quotation from which source is hereby acknowledged. 
 
156 INDUSTRY AND HUMANITY 
 
 centre of the earth. The Law of the Conservation 
 of Energy asserts that force in the universe is per- 
 sistent, that it cannot be destroyed or augmented. 
 The Law of Evolution asserts that in all things 
 organic and inorganic there has been a develop- 
 ment from sunphcity to complexity, a gradual ad- 
 vance from a simple or rudimentary condition to 
 one that is more complex and of a higher charac- 
 ter. In each case, the designation "Law" is given 
 to the sequence described, not because it is some- 
 thing which has been absolutely demonstrated, 
 but because it is supported by so many confirm- 
 ing facts; admits of no exceptions, in explaining the 
 workings of certain known phenomena in accord- 
 ance with an unbroken order reigning throughout 
 the universe; and accords them a place in a plan 
 which is capable of intelligent explanation. A uni- 
 versal cosmic order which is wholly rational and 
 law-abiding is the fundamental assumption of all 
 Science. It assumes that those propositions are true 
 which are necessary to make the facts of hfe in- 
 telUgible and reasonable. It was in precisely this 
 spirit, like Newton, Uke Copernicus, and Uke 
 Darwin, that Pasteur, with his highly trained in- 
 telUgence and deep human sympathies, asserted a 
 truth his scientific insight had divined whereby 
 meaning and rationality is given to a class of so- 
 cial phenomena which have an important bearing 
 on the whole of human hfe. 
 
THE BASIS OF RECONSTRUCTION 157 
 
 Having ascertained the existence of a law, scien- 
 tists proceed to construct theories and frame prin- 
 ciples which are in accord with it, and which are 
 capable of apphcation in practice. As scientists 
 have proceeded in this fashion, they have helped 
 to bring order out of chaos. 
 
 Amid a mass of phenomena more varied and 
 intricate, and more subtle and elusive than any 
 the physical universe displays, Pasteur has given 
 to mankind as searching and profound an analysis 
 of the fundamental causes of human pi'ogress and 
 human failure as has ever been given. We may 
 well proceed to test human conduct by the laws he 
 has disclosed. By gaining understanding of the 
 law which is necessary to rationahze the facts of 
 experience, and give reasonableness to human hfe 
 in its social relations, we should be able to unfold 
 the theories and principles which, practically ap- 
 plied, lead to the ultimate triumph of an order 
 capable of rendering Humanity enduring service. 
 
 Substituting a spiritual interpretation of life for 
 the materiaUstic interpretation of the universe, an 
 order which impUes ultimate perfection in human 
 character, and consequently in all human relations, 
 is alone consonant with a conception of Deity 
 equal in scope and reasonableness to that accorded 
 Intelligence in "the universal cosmic order," which 
 is the fundamental assumption of science. The 
 Law of Peace, Work, and Health gives to social 
 
158 INDUSTRY AND HUMANITY 
 
 relations a place which is capable of intelligent ex- 
 planation, in an order implying ultimate perfec- 
 tion. Like the Law of Gravitation, the Law of the 
 Conservation of Energy, and the Law of Evolution, 
 the Law of Peace, Work, and Health suggests in its 
 nomenclature the sequence it embodies. Present- 
 ing resemblances to the Law of Gravitation in the 
 physical universe, it asserts that in the realm of 
 human intercourse there exist rules of conduct and 
 methods of organization which incline all effort to- 
 wards successful co-operation and co-ordination in 
 a manner that develops personahty and promotes 
 social progress. With aspects akin to the Law of 
 the Conservation of Energy, it asserts that these 
 rules and methods can lose none of their inherent 
 worth, that they never fail. And like the Law of 
 Evolution, which recognizes a gradual advance from 
 a rudimentary condition to one of a higher charac- 
 ter, it asserts continuous development from imper- 
 fection toward perfection in individual personal- 
 ity, and the well-being of human society. 
 
 The Law of Peace, Work, and Health is a part of 
 the larger Order which sustains a divine creation, 
 and which evidences a universe begotten of a ben- 
 eficent Deity, not a world the outcome of Chance, 
 nor even of Intelligence, limited to the direction 
 of Matter and Force. In industrial and interna- 
 tional relations, the Law of Peace, Work, and 
 Health is made to prevail through regard for the 
 
THE BASIS OF RECONSTRUCTION 159 
 
 individual as an end in himself, not merely as a 
 means to an end. Its application therefore de- 
 mands clear discernment between human and ma- 
 terial values, between the spirit which gives life, 
 and the material form which accords an outward 
 expression. Above all else, it calls for recognition 
 of the sacredness of human personahty. The prin- 
 ciples founded upon this Law take the form of rules 
 of conduct or methods of organization which tend 
 to eliminate Fear and to estabhsh Faith between 
 the individual and his personal and material en- 
 vironments. Escape from domination, and a sense 
 of freedom is the reward of obedience to this Law, 
 a freedom not denied the humblest being in God's 
 creation. 
 
 There was scientific insight, not less in the 
 comprehensiveness of the factors Pasteur named 
 than in the circumstance of their co-ordination. 
 Peace, Work, and Health are inclusive of all condi- 
 tions essential to effective co-operation between the 
 parties, and to co-ordination of effort in Industry. 
 Not less remarkable is the fact that in all industrial 
 and international relations they are inseparable. 
 The three are necessary if there is to be perfect 
 freedom in the interweaving of human effort. 
 Whatever tends to advance the one, tends also to 
 advance the others; whatever tends to destroy the 
 one, tends to destroy the others also. Such prog- 
 
160 INDUSTRY AND HUMANITY 
 
 ress as Industry or Society makes under conditions 
 inimical to any one or all of the three is in spite of, 
 not in consequence of, such conditions, and is al- 
 ways at some sacrifice because of them. Not only 
 are Peace, Work, and Health inter-related, they 
 are also interdependent. They are perfectly co-or- 
 dinated in this one law through its accord with an 
 underlying order which manifests itself now in this 
 principle, now in that, and which operates through 
 all alike to the increase of Faith and the casting out 
 of Fear. The Law of Blood and of Death is a con- 
 trary law. It substitutes Fear for Faith, and by 
 breaking the harmony between Peace, Work, and 
 Health, forces discord into the whole of life. 
 
 Most of the confusion in Industry has arisen 
 through failure to appreciate the interdependence 
 of the constituent elements of this one law. Too 
 generally it is assumed that the Labor Problem, 
 so called, is a problem concerned exclusively with 
 Work, and that it is something distinct and apart 
 from the problems of Peace and of Health. The 
 three are indissolubly interwoven. They are in- 
 separable elements of the vast relationship de- 
 scribed by the words " Industry and Humanity" 
 and which through world-wide interweaving of 
 human effort unites mankind in an enterprise that 
 encompasses the globe. 
 
 In considering the application of principles 
 
THE BASIS OF RECONSTRUCTION 161 
 
 founded on the Law of Peace, Work, and Health, 
 the multipUcity of the relations arising in Industry 
 should occasion no concern. Careful study reveals 
 that though complex and numerous, they are capa- 
 ble of very simple classification and arrangement. 
 Theoretically considered, they will be seen to grow 
 out of a fundamental relation in the nature of an 
 agreement between the different parties, to unite 
 in the work of production. As an agreement the 
 relationship necessarily presents three component 
 features: its parties, its terms, and the methods 
 of its execution. It matters not how many the 
 parties, or what their race, creed, age, sex or 
 nationality, or how numerous or different the 
 terms, or how varied and extensive the methods 
 by which production is carried on and distribu- 
 tion effected; at some point or other, each and 
 every factor embraced in the category of indus- 
 trial relations will be found to have its appropriate 
 place as pertaining to one or other of these three 
 constituent elements of an agreement, expressed or 
 implied. 
 
 If, as concerns each of these three constituent 
 features of what we may call the industrial agree- 
 ment, we have regard for the Law of Peace, Work, 
 and Health, or, in other words, for the principles un- 
 derlying peace, work, and health in their bearing 
 upon industrial standards, we shall have all that 
 it is essential to consider, all, in fact, that broadly 
 
162 INDUSTRY AND HUMANITY 
 
 interpreted it is possible to consider with respect to 
 industrial relations, i 
 
 A perfectly adjusted industrial order would be 
 one in which there was due regard for the principles 
 underlying peace, work, and health as applied to 
 relations in Industry in respect to the parties, the 
 terms of the industrial agreement, and the methods 
 of executing the terms. The existence of such a per- 
 fectly adjusted industrial order would be found 
 to disclose a perfectly organized poUtical order as 
 well. For if, in all the relations within Industry, 
 there existed perfect adjustment, the habit of mind 
 of communities would be such that, in the domain 
 of politics, variation from the laws applicable to In- 
 dustry would be unnatural. 
 
 Though such perfection is not to be expected, it 
 is an ideal toward the attainment of which every 
 individual in his relations with others may strive. 
 While local effort may seem of little avail in the 
 arena of world forces, it is well to remember that 
 world forces themselves are none other than the 
 sum-total of lesser influences. While an influence, 
 in one locality, may be exercised in a manner wholly 
 unrelated to like efforts elsewhere, a union of forces 
 may be effected in most unexpected ways. United 
 influences are themselves augmented by a law of 
 acceleration, as appUcable to forces at work in hu- 
 
 ' The reader is here referred to the Appendix, Chart No. V, illus- 
 trative of the Law of Peace, Work, and Health, in relations within and 
 without Industry. 
 
THE BASIS OF RECONSTRUCTION 163 
 
 man relations as to physical forces in the material 
 world. 
 
 The collective will is not something superim- 
 posed; it is a consensus of individual wills. If So- 
 ciety is to be reconstructed for the greater well- 
 being of mankind, it will find the lines of enduring 
 development, not in the uncertain changes which 
 great upheavals effect, but in the general applica- 
 tion to Industry and International Pohty of princi- 
 ples which have a bearing upon the whole of life. 
 
 It is not extent or forms of organization, nor 
 amounts or methods of remuneration in Industry 
 that will solve industrial problems as they arise, 
 but the application of right principles to the human 
 relations which the contacts of Industry occasion. 
 Forms and methods, organization and equipment, 
 remuneration, and government in Industry, all 
 these play a part; but the test is not with them. 
 It lies in the principles on which they are founded. 
 To discover the ideas that accord with the funda- 
 mental law of progress and to make prevail the 
 principles which embody them, is the one and only 
 way of unifying and wisely directing world influ- 
 ences which, properly controlled, are ever ready to 
 obey the will of man to the promotion of his high- 
 est good. 
 
 The circumstance that the processes of Industry 
 are constantly undergoing change, that the num- 
 bers employed tend ever to increase and the area of 
 
164 INDUSTRY AND HUMANITY 
 
 activity ever to expand, may render it increasingly 
 difficult to approximate the many factors and in- 
 fluences at work; it in no degree alters what is fun- 
 damental in human relations, or the unfaihng op- 
 eration of right principles effectively applied. The 
 principles underlying Peace, Work, and Health ap- 
 plied to any of the innumerable relations of Inter- 
 national Polity or of Industry cannot operate other 
 than for the good of the whole. As their application 
 is effected now here and now there, now in this re- 
 lationship, now in that, now within this commu- 
 nity, now within that, whether within Industry or 
 without it, so gradually the whole becomes trans- 
 formed. Wherever an advance is made, the forces of 
 blood and death are compelled to retreat before a 
 law of life which tends not toward destruction and 
 annihilation, but toward an ever-increasing vital- 
 ity in Industry and all that Industry sustains. 
 
 A pebble thrown into a pond produces a dis- 
 turbance which radiates in expanding circles from 
 centre to circumference, and a movement at any 
 point on the circumference occasions a counter- 
 movement toward the centre and across the sur- 
 face of the whole. So it is with an influence freed in 
 a community, or an idea thrown into the thought of 
 the world. Within Industry, and within the Com- 
 munity in which Industry is carried on, forces in 
 accord with the principles underlying Peace, Work, 
 and Health, and ideas born of their sway, act and 
 
THE BASIS OF RECONSTRUCTION 165 
 
 react in ceaseless motion on an ever-widening scale. 
 Right ideas, once apparent, gain acceptance to the 
 exclusion of wrong ones. Confusion and conflict, 
 however discouraging and disheartening, are but 
 the evidence of the wrestling of contrary laws, and 
 therefore of the need of keener discernment and 
 heightened zeal in the apphcation of right princi- 
 ples. Sooner or later men will come to see that 
 only that course of conduct which is capable of in- 
 definite apphcation and unlimited expansion should 
 be maintained. 
 
 In the endeavor to make a right order prevail 
 through the apphcation and co-ordination of prin- 
 ciples that underUe progress. Society has at hand 
 the powerful agencies of Discovery and Invention, 
 Government, Education, and Opinion, i Each has 
 demonstrated its capacity to further human well- 
 being. All to-day operate on an hitherto unpar- 
 alleled scale. Right principles respecting Peace, 
 "Work, and Health are not confined in their operation 
 to any particular phase of industrial development, 
 or to Industry within the confines of any one state. 
 
 1 The reader is here referred to the Appendix, Charts Nos. VI and 
 VII, illustrative of the action and reaction of Discovery and Invention, 
 Government, Education, and Opinion in relations within and without 
 Industry; also to Charts Nos. VIII and IX, illustrative of the parties 
 to Industry, the terms and working out of industrial agreements, and 
 suggestive of contributing factors and influences. Charts Nos. VIII 
 and IX are also intended to be more or less suggestive of the many 
 factors and influences of which account heis to be taken in any com- 
 prehensive study of industrial relations. 
 
166 INDUSTRY AND HUMANITY 
 
 They apply equally in all countries and at all 
 times. Moreover, the same principles are as ap- 
 plicable to international as to industrial relations. 
 They are the one foundation upon which Industry 
 and Nationality may build in common, not with 
 jealous fears which industrial and international 
 rivalries too often beget, but in the spirit of lofty 
 emulation and co-operation by which a universal 
 brotherhood is ultimately to be achieved. Fraught 
 with such vast significance to mankind, the dis- 
 covery of any right principle surely merits pains- 
 taking investigation, and its application persistent 
 effort. The task is one which requires patience 
 and perseverance. Endeavor may be sustained and 
 ennobled by the thought that in the art of ad- 
 justing the relations of men, as in the researches 
 of science, a regard for the infmitesimally small is 
 the one sure path of approach to the attainment 
 of the infinitely great. 
 
CHAPTER VII 
 
 PRINCIPLES UNDERLYING PEACE 
 
 Upon the ancient precept, "To do justly and to 
 love mercy," are founded all the principles which 
 underlie Peace. Upon it are founded also the prin- 
 ciples which underlie Work and Health. In a spir- 
 itual interpretation of the universe, Justice and 
 Mercy are the agencies which make of the world 
 one vast brotherhood. Under their beneficent 
 power, there is not, in all the relations of Industry 
 or Nationality, a bond which may not be loosed, nor 
 a yoke which cannot be broken. They are of the 
 essence of the divine order which sustains mankind, 
 and by which, ultimately, it shall be redeemed. 
 
 Justice and Mercy imply discernment between 
 material and human values, and a recognition of 
 personahty. They evidence a spirit of considera- 
 tion and constructive good-will which alone is able 
 to impart vitaUty to rules of conduct and methods 
 of organization framed with a view to its expres- 
 sion. They are at the root of confidence in indus- 
 trial and international relations, and more than 
 all else lead to the beUef in common as contrasted 
 with opposed interests in whatever is of concern 
 to the parties to Industry and to rival nations. 
 Justice and Mercy are the most potent of influences 
 
168 INDUSTRY AND HUMANITY 
 
 in the elimination of Fear and the estabUshment 
 of Faith between individuals and their personal 
 and material environments. They beget a sense of 
 freedom, and subdue the desire for domination. 
 They instil a consciousness of harmony, which is 
 all that is meant by Peace. Conceived in its many 
 aspects, whether as applied to individuals or to 
 communities, Peace connotes physical, mental, 
 and moral harmony; that is why Peace is insepara- 
 ble from Work and Health. 
 
 To do justly, and to love mercy: these are hving 
 principles; they are spirit and Ufe, not mere letters 
 of a law. Like Truth and Love, they are part of 
 "the indwelhng of the Spirit that moves in Ufe," the 
 one incontrovertible manifestation of God in man. 
 How to transfuse this living force is our problem. 
 Let us recognize at the outset that it resides in 
 men, not in things; that it is kept vital, as Bergson 
 has pointed out, only by counteracting the ten- 
 dency of every formula to crystallize the hving 
 thought that gives it birth; of the idea to be op- 
 pressed by the word; and of the spirit to be over- 
 whelmed by the letter. Rules of conduct and 
 methods of organization are instruments we are 
 obliged to employ, but they are only instruments. 
 They are the insignia upon the face of the dial 
 of human relations, and are useless, save where 
 they reveal the spirit to which they are intended 
 to give external and visible manifestation. 
 
PRINCIPLES UNDERLYING PEACE 169 
 
 I 
 
 Industrial and international relations, being* es- 
 sentially human relations, have their origin in 
 personal contacts. It is with respect to the con- 
 tacts to which Industry and the State give rise 
 that the work of eliminating fear and suspicion 
 and of establishing faith and confidence, neces- 
 sarily begins. Nor does vast organization make 
 any difference, save to emphasize the significance 
 of the personal equation. 
 
 What in the simpler relationships of Industry 
 is a matter of inspiring faith between individuals 
 becomes, with the expansion of Industry, the more 
 difficult problem of the maintenance of confidence 
 between groups. The art of establishing relations 
 of confidence between expanding groups in Indus- 
 try is akin to the highest of the arts of statesman- 
 ship. It demands the same order of abiUty as is 
 required to preserve peace and harmony between 
 diverse elements that compose a nation. The in- 
 tricacy of the task is apparent once it is seen how 
 individuals are cemented by race, creed, or senti- 
 ment, which may reflect bodies of opinion quite 
 different, if not actually antagonistic. 
 
 In the expanding circles of interest, which in 
 Industry come to resemble the so-called "spheres 
 of influence" in international diplomacy, situa- 
 tions arise quite as critical, and demanding just as 
 
170 INDUSTRY AND HUMANITY 
 
 delicate adjustitient, as any questions which pre- 
 sent themselves in world politics. Indeed, a funda- 
 mental error in coping with industrial problems 
 to-day is the failure to recognize that industrial 
 questions have become increasingly the concern 
 of pohtics. When this is realized, nations will take 
 stock anew in essential qualities of leadership ahke 
 in the State and Industry. 
 
 In establishing confidence, for that is all that 
 the elimination of fear, distrust, and antagonism 
 amounts to, too great emphasis cannot be placed 
 on personal character. It is singular how men who 
 see this so clearly in domestic relations lose sight of 
 it so often elsewhere. In Industry and Pohtics it 
 seems to be assumed that an individual has but to 
 become identified with a position for his character 
 to take on befitting attributes. A very ordinary 
 individual becomes a member of a Board of Di- 
 rectors, or of a Cabinet, and thereupon a sort of 
 halo encircles his brow. In his own estimation and 
 in the popular imagination, he may become en- 
 dowed with all the virtues of his office. 
 
 Unearned increment attaches to reputation, just 
 as it does to property. Mere position counts for 
 much. This circumstance emphasizes the impor- 
 tance of character as a first requisite in persons 
 endowed with influence and authority. Disillusion- 
 ment in such cases shatters confidence, and works 
 
PRINCIPLES UNDERLYING PEACE 171 
 
 irreparable injury to honest and generous souls. 
 He who has lost confidence can lose Uttle more. It 
 is faith which bestows upon the occupant of a 
 position the dignity or honor that attaches to it. 
 Establish confidence between individuals, and all 
 the nobler impulses and emotions are freed. 
 
 Beneath character he its essential elements. 
 Possessed of a sense of fair play; "on the square," 
 as they say; being considerate and humane; — 
 these, more than any other qualities, embrace, in 
 a concrete way, what men like to find in character 
 as it expresses itself in the all-round relationships 
 of Industry and Pohtics. What are these qualities 
 other than the embodiment of Justice tempered 
 by Mercy! In those who possess and in those who 
 encounter them, they preclude meanness, dishon- 
 esty, and indifference in their many forms. Where 
 square deahng and open and above-board treat- 
 ment make themselves felt, there can be no neglect 
 of grievances, either real or imaginary; nor can 
 there be long continuance of underhand methods 
 and deceptive practices. It is injustice and decep- 
 tion that lie at the root of pohtical and social 
 unrest. 
 
 However much in Industry or in the State the 
 circle of relationships widens, at every point of 
 personal contact, from centre to circumference, 
 character remains the basis of confidence, and is 
 essential in the preservation of peaceful relations. 
 
172 INDUSTRY AND HUMANITY 
 
 Character being important in transactions between 
 individuals, how increasingly important it becomes 
 where numbers of individuals act in corporate ca- 
 pacities! Where the growth of Industry no longer 
 permits immediate relationships, a new respon- 
 sibihty devolves upon principals and those who 
 act as their representatives. 
 
 Labor and Capital in their mutual relations have 
 everything to gain from character in their repre- 
 sentatives. Entire organizations gain or lose stand- 
 ing from the kind of agents and leaders who rep- 
 resent them. Some industrial corporations have 
 reputations which make deahngs with them on 
 the part of Labor next to impossible, not because 
 they are corporations, nor because of shareholders 
 or directors, but because of the known character 
 of some one executive officer. Similarly, there are 
 labor organizations that cannot get anywhere in 
 negotiations with employers, not because they are 
 labor organizations, nor because of their member- 
 ship, but because of the character of certain of 
 their representatives. In practically all of the con- 
 troversies between corporations and trade unions 
 of which I have had direct knowledge, with but 
 one or two exceptions, what has militated against 
 successful collective bargaining has been, not an 
 unwillingness to deal with organizations as such, 
 but rather an entire want of confidence in the 
 character of individuals, or in their ability to carry 
 
PRINCIPLES UNDERLYING PEACE 173 
 
 out pledges and to implement agreements. Nor has 
 lack of faith been confined to Capital only. I have 
 seen mistrust justified on the part of Labor. Where 
 a corporation attorney has once bribed an official of 
 a labor organization, sooner or later both the cor- 
 poration and the labor organization come to hold 
 each other in contempt. It matters little by whom 
 a bribe is given or by whom accepted, the entire 
 organization, be it an organization of Capital or 
 of Labor, comes to share the taint of an immoral 
 transaction and to suffer under the reputation of it. 
 
 It is the same with keeping faith in understand- 
 ings and agreements as with attempted negotia- 
 tions. Individuals or corporations, whether rep- 
 resentative of Capital or of Labor, whose word is 
 not as good as their bond, or whose bond proves 
 fraudulent, have never quite the same chance 
 again. Reputations there are that shadow men 
 and organizations through the years, and for one 
 "Hound of Heaven" which follows to redeem, there 
 seem to be a dozen Hounds of Hell ever ready to 
 destroy. 
 
 Character as an inspirer of confidence is impor- 
 tant in subordinates not less than in high officials. 
 Acts of tyranny and dishonesty on the part of an 
 arbitrary or ill-principled foreman or superintend- 
 ent may do more injury to an industry than the 
 most liberal reforms instituted by high-minded di- 
 rectors and managers may offset in years. More- 
 
174 INDUSTRY AND HUMANITY 
 
 over, subordinate officials, through the power and 
 authority vested in them, which very often enables 
 them to conceal their own shortcomings, may keep 
 the real cause of disturbances undiscovered. The 
 record of strikes is full of instances of the arbi- 
 trary acts or favoritisms of petty officials being re- 
 sponsible for all the trouble. The unwillingness 
 of superiors to review the actions of subordinates 
 has many a time cost industrial enterprises much 
 more than the salaries of all their officials combined. 
 
 Confidence is essentially a beUef in integrity and 
 impartiality. Men will overlook errors of judgment 
 where they will not tolerate dupUcity. Human 
 nature is ready enough to forgive mistakes, but it 
 will never forgive deliberate injustice. The one is 
 indicative of limitation of character, but the other 
 is evidence of inherent defect. That is why there 
 should always be an appeal from those in subordi- 
 nate positions to others higher in authority. It is a 
 true instinct which causes men to resent arbitrary 
 conduct. The less intelhgent officials are, the more 
 apt they are to make mistakes. No one expects pit 
 bosses in mines or foremen of works to have the 
 sagacity of managers. That is why the workings 
 of collieries and large industrial establishments 
 should never be at the mercy of pit bosses or fore- 
 men, if it is at all possible for the management to 
 avoid it. 
 
 There is a further reason why persons high in 
 
PRINCIPLES UNDERLYING PEACE 175 
 
 authority should be careful in the selection of those 
 who represent them, and be held responsible for 
 their acts. Subordinate officials come in direct con- 
 tact with the forces of Labor. The impression left 
 upon the mind of Labor as to the attitude of Capi- 
 tal and capitahsts generally may be good or bad in 
 direct proportion to the attitude of subordinate offi- 
 cials. To the worker, unable to judge of a condition 
 beyond his immediate point of contact, the nearest 
 official directly represents the attitude of the em- 
 ployer toward all Labor in the industry concerned. 
 The only opportunity many a workingman has of 
 forming any impression of the heads of an industry 
 is through the kind of men placed in immediate 
 authority over him, and through the sort of justice 
 he sees meted out to his fellow workers and himself. 
 This is particularly the case where, as so often 
 happens in large industries, the workers are of for- 
 eign extraction knowing httle of the language and 
 customs of the countries to which they migrate. 
 All too often, foreigners get their impressions as 
 dumb beasts get theirs, through the kind of treat- 
 ment they receive. 
 
 It matters httle whether a workman speaks the 
 prevaihng language of the country or not, he will 
 invariably resent the efforts of an official to convey 
 the importance of his position by severe language 
 and affected mannerisms. The commonest faults 
 of officials lie in personal bearing and address, in 
 
176 INDUSTRY AND HUMANITY 
 
 an unwillingness to give immediate attention to 
 grievances, and in favoritism as between work- 
 men. Men whose work is that of directing other 
 men cannot be too considerate in attitude, too 
 attentive to irritations, or too impartial. The art 
 of obtaining co-operation by methods other than 
 those of force requires some understanding of hu- 
 man nature, and a httle sympathy with its short- 
 comings. Men who do not possess these quahties, 
 in addition to technical knowledge, should never 
 be placed in positions of authority. 
 
 The farther removed, either in position or ac- 
 tual distance, those at the head of an industry 
 are, the greater becomes the responsibiUty, first to 
 select wisely the men to whom authority is to be 
 delegated, and, secondly, to make sure of its proper 
 exercise. This becomes a double responsibility 
 where capital employed in a business represents 
 the investments of others. There is a responsi- 
 bihty to workers who give their labor, to see that 
 they are accorded fair treatment, and a responsi- 
 bility to investors who loan capital, to see that 
 their profits are in no wise the fruit of injustice. 
 
 Mr. John D. Rockefeller, Jr., spoke from wide ex- 
 perience and exceptional knowledge when he told 
 the engineering classes of Cornell University that, 
 while theretofore the chief executives of important 
 industrial corporations had been selected largely 
 because of their capacity as organizers or financiers. 
 
PRINCIPLES UNDERLYING PEACE 177 
 
 the time was rapidly coming when the important 
 quaUfication for such positions would be a man's 
 abihty to deal successfully and amicably with 
 Labor. 1 The responsible head of every industry 
 should possess the disposition to treat justly and 
 humanely all workers under his jurisdiction. 
 
 In these days of big business, when activities of 
 the largest industrial corporations are no longer 
 merely national, but international and even world- 
 wide, all-round responsibility for working condi- 
 tions and for the treatment accorded Labor in In- 
 dustry requires ampler recognition than it has thus 
 far gained. Where, as under the domestic system 
 of Industry, the employer supplied the necessary 
 capital and himself directed the business, responsi- 
 bility was plain enough. The personal relation- 
 ship was immediate and its obligations were self- 
 evident. To-day, large corporations are made up of 
 stockholders, directors, executive officers, and em- 
 ployees. The stockholders provide the capital and 
 remain the real, though the unidentified, employers 
 of Labor. Personal relationships between stock- 
 holders and employees have all but wholly disap- 
 peared. It cannot be pretended, however, that 
 with the disappearance of personal relationships, 
 personal responsibility has also vanished. Wage- 
 earners, because no longer able to trace the source 
 
 ' The Personal Relation in Industry: Address delivered on the oc- 
 casion of Founder's Day, January ii, 1917. 
 
178 INDUSTRY AND HUMANITY 
 
 of capital which unites with their labor in the work 
 of production, are not free to regard themselves as 
 exempt from the full performance of services for 
 which they receive remuneration. No more have 
 shareholders, in the acceptance of dividends, the 
 right to regard with indifference conditions under 
 which Labor is obhged to perform the services that 
 gain productive returns for investments. 
 
 The responsibility of an individual stockholder 
 in a corporation is in proportion to his interest. 
 The circumstance that the expansion of Industry 
 and the form of industrial development render im- 
 possible the exercise of this responsibility through 
 immediate personal relationships, increases rather 
 than lessens responsibihty for its rightful exercise 
 on the part of all who act in a representative capac- 
 ity. In practice, stockholders confine their function 
 to voting for directors who represent their inter- 
 ests and to endorsing recommendations. The stock- 
 holder who realizes no further duty has failed to 
 appreciate the right relation of Industry to Hu- 
 manity. Whilst avoiding immediate personal re- 
 sponsibility, he must, where injustice exists, share 
 the enduring condemnation of those who are indif- 
 ferent to the conservation of human hfe. 
 
 Directors are charged with the great responsibil- 
 ity of developing the policies of corporations, of se- 
 lecting their officers, and of seeing that corporations 
 are properly managed. In practice, this responsi- 
 
PRINCIPLES UNDERLYING PEACE 179 
 
 bility has been recognized more in relation to strictly 
 financial and business aspects than with respect to 
 determining labor poUcies. Emphasis has been upon 
 material considerations of plant and equipment, 
 output, prices, and profits, and not sufficiently 
 upon human considerations appUcable to indus- 
 trial standards, which under a spiritual interpreta- 
 tion of Ufe are necessarily of first concern. Atten- 
 tion has been concentrated on problems of finance 
 and organization to the subordination of the intri- 
 cate questions involved in the handling of Labor. 
 It is with respect to labor policies and their ad- 
 nunistration, more than to aught else, that the old 
 order in Industry must give place to a new. 
 
 The responsibility of directors of large corpora- 
 tions for labor poUcies, and for the methods of their 
 administration, is far from being as clearly recog- 
 nized and accepted as it should be. Indeed, there 
 are important corporations which have openly 
 disclaimed any such responsibiUty on the part of 
 directors. There can be no defence for such an at- 
 titude. The claims of human life are superior to 
 those of material gain. In their right and power to 
 shape policies, directors hold, so to speak, the con- 
 sciences of those who employ Labor through the in- 
 vestment of capital in Industry. The authority of 
 directors as respects poUcy is unlimited. It should 
 be fully exercised in determining working condi- 
 tions and the standards of justice by which the 
 
180 INDUSTRY AND HUMANITY 
 
 relationships of employer and employed are to 
 be maintained. It should reach even farther. It 
 should embrace responsibility for the spirit in 
 which all industrial policies are to be made to 
 prevail. 
 
 Personal acquaintance with conditions and with 
 Labor on the part of directors, as well as on the 
 part of officers and stockholders, is a substan- 
 tial guarantee against the sort of injustice that 
 breeds discontent and fosters strife. Frequent vis- 
 its to industrial establishments and inspection of 
 industrial premises by those in authority cannot 
 be other than fruitful of good results. The wider 
 the circle of acquaintances formed on such occa- 
 sions, and the closer the first-hand study of condi- 
 tions, obviously the better. Whatever furthers 
 mutual understanding is mutually profitable. Per- 
 sonal contacts, besides affording to directors and 
 executive officers a wider knowledge of Labor and 
 its needs and conditions, give to Labor the feeUng 
 that it is regarded with interest, and to subordi- 
 nate officials an incentive to discharge their duties 
 adequately. Moreover, very often impressions of 
 one land or another gather around men whose 
 positions remove them from frequent contacts 
 with others, and sometimes a bad impression is as 
 fatal in its effects as a bad character. Want of sym- 
 pathy and lack of confidence are not infrequently 
 due to want of acquaintance and lack of knowledge. 
 
PRINCIPLES UNDERLYING PEACE 181 
 
 There are important considerations which he 
 about and beyond Industry and which are af- 
 fected by all that transpires within Industry itself. 
 Among such are the peace and prosperity of indus- 
 trial communities, the health and vitahty of work- 
 ers, and the spirit of contentment which pervades 
 a people. The activities of corporations are an 
 important part of a country's social and industrial 
 life; and directors can no more divest themselves 
 of responsibility for co-operation in the mainte- 
 nance of social standards, than the State itself can 
 be freed of its obhgation to safeguard the interests 
 of society as a whole from the selfishness of special 
 interests. There must be regard, not for the im- 
 mediate parties to Industry only, but also for the 
 environments in which organized efforts are car- 
 ried on. Indifference to human well-being, and 
 abuse of power in any phase of industrial relations, 
 cannot fail to react unfavorably upon Industry, and 
 also upon the community in which Industry is con- 
 ducted. This twofold reaction is inevitable, and is 
 certain to strike somewhere to the injury of all con- 
 cerned. In hke manner, industrial well-being is 
 affected by all that affects community well-being. 
 There are extremely few points at which indus- 
 trial and community hfe do not touch. Wherever, 
 in any particular, the one depends on the other, 
 there character becomes a centre of vital influence 
 which may radiate far and wide. 
 
182 INDUSTRY AND HUMANITY 
 
 Arbitrary behavior in Industry may lead to vio- 
 lent movements in industrial communities. On 
 the other hand, law and order in Industry is itself 
 dependent on the maintenance of law and order in 
 the State, and the degree of confidence thereby 
 inspired. It is to pubhc assemblies, executives, 
 and courts that a nation necessarily looks for its 
 laws, and for efficient administration. If members 
 of legislatures are corrupt, if officeholders can 
 be bribed, if a judiciary is not above reproach, 
 whence is to come the confidence in law and order 
 on which all else is based? With Politics and In- 
 dustry inter-related as they are to-day, the integ- 
 rity of men occupying positions of trust in the 
 State is hardly one whit less important to Industry 
 than the integrity of the men engaged in Industry 
 itself. Many an industrial problem, so called, is 
 not an industrial problem at all, but a pohtical 
 problem, a problem of government. It is no more 
 possible to found Industry upon a quagmire of un- 
 certainty or distrust within the State, and hope 
 that it may endure, than it is to build a house 
 upon the sand, and expect that it will not fall when 
 the rain descends and the floods come, and the 
 winds blow and beat upon it. 
 
 As Industry develops, as its plants expand in 
 size and become widely distributed; as the num- 
 bers of employees increase, and, with them, the 
 
PRINCIPLES UNDERLYING PEACE 183 
 
 numbers also of managers, superintendents, fore- 
 men, and bosses; as divergent personal, social, and 
 financial interests widen the gulf between those in 
 authority and those under it, and make frequent 
 and immediate intercourse impossible, — new sets 
 of conditions necessarily arise, and wholly new 
 classes of problems present themselves. Distance, 
 whether of class or of communication, is an obstacle 
 to complete understanding well-nigh insurmount- 
 able. Yet absence of misapprehension Ues at the 
 root of industrial peace, and is an element vital to 
 efficient service in Industry. Handicaps of dis- 
 tance, where such exist, must be overcome by 
 enlightened pohcies. International or world-wide 
 Industry demands a consideration of personal rela- 
 tionships entirely unknown to Industry in its ear- 
 lier and simpler forms. 
 
 Investors, directors, and managers of many in- 
 dustrial concerns have wholly failed to recognize 
 the significance of the changes which Industry has 
 undergone. They have not adequately appreciated 
 what these changes involve in the way of clearly 
 defined labor pohcy. Methods of meeting the al- 
 tered relations between employers and employed, 
 which machinery has been largely instrumental in 
 creating, have not caught up with the rapid de- 
 velopment of Industry consequent upon mechanical 
 inventions. Many a corporation is seeking to cope 
 with twentieth-century conditions by nineteenth, 
 
184 INDUSTRY AND HUMANITY 
 
 and even by eighteenth-century methods, and 
 wonders why it is unsuccessful in averting indus- 
 trial unrest. To grope along in such fashion is Uke 
 striving to meet problems of middle life with the 
 Umited vision of childhood. It is interpreting the 
 stress of modern times in terms of the seclusion of 
 the middle ages. The War, with its use of aero- 
 planes, submarines, and "tanks," its machine guns 
 and liquid fire, has shown how little international 
 conflict to-day resembles war of a century ago, even 
 in methods of fighting. Changes in methods of 
 warfare are but a reflection of changes Industry 
 itself has undergone. 
 
 With the expansion of Industry, confidence, more 
 than ever, becomes essential to the preservation 
 of industrial peace. Its maintenance requires the 
 establishment of new ways and means. Where per- 
 sonal contacts are lost, and relationships between 
 employer and employee become impersonal, meth- 
 ods and devices of one kind or another have to 
 be created to preserve a faith which of necessity 
 rests on a vital relationship. Otherwise, Industry 
 ceases to be a great creative process in which La- 
 bor, Capital, Management, and the Community 
 co-operate, and becomes instead a vast mechanical 
 routine. 
 
 Confidence, being faith in fair intentions and just 
 dealings, constitutes a first fine of defence against 
 the distrust and suspicion that breed fears. Whilst 
 
PRINCIPLES UNDERLYING PEACE 185 
 
 confidence is inseparable from character, which 
 finds no adequate substitute in forms or devices of 
 any kind, both confidence and good-will may be 
 fostered by methods and measures which beget a 
 right attitude, and keep human nature true to its 
 better self. The opportunity of personality which, 
 through industrial transitions, has been lost in one 
 direction must be met in some other way through 
 evidence of fair and just intentions, by instrumen- 
 taUties which serve to eliminate Fear and to estab- 
 Ush Faith. 
 
 II 
 
 During the reign of William the Conqueror, a 
 new officer of the highest dignity, the Justiciar, 
 was appointed. He represented the King in all 
 matters; and at all times administered the legal 
 and financial business of the country. Henry I en- 
 deavored to curb the power of the feudal nobility 
 by centrahzing and systematizing the Royal Ad- 
 ministration. As the annual courts were found in- 
 adequate for the increasing business of the nation, 
 the Chief Justiciar, accompanied by some of the 
 other Justices of the King's Court, began, toward 
 the end of Henry's reign, to make occasional cir- 
 cuits of the Kingdom, principally for fiscal, but 
 partly also for judicial, purposes. The local courts 
 were thus brought into closer connection with the 
 supreme national tribunal. By introducing order 
 
 J 
 
186 INDUSTRY AND HUMANITY 
 
 and system into the administration of law and gov- 
 ernment, Henry prepared the way for subsequent 
 important reforms. 
 
 Under the highly centrahzed system of adminis- 
 tration of that early period, the Sovereign evidently 
 realized that the impression subjects might come 
 to have of the Crown would depend upon the re- 
 dress of wrongs and the elimination of grievances 
 in accordance with known and accessible means of 
 obtaining Justice; also that the maintenance of 
 law and order throughout the Kingdom demanded 
 some immediate and direct link between the King 
 and his subject people. 
 
 I believe it can be shown that law and order 
 within Industry at the present time is just about 
 at the stage constitutional development reached 
 in England under the Norman and Plantagenet 
 Kings. Nor is this altogether a matter of surprise. 
 The Industrial Revolution which gave birth to 
 modern Industry had nowhere run its course a cen- 
 tury ago; it is working its transformations in dis- 
 tant lands even now. It gave rise inevitably to 
 highly centralized organization. Accordingly, gov- 
 ernment in Industry is presenting to-day all the 
 problems which centralization in government has 
 always presented. Industry at the moment is at 
 the threshold of another revolution as mighty in 
 its transforming powers as the Industrial Revolu- 
 tion of a century ago. The change to be wrought 
 
PRINCIPLES UNDERLYING PEACE 187 
 
 out is the transition from centralized authority to 
 self-government. It is likely to parallel, in all essen- 
 tial features, corresponding evolutions in govern- 
 ment within the State. ReaUzing this, we may re- 
 ceive much in the way of valuable suggestion from 
 steps which made poUtical freedom possible, and 
 which have marked the course of political progress. 
 
 So long as within industrial demesnes the ad- 
 ministration of Justice is to be retained as a part 
 of managerial prerogative, directors and managers 
 of large industrial corporations can well afford to 
 study the methods by which centralized authority 
 in the State sought to hold the scales of Justice 
 in even balance. To their own good as well as to 
 the advantage of law and order in Industry, they 
 might begin with the device which absenteeism, in 
 the case of the Conqueror, and expansion, in the 
 case of the early Henrys, rendered necessary, and 
 appoint some Justiciar with authority to move 
 among employees and ofTicials, and see that Justice 
 is fairly administered. 
 
 Three or four years ago, I took occasion to inquire 
 of the Royal North-West Mounted PoUce concern- 
 ing the methods which have proven so success- 
 ful in maintaining law and order in unorganized 
 districts of Western and Northern Canada. I was 
 told that the entire districts were regularly pa- 
 trolled by members of the Force; that settlers were 
 visited upon their farms and ranches, and inter- 
 
188 INDUSTRY AND HUMANITY 
 
 viewed concerning violations of law and the ade- 
 quacy of the protection afforded. This routine is 
 followed, irrespective of the right of settlers to com- 
 municate at any time with PoUce Headquarters. 
 Crime is tracked down with vigilance, and with 
 such resources as the Government has at its com- 
 mand. By this visible hnk between authority and 
 citizenry, confidence is established and settlement 
 maintained in districts that readily enough lend 
 themselves to depredations and lawlessness. 
 
 Under any centraUzed system in Industry, the 
 appointment of a personal representative by direc- 
 tors or a corporation head to serve as a hnk be- 
 tween the management and employees is a neces- 
 sary first step in the administration of justice and 
 the supervision of labor pohcy . The services of such 
 an officer, if he be possessed of character, tact, and 
 the right kind of disposition, should prove, in all 
 large corporations, second only to those of the 
 manager himself. 
 
 Gifted with personahty, a management's rep- 
 resentative can do very much to impart to the 
 working forces a right appreciation of the attitude 
 of the corporation; to curb arbitrary and ill-consid- 
 ered action on the part of subordinate officials; to 
 detect grievances in incipient stages and remove 
 sources of irritation; and so restore some of the ad- 
 vantages of close relationship between employer and 
 employee which have been lost through large-scale 
 
PRINCIPLES UNDERLYING PEACE 189 
 
 Industry. With a proper development of his func- 
 tion, such a representative might come to be as 
 important in his way in the affairs of an industrial 
 enterprise as the Chancellor was in Equity days in 
 the affairs of the State. Some corporations have 
 already made such appointments with the utmost 
 advantage to management and employees. 
 
 In the reign of King John, the people, under the 
 leadership of the barons, secured from the Crown 
 the "Magna Charta." It has been characterized 
 by Hallam as the "keystone of English liberty." 
 Stubbs, in his "Select Charters," says: "The whole 
 of the constitutional history of England is a com- 
 mentary on this charter." Here is a page of British 
 history replete with illumination. In its nature, 
 the Great Charter was little more than an asser- 
 tion of fundamental rights as between the Sov- 
 ereign and his people, drafted in a form to which 
 appeal could be made at any and all times. As 
 such it was a shield agamst unjust exactions on the 
 part of arbitrary authority. 
 
 I know of no device better calculated to preserve 
 law and order in Industry than a simple statement 
 in printed form of the rights of employer and em- 
 ployee respectively on all matters which are likely 
 to become subjects of controversy. In its simplest 
 form, such a statement may include little more 
 than principles and policies to govern relations be- 
 tween workers and employers. Elaborated, it may 
 
190 INDUSTRY AND HUMANITY 
 
 be extended to include all that is essential respect- 
 ing terms of employment, living and working con- 
 ditions, and procedure in the method of presenta- 
 tion and adjustment of complaints and grievances. 
 The absence of any clearly defined statement with 
 respect to these several particulars is a source of 
 constant fear of injustice, and leads to much unrest 
 in Industry. 
 
 There are clauses in the Magna Charta which 
 seem so elementary, one wonders how any sov- 
 ereign could have sought to maintain authority 
 other than by observance of them. It was John's 
 character and disposition that rendered the Char- 
 ter necessary. We are told that he was an oriental 
 despot, a tyrant of the worst sort; that his personal 
 character inspired utter distrust and aversion in all 
 classes of his subjects. The despot in Industry is 
 fortunately becoming more and more the exception. 
 Unhappily he has not wholly disappeared. Man- 
 agers who are unwilhng to give their workmen any 
 written form of agreement, or publicly to set forth 
 rights and principles in matters essential to em- 
 ployment, possess something of the character and 
 disposition of John, and, unrestrained, are as harm- 
 ful to Industry as John was to the State. 
 
 There are sixty-three clauses in the Magna 
 Charta. All might be quoted to advantage. One 
 or two bear so directly upon rights which demand 
 definition in employment, it may be well to pause 
 
PRINCIPLES UNDERLYING PEACE 191 
 
 and consider them for a moment. It is interesting 
 in passing to observe that sixty-three rights were 
 not regarded by the people of John's day and gen- 
 eration as an excessive number to be asserted. Two 
 clauses in particular merit special attention : 
 
 No free man shall be taken, or imprisoned, or dis- 
 seized, or outlawed, or exiled, or anywise destroyed; 
 nor will we go upon him, nor send upon him, but by 
 the lawful judgment of his peers or by the law of the 
 land. 
 
 To none will we sell, to none will we deny or delay, 
 right or justice. 
 
 These are clauses thirty-nine and forty of the 
 Great Charter. It has been remarked that in these 
 clauses "are clearly contained the Habeas Corpus 
 and the Trial by Jury, the most effectual securities 
 against oppression which the wisdom of man has 
 hitherto been able to devise." ^ "There is," says 
 Taswell-Langmead, "a breadth about the simple 
 language employed, as if those who wrote it felt 
 they were asserting universal principles of justice." * 
 These principles, apphed to employment in Indus- 
 try, would secure every worker against arbitrary 
 treatment and unjust discrimination on the part 
 of management, from the highest to the lowest 
 oflTicials. 
 
 Other clauses are scarcely less significant. 
 
 • Sir James Mackintosh, Hist. Eng., i, 219-220. 
 
 " English Constiiniional History, p. io5. London, iqoS. 
 
192 INDUSTRY AND HUMANITY 
 
 Clause seventeen reads: Common Pleas shall not 
 follow the king's court, but be held in some certain 
 place. The intent of this clause was that suitors 
 might always have a fixed and settled court to 
 resort to. How many industries to-day employ 
 known methods of expeditious procedure in the 
 adjustment of grievances and redress of indus- 
 trial wrongs? 
 
 Clause forty-five reads: Justices, constables, 
 sheriffs, and bailiffs shall only be appointed of such as 
 know the law and mean duly to observe it. Are only 
 officials of this character retained in industrial 
 communities? 
 
 Clause sixteen reads: No one shall be compelled 
 to render more than the due service for a knight's fee 
 or other free tenement. This clause would seem to 
 have a direct bearing on "Sweating" in Industry, 
 and many lesser abuses! 
 
 Clause thirty-five reads : There shall be one stand- 
 ard of measures and one standard of weights through- 
 out the Kingdom. Change the word "Kingdom" to 
 "Industry," the principle remains the same, but 
 the clause seems to acquire pecuhar appropriate- 
 ness in its application to both Capital and Labor. 
 
 Is it to be expected that the descendants of men 
 who were ready to sacrifice everything for the 
 assertion of fundamental rights in the State are 
 likely to prove indifferent to the maintenance in 
 
PRINCIPLES UNDERLYING PEACE 193 
 
 Industry of the principles they embody? It would 
 be unfortunate for both Industry and Liberty if 
 they were. 
 
 Exact statement of terms and conditions of em- 
 ployment; clearly defined and adequate means of 
 speedy redress of wrong, are essential to mutual 
 faith and a complete understanding between the 
 parties to Industry. There can be intelligent and 
 fair co-operation, and recognition of a common in- 
 terest, only where knowledge of rights and duties 
 is general. EquaUty of knowledge, wherever pos- 
 sible, is still better. Any attempt to conduct In- 
 dustry along lines which assume other than mutual 
 interests, or which presuppose^ other than honest 
 purpose and intelligent co-operation, must inevi- 
 tably occasion injustice, and sooner or later lead to 
 open discord and strife. Industrial peace is based 
 on industrial justice. Justice that is uncertain is 
 not justice at all. 
 
 In the absence of exact knowledge, there is al- 
 ways opportunity for unfair and arbitrary practices. 
 Where there is uncertainty as to hire or discharge; 
 as to wages, hours, or working conditions; as to 
 methods of adjusting grievances, or the enjoyment 
 of customary rights and privileges; wherever, in a 
 word, uncertainty exists, there, sooner or later, sus- 
 picion and distrust are sure to arise. It matters 
 little whether the wrong alleged be real or im- 
 aginary, it will be aggravated wherever there is 
 
194 INDUSTRY AND HUMANITY 
 
 nothing definite to which an immediate appeal can 
 be made. Officials very naturally prefer a free hand 
 in dealing with Labor under their direction, and it 
 is the part of wisdom in directors and managers to 
 permit the widest discretionary authority compat- 
 ible with certainty of just dealing and fair-play. 
 Rightly interpreted, a rule which makes exact con- 
 ditions known to all, to employer and employee 
 alike, is no restriction, but a safeguard which helps 
 to ensure freedom. 
 
 Labor is entitled to its Magna Charta of In- 
 dustrial Liberties. The more comprehensive the 
 Charter is, the more exphcitly its stipulations are 
 worded ; and the wider their application, the better 
 for the peace of Industry, and all that industrial 
 peace makes possible. When the Rights of Na- 
 tions are similarly stated, and a Court of the Na- 
 tions is estabhshed to which appeals may be made 
 with confidence, wars and the rumors of wars will 
 cease. 
 
 Fair-play is best secured in Industry as in sport. 
 There is, indeed, no more sensible or more read- 
 ily applicable basis for the regulation of Industry. 
 This is true not less of rules and regulations volun- 
 tarily agreed upon by the parties to Industry than 
 of the regulation of Industry by the State. What is 
 regarded as necessary precaution in a boxing con- 
 test, a horse race, or a ball game, ought not to be 
 
PRINCIPLES UNDERLYING PEACE 195 
 
 viewed as unduly restrictive when applied to the 
 well-being of men and women engaged in honest 
 toil. 
 
 Rightly conceived, law and order in Industry 
 is the equivalent of fair-play in sport, and of 
 the means and methods taken to ensure it. For 
 games, there are rules and regulations; certain 
 practices are permitted, others are prohibited. 
 The rules and regulations are easily ascertainable; 
 they are the same for all, and are known to all. 
 There is usually an impartially selected imipire or 
 referee to whom, in cases of dispute, appeal can be 
 made, and whose decision is accepted as final. The 
 participant who fails to observe the rules of the 
 game is penalized; and if gviilty of foul practice or 
 unwilhng to obey decisions, is ruled out altogether. 
 Within the area thus secured, there is freedom of 
 play, a fair field for all, and favors for none. So it 
 should be in Industry. Let the field be staked out; 
 the rules, regulations, and standards pubhshed ; and 
 let the honors go to the concerns that display re- 
 gard for human well-being coupled with the highest 
 efficiency. But let there be principles and pohcies, 
 and let it be seen that the principles and policies 
 are made apphcable over the competitive area, and 
 are generally observed ! Industry will then cease 
 to be a guerrilla warfare and will take on some- 
 thing of its true character as public service. 
 
 Whatever is to be said in commendation of known 
 
196 INDUSTRY AND HUMANITY 
 
 rules and regulations, is even more applicable to 
 agreements and contracts between the parties to 
 Industry. Under collective agreements, a sense of 
 equality between the parties is established. Nei- 
 ther dominates the other. Among the workers a 
 consciousness of security is developed in place of 
 a f eehng of uncertainty and helplessness. The fear 
 of being wrongfully discharged disappears before 
 the right to demand redress. A due process of law 
 in the adjustment of differences becomes substi- 
 tuted for the too frequent arbitrary and irrespon- 
 sible rule of higher officials. 
 
 The question of discipline in Industry is always 
 an important and difficult one. Even-handed jus- 
 tice and reasonableness must be at the basis of it. 
 So far as may be possible, it should be made profit- 
 able and easy for all parties to be just and consider- 
 ate, and unprofitable and difficult for them to be 
 the reverse. In deahng with human nature pos- 
 sessed of inferior quahties, justice may well be 
 tempered with mercy. DiscipHne will be all the 
 more effective for being mild rather than harsh. 
 As far as possible, discipUnary penalties should be 
 corrective. Except for grave offences, suspensions 
 should precede dismissals, and warnings or com- 
 plaint memoranda precede suspensions. To many 
 a man, discharge is the equivalent of outlawry and 
 dispossession. Where discharge exists as a pen- 
 
PRINCIPLES UNDERLYING PEACE 197 
 
 alty, the offender should have a right to a hear- 
 ing, and a right to be represented by a fellow work- 
 man or other quahfied person. Justice may most 
 be hoped for where the hearing is before some board 
 on which all the parties to Industry are represented. 
 The experience of firms which have given special 
 study to disciplinary methods and efficiency would 
 seem to indicate that the "hiring and firing" of 
 employees is best taken out of the hands of subor- 
 inate officials and left to a special department or 
 officer charged with the supervision of personal re- 
 lations between officials and employees. Transfer 
 from one branch or department to another is a 
 means of avoiding dismissal and minimizing labor 
 turnover, which works very often to the advantage 
 of both the industry and the employees concerned. 
 Reference has already been made to the wisdom 
 of associating with the President's or Manager's 
 office a special representative who may act as a go- 
 between in controversies, and whose services may 
 be availed of by employees or their representatives. 
 The more the administration of discipUne can be 
 worked out in accordance with methods known to 
 all, and in a manner which will hold the balances 
 even between petty officials and workers, the bet- 
 ter for industrial peace. 
 
 It illustrates wherein a false emphasis has been 
 placed upon material, as contrasted with human. 
 
198 INDUSTRY AND HUMANITY 
 
 considerations, that many concerns fully alive to 
 the importance of fair dealings with customers and 
 the public, and to the value of a good reputation 
 in dealings with "the trade," have been indiffer- 
 ent to the application of like principles to Labor 
 in their employ. Companies that have dismissed 
 salesmen who have forfeited sales through care- 
 lessness, indifference, or ill-temper, have not hesi- 
 tated to retain foremen and bosses who have been 
 m.ost indifferent to working conditions, and harsh 
 and ill-tempered in dealing with employees. Clerks 
 are supposed to stand for a company's ideals be- 
 fore the pubUc, while behind the pubhc practices 
 are sometimes permitted which disclose an abso- 
 lute disregard for ideals. It is not uncommon for 
 employers to instruct employees who have to do 
 with the public to see that every complaint is care- 
 fully looked into, that customers are " given satis- 
 faction," and if the fault rests with the company to 
 see that it is made good " regardless of cost." How 
 rare it is that like instructions are given to superin- 
 tendents and foremen with respect to the Labor un- 
 der their control. Yet the one has to do only with 
 monetary considerations; the other with human hfe 
 as well! Employers should recognize that anofTicial 
 who disregards the well-being of his men is as much 
 a source of danger to the industry that employs him, 
 as a neglectful officer in the army is to the compa- 
 nies under his command. Wherever different na- 
 
PRINCIPLES UNDERLYING PEACE 199 
 
 tures are brought into contact with one another, 
 too great care cannot be exercised in securing for 
 positions of authority men of broad human sym- 
 pathies, who inspire faith rather than fear. 
 
 Good-will of employees is as desirable as the 
 good-will of customers. "Treat patrons the way 
 you would want to be treated if you were in their 
 positions," is regarded as good business. A com- 
 prehensive view of right relations in Industry 
 would regard as even better business the same 
 maxim unrestricted in application. It would then 
 become the Christian precept, "Do unto others as 
 you would have others do unto you." 
 
 The President of an important sales company in 
 New York recently issued the following injunction 
 to all the Company's employees: "The only true 
 basis of commercial success is scrupulous honor — 
 the kind that always foregoes the benefit of the 
 doubt rather than run the risk of being unfair. 
 You can't upset the moral order without coming to 
 grief, any more than you can upset the physical 
 order by cutting your finger without blood and 
 pain. The broadest business men of our time are 
 recognizing this supreme fact. Our success is go- 
 ing to be in direct proportion to our acknowledg- 
 ment of it, and so far as it hes in my power to do 
 so I intend to make sure that we are always fair, 
 honorable, and polite, whether the other fellow is 
 or not." An injunction such as this may well serve 
 
200 INDUSTRY AND HUMANITY 
 
 as a model. As a policy it leaves little to be desired 
 in the promotion of confidence and good-will. 
 
 In seeking the promotion of good-will, one has 
 but to ask in what it is that ill-will has its birth, A 
 momeiit's reflection will disclose that, next to posi- 
 tive insult, nothing so engenders bitterness of feel- 
 ing as a sense of being ignored. That is where per- 
 sonaUty asserts itself even in the humblest. Human 
 nature resents failure to take account of the human 
 equation. In industrial relations, as in all other 
 human relations, the right to have personality re- 
 spected is fundamental. The trade unionist who 
 first appUed the term " recognition " to the demand 
 intended to compel attention to the existence of 
 organized groups of workers, knew something of 
 the value of words. While the word recognition 
 has been used and misused in industrial confhcts 
 to the point of exasperation, it expresses an idea 
 fundamentally sound in what it conveys of a re- 
 quirement essential to right relations in Industry. 
 
 In what form recognition may best be given is 
 something which always demands consideration. 
 Much will depend on circumstances. Unless, how- 
 ever, recognition is voluntarily conceded in one 
 form or another. Labor sooner or later will seek to 
 compel it. And it is well for the sake of Industry 
 that Labor should. 
 
 The right of association and of organization by 
 
PRINCIPLES UNDERLYING PEACE 201 
 
 workers is a fundamental right. Denial or inter- 
 ference with this right is provocative of much ill-will 
 in Industry. With organization is necessarily as- 
 sociated representation. The rights of workers to 
 bargain collectively and to be heard, through chosen 
 representatives, in matters pertaining to theu: em- 
 ployment, are corollaries of the right of association. 
 It is now pretty generally conceded that it is as 
 legitimate for Labor to associate itself into organ- 
 ized groups to advance its interests, as for Capital 
 to combine for the same object. Methods adopted 
 to effect and promote organization are not infre- 
 quently open to question, on the part of both Labor 
 and Capital; but questionable practice and the 
 principle of organization are not one and the same 
 thing, and should be kept separate and distinct. 
 No handicap could be severer than the atom-like 
 position of many an isolated worker in the struggle 
 against forces of world-wide competition. What the 
 individual worker has lost of independence, through 
 the transitions and the expansion of Industry, he 
 is entitled to regain, so far as may be possible, 
 through associated effort. He must do this or go 
 to the wall. It is through associated effort that the 
 struggle for existence is mitigated, and because of 
 the possibihties of mutual aid, that the biological 
 law of the survival of the fittest is rendered inap- 
 plicable to human relations. In collective secur- 
 ity lies the eUmination of the fears which Individ- 
 
202 INDUSTRY AND HUMANITY 
 
 ual isolation necessarily begets. Associated effort, 
 moreover, induces an enlargement of sympathy 
 and a faith in others which independence some- 
 times helps to destroy. Far-reaching social gains 
 may accrue from wisely promoted association and 
 co-operation begotten of the necessities of isolation. 
 
 Joint Committees and Boards on which repre- 
 sentatives of the management and employees have 
 opportunity to consider matters of mutual interest 
 are useful media for bringing together a company's 
 ofTicers and its men, and for developing friendly re- 
 lations and preventing the estrangements which 
 arise through ignorance and purely official meet- 
 ings. It has been well said that "among honest 
 men, familiarity breeds confidence, not contempt." 
 No better maxim could be appUed to the relations 
 which should govern in Industry between those 
 in authority and those under it. Whilst personal 
 contact between stockholders and employees, or 
 contact between directors or even managers and 
 employees, is no longer possible in large companies, 
 effective use may be made of representation to re- 
 store what is vital in these relationships by means 
 of joint meetings and frequent conference. 
 
 The wisdom of resorting to any means of effect- 
 ing closer relationships between the parties to In- 
 dustry, especially in the case of corporations which 
 have to do with foreign labor, must be apparent 
 once it is recalled how readily suspicions and mis- 
 
PRINCIPLES UNDERLYING PEACE 203 
 
 understandings arise from differences of language, 
 customs, and viewpoint, and what temptations 
 there are to exploit the ignorant. The " problem of 
 understanding employees and being understood by 
 them is a vital problem." Once this is appreciated, 
 it will be seen that much thought must be given to 
 the means of best promoting personal relationships 
 in Industry. 
 
 Many industrial establishments have adopted the 
 plan of supplementing personal contacts by the 
 publication and distribution among their employ- 
 ees of leaflets, pamphlets, and periodicals devoted 
 to topics of common concern. In helping to foster 
 a community of interest between the parties to 
 Industry, social and industrial betterment plans, 
 mutual benefit funds, and many forms of so-called 
 welfare work, may also render a useful service. All 
 are not equally effective, and it would be unwise 
 to single out individual efforts for special mention. 
 In whatever pertains to welfare work, and to in- 
 dustrial betterment schemes, much depends on the 
 nature and size of the industry, on the classes of 
 Labor employed, and on the standards of its intelli- 
 gence. What may minister to good-will among 
 immigrants in a frontier mining camp may be 
 wholly inappUcable to American girls in a New 
 England telephone exchange. Devices which are 
 suitable to isolated estabhshments may be most 
 inappropriate to corporations such as railroads 
 
204 INDUSTRY AND HUMANITY 
 
 with employees distributed over an entire conti- 
 nent. Whatever fosters community of feehng and 
 interest, however, minimizes the possibihties of 
 industrial strife. 
 
 It must be remembered, with respect to welfare 
 work and the like, that charity and philanthropy 
 are no substitutes for justice; that in the absence of 
 substantial justice all such schemes are rightly ab- 
 horrent to Labor, and usually defeat the ends for 
 which they are projected. The observance of fun- 
 damental principles in industrial relations is much 
 more important than betterment plans or pro- 
 grammes of any kind. Right principles are appli- 
 cable to any and every condition, and the most 
 effective methods of promoting good-will are not 
 infrequently those with least display about them. 
 
 In all these matters, we are brought back to the 
 personal equation. Injustices and misunderstand- 
 ings between the parties to Industry are largely 
 a result of lack of contact and an inability to rec- 
 ognize the conamon interest. "Whatever affords oc- 
 casion for employers and employees, workingmen 
 and ofTicials, to meet and confer together, to come 
 to know and to trust each other, and to under- 
 stand each other's problems and points of view, is 
 in the highest degree advantageous. Then when 
 difTiculties arise, the door opens naturally to con- 
 ference. Aloofness and distrust give way to frank 
 discussion. Knowledge of each other gained by 
 
PRINCIPLES UNDERLYING PEACE 205 
 
 employers and employees through frequent meet- 
 ings permits issues, as one writer has expressed it, 
 "to be thought out, talked out, even fought out 
 without rancour." No matter what the occasion, 
 wherever the parties to Industry have become ac- 
 customed to deal together either by duect confer- 
 ence or through representatives, the possibihty of 
 serious friction is materially lessened. The princi- 
 ple of the open door between Management and 
 Labor is one that cannot be too highly commended. 
 
 Ill 
 
 " I care not how often I say it, this war could have 
 been avoided by accepting a conference. Why was 
 the conference not accepted? Because there was no 
 good-will." These momentous words were spoken 
 by Sir Edward Grey, British Foreign Secretary, in 
 addressing the House of Commons in London on 
 May 24, 1916. Could more be said of the signifi- 
 cance of good-will, or of the importance of confer- 
 ence? Where, in international and industrial re- 
 lations, good-will is cherished, peace is assured. 
 Where its presence is doubtful, conference cannot 
 take place too soon. 
 
 With human nature what it is, mistakes, griev- 
 ances, and differences will inevitably arise between 
 individuals and nations in their deahngs one with 
 another. It is a part of the promotion of good-will 
 
206 INDUSTRY AND HUMANITY 
 
 and confidence to anticipate these eventualities, 
 and to establish adequate means for the mainte- 
 nance of right and the redress of wrong. The agen- 
 cies that in one form or another have been devel- 
 oped out of conference, and which have best served 
 to maintain industrial and international peace, are 
 concihation, mediation, investigation, ^ and arbitra- 
 tion. Utihzed with sincerity, they constitute an all 
 but impregnable line of defence against industrial 
 and international strife. 
 
 Conciliation is always the best of methods to 
 employ in adjusting differences. It has regard for 
 feelings, as well as for facts, and feeUngs are an 
 all-important consideration where human relation- 
 ships are concerned. The whole effort of concilia- 
 tion is necessarily concentrated upon the elimina- 
 tion of fear and the estabhshment of faith between 
 the parties concerned. Its main objective is to 
 make self-evident wherein interests are common 
 and not opposed. Conciliation does not imply com- 
 promise, as that term is used in contradistinction 
 to justice, and as some are inclined to beheve. 
 Where it successfully performs its mission, Concih- 
 ation removes doubts and misgivings as to the jus- 
 
 1 Investigation might be designated as the method of reliance upon 
 opinion, since it is as a means of creating an informed public opinion 
 that it gains a distinctive character and is employed as a separate 
 method of preventing and adjusting disputes. By Investigation, 
 Public Investigation is, of course, meant. 
 
PRINCIPLES UNDERLYING PEACE 207 
 
 tice secured. Conciliation makes plain that "the 
 letter killeth, but the spirit giveth life." Its em- 
 phasis is upon Ufe. As an art, it embodies all the 
 other arts. There are no honorable means it may 
 not employ to minister to its end. It summons to 
 its aid all the higher virtues, especially those of 
 patience and endurance. When all else fails. Con- 
 ciliation persists. In the end, it usually succeeds. 
 
 To apply the term "compulsory" to such a 
 method seems a contradiction in terms. It is not, 
 however, to Concihation as a method, but to its 
 necessary application in given circumstances that 
 the words "compulsory conciliation" relate. Where 
 the immediate parties to a dispute are unwilhng to 
 employ conciUatory methods to effect a settlement, 
 public authority, often with advantage, may in- 
 tervene, upon request or of its own initiative. It 
 may appoint some person or agency to lend good 
 offices toward effecting a settlement. Conciliation 
 then becomes known as Mediation. An unyielding 
 attitude on the part of one or other of the parties 
 to a dispute may render attempts at mediation of 
 no avail, but given half a chance, personality, com- 
 bined with experience and resource, and with the ' 
 weight of authority behind it, usually finds a way 
 or makes it. If a concihator be of the right kind, 
 he will ask for nothing more than to be accorded 
 an opportunity under such conditions. Since men 
 do not break off relations in Industry that each 
 
208 INDUSTRY AND HUMANITY 
 
 may suffer, the odds are all in favor of mediation 
 succeeding once it is given a fair trial. 
 
 With Labor and Capital it is very much as with 
 husband and wife: despite differences, they must 
 continue to live together, or cease the relationship 
 altogether. Conciliation reheves antagonisms. In 
 industrial, as in domestic relations, it is wise for 
 people to keep their differences to themselves, and 
 to settle their own disputes. Outside intervention 
 and pubUcity are desirable only where it appears 
 that a settlement cannot be effected without them; 
 or where intervention is necessitated by the inter- 
 est of third parties. From press accounts of strikes 
 and lockouts, it might seem that the severance of 
 relationships in Industry was a normal condition. 
 Fortunately this is the case not more with individ- 
 ual industries than with individual households. 
 Remembering the vastness of Industry, the mar- 
 vel is, how few relatively are the evidences of 
 severed relations. 
 
 No chapters of industrial or pohtical history are 
 more inspiring than those which tell of the work of 
 great conciUators. Few men serve their day and 
 generation better than those who, in Industry or in 
 Pohtics, are privileged to play this role. The na- 
 ture of service of this kind is such that very Uttle 
 can be said about it. Self-effacement and publicity 
 are at opposite poles. The art of Concihation is 
 usually successful only to the degree to which it is 
 
PRINCIPLES UNDERLYING PEACE J. 209 
 
 exercised apart from publicity and with befitting 
 modesty. Confidence must be the essence of the 
 feeUng Conciliation inspires. To gain confidence, 
 discernment as to what should be left unsaid is quite 
 as important as discretion with regard to what is 
 said. By its fruits, and not by its words. Concilia- 
 tion is known. The experience of Great Britain, the 
 United States, Canada, Australia, and New Zea- 
 land, all point to Concihation and Mediation as 
 leading factors in the eUmination of industrial strife. 
 
 Investigation, as a method of preventing and ad- 
 justing industrial disputes, stands midway between 
 Conciliation and Arbitration. Though rightly re- 
 garded as a separate and distinct method, it is the 
 handmaid of the other two. Investigation goes 
 farther than Concihation necessarily goes, and not 
 quite so far as Arbitration. Concihation may be 
 entirely a matter of conference. The injury com- 
 plained of may be more of the feelings than of the 
 pocket. Human nature is as sensitive in matters 
 of self-respect as in matters of self-interest. This 
 is something of which too careful account can- 
 not be taken in industrial relations. Men will 
 stand for short allowance when they will not 
 stand for impudence. The trouble which incivility 
 brews, no matter from which side it comes, is usu- 
 ally much more difficult to cope with than any mat- 
 ter of accounts. It is the all but universal experi- 
 
210 INDUSTRY AND HUMANITY 
 
 ence of those who have had to do with intervention 
 in strikes and lockouts that, in effecting settle- 
 ments, the strictly economic questions involved 
 are not a circumstance to threats indulged in prior 
 to or during industrial conflicts, and the personal 
 bitternesses and hatreds severed relationships in- 
 variably help to engender. To take the sting out of 
 opprobrious epithets, and to cause insults to be 
 forgotten is the work more of Concihation than of 
 Investigation; though Investigation, in so far as 
 it may help to explain conditions, and to fix respon- 
 sibihty, may also be necessary. 
 
 Investigation is useful as a method, and impera- 
 tive where a situation is intricate, or the numbers 
 of persons directly or indirectly affected are con- 
 siderable. Investigation is a letting in of light. It 
 does not attempt to award punishments or to affix 
 blame; it aims simply at disclosing facts. Its effi- 
 cacy Ues in what it presupposes of the power of 
 Truth to remedy evil of itself. Its use is a high 
 tribute to human nature, for it assumes that collec- 
 tive opinion will approve the right, and condemn 
 the wrong. WiUingness to investigate is prima facie 
 evidence of a consciousness of right. In the ab- 
 sence of good and sufficient reasons, refusal to per- 
 mit investigation is equally prima facie evidence of 
 weakness or wrong. So powerful is Investigation 
 as a means of inducing right behavior, that au- 
 thority to employ this method at any or all times 
 
PRINCIPLES UNDERLYING PEACE 211 
 
 is of itself protection against injustice. The statu- 
 tory right to investigate disputes, which some 
 pubhc boards enjoy, has been found sufficient 
 to influence parties to industrial differences to 
 settle their controversies both voluntarily and 
 speedily. 
 
 Within an industry, the right of investigation is 
 usually exercised in the form of an appeal from a 
 subordinate to a higher authority. All such rights 
 of appeal are guarantees against arbitrary conduct 
 and unfair dealing. The higher the right of appeal 
 may be carried, the greater the safeguard. To 
 make this right effective, it should at some point 
 lie wholly beyond influence by any of the parties in 
 interest. 
 
 There are varying degrees in the extent to which 
 investigation has been carried in practice, and in 
 the consequences attendant upon it. Investigation 
 may be limited in character, in place, and in time. 
 It may extend only to the right of questioning in- 
 dividuals or of examining documents, or to both; 
 or it may extend also to an examination of prem- 
 ises, to a study of comparative conditions, and to 
 the securing of expert opinion. Its use may be 
 made permissible at any time, or may be restricted, 
 for example, to controversies in certain industries 
 only, and to a period subsequent to the declaration 
 of a lockout or strike. The consequences attendant 
 
212 INDUSTRY AND HUMANITY 
 
 upon investigation vary according as investigation 
 is confined to a simple disclosure of facts, or is 
 supplemented by authority to pass upon facts, and 
 to make findings and recommendations. In such 
 cases, consequences also vary according to the 
 binding force given awards. 
 
 It may be left optional with the parties affected 
 by investigation to accept or reject findings; or 
 acceptance may be made a necessary condition, 
 through voluntary agreement by the parties, or at 
 the instance of the State. Where acceptance of a 
 finding is left optional with the parties to a dispute, 
 the outcome is pretty certain to be influenced in 
 some measure by Pubhc Opinion and the agencies 
 which create it. 
 
 When the right to investigate is entered upon 
 voluntarily and is accompanied by an agreement 
 between the parties to be bound by the findings. 
 Voluntary Investigation becomes Voluntary Arbi- 
 tration. Where there is no such agreement, but 
 where by authority investigation is made compul- 
 sory and acceptance of the findings of investigation 
 is made binding upon the parties, there Compulsory 
 Investigation becomes Compulsory Arbitration. In 
 other words. Voluntary Arbitration is Investiga- 
 tion plus voluntary agreement to be bound by find- 
 ings. Compulsory Arbitration is Investigation plus 
 compliance with findings under penalty. 
 
PRINCIPLES UNDERLYING PEACE 213 
 
 Voluntary Arbitration is akin to Conciliation in 
 that it helps to preserve good-will. Compulsory 
 Arbitration presents no such guarantee of the at- 
 tendance of good-will. To that extent, it falls short 
 of being an ideal method. ConciUation is an 
 informal process; Arbitration, a formal process. 
 Where not compulsory, Arbitration generally fol- 
 lows upon the signing of an agreement in which both 
 parties bind themselves to carry out the award. 
 Formal hearings are held, testimony is taken, and 
 a written award is made. Where Arbitration is car- 
 ried on under sanction of law, the award may be, 
 and generally is, legally binding. Faith in the im- 
 partiahty and judgment of arbitrators is heightened 
 where they are chosen by mutual consent; and 
 awards are certain to be acted upon with more 
 grace where acceptance has been mutually agreed 
 upon, than where it is imposed by force. The appU- 
 cation of Force as a means of preserving peace is, in 
 any connection, the last of methods to adopt. 
 
 Among workingmen there is grave mistrust of 
 Arbitration, because of a supposed insidious class 
 interest. They feel that the mental attitude of ar- 
 bitrators selected from other than their own ranks 
 is apt to operate against an impartial judgment. 
 Especially have they a prejudice against the ju- 
 diciary and "the legal mind," as incUned to con- 
 strue Labor too much as property. For this reason. 
 Arbitration to them savors of a judicial process 
 
214 INDUSTRY AND HUMANITY 
 
 which has regard more for material than for hu- 
 man considerations. They object further to Arbi- 
 tration because awards are usually administered 
 exclusively by the one party. 
 
 Here, then, as respects industrial peace, we ap- 
 pear to be on the horns of a dilemma. To apply 
 Force in seeking to prevent and settle industrial 
 differences, for that is what the imposition of penal- 
 ties implies, is to destroy the very spirit it is de- 
 sired to create and maintain, namely, confidence 
 and good-will. On the other hand, not to have Force 
 available as a possible means of compelling obe- 
 dience to findings appears to render investigation 
 abortive. Were Force the only power to be rehed 
 upon for the adoption of a course of conduct ob- 
 viously in the interests of all parties to a dispute, 
 there would be a dilemma indeed. Fortunately, in 
 human relations there is a power superior even to 
 Force, and that is Reason. There is, too, a vast 
 difference between Force appUed as a weapon of 
 aggression, and Force duly restricted and appUed 
 as a restraining influence to serve social ends. If 
 Reason can be brought to bear upon the merits of 
 a dispute, the result, humanly speaking, is certain 
 to be the best attainable under any circumstances. 
 The problem in Industry, as in all human affairs, is 
 to ensure the apphcation of Reason to situations 
 that admit of differences of opinion and differences 
 of interest. 
 
PRINCIPLES UNDERLYING PEACE 215 
 
 Compulsory Investigation prior to a severance 
 of relations between the parties to a difference, and 
 accompanied by power to make findings, the ac- 
 ceptance of which is left optional with the parties, 
 appears to admit, in industrial disputes, of the 
 appUcation of Reason to a greater degree than is 
 afforded by any one of the several methods indi- 
 vidually apphed. It also occasions less in the way of 
 application of Force. In reahty it is a combination 
 of methods, and as such it unites what is best in 
 ConciUation, Investigation, and Arbitration, and 
 avoids hmitations which are self-evident wherever 
 they are employed separately. 
 
 Conciliation possesses the advantage of being 
 the most acceptable of methods to all parties, and 
 the one which more than any other ensures the pro- 
 motion of good-will. Through avoiding undue in- 
 terference and pubUcity, it leaves less to be remem- 
 bered of what is likely to occasion a continuance of 
 ill-feeling than either Investigation or Arbitration. 
 It is more flexible than Arbitration, less hampered 
 by precedents, and therefore more easily applied to 
 any set of conditions. But, like all methods. Con- 
 ciliation, to be of service, must be afforded its 
 chance. To have interested parties brought into 
 conference, either in person or through^ representa- 
 tives, is an essential preliminary to the solution 
 of all difficulties. Investigation prior to the sever- 
 ance of industrial relations affords ConciUation this 
 
216 INDUSTRY AND HUMANITY 
 
 chance. Parties to differences are pretty sure to 
 welcome Conciliation as an escape from the pub- 
 licity which investigation necessarily brings, and 
 from the pressure of public opinion with respect 
 to findings which may or may not be acceptable. 
 Concihation, employed before, rather than after, 
 the severance of relations, is given a chance to bring 
 its good offices into play before the bitterness, prej- 
 udice, and passion which industrial warfare en- 
 genders become aroused. The mere existence of a 
 regulation or law requiring investigation prior to 
 the actual severance of industrial relations may 
 wholly suffice to avoid necessity for its appUcation. 
 Its mere presence exerts a silent and unseen pres- 
 sure which disposes affected parties favorably to- 
 ward Conciliation. Opportunity is thereby afforded 
 Concihation to begin its good works under the most 
 favorable circumstances. 
 
 Investigation possesses the advantage of being 
 the best method of getting at the truth of a situa- 
 tion, and, in industrial relations as in all else, Truth 
 and Justice are alhed. To be of service. Investiga- 
 tion, like Concihation, must be employed; apart 
 from some kind of compelhng influence, there is no 
 guarantee that it ever will be. Investigation, too, 
 is effective only when given a real chance. As with 
 Conciliation, the chances of Investigation are a 
 thousand-fold improved where Investigation is ex- 
 ercised before, rather than_after, feehngs and preju- 
 
PRINCIPLES UNDERLYING PEACE 217 
 
 dices are aroused, and before parties to disputes 
 become committed to positions which, publicly as- 
 sumed, they may wish to maintain. Once pubUcity 
 has been given to rival contentions, parties are apt 
 to become more soUcitous of obtaining a verdict 
 which will justify their particular attitudes than of 
 finding a solution of differences based upon essen- 
 tial justice. 
 
 Arbitration possesses the advantage of finahty. 
 Where acceptable to the parties and entered upon 
 voluntarily prior to the severance of industrial re- 
 lations, it has all the advantages of Concihation 
 and Investigation, as it occasions the use of both. 
 Arbitration, Uke Concihation and Investigation, 
 unless employed is of no avail; and of the three 
 methods, Arbitration is the one the parties to 
 Industry are least Ukely to employ voluntarily. 
 Where there exists a law compeUing investigation 
 prior to the severance of relations, the chances of 
 resort to voluntary arbitration are increased. Par- 
 ties to disputes, while unwilhng to arbitrate every- 
 thing, will not infrequently agree to refer debatable 
 points to the final judgment of some third party, in 
 preference to having all phases of their relations in- 
 quired into pubUcly. 
 
 A disposition to sanction concihation and investi- 
 gation, and to refer to arbitration what cannot be 
 satisfactorily settled, leaves httle to be desired. Un- 
 happily, with hmnan nature what it is, there is no 
 
218 INDUSTRY AND HUMANITY 
 
 guarantee of an attitude of the kind being assumed 
 by parties to industrial disputes, save as a means 
 oi escape from some less acceptable method of set- 
 tling their differences. The Arbitration Coiu-ts in 
 the Australian Commonwealth and States, and in 
 New Zealand, make the fullest use of Mediation 
 before referring disputes to settlement by judi- 
 cial process. Voluntary agreements are secured be- 
 cause disputants realize that unless an agreement 
 is reached disputes will go automatically to the 
 Arbitration Court.^ 
 
 In procedure, Compulsory Investigation and 
 Compulsory Arbitration are similar; as methods of 
 preventing and settling industrial differences, they 
 differ as respects the authority to be attached to 
 findings. The findings of Compulsory Investiga- 
 tion do not bind the parties. The awards of Com- 
 pulsory Arbitration are binding and enforceable by 
 process of law. 
 
 Investigation under compulsion is less satisfac- 
 tory than Investigation voluntarily agreed upon, 
 but it is usually more acceptable than Compulsory 
 Arbitration. The parties to a difference know that 
 they are not necessarily bound by the results of the 
 
 1 On the subject of Mediation, Investigalion, and Arbitration in 
 Industrial Disputes see a volume of that title, by Barnett and McCabe 
 (Appleton & Co., New York, 1916), and Industrial Arbitration, by Carl 
 H. Mote (The Bobbs-Memll Co., Indianapolis, 1916); also Concilia- 
 tion and Arbitration in the Coal Industry of America, by Arthur E. 
 Suffem (Houghton M ifflin Co., Boston, igiB). 
 
PRINCIPLES UNDERLYING PEACE 219 
 
 inquiry. Commitment in advance to the accep- 
 tance of the terms of some unknown award pro- 
 vokes an attitude of resistance which is distinctly 
 inimical to efforts at conciUation. To be assured 
 against any prejudice of interests on account of 
 possible errors in fact or opinion helps wonderfully 
 to remove doubt and irritation. 
 
 When it is remembered that conciliation is likely 
 to be exercised continuously during an investiga- 
 tion enforced prior to the severance of relations 
 in a dispute, and that the good offices of ConciUa- 
 tion cease once a dispute has become the subject of 
 a quasi-judicial reference under Compulsory Arbi- 
 tration, the superior merits of Compulsory Investi- 
 gation as a means of ensuring good-will become ap- 
 parent. Between the beginning and the end of labor 
 controversies there are usually many chances for 
 conciliatory movements in the interest of the par- 
 ties and pubUc weKare. The benefits of Compulsory 
 Investigation do not Ue in its coercive features, but 
 in the opportunities it guarantees for concihation 
 at the outset, and for continuous efforts at conciha- 
 tion throughout the entire course of an investiga- 
 tion. When a difficulty arrives at a stage where 
 it must be arbitrated, it is then usually too late to 
 do much that is effective in the way of conciliation. 
 
 It is not to be supposed that, because findings 
 under Compulsory Investigation are not enforce- 
 able under penalty, findings in such cases are with- 
 
220 INDUSTRY AND HUMANITY 
 
 out effect. Public Opinion, as an instrument of 
 authority, may be more subtle and elusive than 
 the power of the Law visualized in penalties and 
 prisons; but the subtlety of Opinion is not without 
 its advantages. However much, as individuals, 
 men may feel compelled to tolerate injustice, col- 
 lectively, it is something they will not abide. More- 
 over, the reactions of deception are apt to be vio- 
 lent. Bamum said the people Uked to be fooled, 
 but Barnum was interested in circuses. Lincoln, 
 whose concern was with government, said, "You 
 can fool a part of the people the whole time, and 
 you can fool the whole people a part of the time, 
 but you can't fool the whole people all the time!" 
 And it is the whole people in one way or another 
 who sooner or later are affected by industrial dis- 
 putes in their communities. 
 
 As a means of effecting the appUcation of Rea- 
 son to industrial disputes, Publicity has merits 
 quite the equal of penalties imposed by process of 
 Law. Reason can be exercised properly only in the 
 hght of knowledge. Through the knowledge of 
 facts it discloses, Compulsory Investigation cou- 
 pled with Publicity gives Reason its chance. Exer- 
 cised prior to the severance of industrial relations, 
 Compulsory Investigation tends wholly toward 
 the exercise of Reason. The estabUshment of an 
 enlightened PubUc Opinion is a most important 
 problem of Government and Education. 
 
PRINCIPLES UNDERLYING PEACE 221 
 
 No relationship in Industry is so insignificant that 
 the use or neglect of Concihation, Investigation, or 
 Arbitration may not be fraught with far-reaching 
 possibilities of good or ill. The foreman who dis- 
 misses a workman without examining his complaint, 
 and the workman who quits work just because he 
 thinks by so doing an advantage can be gained in a 
 crucial moment, are each fostering the spirit that 
 destroys Faith and begets Fear. The Company that 
 refuses to consider grievances of its workmen when 
 such grievances are properly framed and courte- 
 ously presented, and the Union that brings on a 
 strike without affording opportunity for investiga- 
 tion, equally are encouraging methods of procediire 
 which lead to competitive arming between the 
 parties to Industry; and, if all were perceived, to 
 competitive arming between nations as well. In 
 not less measure, the official who seeks to allay dis- 
 cord, and the workman who encourages fair play, 
 the Company and the Union which advocate and 
 enforce methods of conciliation, investigation, and 
 arbitration in the mutual relations of Capital and 
 Labor, are promoting not only industrial peace, but 
 international peace as well. 
 
 There are the strongest reasons why Concilia- 
 tion, Investigation, and Arbitration, wherever they 
 can be of service, should be made to apply at the 
 earliest moment possible. The germ of discontent 
 is like any other germ: it grows and reproduces and 
 
222 INDUSTRY AND HUMANITY 
 
 multiplies, and there is no germ so virulent as that 
 of unredressed wrong, whether the wrong be real or 
 imaginary. Indifference to, or neglect of wrong be- 
 gets irritation, and, hke long-continued oppression, 
 aggravates discontent and causes men to bide their 
 time and seek revenge. Intimation by a workman 
 that conditions are unfavorable discloses the germ 
 of a grievance. To neglect investigation or to delay 
 adjustment merely aggravates the case. A con- 
 tinual adjustment of little things is better than a 
 grand adjustment of many things accumulated over 
 a series of years. The latter usually comes too late. 
 It is not the individual who has permitted or been 
 guilty of injustice who necessarily suffers most; it 
 may be the industry itself. To those who experi- 
 ence a sense of injustice, a guilty official becomes 
 the expression of the indifference and heartlessness 
 of owners, or of "the capitahst class" through 
 whose expressed or imphed sanction injustice con- 
 tinues. There is a significance impossible to ex- 
 aggerate in words in the detection and elimination 
 of grievances in their incipient stages. 
 
 IV 
 
 The machinery by which, in Industry and the 
 State, it is sought to give play to the principles of 
 conciliation, investigation and arbitration, varies 
 from the most informal arrangements for conference 
 
PRINCIPLES UNDERLYING PEACE 223 
 
 between individuals to elaborate systems of judi- 
 cial procedure. It embraces means of one kind or 
 another to perform legislative, executive, and judi- 
 cial functions. Such means are necessary wherever, 
 in the adjustment of human relations, an attempt 
 is made to substitute Reason for Force. Helpful de- 
 vices have already been indicated : for example, the 
 framing and posting of rules and regulations govern- 
 ing employment, and respecting living and working 
 conditions; provision of sources of appeal by em- 
 ployees in person or through their representatives; 
 and provision of faciUties for collective bargaining 
 and the making of joint trade agreements. 
 
 Something in the nature of continuous adminis- 
 trative machinery for the orderly disposition of 
 controversies is as necessary for the estabUshment 
 of law and order in Industry as in the State, There 
 is the same need for the definition of rights and 
 obhgations, the formulation and interpretation of 
 rules, and authoritative decision in matters of con- 
 troversy. In the State, procedure as respects all 
 these particulars has been vastly elaborated. In 
 Industry, it is at the beginning of its evolution. 
 
 The machinery of justice in the State is the prod- 
 uct of centuries of development. Though judicial 
 procedure may continue to change, the really im- 
 portant fact is that justice in the form of Law, as 
 distinguished from arbitrary justice, or from pri- 
 vate struggle decided by private force, arises the 
 
224 INDUSTRY AND HUMANITY 
 
 moment general principles are used for deciding par- 
 ticular cases.^ 
 
 The application of general principles to the de- 
 termination of controversies has led to the gradual 
 enlargement of the field of systematic justice, and 
 to the inclusion of whole classes of questions not 
 hitherto regarded as coming within its purview. 
 The classes of questions decided by the Interstate 
 Commerce Commission in the United States, and 
 by the Board of Railway Commissioners in Can- 
 ada, are instances in point. The decisions of these 
 bodies are in the nature of the application of more 
 or less general principles to particular controversies. 
 If Reason is to supplant Force in human relations, 
 all industrial and international controversies must 
 some day be similarly decided. 
 
 A beginning in the extension of the field of syste- 
 matic justice to industrial relations has been made 
 in the United States through the adoption of cer- 
 tain principles and policies to govern relations be- 
 tween workers and employers in war industries for 
 the duration of the War. 
 
 In January, 1918, the Secretary of Labor ap- 
 pointed a War Labor Conference Board for the 
 purpose of devising for the period of the War a 
 method of labor adjustment which would be ac- 
 ceptable to employers and employees. The Board 
 
 1 Vide " A New Field for Systematic Justice," by J. H. W., Illinois 
 Law Review, March, 1916. 
 
PRINCIPLES UNDERLYING PEACE 225 
 
 recommended the creation of a National War La- 
 bor Board. This Board was subsequently appointed 
 by proclamation of the President with powers, 
 functions, and duties duly defined. The Board 
 was to settle by mediation and conciliation con- 
 troversies arising between employers and workers 
 in fields of production necessary for the effective 
 conduct of the War, or in other fields of national 
 activity, delays and obstructions in which might 
 affect detrimentally such production. It was to 
 provide for committees or boards to sit in various 
 parts of the country where controversies might 
 arise, and secure settlement by local mediation and 
 conciliation; and to summon the parties to contro- 
 versies for hearing and action by the National 
 Board in the event of failure to secure settlement 
 by mediation and concihation. 
 
 It was further provided that when the Board, 
 after due effort of its own, found it impossible to 
 settle a controversy, it should then sit as a board 
 of arbitration, decide the controversy, and make 
 an award, if it could reach a unanimous conclu- 
 sion. If it could not do this, then it was to select 
 an umpire, who should sit with the Board, review 
 the issues, and render his award. The selection of 
 an umpire was to be by unanimous vote of the 
 Board. Failing such choice, the name of the um- 
 pire was to be drawn by lot from a list of ten suit- 
 able and disinterested persons to be nominated for 
 
226 INDUSTRY AND HUMANITY 
 
 the purpose by the President of the United States. 
 An important provision, intended evidently to pre- 
 vent unnecessary intervention and to encourage 
 the parties to Industry to settle their differences 
 themselves in accordance with established methods 
 of procedure voluntarily agreed upon, is that the 
 National Board shall refuse to take cognizance of a 
 controversy between employer and workers in any 
 field of industrial or other activity where there is 
 by agreement or Federal law a means of settlement 
 which has not been invoked. The principles to be 
 observed and the methods to be followed by the 
 National Board in exercising its powers and func- 
 tions and performing its duties are mentioned as 
 those specified in the report of the War Labor Con- 
 ference Board dated March 29, 1918. 
 
 Here is the beginning of justice in the form of 
 law made applicable to industrial controversies. 
 A method of judicial procedure is outhned, and 
 principles to govern relations between workers and 
 employers are set forth. It is true that, for the pres- 
 ent, they apply only to war industries and for the 
 duration of the War. It is hardly probable, how- 
 ever, that the settlement of industrial controversies 
 in accordance with juridical methods, commenced 
 on a nation-wide scale dm-ing the War, will be 
 abandoned at its close. Rather would it appear, if 
 Reason is to be substituted for Force, that some 
 such method will more than ever be necessary in 
 
PRINCIPLES UNDERLYING PEACE 227 
 
 the readjustments in Industry which are certain 
 to occasion the most serious of all problems in the 
 period of reconstruction. 
 
 The collective contracts between the Govern- 
 ment of the United States and Organized Labor, 
 in many fields of industrial activity pertaining to 
 war work, mark a revolutionary change in oflTicial 
 policy. 1 There is scarcely a branch of Industry 
 of any importance in relation to war work where 
 some effort has not been made to estabhsh, by di- 
 rect deahng with national and local labor leaders, 
 collective contracts which may serve to ensure 
 continuous employment, and to provide machinery 
 for taking up, in orderly fashion, with the Govern- 
 ment and with private employers, whatever differ- 
 ences may arise. 
 
 It is too early to pronounce judgment upon the 
 manner in which the Government's poUcy is being 
 carried out, or upon the effectiveness of the meth- 
 ods themselves. Their existence as a part of war 
 poUcy intended to further production in a world 
 emergency is always to be remembered. Any pol- 
 icy, however, which honestly seeks to substitute 
 juridical methods of procedure in the adjustment 
 of industrial controversy for the method of Force, 
 is deserving of sympathetic appreciation. Its very 
 limitations and errors will help to disclose what is 
 
 1 Vide "The New Place of Labor," by Ordway Tead, the Atlantic 
 Monthly, August, 1918, p. i38. 
 
228 INDUSTRY AND HUMANITY 
 
 essential and necessary in the application to Indus- 
 try of practices and procedure which in all organ- 
 ized communities have been the means of substi- 
 tuting law and order for anarchy. 
 
 The Government of Canada has sought, through 
 an enlargement of the machinery provided by the 
 Canadian Industrial Disputes Investigation Act, 
 and by the encouragement of Joint Boards of Adjust- 
 ment, to secure the appUcation of general policies 
 and principles to the settlement of controversies 
 arising in war industries in Canada. Here, too, a 
 further extension may be looked for when the War 
 is over. 
 
 In Great Britain, before the War commenced, 
 prominence had been given the importance of the 
 appUcation of general principles in the prevention 
 and settlement of industrial controversies. The 
 War has developed machinery much needed for a 
 wide application. 
 
 How fortunate it would be were the War to mark 
 the transition to a general acceptance of orderly 
 and judicial methods of procedure in the settlement 
 of all differences; and were present upheavals to 
 prove to be the birth-pains of a new order! Wfth- 
 out law there can be no peace. 
 
 The recognition of the importance of principles 
 as the basis of all law and order has found frequent 
 and distinguished expression in official utterances 
 
PRINCIPLES UNDERLYING PEACE 229 
 
 pertaining to the War, and with'respect to negoti- 
 ations necessarily preliminary to any peace. 
 
 Appearing before the two Houses of Congress at 
 Washington on February 11, 1918, President Wil- 
 son said : "What is at stake now is the peace of the 
 world. What we are striving for is a new interna- 
 tional order based upon broad and universal princi- 
 ples of right and justice." The President then out- 
 lined principles to be apphed, which he said would 
 serve to test whether it was of any avail to go on at 
 that time exchanging peace views. It is deserving 
 of note that the principles Mr. Wilson enumerated 
 laid emphasis upon human as distinguished from 
 material considerations. Peoples and provinces 
 were not to be bartered about like chattels to 
 establish a balance of powers. Territorial settle- 
 ments were to be for the benefit of the people con- 
 cerned, and not merely adjustments of the claims 
 of rival states. 
 
 Addressing a joint session of the House of Lords 
 and the House of Commons in London on the day 
 following. King George declared that until there 
 was recognition of the basic principles upon which an 
 honorable peace could be concluded, it was the duty 
 of the British to prosecute the War with all the 
 vigor they possessed. In whatever overtures pre- 
 cede peace negotiations, the significance of the un- 
 reserved acceptance of basic principles is certain to 
 receive heightened emphasis. 
 
230 INDUSTRY AND HUMANITY 
 
 The recognition of just principles as a basis of 
 law and order is quite as imperative in small 
 things as it is in great. Where there are no gen- 
 eral principles to lay hold of, where everything is 
 arbitrary, there can be no attempt at peaceful set- 
 tlement of controversy, whether it be industrial or 
 international. Industrial Law and International 
 Law are in much the same position to-day: princi- 
 ples in the case of each are insufficiently defined, 
 and the means of their enforcement are inadequate. 
 As a consequence, the very foundations of civiliza- 
 tion are threatened by international warfare on 
 the one hand, and by industrial warfare on the 
 other. Until industrial controversy and interna- 
 tional controversy become as justiciable as prop- 
 erty controversy, the world's peace will be at the 
 mercy of Force, from whatever quarter it may 
 arise. 
 
 It is from just such small beginnings as are 
 afforded by opportunities of conference and the 
 methods of procedure mentioned, that there will 
 gradually be evolved a system of justice as appUca- 
 ble to human rights in Industry, as existing legal 
 justice is to property rights and matters of con- 
 tract. Here and there, through agencies already at 
 work, principles are beginning to be formulated. 
 As the system is extended, and enlarged by experi- 
 ence, general principles with their necessary qual- 
 ifications will become clearer and more widely ac- 
 
PRINCIPLES UNDERLYING PEACE 231 
 
 cepted. The sanction of government in one form 
 or another will be secured. Principles will then 
 become established, and their application will be 
 made more and more general. 
 
 Professor Earl Dean Howard,* formerly Direc- 
 tor of Labor for the manufacturing firm of Hart, 
 Schaffner and Marx, a Chicago firm which has done 
 much in formulating and applying wise principles 
 in Industry, has written of this evolution with fine 
 discernment: "The student of political science," 
 Professor Howard says, "will find in the devel- 
 opment of voluntary industrial government an in- 
 teresting contribution to his science. Just as the 
 common law of England evolved from self-imposed 
 customs and regulations in the interest of harmoni- 
 ous dealings and relations, so here we may observe 
 an organic growth of industrial government, estab- 
 lishing itself alongside the federal and state juris- 
 dictions. Perhaps this will be the means of escape 
 from the dilemma of domination by a ruling over a 
 subject class on the one hand, and, on the other, a 
 chronic state of civil warfare with the classes per- 
 petually struggling for advantage, with small con- 
 sideration for the public welfare." 
 
 The prejudice of Labor against legal methods 
 in the settlement of disputes will vanish as the 
 principles revealed in the settlement of industrial 
 
 • At present. Secretary of the Committee on Industrial Relations 
 recently formed by the Chamber of Commerce of the United States. 
 
232 INDUSTRY AND HUMANITY 
 
 differences by conciliation, investigation, and arbi- 
 tration accord with the Law of Peace, Work, and 
 Health. In other words. Labor's prejudice will dis- 
 appear as the emphasis in principles cited is placed 
 upon human as contrasted with material consider- 
 ations. Were resort to these agencies to become 
 general, such emphasis would be inevitable. Out of 
 the principles thus established, it should be pos- 
 sible to construct for Industry a code of governing 
 rules and regulations which would lay the founda- 
 tions of permanent industrial peace. To attain an 
 end so considerable, there are the strongest of rea- 
 sons why employers and employees should seek to 
 avail themselves voluntarily of methods of judi- 
 cial procedure in the settlement of industrial con- 
 troversies whenever occasion permits, and why the 
 State should exert its supreme authority to compel 
 such a reference whenever industrial controversy 
 threatens the public interest. 
 
CHAPTER VIII 
 PRINCIPLES UNDERLYING WORK 
 
 Fear and Faith are as infallible in their effects 
 upon Work as in their bearing upon Peace. They 
 lie about the roots of both, sapping or nourishing 
 vitaUty. Work is inseparable frona hfe; it is Ufe 
 expressing itself in effort. In all its aspects. Work 
 denotes effort, physical, mental, or moral. Fear 
 paralyzes effort; Faith sustains it. AUke in in- 
 dustrial and international relations, and whether 
 appUed to individuals or to communities, the prin- 
 ciples which underhe Work are those rules of con- 
 duct and methods of organization which, through 
 the elimination of Fear and the estabhshment of 
 Faith, beget a sense of freedom in effort between 
 human beings and their personal and material en- 
 vironments. 
 
 Like the principles underlying Peace, the prin- 
 ciples which underhe Work are founded upon a 
 recognition of personality. They evidence discern- 
 ment between human and material values. They 
 are expressive of an attitude of beUef in common as 
 contrasted with opposed interests. They reveal a 
 spirit of mutual consideration and constructive 
 good-will. Rules of conduct and methods of organ- 
 ization, whilst they can effect none of these thmgs. 
 
234 INDUSTRY AND HUMANITY 
 
 may contribute in a very direct way toward their 
 realization. Of themselves, they are mere insensate 
 cords, resembhng somewhat the nerves of the hu- 
 man system. Under right direction, they carry im- 
 pressions to and fro to beneficent ends. But it is 
 the spirit alone which imparts vitality and force. 
 
 In Industry the immediate objective of Work 
 is material production. The common aim of the 
 parties to Industry is to bring production to a 
 maximum in quantity and quaUty. This, as al- 
 ready shown, is, first and foremost, a matter of co- 
 operation between the parties, and of intelligent 
 co-ordination of various functions. Such co-oper- 
 ation and co-ordination is possible only where there 
 is accord with an underlying order which presup- 
 poses between individuals, not a conflict, but a 
 community of interests in all that pertains to hu- 
 man well-being. In no more effective way can the 
 parties to Industry advance the common interest 
 than by each performing its special function to the 
 utmost of its capacity. For a maximum of com- 
 bined effort, there must be a maximum of individ- 
 ual effort. The principles underlying Work reveal 
 how individual effort may be brought to its highest 
 degree of efficiency. 
 
 In the processes of Industry, the unwilUngness of 
 
PRINCIPLES UNDERLYING WORK 235 
 
 individual parties to put forth their utmost effort 
 may arise from defects of character, inadequacy 
 of training, or lack of opportunity. Where oppor- 
 tunity, training, and capacity are present, failure 
 to reaUze the best in effort arises mostly from the 
 fear that one or other of the parties will put forth a 
 less than proportionate share of effort, or claim a 
 more than proportionate share of reward. ^ In other 
 words, restricted effort in production arises from 
 fears respecting the contribution each of the par- 
 ties makes, or concerning the share which each of 
 the parties takes. Both are embraced in the fear 
 that rewards will not be adequate or proportionate 
 to the effort put forth. Whatever restricts effort 
 through fear of inadequate returns on the part of 
 one or more of the parties to Industry, or through 
 any other cause, limits opportunity and reward to 
 all. 
 
 The fears which circumscribe the freedom of effort 
 of Capital, Management, and the Community are 
 by no means so real or considerable as those which 
 surround Labor. They differ, also, in that they 
 represent consequences much less serious to hu- 
 man life. Especially is this true of fears concerning 
 employment. Under conditions in Industry which 
 
 1 Vide Sidney Webb, The Restoration of Trade Union Conditions 
 (The Gresham Press, England; B. W. Huebsch, New York, 1917), 
 reference to ■which source is hereby acknowledged. 
 
236 INDUSTRY AND HUMANITY 
 
 make the several parts of industrial processes de- 
 pendent on many others, and which demand in- 
 tense specialization of effort, it is impossible to 
 exaggerate the imminence of fear in the lives of 
 workers wholly dependent upon continuous em- 
 ployment for the immediate necessaries of life. 
 
 Capital can wait for its reward. If the worst 
 comes to the worst, the mere possession of capital 
 is of itself in the nature of insurance against perils 
 which threaten Labor whenever confronted by 
 uncertainty of employment, or actual unemploy- 
 ment. Moreover, the capitalist is at once a capi- 
 tahst and a potential laborer. Only under excep- 
 tional conditions, is the laborer ever a potential 
 capitalist. The so-called leisure classes, deprived 
 of capital, feel the hardship of having "to earn a 
 living." After all, in such cases they but experience 
 the lot of the average worker who is expected to be 
 happy so long as he has opportunity to work. Cap- 
 ital, moreover, is free to move about. If not re- 
 quired in a particular locality or business, it readily 
 finds investment in some other place or enterprise. 
 Labor is not so mobile. It is confined in a thousand 
 and one ways. It is necessarily largely restricted to 
 occupations to which it has been trained. It is more 
 or less rooted to localities which speak of home and 
 its associations. It is largely ignorant of the world 
 without. Capital is a citizen of the world, with no 
 definite occupation or home. It suffers little from 
 
PRINCIPLES UNDERLYING WORK 237 
 
 fears of isolated position, substitution, dismissal, 
 arbitrary and unjust treatment. Such risks as it 
 runs are very largely its own. How vastly differ- 
 ent is life to its possessor under such circumstances! 
 
 It is the fear of unemployment which lies at the 
 root of most of the minor fears which Labor enter- 
 tains. The fear of unemployment is in reaUty the 
 fear on the part of Labor that capital will not be 
 provided to carry on industry continuously, and 
 under conditions which will afford adequate re- 
 muneration to effort. It is an outgrowth of the fal- 
 lacy that quantity of work is necessarily limited. 
 This fear gives rise to the fear that the introduc- 
 tion of, new machinery, or the increased use of ma- 
 chinery already installed, will displace labor; the 
 fear that speeding-up processes will diminish work; 
 the fear that female, child, unskilled, or imported 
 labor will be substituted for skilled; the fear that 
 men of one trade will encroach upon the work for 
 which men of other trades have been specially 
 trained ; the fear that the number of apprentices 
 will be so increased as to lessen the requirement 
 for skilled hands; and the fear that long hours and 
 continuous overtime will exhaust employment. 
 
 AlUed to the fear of unemployment is a class of 
 fears which, as seen, have a special bearing on 
 industrial peace: the fear of discharge and of un- 
 fair treatment through the utter helplessness of 
 the isolated workman in relation to the capitahst 
 
238 INDUSTRY AND HUMANITY j 
 
 employer, and, still more, in relation to a powerful 
 corporation; the fear of lockouts or arbitrary exac- 
 tions, and the many fears incidental to tyrannical 
 and capricious behavior on the part of those in 
 authority, and especially of subordinate officials to- 
 ward workers under their direction. This fear ex- 
 tends to the power of wealth to defeat the ends of 
 justice, by corrupting officials and influencing or 
 controlling the judiciary and legislatures, and to 
 the influence also of a class interest and sentiment 
 on the part of the monied classes as distinguished 
 from the working classes. With it are alUed the 
 many fears which have a special bearing on health 
 in Industry: fears, for example, of physical injury 
 and ill-health, and of inadequacy of compensation 
 or redress when injury is done. 
 
 Arising from the worker's sense of utter helpless- 
 ness is also the fear, apart from combination, of 
 the absence of'any voice in determining the con- 
 tract on which services are given, and the fear, in 
 consequence, of unfair terms in bargaining and in 
 determining the rate of remuneration, the hours of 
 labor, and working conditions. This extends to the 
 fear of reductions in standards already gained; the 
 fear of individual or general reductions in wages, of 
 increase in hours, of change in customary practices; 
 the fear of resistance on the part of employers to 
 combination; and the fear of methods intended to 
 destroy or weaken organization. Whatever begets 
 
PRINCIPLES UNDERLYING WORK 239 
 
 fear of opposition to organization helps to inten- 
 sify other fears. 
 
 Beset by fears at once so numerous and con- 
 stant, it must be apparent that Labor is in no way 
 capable of putting forth effort to the utmost of its 
 capacity. Where the mind is in a state of unrest, 
 the arm is divested of some of its power, and the 
 hand of some of its skill. Time which otherwise 
 might be freely employed in furthering production, 
 with benefit in opportunity and reward to all the 
 parties to Industry, is consumed in effecting or- 
 ganization against ills that are feared, or in agi- 
 tation concerning their existence. It is impossible 
 to estimate the waste to Industry from the para- 
 lyzing effect of fear upon Labor. Were this paraly- 
 sis removed, the output of Industry would multiply 
 manifold. And how considerable would be the gain 
 to each of the parties ! Labor, assured of all but un- 
 hmited opportunity of employment, and of just re- 
 ward of effort, would immediately become possessed 
 of the zeal which makes for highest efficiency. Capi- 
 tal would cease to lack opportunities of profitable in- 
 vestment. Management would find itself restricted 
 only by its own incapacity. To the Community, 
 commodities and services would become available 
 on a scale and at a price hitherto unknown. 
 
 Whilst less serious in their immediate personal 
 consequences than the fears which Labor endures 
 
240 INDUSTRY AND HUMANITY 
 
 at the instance of Capital, the fears which Capital 
 experiences at the instance of Labor are by no 
 means inconsiderable or unreal. What these fears 
 are is well known; they have received heightened 
 emphasis under the stress of war. The source of all 
 is the fear that Labor will not be provided in quan- 
 tity and quality sufTicient to carry on Industry con- 
 tinuously, and under conditions which will afford 
 adequate remuneration to investment. Foremost 
 is the fear of strikes, and their consequences. If 
 Labor refuses to work. Capital and Management 
 likewise become idle, unless transferred to other in- 
 dustries. Transfer, however, is not always possi- 
 ble. Capital invested in Industry is partly "fixed" 
 in plant and equipment; and markets, as well as 
 Labor, have to be found for the output of new 
 enterprises. Management, too, becomes identified 
 with particular classes of business, and new open- 
 ings are not always at hand. 
 
 The fear of strikes would be minhnized were ac- 
 tual or threatened resort to strikes postponed until 
 other available means of securing redress were 
 exhausted. Unfortunately, strikes are sometimes 
 brought on where no grievances whatever exist. 
 The cause of the so-called "sympathetic strike" 
 may lie wholly beyond the control of the trade or 
 industry affected. Because of uncertainty on so 
 many grounds, the possibility of strikes has become 
 an ever-present fear. 
 
PRINCIPLES UNDERLYING WORK 241 
 
 Allied to the fear of strikes is the fear of labor 
 combination, and its attempts to control the la- 
 bor market, and to restrict output. This fear has 
 greatly increased with the augmentation of Labor's 
 power consequent upon extensive organization 
 and the growth of class consciousness. In Great 
 Britain, at the commencement of the War, many 
 of the fears which occasion strikes found expres- 
 sion in a network of restrictions and regulations 
 which the trades unions, in the years preceding, 
 had succeeded in weaving about Industry. The 
 nation, in its effort to increase production, found 
 it desirable to suspend these restrictions, and se- 
 cured the patriotic co-operation of Labor to this 
 end. The obnoxious restrictions were all in the na- 
 ture of limitations upon the freedom of initiative 
 and power of direction, usually of the employer, 
 but sometimes also of the workman. Briefly classi- 
 fied, restrictions of the kind include such practices 
 as hampering the installation of the best machin- 
 ery, or the speed at which it is worked; prevent- 
 ing the introduction of new processes; limiting the 
 freedom to engage, or to promote, or to put at any 
 kind of work, any workman, irrespective of train- 
 ing, age, or sex. Among such restrictions are also 
 to be included the limitation in numbers of ap- 
 prentices; the insistence on trade unionism and em- 
 ployment of union labor to the exclusion of any 
 other; the demarcation of employment; the require- 
 
242 INDUSTRY AND HUMANITY 
 
 ment of a minimum wage; the objection to systems 
 of remuneration by piece work or bonus systems; 
 and restrictions in hours of work, and the prohi- 
 bition of overtime. 
 
 Analogous to the class of fears begotten of labor 
 control and restricted output, are the fears that 
 " discipline," as it is termed, will be interfered with; 
 that employers will not be free to dispense with the 
 services of undesirable, mcompetent, or unneces- 
 sary workmen without risking a cessation of work; 
 and that disputes cannot be adjusted except in 
 accordance with methods prescribed by organiza- 
 tions to which workmen belong. 
 
 The fear that Labor can be secured, so to speak, 
 only on its own terms, which may involve exorbi- 
 tant demands as respects hours, wages, and work- 
 ing conditions, is supplemented by the fear that 
 even where a contract is entered into, with precise 
 stipulations, its provisions may not be lived up to. 
 There is the fear also that one concession may be 
 used to force another, and that arbitrary exactions 
 of many kinds may be attempted. Demands for 
 recognition of the union, for the "closed shop," and 
 for compulsory use of the union label are not in- 
 frequently cases in point. 
 
 Finally, there is the class of fears associated 
 with extreme measures, with revolutionary move- 
 ments, and with violence, as, for example, the 
 boycott, sabotage, revolutionary socialism, revolu- 
 
PRINCIPLES UNDERLYING WORK 243 
 
 tionary syndicalism, the I.W.W.'s, and all forms 
 of anarchy. 
 
 An employers' publication in America called 
 "The Square Deal" has the following as its "plat- 
 form of principles": "No closed shop; no restric- 
 tion as to the use of tools, machinery or output, ex- 
 cept such as are unsafe; no limitation of output; 
 no restriction as to number of apprentices and 
 helpers when of proper age; no boycott; no sym- 
 pathetic strike; no sacrifice of independent work- 
 ingmen to labor union; no compulsory use of union 
 label." The negative expressed in each plank of 
 this platform mdicates some fear which Capital is 
 constantly experiencing at the instance of Labor, 
 and which, to a greater or less degree, discourages 
 investment in Industry. Naturally, where there is 
 dread of the kind which such fears engender, pos- 
 sessors of capital, as well as industrial managers, 
 think twice before risking loss or impairment of sav- 
 ings, or taking a chance of inadequate returns upon 
 investment. The widespread existence of these 
 fears causes investors to look about for fields in 
 which dangers of the kind are least likely to be en- 
 countered. Not infrequently capital is permitted 
 to he idle in the hope that the shortsightedness of 
 mistaken pohcies may come to be recognized. 
 
 It must never be forgotten that, while capital, 
 itself, is in the nature of material substance, the 
 capitaUst is always a human being. While capital 
 
244 INDUSTRY AND HUMANITY 
 
 embraces raw materials, plants and their equip- 
 ments, machines, tools and appliances, warehouses, 
 food, clothing, shelter, and other substances, in- 
 cluding money, one and all are owned or controlled 
 by persons upon whose say depends whether or not 
 they shall be made available for purposes of Indus- 
 try. In proportion as the use of capital brings with 
 it a return in value greater than the value impaired 
 or destroyed through use, there will be safe and 
 profitable investment. The willingness of owners 
 or their representatives to part with principal and 
 interest is increased as reward is certain and con- 
 siderable. It lessens as the certainty and amount of 
 reward diminishes. It disappears altogether where, 
 instead of reward, there is certainty or even proba- 
 biUty of loss. 
 
 If it is to be assumed that, but for the fears en- 
 tertained by Labor of Capital, the output of Indus- 
 try would be many times increased, it is equally 
 reasonable to beUeve that corresponding increase 
 in production would speedily result from the elimi- 
 nation of the fears entertained by Capital of Labor. 
 It is in the nature of things that the loss to Labor, 
 to Capital, to Management, and to the Commu- 
 nity through non-investment by Capital in Industry 
 can never be known. Were it possible to eUminate 
 the many fears outUned, the owners of capital 
 would enjoy perfect freedom in investing their sav- 
 ings and accumulations in Industry. The amount 
 
PRINCIPLES UNDERLYING WORK 245 
 
 of capital thus available for investment would ma- 
 terially increase. Labor would profit through in- 
 crease in employment and by the larger production 
 from which its efforts are rewarded. Though the 
 rate of return might be lowered, Capital would 
 profit through the larger opportunity of investment, 
 the lessening of risk, and the increased certainty 
 and amount of reward. Management would profit 
 through the wider scope afforded directing and 
 organizing capacity. And with additional gain 
 to each of the contributing parties as consumers, 
 the Community would profit through increase in 
 number and variety of available commodities and 
 services, as well as by a lowering in price made 
 possible through the economies of efficiency and 
 full-scale production. 
 
 It is worthy of note that as Capital's fears of 
 Labor diminish, there appears to be corresponding 
 diminution in the fears by Labor of Capital, and 
 vice versa. Remove all hkelihood of strikes or at- 
 tempts at restriction of output, and immediately 
 the stimulus to investment of Capital is increased, 
 with corresponding increase in Labor's opportunity 
 of employment and reward. Similarly, remove the 
 fear of unjust exactions by Management and Capi- 
 tal, and of a reduction in remuneration where effort 
 is increased, and immediately fresh stores of en- 
 ergy are released by Labor, with certainty of gain to 
 investment. The reaction of Faith is akin to that 
 
246 INDUSTRY AND HUMANITY 
 
 of Fear, in that each tends to foster its hke. Faith 
 inspires Faith, and Fear breeds Fear. 
 
 Labor and Capital may both suffer from fears 
 which Management or the Community occasions. 
 Whatever produces lack of confidence in persons 
 who have to do with industrial investments, or 
 with the management of industrial enterprises, 
 necessarily gives rise to fear. Evidence of bad judg- 
 ment in entering upon new undertakings or proc- 
 esses, in estimating markets, in failure to anticipate 
 the effect of changed conditions, reacts to the detri- 
 ment of all the parties to Industry. Unwarranted 
 speculation, the cornering of markets, stock-water- 
 ing, fraud, and deception of any and every kind, 
 destroy faith and beget fear. These are the kinds 
 of misfortune and the classes of evil which of ttimes 
 overtake directing intelligence, and ensnare organ- 
 izing capacity. The borderland between legitimate 
 and illegitimate venture is dim, and there is no 
 kind of ability which has not its peculiar tempta- 
 tion. Shortcomings and excesses on the part of 
 Management can have only one effect upon Capi- 
 tal and Labor, and that is to discourage their ef- 
 forts in Industry. How often one hears the advice, 
 not to invest in "industrials!" Non-investment in 
 Industry because of avoidable fears can mean only 
 loss of opportunity and loss of reward to Labor, 
 Capital, Management, and the Community. 
 
PRINCIPLES UNDERLYING WORK 247 
 
 It would seem that Labor, Capital, and Manage- 
 ment had little to fear in consequence of Commu- 
 nity activities, since communities are so largely 
 composed of their industrial populations. Unfortu- 
 nately, there is often very much to fear. Whatever 
 depletes or exhausts a community's resources, 
 whether in manhood or material substance, de- 
 stroys the source from which, in the . ultimate 
 analysis, all Labor and Capital, and all national 
 strength, is derived. How dependent both Indus- 
 try and Nationality are upon human and natural 
 resources, the stress of war has helped to reveal. 
 In the titanic conflict with the Central Powers, the 
 cry went out from the AlUed nations, first for more 
 men; then for more munitions; soon it was more 
 food; then more ships. To meet this vast demand, 
 the effort of government was necessarily directed 
 to finding men, and stimulating the primary indus- 
 tries: men, first of all, to fight, and to manufacture 
 the munitions of war; then men for agriculture, 
 that more food might be obtained; men for the 
 mines, that iron and coal might be obtained; men 
 for the forests that wood might be obtained. At any 
 stage, exhausted manhood or depleted resources 
 would have meant defeat. 
 
 "Whatever prejudices the peace and health of 
 communities, adversely affects the employment of 
 labor and the investment of capital in Industry. 
 This does not mean that certain industries may 
 
248 INDUSTRY AND HUMANITY 
 
 not be temporarily stimulated by war. Where, un- 
 der government direction and because of public 
 necessity, a high rate of reward is guaranteed, la- 
 bor and capital flow readily enough from one chan- 
 nel to another. But war is essentially the destruc- 
 tion of capital, as well as of Ufe and morals. When 
 war's artificial stimulus is removed, and its indebt- 
 edness has to be met, Industry is left to carry a 
 burden which robs Labor, Capital, Management, 
 and the Community of part of their respective re- 
 wards. In carrying this burden. Industry finds 
 itself still further handicapped through the im- 
 pairment of the capital and labor available for 
 production. 
 
 What is true of war in the international arena is 
 true only in lesser degree of waste in any place, in 
 any form, at any time. Wherever strife or lawless- 
 ness prevails. Labor ceases to be employed, and 
 Capital tends to withdraw altogether. Until law 
 and order was maintained in the several states of 
 America, Industry failed to estabhsh itself, despite 
 the unprecedented wealth of vast natural resources. 
 The unrest of mining regions, much more than their 
 remoteness from investing centres, has discouraged 
 investment of capital in mining. It is the same 
 with conditions inunical to health. Had it not been 
 possible to control yellow fever, the construction of 
 the Panama Canal might have been indefinitely 
 delayed, notwithstanding its vast significance to 
 
PRINCIPLES UNDERLYING WORK 249 
 
 ocean-borne commerce. Wherever Labor experi- 
 ences serious risk of life or impairment of health, 
 Capital as well as Labor loses some opportunity of 
 employment. 
 
 Whatever begets uncertainty and distrust in the 
 action of government alarms both Labor and Capi- 
 tal, and tends to discourage their investment in In- 
 dustry. Human beings have to be reasonably sure 
 that their earnings and savings will not be jeopard- 
 ized through unwise or imprudent action on the 
 part of the State in order to put forth their best 
 efforts in production. Habits of economy and thrift 
 essential to the accumulation of capital and its sub- 
 sequent investment are none too readily acquired. 
 Confidence is a plant of tender growth, and its buds 
 are easily nipped. Reference to "conscription of 
 wealth " as a war measure has occasioned more than 
 one Finance Minister to take note of uneasiness 
 among those whose savings constitute a vital fac- 
 tor in business and industrial life, and to give as- 
 surances that there need exist no apprehension on 
 the part of the pubhc that action of a detrimental 
 character would at any time be taken with respect 
 to savings. There are clear indications that capital 
 in the United States has withdrawn from raihoad 
 investment because of the uncertain and often con- 
 flicting nature of Federal and State regulation and 
 control. Fiscal changes, even where most desirable, 
 affect investment till their probable consequences 
 
250 INDUSTRY AND HUMANITY 
 
 become established. Excessive taxation causes 
 both Capital and Labor to forsake one industry, 
 and very often one country, for another. What- 
 ever imperils security, and tends to rob capital of 
 legitimate reward, not only discourages further in- 
 vestment, but leads to the withdrawal of invest- 
 ments aheady made. 
 
 Where the management of a community's affairs 
 is entrusted to a privileged few; where, in govern- 
 ment, autocracy and bureaucracy persist. Labor 
 has everything to fear. The working classes of 
 Germany and Austria had no say in the coun- 
 cils responsible for the commencement of war in 
 Europe. They have suffered, and will continue to 
 suffer, as no other classes. Not alone that, but the 
 persistence of autocratic rule in one part of the 
 world subjects all other parts to the menace of its 
 lusts and ambitions. Recognition of this rendered 
 inevitable the combined action of the democracies 
 of the world for the preservation of their common 
 liberties. 
 
 Communities must be enlightened, as well as 
 free, if democracies are not to be a danger to them- 
 selves. Within the period of the War, revolution- 
 ary movements in China and Russia have followed 
 the overthrow of ancient despotisms. Every in- 
 stitution has the limitations of its own peculiar 
 qualities, and the weakness of a democracy is its 
 tendency to be swayed by popular appeals. The 
 
PRINCIPLES UNDERLYING WORK 251 
 
 chances of unwise leadership are increased as pol- 
 itics becomes increasingly concerned with issues 
 which lend themselves to popular prejudice. If 
 Labor is to be saved from betrayal and investment 
 in Industry is not to be discouraged, Labor must 
 continue to strive, as its friends in all lands have 
 striven on its behalf, for increased opportunities of 
 enUghtenment. 
 
 State control and State ownership of Industry 
 have been to some a fear, to others a faith, for many 
 years. Recent experience has produced curious re- 
 versals of opinion as to their merits. Whilst the 
 War has fostered State control in unprecedented 
 measure, it has helped also to reveal Umitations 
 and dangers. Labor has discovered that State con- 
 trol may mean bureaucracy, not democracy. All 
 classes have seen what it involves of ofTiciaUsm, and 
 the example of Germany has shown that a theory 
 of the state which professes to be for the good of 
 its members may prove a menace to mankind. 
 While some maintain there will be much to fear 
 from an advance of Socialism after the War, others 
 believe that weaknesses inherent in SociaUsm have 
 been effectively exposed. Is it not possible that, 
 out of the strain and stress of the world struggle, 
 the wheat may be sifted from the chaff; and that 
 the Community's highest interest will be main- 
 tained by conserving what has been exhibited of 
 the serviceableness of control, and avoiding what in 
 
252 INDUSTRY AND HUMANITY 
 
 equal measure may be proven to be in the nature 
 of undue interference with individual effort? 
 
 The fears of Management, apart from such as are 
 shared in common with Capital, are seldom suffi- 
 cient to circumscribe effort on Management's part. 
 As respects abihty to wait, freedom to move about 
 and to strengthen its position through combina- 
 tion, Management resembles Capital rather than 
 Labor. Since at every stage the processes of Indus- 
 try depend so absolutely upon the successful co- 
 ordination of effort, some measure of opportunity is 
 ever present to those who possess a genius for this 
 kind of service. Rarely is the supply of high-grade 
 intelhgence equal to the demand. Where initiative 
 combined with organizing capacity reaches high 
 levels of successful daring, and effects vast co- 
 ordination of industrial processes, Management 
 often commands fabulous returns. The chances 
 of reward being considerable, this form of effort 
 is called forth continuously. Only where its ex- 
 pectation of reward is excessive, or where it seeks 
 monopoly, has Management reason to be on its 
 guard. In this respect, its position is on all fours 
 with that of the other parties to production. 
 
 In the case of the Community, a fear pecuhar to 
 itself has to be added to the fears shared in common 
 with the other parties to Industry. It is the fear of 
 
PRINCIPLES UNDERLYING WORK 253 
 
 Labor, Capital, and Management combining to en- 
 hance prices by lessening the quantity or quality 
 of commodities or services. This, however, is not 
 a fear calculated to circumscribe effort for long, 
 since Labor, Capital, and Management are in 
 themselves representative of individuals who are 
 consumers as well as producers. Apart from re- 
 stricted groups within particular trades, there is 
 remote likelihood of a combination to profit at the 
 expense of the Community. Combination by the 
 three parties is much less a danger than the possi- 
 biUty of any one party taking temporary advan- 
 tage of the others because of its specially favored 
 or powerful position. Within circumscribed areas 
 of particular trades and businesses, however, there 
 is a real possibility of combination prejudicial to 
 the interests of the Community. 
 
 Though woefully indifferent to its use, the Com- 
 munity has an ever-present remedy against inimi- 
 cal combination. The complete or partial with- 
 drawal of some privilege or opportunity is usually 
 sufficient to bring recalcitrant parties to book. The 
 more extensive the organization of Industry be- 
 comes, the more it depends upon public patronage, 
 and upon the assistance and protection of public 
 or quasi-public agencies. It is but just, therefore, 
 as well as reasonable, that the Community should 
 share, in increasing measure, whatever advantages 
 accrue to Labor, Capital, or Management through 
 
254 INDUSTRY AND HUMANITY 
 
 opportunities the Community affords. Regarding 
 Industry as in the nature of social service, this 
 view must prevail. It is Industry serving the pub- 
 lic, not levying toll upon it. Once the latter proc- 
 ess is attempted, as in the case of extortion through 
 monopoly, profiteering, cornering markets, and the 
 like, the Community is justified in going any neces- 
 sary lengths to secure adequate redress. Unsocial 
 behavior of any kind is in the nature of privilege 
 biting the hand that feeds it, and is as reprehensible 
 as it is ungrateful. 
 
 II 
 
 The right of all the parties to Industry to share 
 progressively in increased productivity through ad- 
 vantages accruing to any one, is a corollary of the 
 right of each to share equitably in the output. In 
 the long process of the transformation of natural re- 
 sources into commodities and services available for 
 use. Labor, Capital, Management, and the Com- 
 munity are necessary at every stage. To share the 
 reward of combined effort is necessary, if joint 
 effort is to be attempted. To share progressively 
 in the reward of effort, as effort increases produc- 
 tivity, is equally necessary if, on the part of each 
 of the parties, the highest effort is to be maintained. 
 Whatever occasions fear of inadequate progressive 
 returns thwarts this legitimate ambition and reacts 
 upon effort. 
 
PRINCIPLES UNDERLYING WORK 255 
 
 The right to share equitably in the product of 
 Industry, and to share progressively in whatever 
 increases productivity, gives rise to fears which 
 supplement those which have their origin in rela- 
 tion to the respective contributions of the parties 
 to production. The fears thus entertained by La- 
 bor are not that Capital and Management may fail 
 to assist in the increase of output, but that their 
 assistance may be to the disadvantage of Labor 
 in comparison with gains accruing to themselves. 
 John Stuart Mill long ago observed of invention, 
 which is an expression of intelUgence in its highest 
 form, that, whilst it had vastly helped to increase 
 production, it was extremely doubtful if the toil of 
 the working classes had been appreciably lessened 
 thereby^ This statement, while true, is less appli- 
 cable to-day than in the days of Mill. There can 
 be no doubt that, in many respects, there has been 
 a vast improvement in the lot of the working classes 
 within the last century. But who can say what the 
 present lot of Labor might not have been had the 
 gains which have accrued to Industry through 
 discovery and invention been proportionately dis- 
 tributed? 
 
 Management and the control or possession of 
 capital frequently go hand in hand. Unfortunately 
 it has not been so, in like measure, with the Com- 
 munity and Labor. In the division of the product 
 in which all share, Capital and Management have 
 
256 INDUSTRY AND HUMANITY 
 
 had the advantage. The circumstance that the 
 combination is an inevitable outcome of the law of 
 supply and demand does not alter consequences, 
 or the fears to which the relationship gives rise. 
 The association of Management with the control 
 of capital serves to augment the fears which both 
 Labor and the Community entertain of Capital 
 and Management. "With the growth of the power 
 of organized Labor, there has developed increasing 
 fear on the part of Capital and Management that 
 their share of the output of Industry may become 
 progressively less instead of progressively greater. 
 The probability that, by exactions of various kinds, 
 the Community will in future demand a larger pro- 
 portionate share of progressive benefits than it has 
 hitherto insisted upon is also occasioning concern 
 to Capital and Management. It may come to cause 
 Labor also to reflect. 
 
 Consideration of how best to eUminate fears re- 
 specting the distribution of output touches the crux 
 of the industrial problem. How is the just share of 
 each party to Industry to be determined? And how 
 is each to be guaranteed its right to share progres- 
 sively in increasing productivity, and be held also 
 to the corresponding obhgation to see losses pro- 
 portionately shared? 
 
 Were it possible to know the relative value of the 
 respective contributions of Labor, Capital, Man- 
 
PRINCIPLES UNDERLYING WORK 257 
 
 agement, and the Community, the difficulty would 
 admit of immediate solution. But where each is 
 necessary to the other, and all are essential and in- 
 terdependent, it is impossible to say what the rela- 
 tive contributions are, and to accord differences 
 of degree and precedence. Besides, Industry is dis- 
 tributed over so vast an area, its interdependent 
 processes are so minute and varied, that as respects 
 any one part of the whole, it is beyond human in- 
 genuity even to contemplate an estimate of the 
 combined contributions. Assuming it were agreed 
 that all the parties to Industry should share 
 equally, on the ground that being interdependent 
 their contributions were of like value, it would still 
 be impossible to estimate the extent of the contri- 
 bution of any one party, since it is impossible to 
 know the extent of their combined contributions. 
 
 The situation as it actually is, has been well set 
 forth by Professor W. Stanley Jevons, with refer- 
 ence to what he terms "the economics of the labor 
 question," or "the mechanics of production." Pro- 
 fessor Jevons says: "Production of wealth consists 
 in the putting together of certain materials, and the 
 working them up into some novel form by the aid 
 of labor — that is by muscular force and mental 
 skill and knowledge. As with the Witches' Caul- 
 dron, there is needed 
 
 '"Double, double, toil and trouble; 
 Fire burn and cauldron bubble.' 
 
258 INDUSTRY AND HUMANITY 
 
 The point of the matter is that Uke the contents of 
 the cauldron, the results of production form a joint 
 result or medley. All the constituents are thrown 
 into hotch-potch, and as it is impossible to say 
 what part of the product is due to any of the con- 
 tributions thrown into the cauldron, no natural, 
 necessary, or legal principle of dividing the pro- 
 ceeds can be assigned." 
 
 Elsewhere he adds: "No person's share being 
 defined, each must ask for the most which he has 
 any chance of getting, and must content himself 
 with the best which he succeeds in securing. Every 
 contributor enters voluntarily into the hotch-potch, 
 and he cannot demand more than was agreed upon 
 when he entered the partnership. Practically the 
 whole question resolves itself into a complex case 
 of the laws of supply and demand. If any intended 
 partner in the work of production is dissatisfied 
 with the assigned share of the expected produce, he 
 is at hberty to refuse to enter into the business. 
 The other partners then must either concede his 
 demands, or must find somebody else to take his 
 place or must abandon the work. The whole ad- 
 justment of distribution of wealth thus hinges upon 
 the question whether one person or thing will do as 
 well as another. A landlord cannot successfully ask 
 a certain rent for his land if another landlord is will- 
 ing to let an equally good and available site at a 
 lower rent. A workman cannot expect to get forty 
 
PRINCIPLES UNDERLYING WORK 259 
 
 shillings a week, while .an equally good work- 
 man is ready to work at thirty-five shilhngs. As to 
 simple money capital, it matters httle whence it 
 comes, provided it can be had for a sufficient term, 
 and the smallest fractional difference in the rate 
 of interest would therefore be a sufficient cause of 
 preference. The same principle holds true, hkewise, 
 of the business capacity of the manager, though 
 in a less obvious manner. . . . The whole affair, 
 therefore, is one of comparative advantages, each 
 contributor to the hotch-potch trying to get the 
 largest share of the proceeds short of the point at 
 which he will drive the other contributors to find 
 other hotch-potches where their share will be 
 better."! 
 
 All this is far from satisfying; it is doubly discon- 
 certing because obviously so true of existing con- 
 ditions and methods. It will not help matters, how- 
 ever, to rail at a situation because it is baffling, or 
 because of its seeming injustice. The difficulty or 
 injustice may he, after all, not so much in the situ- 
 ation, as in our way of viewing it. 
 
 Clearly, there can be but one of two attitudes for 
 the parties to Industry to adopt in such a case. 
 They may regard the whole business hopelessly, 
 and say that, in the end, it all comes down to a 
 question of Might, and each may shape an im- 
 mediate course irrespective of its effect upon the 
 
 ' The Stale in Relation to Labofir, p. go et seq. 
 
260 INDUSTRY AND HUMANITY 
 
 possible contributions of. the other parties, and its 
 own ultimate reward. Or the parties may view the 
 matter with Reason and with a beUef in ultimate 
 Flight, and see in the " hotch-potch," not a grab-all 
 for the moment, but something capable of perma- 
 nently contributing to general well-being and ad- 
 vancement, provided each can be stimulated and 
 encouraged to contribute its utmost share. One or 
 other of these attitudes must prevail. The former 
 attitude is based on Fear, the latter on Faith. 
 There is no room for compromise between the two, 
 and they are exclusive of all others. 
 
 A careful analysis of the fears which surround 
 the parties to Industry, and especially Labor and 
 Capital, discloses that, almost without exception, 
 they are bred of mutual suspicion for which, it must 
 be admitted, experience has given ample grounds. 
 Deeper than suspicion lies a beUef, sometimes con- 
 sciously, oftener unconsciously entertained, in op- 
 posed as contrasted with common interests. This 
 suspicion and distrust between the parties to Indus- 
 try resembles nothing quite so much as the suspicion 
 and distrust on the part of nations which leads ulti- 
 mately to war. The fear that Labor will not put forth 
 its utmost effort causes Capital to dilute labor, sub- 
 stitute machines, speed up processes, cut rates, and 
 resort to the hundred and one other devices which 
 fill Labor with alarm. The fear that Capital will 
 
PRINCIPLES UNDERLYING WORK 261 
 
 seek to take advantage of increased effort causes 
 Labor to restrict output, and to resist attempts at 
 increasing productivity through the introduction 
 of new methods and processes or the promotion of 
 efficiency in other ways. Labor's attitude of resist- 
 ance fills Capital with alarm. Capital's attitude 
 increases Labor's resistance. And as fears increase, 
 antagonisms develop. A growing class conscious- 
 ness conceived in mistrust gives birth to vast or- 
 ganization, leading to intensified fears of Labor, on 
 the one side, and of the monied interests, or Capital, 
 on the other. Might comes to be substituted for 
 Right. The fruits of Industry come to be viewed 
 as the surface of the globe is viewed by warring na- 
 tions: as so much in the way of possession to be 
 apportioned, not by Reason, but by Force. Thus 
 is commenced and developed the same kind of com- 
 petitive arming which has proven so fatal between 
 nations, the same kind of alhances on the part of 
 opposed groups, the same inevitable drift toward 
 ultimate disaster to all concerned. Such warfare is 
 surely none other than the working of the Law of 
 Blood and of Death which leads to extermination. 
 It can never be supposed that any such sequence 
 was intended as a law of Industry, any more than 
 it is capable of being a law of Life. 
 
 Realizing the utter failure of the Law of Blood 
 and of Death to solve the crucial problem of Indus- 
 try, we are driven to test the efficacy of the con- 
 
262 INDUSTRY AND HUMANITY 
 
 trary law, by the adoption of the attitude on which 
 it is based. Let Faith be substituted for Fear; let 
 mutual consideration and confidence supplant sus- 
 picion, and constractive good-will replace resist- 
 ance; let the parties to Industry recognize a mutu- 
 ality, not a conflict of interest, in all that pertains 
 to maximum production and equitable distribution 
 of wealth; and what is the result? Immediately, 
 fresh energies are released, a new freedom is given 
 to effort in Industry. Productivity is increased, as 
 are also the respective rewards of all the parties. 
 
 The selfishness that hoards its talent, lest by 
 others sharing in profit there may be less of indi- 
 vidual gain, necessarily defeats itself in the end. 
 Were such an attitude to become general, there 
 would soon be nothing at all to share. Moreover, 
 production and consumption are interdependent. 
 Without production, there can be no consumption; 
 and without consumption, production would be of 
 no account. There is no limit to the earnings of a 
 producer except the inclinations and means of the 
 consumer. The effort that aims at maximum pro- 
 duction makes possible increase of individual gain 
 to producers and increase of gain to consumers as 
 well. It is twice blessed : it enriches alike the giver 
 and the receiver. And it is capable of unhmited 
 adoption by all parties. 
 
 Here is suggested a possibility as encouraging as 
 the medley of the "hotch-potch" was the reverse. 
 
PRINCIPLES UNDERLYING WORK 263 
 
 Whatever allays the fears of Labor, Capital, Man- 
 agement, and the Community brings them forth in 
 larger measure as contributing factors to produc- 
 tion. Whatever increases production tends to en- 
 hance purchasing power, and so to benefit the parties 
 to Industry. Whatever enhances purchasing power 
 tends, in turn, to increase production. Instead, 
 therefore, of the vicious circle, bred of fears and 
 narrowing continually towards destruction and ex- 
 termination, the substitution of Faith for Fear pro- 
 vides an enchanted circle widening ever towards 
 increase of effort and increase of enjoyment as well. 
 The substitution of Faith for Fear between the 
 parties to Industry leads not only to increasing 
 productivity through increased freedom of effort on 
 the part of each; it leads also to increased benefits 
 progressively shared by all. How, as respects prin- 
 ciples underlying Peace, the substitution of Faith 
 for Fear may be effected has aheady been indi- 
 cated. It remains to consider its application as re- 
 spects conduct and conditions which bear primarily 
 on Work and Health. 
 
 Ill 
 
 The rules of conduct and the methods whereby 
 it has been sought to eUminate Fear and to substi- 
 tute Faith between the parties to Industry may be 
 variously classified. For the most part, they find a 
 
264 INDUSTRY AND HUMANITY 
 
 place in one of the following categories: — meth- 
 ods of industrial peace; methods of vocational 
 training and industrial and technical education; 
 methods of industrial remuneration; methods of 
 industrial organization and management; meth- 
 ods of meeting industrial risks; methods of in- 
 dustrial betterment; and methods of industrial 
 government. There is nothing arbitrary about 
 this classification. In the last analysis, the several 
 methods are as interrelated and interdependent as 
 are the constituent elements of the Law of Peace, 
 Work, and Health. Moreover, they are all more or 
 less subject to change under the continuous play of 
 the powerful agencies of Discovery and Invention, 
 Education, Government, and Opinion. Classifica- 
 tion serves the purpose of arrangement only. It is 
 a sort of industrial design which alters as the condi- 
 tions of Industry change. 
 
 Methods of industrial peace have received con- 
 sideration in treating of principles underlying 
 Peace. Methods of meeting industrial risks and 
 methods of industrial betterment are best left to be 
 considered along with principles underlying Health. 
 Methods of vocational training and of industrial 
 and technical education, methods of industrial 
 remuneration, and methods of industrial organiza- 
 tion and management, may be referred to appro- 
 priately in considering the principles underlying 
 Work. Methods of industrial government, more 
 
PRINCIPLES UNDERLYING WORK 265 
 
 than any of the others, bear on all methods com- 
 bined, and are therefore best reserved for final and 
 separate consideration. 
 
 Since increasing productivity is possible in Indus- 
 try only through a progressive increase in the effi- 
 ciency of Industry, it is obviously in the interest of 
 Labor, Capital, Management, and the Community 
 that whatever promotes industrial efficiency should 
 be encouraged, and that whatever tends toward 
 inefficiency should be eliminated or changed. 
 
 It is important to understand just what is 
 meant by " promoting industrial efficiency." It cer- 
 tainly does not mean an alteration in the way in 
 which the product is shared, whereby one party to 
 production is enabled to benefit at the expense of 
 another. 1 There is, for example, no promoting of 
 efficiency in Industry if Capital, in order to increase 
 its own share of the product, lowers the rate of 
 wages to Labor to a point where the amount to be 
 earned ceases to be adequate as an incentive to en- 
 ergy and skill. Such a false step helps only to lessen 
 productivity, to which Capital as well as Labor 
 must look for its returns. Similarly, there is no 
 promoting of efficiency in Industry if Labor en- 
 gaged upon an industrial process in which machin- 
 ery is utilized prevents an improvement in the 
 process whereby output is materially increased, 
 
 ' Vide Sidney Webb, The Restoration of Trade Union Conditions. 
 
266 INDUSTRY AND HUMANITY 
 
 merely to insure the maintenance of its own re- 
 turns, and to prevent increased returns to Capital 
 through increased productivity. Promoting indus- 
 trial efficiency means, in any true acceptation of 
 the phrase, promoting the advantage of all through 
 improvements in skill, machinery, management, 
 materials, markets, organization, or any other 
 method or means incidental to production, in such 
 manner as to make possible and certain increased 
 benefits to all the contributing factors. 
 
 An increase in efficiency is usually referred to in 
 business as a decrease in the cost of production. 
 Whatever decreases the cost of production in In- 
 dustry makes possible increased productivity, and 
 thereby a gain to Labor, Capital, Management, and 
 the Community. Whatever increases the cost of 
 production has the opposite effect. Here, likewise, 
 it is important to understand precisely the meaning 
 of expressions used. 
 
 To lead to increased productivity, a decrease in 
 the cost of production must be genuinely such. It 
 must not mean a decrease in the return to one of the 
 factors in production, that at its expense some 
 other factor may receive a larger proportionate 
 share of the product. Such action does not relate 
 to cost of production at all, but to the division of the 
 product, which is an entirely different thing. There 
 is a vast difference between a decrease in the rate of 
 return to any one or all of the several factors in pro- 
 
PRINCIPLES UNDERLYING WORK 267 
 
 duction, and a decrease in the cost of production. 
 The two, in fact, are incompatible. A decrease in 
 productivity out of which all returns are made 
 means that there has been an increase in cost. 
 Only an increase in productivity means a decrease 
 in cost. 
 
 In a decrease of cost of production, the same 
 amount or a better quaUty of product is produced 
 with less effort or strain on the part of Labor, or at 
 less cost to Capital, Management, and the Commu- 
 nity. With the freeing of some effort on the part of 
 Labor, or some expenditure on the part of Capital, 
 Management, or the Community, a larger produc- 
 tivity is rendered possible through contributions 
 equalling in amount those formerly made. With a 
 larger product there is the possibility of increased re- 
 turns, not to one factor at the expense of others, but to 
 all at the expense of none. There is the possibiUty 
 of a twofold gain to Labor, Capital, and Manage- 
 ment, since they share rewards in increase of pro- 
 ductivity as producers and also as consumers. 
 
 With the fundamental distinction between cost 
 and rate of return in production rightly understood, 
 the prejudice agamst "efficiency," so widely enter- 
 tained by Labor, may be expected to disappear. It 
 is not against "efficiency" as leading to a lessen- 
 ing in the cost of production, with consequent in- 
 crease of benefits to all the contributing factors, 
 that Labor has inveighed, but against a so-called 
 
268 INDUSTRY AND HUMANITY 
 
 "efficiency" which is in the nature of theft, and 
 which is evidenced wherever there is unwilhngness 
 on the part of Capital or Management to share in 
 just proportion, or to share at all, the benefits of in- 
 creased production which efficiency brings. As re- 
 spects increase of efficiency and consequent lessen- 
 ing in the cost of production, it is to be remembered 
 that the interest of Labor, Capital, Management, 
 and the Community does not cease with a possible 
 gain : it extends to an actual progressive gain for one 
 and all corresponding to increasing productivity. 
 
 Were the respective interests of Labor, Capital, 
 Management, and the Community antagonistic, 
 it would be folly to seek to discover methods 
 whereby the rights of all might be conserved, and 
 progressive gains arising from increased produc- 
 tivity secured to each. Happily, their respective 
 interests are, as regards output, mutually and ab- 
 solutely interdependent. As regards the division 
 of output, advantages may be temporarily gained 
 by one or more of the parties, but in the long run, 
 failure to protect the just interests of each involves 
 loss, in some measure, to all. It is only by viewing 
 Industry in a comprehensive way that this funda- 
 mental truth can be grasped. Once appreciated, it 
 will be seen that it is to the advantage of the several 
 parties to Industry to find means whereby, for the 
 sake of larger permanent gains to all, injustice to 
 any one of the parties may be avoided. 
 
PRINCIPLES UNDERLYING WORK 269 
 
 In no surer way can workmen attain a sense of 
 freedom in the exercise of effort and consequent in- 
 crease in efficiency than by acquiring a thorough 
 understanding of and skill in their particular occu- 
 pations or trades. Knowledge hes at the root of 
 freedom of effort, as freedom of effort lies at the 
 root of efficiency, and as efficiency, it might be 
 added, hes at the root of the reward of effort. To 
 acquire skill and understanding is a matter of ex- 
 perience and training. 
 
 In a regime of Industry limited to the use of 
 hand tools, as under the domestic system, training 
 was for a term of years, in accordance with the 
 prevailing custom of apprenticeship. The skilled 
 apprentice who had acquired his craft became a 
 journeyman. In the course of time, he might be- 
 come a master. Training and experience were the 
 avenues to promotion. To-day, the same avenues 
 remain, but they run through a vastly different 
 tract. Industry, for centuries, was a matter of sim- 
 ple hand processes, more or less complete in them- 
 selves. The entirety of processes was readily under- 
 stood and afforded opportunity for the keenest 
 sort of enjoyment in high grade and artistic work- 
 manship. Industry, as constituted to-day, is a 
 series of infinitely detailed processes, in which the 
 worker too often becomes a more or less mechani- 
 cal part of a vast machine propelled by forces be- 
 yond his control, and possessing a complexity far 
 
270 INDUSTRY AND HUMANITY 
 
 beyond his ken. Skill remains, as it always has been, 
 a first requisite to the free performance of effort, 
 but it is a kind of skill different from that demanded 
 by the old handicrafts. Understanding of his own 
 part in production remains essential to the work- 
 er's maximum efficiency. Such an understanding 
 to-day involves knowledge vastly more extensive 
 than any required ©f workmen in earher years. ■ 
 
 If the workman to-day is to be afforded oppor- 
 tunity to progress in his trade, and to be given an 
 understanding of industrial processes sufficiently 
 comprehensive to make the part played by his own 
 work intelligible and enjoyable, his training can no 
 longer be left to Chance, or even to the direction 
 of those immediately superior to him. He must be 
 afforded opportunity to acquire skill and an under- 
 standing of industrial processes, under instruction 
 specially devised to meet the requirements of his 
 particular occupation in its relation to the whole 
 process of production. Such opportunity is being 
 gradually provided under the development of Vo- 
 cational Training and Industrial and Technical 
 Education. 1 
 
 1 While Minister of Labor, I had the privilege of recommending 
 the appointment by the Government of Canada of a Royal Commis- 
 sion on Industrial Training and Technical Education. The Com- 
 mission was appointed June i, igio, and made its report three years 
 later. (Report and Evidence, vols, i-rv. King's Printer, Ottawa, igiS.) 
 The reader will find in the Report comprehensive information con- 
 cerning the systems and methods of industrial training and technical 
 education in America and in the several countries of Europe, as well 
 as most valuable suggestions and recommendations. 
 
PRINCIPLES UNDERLYING WORK 271 
 
 Vocational Training and Industrial and Tech- 
 nical Education are in no sense substitutes for 
 general education of either a primary or secon- 
 dary character, or an alternative to university 
 education. They ought to be supplementary to 
 general education, which aims at increasing in- 
 telHgence, and especially at developing powers 
 of observation and self-expression, i Vocational 
 Training and Industrial and Technical Educa- 
 tion utilize this development in ways that are 
 likely to be of advantage to the worker in his 
 specific occupation and in a large way to Indus- 
 try itself. By developing skill in the worker and 
 affording a much needed understanding of indus- 
 trial processes. Vocational Training and Industrial 
 and Technical Education make possible more ef- 
 ficient service on the part of Labor, with pos- 
 sible increase in Labor's earning capacity. More 
 efficient service by Labor means also a lessening in 
 the cost of production, which makes possible in- 
 creased reward to Labor, and increased rewards 
 to Capital, Management, and the Community as 
 
 well. 
 
 Of Methods of Industrial Remuneration which 
 are calculated to beget a sense of freedom in effort, 
 and which therefore are specially adapted to pro- 
 mote efficiency, it is certain that experience has re- 
 vealed no single method possessing a monopoly of 
 
 ' Vide Memorandum of Garlon Foundation. 
 
272 INDUSTRY AND HUMANITY 
 
 advantage.^ On the contrary, methods wholly dif- 
 ferent have disclosed much of individual merit. The 
 practice which in the long run is apt to do most by 
 way of promoting efficiency, through harmonizing 
 the interests of Labor, Capital, Management, and 
 the Community, is pretty certain to be in the na- 
 ture of a combination of features broader than any 
 possessed by a single method. 
 
 What Labor is really concerned about as regards 
 remuneration, is adequate reward of the effort put 
 forth. What Capital and Management are really 
 concerned about is adequate reward for their in- 
 vestments and services. What the Community is 
 really concerned about is adequate value in services 
 and commodities for purchasing power. The method 
 of remuneration of Labor which helps most to se- 
 cure adequacy of returns all round is the method 
 which is Ukely to prove the most productive of 
 efficiency, and, in the long run, the most advanta- 
 geous to Labor. 
 
 What is earned, rather than what is received, or 
 paid, is the fundamental consideration. Men should 
 get what they earn, and should earn what they get. 
 The amount of product must be looked to as the 
 determining factor. The thing paid for is the result, 
 not the time spent on obtaining it. 
 
 Where remuneration is the incentive to effort, if 
 
 ' The reader is referred to Industrial Efficiency, by Dr. Arthur 
 Shadwell (Longmans, Green & Co., London, 1909), reference to which 
 source is hereby acknowledged. 
 
PRINCIPLES UNDERLYING WORK 273 
 
 effort is to be adequate, remuneration must be ade- 
 quate. The real interest of the parties to Industry 
 lies in the incentive being adequate to call forth the 
 best that is in the worker in energy and skill; in 
 other words, the utmost of his will and capacity. 
 If the best is to be expected of a man, he must be 
 given the fullest opportunity to make the best of 
 himself. 
 
 Wages, Uke hours, may be excessive or deficient. 
 They are too high when they lead to laziness and 
 indifference, and too low when they are insufTicient 
 to stimulate effort. Adequate wages are benefi- 
 cial aUke to Labor, Capital, Management, and the 
 Community, in that they lead to a maximum of 
 effort and a minimum of waste. 
 
 It is seldom possible to determine readily what are 
 adequate wages. Much depends on the class of 
 work to be performed and the amount of energy 
 and skill required; on the character and tempera- 
 ment, and even on the heredity of the worker. 
 Much depends, too, on circumstances and condi- 
 tions such as the available supply and demand of 
 labor, the hours to be worked, the quaUty of ma- 
 terials supplied, the efficiency of the plant and 
 equipment, and other indeterminable factors. With 
 remuneration, as with all else in industrial rela- 
 tions, to secure efficiency is a matter of proper ad- 
 justments. Account must be taken of human as 
 well as economic considerations. The incentive 
 
274 INDUSTRY AND HUMANITY 
 
 must be adjusted to the individual. "The ideal 
 condition economically," says Dr. Arthur Shad- 
 well, "would be an automatic mechanism which 
 would exactly adjust the incentive to the indi- 
 vidual, or the wages to the work, thereby ehciting 
 the best of which each is capable. This would be 
 equally advantageous to the wage-taker and the 
 wage-giver, and to the community to which both 
 belong, because there would be no waste. Its per- 
 fect realization in industry is no more practicable 
 than any other sort of perfection, but some meth- 
 ods of remuneration come nearer to it than others, 
 and their comparative bearing on efficiency can be 
 gauged accordingly." 1 
 
 Proceeding to estimate the various methods of 
 remunerating Labor, by reference to the economic 
 principle of "adjusted incentive" or "the differ- 
 ential treatment of varying capacity," this eminent 
 authority finds that, of all methods, the farthest re- 
 moved from the ideal is that of Time-wages at a uni- 
 form rate, in that it presupposes an equality which 
 has no existence, and is therefore based on a false 
 principle. Piece-work, on the other hand, he regards 
 as obviously based on the sound economic principle 
 that workers should be paid according to the value 
 of their work. Where Time-work is adjusted to in- 
 dividual capacity, the principle is the same as that 
 underlying payment by the piece. 
 
 ' Industrial Efficiency, p. Sgo. 
 
PRINCIPLES UNDERLYING WORK 275 
 
 That Dr. Shadwell in his analysis is right, must 
 be apparent to all who, like him, have had a 
 wide range of observation and experience. How 
 is it, then, that Labor, which is primarily inter- 
 ested in the method of remuneration best calcu- 
 lated to assure it amplest returns, is so averse to 
 payment on a piece-work basis, and inclines so 
 strongly to payment of a standard wage on a time 
 basis? To attribute this to sheer laziness, or to a 
 desire to degrade all workers to the level of the least 
 capable or industrious is as untrue to the facts as 
 it is unfair to human nature. Workers in Indus- 
 try are just as incUned to put forth effort for the 
 sake of reward, just as ambitious, just as eager 
 for individual recognition, as individuals of any 
 other class in society. Nor are the leaders different 
 from others in these respects. If in appreciable 
 numbers the workers fail in these qualities, it is 
 because the path of bitter experience has bred 
 feelings of fatality concerning the circumstances 
 of their lot, and because, in the immensity of the 
 struggle in which they are involved, they see Uttle 
 hope of gaining a reward which they consider ad- 
 equate, Uttle opportunity of rising to a higher level, 
 and Uttle scope for individual initiative or individ- 
 ual attainment. 
 
 As a matter of fact, it is not the desire to ignore 
 talent, but a beUef that in some manner beyond 
 their control special skiU or exertion will be ignored, 
 
276 INDUSTRY AND HUMANITY 
 
 or, what is worse, exploited, that provokes among 
 workingmen a reaction against piece-work pay- 
 ment, and a desire for payment on a time basis. As 
 Dr. Shadwell has pointed out, the minimum time- 
 wage, on which Labor insists, is itself a sort of tacit 
 and unconscious-protest against a uniform rate, 
 since a minimum imphes possible variations which 
 are not to fall beneath a certain point but may rise 
 above it. Likewise, the real meaning of the "living 
 wage," he finds to he in the fact that wages are the 
 incentive to work, and must be adequate to pro- 
 duce it. Where men are forced by necessity to 
 work below a standard which constitutes a living 
 wage, labor, while apparently cheap, is really dear, 
 because "sweated" Labor is either unwilUng or 
 without capacity. 
 
 If payment on a piece-work rather than on a uni- 
 form time basis is to be maintained in Industry, it 
 can be so only through affording grounds sufficient 
 to lead to the substitution of Faith for Fear as re- 
 spects the consequences involved. Foremost must 
 come the certainty that if a man increases his out- 
 put by working harder, he will continue to reap an 
 advantage by so doing. This means that employers 
 must refrain from cutting down the piece-price in 
 order to reap, at Labor's expense, the benefit of in- 
 creased exertions on the part of Labor. Such prac- 
 tice vitiates the whole principle of piece-work pay- 
 ment by destroying the capable worker's incentive. 
 
PRINCIPLES UNDERLYING WORK 277 
 
 Since it inevitably results in a lessening of produc- 
 tivity, it deals a fatal blow at efficiency, leads to a 
 consequent increase in the cost of production, and 
 justifies the prejudice on the part of Labor against 
 this method of remuneration. 
 
 Piece-work, moreover, must not be rendered 
 illusory in practice through employers providing 
 bad material or machinery. The temptation to 
 "speed up" machinery, thereby overtaxing the 
 energies of the worker, is something which must 
 also be guarded against, though it is not hkely to 
 be a source of danger where the rate of speed is 
 controlled by the worker himself. The fear that 
 jealousy between workers may be excited through 
 competition is less an evil than the danger that in- 
 centive may so vanish as to leave httle room for 
 competition. The example of the more capable 
 and industrious should prove a stimulus rather 
 than an irfitant to less efficient workers where cer- 
 tainty of enhanced rewards is rendered apparent. 
 
 Once confidence is estabhshed in the piece-work 
 basis of remuneration through the assured main- 
 tenance of the principle on which it is founded, 
 that, namely, of workers being rewarded according 
 to the value of their work, the stimulus of ordinary 
 piece-work may be increased in various ways by ad- 
 ditional rewards based on evidences of different in- 
 dividual capacity. In technical language, this is the 
 principle of the "intensive differential rate." Refer- 
 
278 INDUSTRY AND HUMANITY 
 
 ring to intensive piece-work, Dr. Shadwell says: "It 
 takes different forms, but generally consists in pay- 
 ing each worker a higher price (i.e., a differential 
 rate) for each piece or job in proportion to the ra- 
 pidity and quahty of his workmanship. This auto- 
 matically adjusts the incentive to the individual 
 who has the choice of earning more or less according 
 to capacity and industry. The employer is able to 
 pay higher wages for quicker work because he gets 
 a larger output for the same machine cost. He di- 
 vides with the worker the advantage accruing from 
 the difference." 
 
 Organized Labor, in some trades, has protested 
 against this method on the ground that it resembles 
 the task system of wage payment and creates jeal- 
 ousy and ill-feeling. It is clear that a rare imparti- 
 ahty must be exercised in any attempt to apply the 
 principle of the "intensive differential rate," and 
 that a just discrimination is difficult. Unless, in 
 practice, suspicion of favoritism or of undue pres- 
 sure can be avoided, this method may well serve to 
 arouse rather than allay unrest. 
 
 Similar in purpose to payment by the piece is the 
 premium or premium bonus plan. It consists in 
 offering additional pay for more output in a given 
 time, or for less time expended on a given piece, or 
 for economies effected with respect to power, sup- 
 pUes, or materials used in production. The pre- 
 mium may be differently calculated according to 
 
PRINCIPLES UNDERLYING WORK 279 
 
 the nature of the work. It may be on a tune basis, 
 so much by the day or week with additional pay for 
 curtaihnent of the time required for a given result, 
 or on a piece basis with a bonus for the less time ex- 
 pended on a given piece. Or it may be on a basis of 
 inverse ratio to quantities of power or materials 
 consumed. The method is open to the same kind 
 of dangers as payment on a piece-work basis, and 
 prejudice against it can be overcome only by the 
 same regard for the maintenance of standard rates 
 irrespective of the premiums or bonuses allowed. 
 
 In the remuneration of Labor, the fears of Capi- 
 tal, Management, and the Community are just as 
 important a consideration as those of Labor. If 
 productivity, in which all share, is to be increased 
 through improved relations. Capital, Manage- 
 ment and the Community, as well as Labor, must 
 have their faith increased through the elimination 
 of their fears. All payment based on the principle 
 of "the adjusted incentive" and "the differential 
 treatment of varying capacity," tends in this di- 
 rection. 
 
 Labor cost is only one element in the total pro- 
 duction cost. There are in addition the cost of 
 premises and equipment, including plant, power, 
 tools, and machinery; the cost of maintenance, 
 raw materials, and supplies; the expenses of man- 
 agement, including superintendence and direction 
 of processes ; and there are the risks of various kinds 
 
280 INDUSTRY AND HUMANITY 
 
 to property and person which become chargeable 
 upon Industry. It is quite conceivable that "the 
 differential incentive," whilst it. eUcits the best 
 efforts of each man by paying him according to 
 value of output, offers no incentive to him to pro- 
 mote the interests of the whole by care of machin- 
 ery, by economy of power or raw material. It may, 
 through the effort to increase his own output, lead 
 the worker to be extravagant of many things. If 
 cost of production is to be kept down, something 
 more is required which will give to the wage-earner 
 a direct interest in the success of the undertaking as a 
 whole. Such an interest Umits the tendency toward 
 extravagance in the use of the property of others, 
 and has the advantage of reducing the need and 
 the expense of supervision. A direct interest in 
 the success of an undertaking as a whole is to the 
 prevention of waste in production what a knowl- 
 edge of industrial processes as a whole is to intelli- 
 gent and sustained effort. 
 
 "A thoroughly effective method of remunera- 
 tion," says Dr. Shadwell, "includes both princi- 
 ples, (1) the differential incentive, which acts on 
 the individual as such; and (2) profit-sharing, 
 which acts on him in his collective capacity, as a 
 member of a body bound together by conunon in- 
 terests and working for a common end. . By in- 
 creasing the efficiency of labor, they diminish its 
 cost, and so increase profits though wages rise." 
 
PRINCIPLES UNDERLYING WORK 281 
 
 IV 
 
 A consideration of Profit-Sharing connects the 
 study of Methods of Industrial Remuneration with 
 the study of Methods of Industrial Organization 
 and Management, and Methods of Industrial Gov- 
 ernment. As such it marks a convenient point of 
 transition from the one to the other. Inasmuch, 
 however, as profits have to be made before they 
 can be shared, it may be well, before attempting 
 a critical analysis of the merits of Profit-Sharing 
 as an underlying principle of work involving co- 
 operative effort, to glance at certain features of 
 Industrial Organization and Management which 
 relate mainly to production. 
 
 In reviewing the factors which make for efii- 
 ciency through the freeing of effort and the pre- 
 vention of waste, certain factors will be seen to 
 contribute primarily to the remuneration of Labor, 
 others primarily to the remuneration of Capital and 
 Management. All are equally important; all are, 
 in fact, inseparable. In the short run, some fac- 
 tors may bring unmediate and relatively greater 
 advantage to Labor; others, immediate and rela- 
 tively greater advantage to Capital and Manage- 
 ment. In the long run, however, advantages 
 gained by any of the parties to production can 
 be maintained only through an equitable sharing 
 of their benefits. 
 
282 INDUSTRY AND HUMANITY 
 
 Foremost among factors of immediate concern 
 to Capital and Management are the use of Labor- 
 Saving Machinery, and the adoption of what is 
 termed "Scientific Management," in Industry. 
 Both operate in much the same way; both are ca- 
 pable of much the same kind of service; and both 
 are open to the same kinds of objection and abuse. 
 
 Labor-Saving Machinery frees human effort by 
 simplifying industrial processes, by lessening the 
 degree of skill and dexterity demanded, and by 
 enabUng the same amount of output to be pro- 
 duced with a less expenditure of time and human 
 energy. Labor which otherwise would be needed to 
 effect the original amount of production is thereby 
 set free for additional service or other employment. 
 Labor-saving machinery helps to relieve Capital 
 and Management of many of the uncertainties 
 attendant upon a limited labor supply. In articles 
 which lend themselves to mechanical treatment 
 in production, it makes possible a uniformity of 
 design, texture, and quality, and an output in 
 quantity wholly unattainable under processes re- 
 quiring more in the way of personal attention and 
 service. By making possible a larger output under 
 like expenditure of effort, the use of labor-saving 
 machinery not only yields a higher return on capi- 
 tal, but renders possible a larger rate of remunera- 
 tion to all the parties to production. 
 
PRINCIPLES UNDERLYING WORK 283 
 
 It would seem from this to be as much to the 
 interest of Labor as to the interest of Capital, 
 Management, and the Community that, wherever 
 possible, advantage should be made of labor-saving 
 machinery and devices, and their use encouraged, 
 not prevented. And yet the record of the intro- 
 duction of labor-saving machinery into industrial 
 processes by Capital and Management is largely a 
 story of active, and often violent, opposition on the 
 part of Labor. The explanation of this opposition 
 is not far to seek. Unacquainted with the processes 
 of Industry as a whole, and seeing only the part, 
 and that, oftenest, but the fractional part of par- 
 ticular processes on which it is engaged, Labor sees 
 in devices and machinery for saving labor, some- 
 thing sinister so far as its immediate employment is 
 concerned. It sees itself done out of its job, in 
 whole or in part, or if not out of its job, out of its 
 customary wage or a proportionate share in the 
 return to its effort when coupled with the services 
 of the machine. It sees, too, in the use of labor- 
 saving machinery, means whereby, through " speed- 
 ing up," a larger demand can be made upon its en- 
 ergies for the same reward. Finally, Labor sees in 
 the introduction of labor-saving machinery its own 
 status reduced, its part in the industrial process 
 rendered more and more mechanical, and its scope 
 for initiative and development restricted instead of 
 widened. Instead of experiencing the satisfactions 
 
284 INDUSTRY AND HUMANITY 
 
 which flow from creative and original work, it finds 
 its occupation becoming more and more that of 
 "policing" and tending machines. These are se- 
 rious matters, for they affect not only the means of 
 gaining a livelihood, but also the self-respect, char- 
 acter, and personality of the worker. 
 
 Under the ruthless stress of world-wide compe- 
 tition, employers are obUged to avail themselves 
 of every legitimate advantage offered. Moreover, 
 they cannot be expected to be responsible for the 
 social consequences which Invention brings. Their 
 business is to maintain Industry at a profit; other- 
 wise all go under, instead of a few. How, then, are 
 the opposing attitudes of Labor and Capital to- 
 ward Invention, and the use of Invention, to be 
 reconciled? Clearly, the only solution is to be found 
 through the substitution of Faith for Fear by the 
 elucidation of the larger view, which discloses, in the 
 long run, not opposed, but common interests, and 
 which stimulates effort toward the common good. 
 
 It must be made apparent to Labor, in the first 
 place, that material progress depends, in the long 
 run, on advantage being taken of all that makes for 
 increased efficiency in Industry, and that while 
 some degree of suffering is inevitable in all change, 
 the greatest good for the greatest number is hkely 
 to be furthered as a consequence of Invention. 
 The comparison of human desire to the legend- 
 ary tree which rewarded each stroke of the axe by 
 
PRINCIPLES UNDERLYING WORK 285 
 
 doubling the number of chips, and to the oil in the 
 widow's cruse which increased as drawn upon is 
 wholly to the point. The worker must be enabled 
 to see that an invention which reduces labor by 
 half may, through the lowering of cost, increase 
 the demand for output manifold. Labor must be 
 helped to understand that the quantity of work to 
 be done in the world, or in any part of it, is not 
 Mmited save by available capital and community 
 demand ; and that both available capital and com- 
 munity demand are Ukely to be augmented by 
 whatever enables the same expenditure of time, 
 capital, and human effort to produce commodities 
 of like quahty in larger quantities, or commodities 
 of Uke quantity in better quality, or both. Labor 
 must also be shown wherein labor-saving devices 
 reUeve work of much of its drudgery, and save the 
 worker strain and exhaustion, thereby preserving 
 his energies for the fuller enjoyment of the fruits of 
 his labor. The additional avenues of employment 
 opened by the necessary manufacture of new ma- 
 chines, and the extra skill so often required to 
 cope with the increased complexity of machinery, 
 iare further compensating features of which ac- 
 count should be taken. 
 
 When labor-saving machinery is about to be ua- 
 stalled, care must be taken to see that Labor under- 
 stands its significance in the process of Industry 
 as a whole, and that, along with the other parties 
 
286 INDUSTRY AND HUMANITY 
 
 to Industry, Labor is permitted to share on a just 
 basis in the larger output which results from the 
 increased efficiency labor-saving machinery brings. 
 Care must be taken to see also that Labor is not 
 robbed of a part of the fruits of its efforts through 
 "speeding-up" processes. Where there is actual 
 displacement of Labor, new opportunities of em- 
 ployment should be found as quickly as possible, 
 and provision of a right and proper kind made for 
 Labor that is displaced. 
 
 The view that Industry is really in the nature of 
 social service, and, as a consequence, that it is to 
 the advantage of society to have efficiency in In- 
 dustry furthered to the uttermost, clearly places 
 an obhgation upon the Community to see that hard- 
 ship is not suffered by human beings who, through 
 no fault of their own, find their services displaced, 
 in order that the Community may profit. So, too, 
 the Community must seek to offset the "dehuman- 
 izing" effects of mechanical routine by having re- 
 gard for working hours and other conditions sur- 
 rounding employment, and by providing increased 
 opportunities of personal development within and 
 without Industry. It is surprising how much may 
 be done to reconcile Labor to sacrifices demanded 
 by the introduction of labor-saving machinery, 
 by regarding Industry as a social institution, and 
 making plain to Labor the measure of social service 
 it is capable of rendering. Consciousness of the 
 
PRINCIPLES UNDERLYING WORK 287 
 
 kind means both increasing the intelUgence of La- 
 bor, and quickening its sense of responsibiUty for 
 the conduct of Industry as a whole. To effect this, 
 Labor must be taken into the confidence of the other 
 parties to Industry. Capital and Management must 
 explain the significance and bearings of all proposed 
 changes, and consider their social and economic 
 consequences sympathetically. Agreement must 
 be reached as to the rate of introduction of new in- 
 ventions, the conditions under which they are to 
 be worked, and the rate of remuneration. These 
 are matters which pertain to government in In- 
 dustry. Upon the successful solution of the prob- 
 lem of government in Industry, more than on all 
 else, the promotion of industrial efficiency depends. 
 
 " Scientific Management" is the term used to ex- 
 press a system of organization in Industry whereby 
 the whole routine, down to the smallest detail, is 
 organized by the management acting through a 
 staff of efficiency experts.^ Such a system lends it- 
 self, as does labor-saving machinery, to an increase 
 in output. The two are closely aUied in many re- 
 spects : the one is actual machinery, nothing more 
 or less; the other, methods, which are a kind 
 of invisible machinery. By increasing efficiency 
 through expert methods, scientific management 
 
 ' Vide Hoxie, Scientific Management and Labor (D. Appleton & Co., 
 New York, 191 6); also Bulletins of the Taylor Society, a Society to 
 Promote the Science of Management. 
 
288 INDUSTRY AND HUMANITY 
 
 lowers the cost of production. It helps to avoid 
 confusion and overlapping in effort, strain and ex- 
 haustion on the part of the worker, and waste of 
 time and materials in many directions. As such it 
 is not only profitable but highly commendable in 
 the interests of all the parties to production. And 
 yet Labor is profoundly suspicious of its merits and 
 as openly hostile to its introduction in Industry as 
 to the introduction of labor-saving devices. The 
 reasons are obvious. 
 
 The objections of Labor to scientific manage- 
 ment and to the use of labor-saving machinery are 
 necessarily much the same. They spring from the 
 same kinds of fears, for which experience has af- 
 forded ample justification. There is, in the case of 
 scientific management, as in the case of the intro- 
 duction of labor-saving machinery, the fear that 
 while wages may be augmented, the rate of increase 
 will not be at all proportionate to the gains accru- 
 ing to Capital and Management. This fear is re- 
 lated to the reward of effort. It is less substantial, 
 however, than the fear of change in the status of the 
 worker, which is a more serious thing. By carry- 
 ing efficiency to the last point, in an organization 
 of Industry already mechanically subdivided in the 
 minutest way. Labor sees itself still further robbed 
 of the chance of exercising initiative and original- 
 ity, and of developing capacity or opportunity for 
 promotion in its work. 
 
PRINCIPLES UNDERLYING WORK 289 
 
 With the development of the vast mechanism of 
 Industry through use of natural powers, Labor has 
 come to regard itself as little more than a cog in a 
 wheel. In the refinements of organization carried 
 out by efficiency experts, Labor sees itself, as re- 
 gards personality, reduced to something less than 
 a cog. A natural instinct causes revolt against a 
 system which reduces a human being to a mere au- 
 tomaton, and work to a series of endless repetitions 
 of some mechanical act. The monopoly value of 
 special skill once gone, the worker sees the possibil- 
 ity of his becoming a mere atom in a drifting waste 
 of unemployed. Obviously, instincts which become 
 roused against possibiUties of the kind have been 
 developed in man for purposes of the preservation 
 of his manhood. It matters not how dull and unin- 
 telligible their expression may be, their presence in 
 the slightest degree is evidence of what may be left 
 of the unquenchable spark of the god-hke. Such 
 instincts cannot be regarded with too great rever- 
 ence. 
 
 There is a point at which all things may be 
 pressed to the antithesis of what they are. It would 
 be unfortunate for the good to Labor, Capital, 
 Management, and the Community which scien- 
 tific management, moderately practised and wisely 
 conducted, is capable of producing, were the abuse 
 of this system to be mistaken for its use. Orderly 
 arrangement is the first of all essentials to co-oper- 
 
290 INDUSTRY AND HUMANITY 
 
 ative effort, and all that is best in scientific man- 
 agement is little more than getting rid of confusion 
 and perfecting adjustments. This is, in fact, scien- 
 tific management. The practice that carries ad- 
 justment to the point that it unfits human beings 
 for further adjustment is in reality unscientific, and 
 the management that allows such a practice is de- 
 feating its own ends. 
 
 To simplify tasks, to eliminate superfluous effort, 
 to prevent fatigue and overstrain, is but to enhance 
 capacity for work, and enjoyment of its fruits once 
 the hours of labor are over. These are objectives, 
 the advantage of which to itself, as well as to the 
 other parties to production. Labor will be the first to 
 grasp. But an objective sometimes requires to be 
 explained. Frequently it is necessary to make clear 
 that an objective means just what it purports to 
 mean, nothing more and nothing less. If it is for 
 the good of all, and not for the good of some at the 
 expense of others, then all should have an oppor- 
 tunity of understanding the process in relation to 
 their own lines, and to the processes of Industry as 
 a whole. 
 
 Where co-operation is desired, there must be co- 
 operation; not a one-sided arrangement, but co-op- 
 eration all round. To remove the just suspicions of 
 Labor, and to attain its co-operation in the intro- 
 duction of scientific management. Labor must, as 
 in the case of labor-saving machinery, be taken into 
 
PRINCIPLES UNDERLYING WORK 291 
 
 confidence; it must be shown that, in relation to the 
 new method, or instrument, or whatever it may be, 
 its interests and the interests of the other parties to 
 production are common, not opposed; that what 
 means an increase of profits to Capital and Man- 
 agement and increased benefits to the Community, 
 means also an increase of profit to Labor, and this 
 in fair proportion. Similarly, Labor must have its 
 opportunity to point out wherein a practice pre- 
 senting apparent immediate advantages may in the 
 long run prove baneful and injurious. If any prac- 
 tice proves harmful to Labor itself, sooner or later, 
 it must prove harmful to all the other parties to In- 
 dustry. To give to those to be affected by scientific 
 management a direct interest in its appUcation, and 
 some share of control over its workings is to help to 
 remove unfounded prejudice. In this way Faith is 
 accorded the place formerly occupied by Fear; and 
 a system which, rightly understood, and rightly 
 apphed, is of advantage to all concerned, is given a 
 chance to proceed on its own merits, without which 
 it were better not to proceed at all. 
 
 In estimating the factors which make for avoid- 
 ance of waste and freedom of effort, where the serv- 
 ices of multitudes of individuals have to be com- 
 bined, and Industry as a whole has to be organized, 
 there are no limits to wise direction and skilful 
 adjustment. Consideration has already been given 
 
292 INDUSTRY AND HUMANITY 
 
 to this aspect of Management in its relation to in- 
 dustrial efficiency in dealing with the parties to 
 Industry, and also in treating of the principles un- 
 derlying Peace. Still further consideration will be 
 given the same subject in deaUng with the princi- 
 ples underlying Health, because physical, mental, 
 and moral efficiency is at the basis of all efficiency 
 in Industry, and their enjoyment is the supreme 
 end of Industry itself. 
 
 This is, perhaps, a convenient place to empha- 
 size further the inevitable relation of sound man- 
 agement to a knowledge of human nature. Per- 
 sonnel management is a staff function comparable 
 to the sales, financial, and producing functions, i 
 Keeping in mind the importance of understanding 
 human nature in all that pertains to management, 
 consideration of profit-sharing as a method of in- 
 dustrial organization, as well as of industrial re- 
 muneration, may be resumed. 
 
 In its most complete form. Profit-sharing de- 
 velops into self-governing workshops of which the 
 workers are sole proprietors, and in which all are 
 on an equal footing. The introduction of profit- 
 sharing, notwithstanding, is as much feared, and as 
 
 1 Vide Sidney Webb, The Works Manager Today, New York, 
 Longmans, Green & Co., 1918. 
 
PRINCIPLES UNDERLYING WORK 293 
 
 intuitively disliked, by Labor, as is the introduction 
 of labor-saving machinery and scientific manage- 
 ment. Here, again, it is not theory that is at fault, 
 but practice. Much that is called profit-sharing 
 is not profit-sharing at all. Much that would be 
 profit-sharing, were the principle on which it 
 is based rightly maintained, is transformed into 
 profit-stealing, because the principle is falsified 
 through the cupidity of avaricious employers. La- 
 bor finds it difficult to reconcile a theory that is 
 fair with practice that, at times, has been full of 
 meanness. 
 
 As the term "profit-sharing" is generally used, it 
 means the distribution among wage-earners of part 
 of the net profits of an undertaking. Where the 
 rate of return at which Labor is rewarded in the 
 first instance is the standard rate, so that the share 
 which Labor receives from the net profits is in no 
 sense a restoration, in whole or in part, of the wages 
 it should have received before net profits were esti- 
 mated, the objection of Labor to this method of re- 
 warding effort is in large measure removed. Often, 
 however, in estimating net profits, Capital and 
 Management are tempted to regard the remunera- 
 tion of Labor as an item in the cost of production to 
 be kept as low as possible. It is hard for Labor to 
 beheve that this is not what is generally done, and 
 to understand why, if extra payments are available 
 in the form of dividends out of net earnings, they 
 
294 INDUSTRY AND HUMANITY 
 
 should not be as readily available in the form of 
 higher wages at the outset. 
 
 To have Labor appreciate the principle on which 
 profit-sharing, in the true meaning of the term, is 
 based, it is necessary, as with the introduction of 
 labor-saving machinery and scientific management, 
 to substitute Faith for Fear by rendering apparent 
 to Labor the interest which Labor, along with Cap- 
 ital and Management, has in the business as a 
 whole, and the part which efficiency plays toward 
 increasing the output. Where, through a misunder- 
 standing of the principle, and misuse of the prac- 
 tice, this interest is not consciously present, Labor 
 is almost certain to regard the many different forms 
 of profit-sharing, gain-sharing, prosperity-sharing, 
 bonus, premiums, and the Uke, as alternatives to 
 wages, or as acts of benevolence made possible 
 through its own efforts in the first instance, or as a 
 means of reconciling the recipients with otherwise 
 unsatisfactory conditions, or with the denial of 
 rights and privileges shared by Labor elsewhere. 
 
 It may be admitted at once that Labor's fears 
 concerning profit-sharing have found justification 
 in actual experience. Wages, in some instances, 
 have been kept within a narrow margin, to be sup- 
 plemented by the share of profit which Labor has 
 subsequently received, or have been cut in conse- 
 quence of the better Showing profit-sharing has 
 occasioned. 
 
PRINCIPLES UNDERLYING WORK 295 
 
 Workers have been made to feel that the shares 
 or "allowances" or "bonuses" which they have re- 
 ceived have been a part of the employer's benev- 
 olence rather than a part of earnings to which they 
 were justly entitled. But this is a kind of fear that 
 may be readily overcome. Where standard rates 
 of wages prevail in particular industries, the firm 
 that accepts the standard rate as a basis of wage 
 payment in the first instance, and adheres to the 
 practice, will soon overcome prejudice on this score. 
 
 Especially through the attitude, either expressed 
 or implied, that profit-sharing is a substitute for 
 membership in a trade union, has reason been af- 
 forded for opposition to profit-sharing by Organ- 
 ized Labor. But this, too, is a source of fear which 
 need not offer an insuperable difficulty. Once the 
 condition is expressed that the plan of profit-shar- 
 ing adopted is apart altogether from any condi- 
 tions respecting membership or non-membership 
 in a union, the substance of this fear is dispelled. 
 
 Even where such a condition or suspicion does not 
 exist, there is yet another ground on which Organ- 
 ized Labor fears profit-sharing. Trade-union effort 
 to raise the status of Labor seeks reinforcement from 
 a growing beUef among workers in the sohdarity of 
 Labor, Whatever tends to weaken or destroy the 
 class interest is apt to be viewed with misgivings as 
 Ukely to lessen the possible power of organization 
 as a whole. Profit-sharing, in some instances, has 
 
296 INDUSTRY AND HUMANITY 
 
 had this effect upon wage-earners who have partici- 
 pated in it. That class consciousness may diminish 
 as profit-sharing extends is naturally anticipated. 
 When, however, it is asked what aim trade-union- 
 ism has, other than that of raising the status of 
 Labor, it would seem that a practice which helps to 
 effect this aim should be welcomed as an ally by 
 Organized Labor, not feared as an undermining 
 influence. 
 
 Broadly speaking. Labor is ready enough to ap- 
 preciate an ally where there is cause to believe in 
 its worth and enduring fidelity. It is not surpris- 
 ing, therefore, to find that, where the result of 
 profit-sharing is genuinely such as to improve the 
 status, and not merely the temporary earnings, of 
 workingmen. Labor's opposition to profit-sharing 
 has not only been silenced, but profit-sharing has 
 found some of its strongest advocates in the ranks 
 of trade unionists. It is in the form of what is 
 termed co-partnership that profit-sharing has won 
 this larger measure of confidence.^ 
 
 Some authorities contend that only co-partner- 
 ship is deservingly entitled to be called profit-shar- 
 ing. Like most other forms of industrial remun- 
 eration and industrial organization, there are, as 
 
 ' Vide Aneurin Williams, Co-Partnership and Profit-Sharing (Home 
 University Library, London) ; also Price, Co-Operalion and Co-Part- 
 nership (The Nation's Library, London), reference to both of which 
 sources is hereby acknowledged. 
 
PRINCIPLES UNDERLYING WORK 297 
 
 respects co-partnership, degrees and variations that 
 pass more or less imperceptibly from one to the 
 other. What broadly distinguishes co-partnership 
 is that, besides entitling the workers to a share in 
 the profits earned, on the basis of the wages earned, 
 it involves also, on the part of the workers, a share 
 in the capital, and in the responsibility and control 
 of the business as well. The extent of the owner- 
 ship of capital, and of the control, varies considera- 
 bly. The ownership of capital may be confined to a 
 single share on the part of a limited number of the 
 workers; and the control, to a voice in the election 
 of a director. Control may extend to a complete 
 ownership of all the capital of a business and ex- 
 clusive direction of its affairs. In such a case, it is 
 identical with the self-governing work-shops which 
 were the ideal of John Stuart Mill and the early 
 Christian SociaUsts. 
 
 Co-partnership, according to ' what might be 
 termed standard practice, means that after Labor 
 and Capital in a business have each received a re- 
 turn in accordance with the accepted or prevailing 
 rates, and other items of the cost of production 
 have been duly cared for, an additional sum is paid 
 out of the excess of profits to Capital on a percent- 
 age basis in accordance with the amount invested, 
 and to Labor also on a percentage basis, usually of 
 equal rate, on wages earned. Instead, however, of 
 the additional payment to Labor being in the form 
 
298 INDUSTRY AND HUMANITY 
 
 of cash, it is made in the form of the acquisition, or 
 payment on account, of shares on which interest be- 
 comes payable at the same rate or at a rate differing 
 somewhat from that payable on original shares. As 
 shareholders, the workers become entitled to elect 
 members of the Board of Directors, or committee 
 of management, though they remain under the di- 
 rection of the management as regards discipline 
 and the discharge of their duties as wage-earners. 
 Real co-partnership always involves not only a 
 share in the property, but a voice in the manage- 
 ment. This does not mean interference in the man- 
 agement, a right which no shareholder possesses; 
 but it does mean representation on the Board of 
 Directors, while leaving wages intact. 
 
 In England, Labor co-partnership is being exten- 
 sively practised in connection with certain of the 
 gas companies, conspicuous among the number be- 
 ing the South Metropohtan Gas Company of Lon- 
 don, where it was introduced in 1886, first among 
 officers and foremen, and, three years later, ex- 
 tended to employees generally. The Wholesale 
 Productive Co-operative Societies of Scotland, or, 
 as they are termed, "The Scottish Wholesale Socie- 
 ties," are also conducted on the basis of paying to 
 Labor, in addition to its earnings, a dividend in the 
 form of interest-bearing shares, which entitle their 
 owners to a voice in the selection of directors. 
 
 A new feature comes into evidence in connec- 
 
PRINCIPLES UNDERLYING WORK 299 
 
 tion with the Wholesale Societies which widens the 
 scope of co-partnership. The Consumer appears as 
 another factor entitled to share in the net profits. 
 He receives, jointly with Labor and Capital, a divi- 
 dend from profits in the form of shares. The divi- 
 dend is based on amount of purchases; the shares 
 bear interest and entitle their owners to a voice in 
 the control of the business. This, again, does not 
 mean interference with management, but repre- 
 sentation on the Board of Directors while leaving 
 prices intact. The customers in the case of the 
 Scottish Wholesale Productive Societies are for the 
 most part the Retail Co-operative Stores, which 
 provide a known and certain market. The princi- 
 ple of giving to all concerned a direct interest in the 
 success of the undertaking as a whole, through the 
 holding of shares and some element of control, is 
 the significant factor in co-partnership. 
 
 All profit-sharing is a form of co-partnership, 
 and all co-partnership is a form of co-operation. 
 There is no fundamental distinction between the 
 two, only a difference of degree. Properly carried 
 out, profit-sharing merges automatically into co- 
 partnership, and co-partnership automatically into 
 complete co-operation. But just as, in the course 
 of development, co-partnership has come to be dis- 
 tinguished from profit-sharing in other forms, so co- 
 partnership may be distinguished from what is gen- 
 erally signified in speaking of co-operation, which 
 
300 INDUSTRY AND HUMANITY 
 
 does not necessarily accord to the workers a share 
 in the ownership of the capital, or a voice in the di- 
 rection of the business, but restricts these privi- 
 leges to consumers. 
 
 Some advocates of co-operation would confine its 
 operation in practice to limiting the sharing of the 
 dividend to Capital and Consumers. This is what 
 is referred to as "the Rochdale Plan" of Distribu- 
 tive Co-operation, and is the method of the Enghsh 
 Retail Co-operative Societies, which are virtually 
 owned and controlled by the large body of con- 
 sumers who have obtained shares on the basis of 
 their purchases, but which exclude from this right 
 the workers in the business. 
 
 With respect to Co-operation, as with all else, 
 experience has been helpful in demonstrating that 
 the apphcation of principles necessarily varies with 
 circumstances and the genius of a people. Self- 
 governing workshops, which to the originators of 
 the movement seemed to represent its ideal devel- 
 opment, have not to any extent increased in num- 
 bers or importance over a long series of years. This 
 has not been because the principle underlying co- 
 operation is not a good one, but because in practice 
 its apphcation by workingmen has been attended 
 with difficulties its advocates did not foresee, or 
 the force of which they failed to take account of 
 sufficiently. 
 
 Under world-wide competition in Industry and 
 
PRINCIPLES UNDERLYING WORK 301 
 
 Commerce, there is the necessity of operations be- 
 ing conducted on a large scale. This involves large 
 initial outlays of capital, and a high order of skill in 
 organization and management. Neither capital nor 
 exceptional ability are readily obtainable by Labor 
 where it seeks to confine the ownership and control 
 of business to its own class. Often successful at the 
 outset, co-operative undertakings frequently be- 
 come thwarted, either through an unwillingness on 
 the part of the workers as a body to remunerate 
 abihty at the rate which it readily commands in the 
 open market, or through unwiUingness to submit at 
 the hands of their fellows to the disciphne which 
 is essential to the successful management of any 
 large undertaking. Moreover, among any consider- 
 able body of workmen, assertion of individuality 
 is sure to arise and demand "the differential treat- 
 ment of varying capacity." 
 
 Co-partnership has been most successful where a 
 market has been more or less definitely assured, and 
 where the industry has been in the nature of a 
 monopoly. Co-operation in distribution has had a 
 considerable growth where consumers in large num- 
 bers, feeling the pressure of economic necessity, 
 have had an inducement to save, sufficiently strong 
 to guarantee their patronage of particular concerns, 
 and sufficiently large to ensure appreciable returns. 
 In the case of one and all, the spirit has been the 
 really vital factor. Co-operation, in its different 
 
302 INDUSTRY AND HUMANITY 
 
 forms, where it has not been a reUgion with its pro- 
 moters, has had the inspiration of the gospel of 
 human brotherhood as its high incentive. Its suc- 
 cess has demonstrated that there is no inherent con- 
 flict between business on a large scale and Christian 
 principle; rather has it proven that as a guiding 
 motive, Christian principle has more in it of true 
 democracy than any other. 
 
 Labor's suspicion of the very thing that in the 
 long run is most in the interest of Labor comes as a 
 surprise to the student of industrial efficiency. It is 
 a fact, nevertheless, and one which cannot be ig- 
 nored. As we have seen, it matters not whether it 
 be piece-wage payment, labor-saving machinery, 
 scientific management, or profit-sharing, the intro- 
 duction of any one or other of these methods of 
 promoting industrial efficiency invariably begets 
 some suspicion, and sometimes active resistance. 
 This cannot be put down to mere ignorance or 
 obstinacy on the part of Labor. Much of Labor's 
 incredulity, as pointed out, is due to deception for 
 which Capital and Management are wholly respon- 
 sible. In part, it is instinct safeguarding man- 
 hood. In the main, however, it is in the nature of 
 reaction against change, common enough to all 
 classes, where the purposes of change are misun- 
 derstood and its consequences unforeseen. 
 
 To reconcile Labor to innovations and to effici- 
 
PRINCIPLES UNDERLYING WORK 303 
 
 ency methods of one kind or another; and to win 
 Labor's co-operation with the other parties to In- 
 dustry, in an endeavor to further to the utmost a 
 common aim, two things are necessary. Labor 
 must be given an understanding of industrial proc- 
 esses as a whole, and also a direct interest in the 
 success of undertakings as a whole. A common 
 knowledge and a common interest are essential to 
 call forth the highest effort toward a common end. 
 Moreover, since Industry implies co-operative ef- 
 fort, regard must be had for men in their collective 
 capacity. To concede to Labor collectively some 
 element of control, as respects both industrial con- 
 ditions and industrial rewards, is necessary to af- 
 ford a common knowledge and a common interest. 
 Control is a matter of government. Therefore, to 
 give due effect to principles underlying Work, as 
 well as to principles underlying Peace and Health, 
 there must be some understanding of the methods 
 of government in Industry whereby functions are 
 easiest co-ordinated, and principles most effectively 
 applied. Before, however, passing to a considera- 
 tion of methods of government in Industry, it may 
 be well to conclude the study of the Law of Peace, 
 Work, and Health, by a glance at some of the prin- 
 ciples underlying Health. 
 
CHAPTER IX 
 PRINCIPLES UNDERLYING HEALTH 
 
 Health denotes physical, mental, and moral well- 
 being. As such, it is the basis of efficiency, and lies 
 at the very foundations of Industry and Society. 
 Labor's long and persistent struggle for improved 
 industrial conditions is but the outcome of a crav- 
 ing common to all for a better, happier human lot. 
 It is the expression of a desire for the enjoyment of 
 normal life, and cannot be rightly understood apart 
 from the aspirations of the human spirit. Demands 
 for higher wages, shorter hours, proper working 
 conditions, greater independence, are not to be in- 
 terpreted as necessarily sordid and selfish. Most 
 frequently they are in the nature of wholesome pro- 
 tests against both sordidness and selfishness. Labor 
 has felt its finer sensibiUties bUghted and crushed 
 under the tyranny of excessive toil and brutaUzing 
 environments. For generations, it has been "ill- 
 paid, ill-housed, ill-nurtured, ill-taught." Under 
 circumstances considerably improved, it has come 
 to recognize that man does not live by bread alone. 
 The voice that is heard above the din and con- 
 fusion of the world to-day is that of Labor demand- 
 ing a fuller and a freer hfe. ' 
 Fundamental concepts in industrial relations find 
 
PRINCIPLES UNDERLYING HEALTH 305 
 
 conspicuous illustration in considerations which 
 pertain to the health of workers in Industry, In 
 speaking of the principles underlying Health, it 
 seems more natural, than in the case of peace and 
 work, to shift the emphasis from the sacredness of 
 possession to the sacredness of Ufe; to weigh against 
 each other the relative values of personaUty and 
 its rights, and property and its rights; to compare 
 standards of living with standards of trade; and to 
 contrast human resources with material resources. 
 It is easier also to recognize Industry as a public 
 service, and to divert attention from individual self- 
 interest to community well-being. Little is required 
 to demonstrate the interdependence of health and 
 efficiency, of industrial economy and social welfare; 
 or the inevitable bearing of existing conditions 
 upon posterity and progress. 
 
 Industrial peace and industrial efficiency are 
 more often a matter of conditions affecting the 
 health and sense of justice of workers in Industry, 
 than anything else. ConciUation, Mediation, and 
 Arbitration presuppose the need of adjustment. 
 Where this need arises from conditions that are 
 fundamentally wrong, nothing but a change of the 
 conditions themselves will ensure industrial peace. 
 Harmony on the surface, where there is just cause 
 for discord beneath, is good neither for Industry 
 nor for the Community. That is why Investigation 
 is so important. It plumbs the depths. It reaches 
 
306 INDUSTRY AND HUMANITY 
 
 down into conditions as they are, not as they ap- 
 pear. It is as bearing upon the health of workers, 
 and unfairness of conditions, that appeals are made 
 in the name of social justice, and sympathy is sought 
 for issues which underUe industrial strife. Strikes 
 and lockouts have had mostly to do with working 
 conditions related immediately or remotely to the 
 physical and moral well-being of workers in Indus- 
 try. Organization of Labor is avowedly for the pur- 
 pose of securing to Labor some control over working 
 conditions. It directly combats the view that, as 
 respects conditions, the employer's will is neces- 
 sarily law, and the sole determining factor. 
 
 Once it is seen that industrial peace and efTi- 
 ciency depend, in the last analysis, on industrial 
 conditions, and it is realized that industrial condi- 
 tions are the resultant of many causes, of which In- 
 dustry itself is but one contributing factor, the onus 
 of the maintenance of peace and efficiency will be 
 seen to he not less upon the whole Community than 
 upon the immediate parties to Industry. "The 
 law runneth forward and back." Whether it be 
 Industry in its relations to the Community, or the 
 Community in its relations to Industry, there re- 
 mains the imperative need of estabhshing and 
 maintaining standards of working conditions which 
 will have regard for the perils incident to modern 
 Industry, and for the necessities of human existence. 
 
 We may thank community growth for the devel- 
 
PRINCIPLES UNDERLYING HEALTH 307 
 
 opment of a community sense. As communities in- 
 crease in size and density, their activities become 
 increasingly inter-related and interdependent. Im- 
 pulses which ordinarily stand in direct opposition 
 to each other are brought into co-operative accord. 
 Sooner or later, the point is reached where self-in- 
 terest combines with humanitarian motives in the 
 pursuit of altruistic ends. The common good comes 
 of necessity to be the common concern. Organized 
 effort in the control of health is due to a desire to 
 protect the strong as well as the weak. The point 
 of view of obligation toward social and industrial 
 conditions necessarily shifts from an individualistic 
 attitude to one of collective responsibility, and 
 an organic view of society. Like the principles 
 underlying Peace and Work, the principles which 
 underhe Health are expressive of this attitude of 
 belief in common as contrasted with opposed in- 
 terests. They necessarily reveal a spirit of mutual 
 consideration and constructive good-will. In hke 
 manner, they evidence discernment between hu- 
 man and material values, and are founded upon 
 the recognition of personality. 
 
 Nor is Health less closely related, than Peace and 
 Work, to Faith and Fear. Health is shrivelled by 
 fear; it expands with faith. Consciousness of well- 
 being comes through a sense of freedom born of the 
 elimination of fear. In industrial and international 
 relations, the principles which underlie Health are 
 
308 INDUSTRY AND HUMANITY 
 
 those rules of conduct and methods of organization 
 which beget a sense of freedom in well-being by the 
 elimination of fear and the establishment of faith 
 between individuals and their personal and ma- 
 terial environments. 
 
 As concerns the conservation of health and life, 
 the consequences to the Community and to Indus- 
 try are much the same where loss, impairment, or 
 decay comes as the result of inimical conditions, 
 in the one or in the other. The prevention of acci- 
 dents, the control of disease, the safeguarding of 
 physical and mental energy, in Industry, and in 
 activities of the Community apart from Industry, 
 are essential in the interests of both. A nation's 
 population is its first asset. If from any cause a 
 country's population be reduced in numbers -or vi- 
 tality, its strength relatively is weakened. If men 
 are drafted for the army, they must be taken in 
 large part from Industry; if killed, wounded, or en- 
 feebled, Industry suffers. If, in Industry, human 
 Ufe is destroyed or impaired, the nation's man 
 power is thereby lessened. If unsanitary surround- 
 ings and congested industrial areas breed disease 
 and spread contagion and infection, no distinction 
 of either person or class is respected. No service to 
 the Community or to Industry can be greater than 
 
PRINCIPLES UNDERLYING HEALTH 309 
 
 that which contributes to the prevention of acci- 
 dent and disease, or any form of impairment of 
 health and efficiency. In a multitude of untold 
 ways and directions, all such service is twice 
 blessed: it conserves the abihty to serve, and it 
 conserves the capacity to enjoy. 
 
 Fear is most in evidence where there is danger of 
 loss of life or impairment of health through accident 
 or disease. It is not surprising, therefore, to find 
 that measures to ensure immunity from these 
 causes have been recognized long since as essential 
 to community well-being. PubUc safety and pubhc 
 health are everywhere promoted by the fixation of 
 standards, enforced by voluntary and pubhc agen- 
 cies of a municipal, state, national, and interna- 
 tional character. The work of administration, co- 
 operation, investigation, and education on the part 
 of these agencies, whilst primarily in the interests 
 of the Community, is nevertheless in the nature of 
 a direct contribution by the Community to Indus- 
 try. Whatever avoids the loss of fife and limb, 
 or prevents, controls, or eradicates disease, is not 
 only of benefit to the Community as a whole, but 
 in a special way increases productive power, and 
 thereby the abihty of investors to earn profits and 
 workingmen to earn wages. 
 
 All voluntary and pubhc effort to promote 
 safety, sanitation, and hygiene, to prevent acci- 
 dent, to destroy infection and contagion, whether 
 
310 INDUSTRY AND HUMANITY 
 
 it be related to proper water supply, to sewage dis- 
 posal, to pure food, to proper housing, ventilation, 
 lighting, and recreation, to medical supervision, or 
 to any other form of social control in the interest of 
 safety and health, may very properly be viewed in 
 the light of service rendered Industry by the Com- 
 munity for which the Community has a right to 
 expect service of hke kind on the part of Industry. 
 Instead of proper standards of working conditions 
 in Industry being viewed as a concession by Capital 
 to Labor, they should be regarded as at least the 
 necessary complement of those measures of pubhc 
 safety and public health which are primarily for the 
 benefit of the Community as a whole, and which 
 are also of direct and immediate benefit to Capital 
 and Management. 
 
 Whatever differences of opinion may exist con- 
 cerning the degree of prudent regulation in Indus- 
 try, there are extremes in conditions which leave no 
 room for doubt as to the need of some action. The 
 first of such conditions to be recognized were obvi- 
 ous injury to health, and to life and Umb, through 
 the employment of children, young persons, and 
 women for long hours and in unsuitable occupa- 
 tions, and employment of persons of all classes in 
 dangerous and unguarded positions. 
 
 Before the ruthless and devastating nature of 
 unrestricted competition became apparent, the 
 
PRINCIPLES UNDERLYING HEALTH 311 
 
 health of women and children was mercilessly sac- 
 rificed to the greed of employers whose avarice was 
 whetted by the opportunity of vast gains afforded 
 by the introduction of machinery, and the use of 
 material powers in Industry. Government com- 
 missions exposed the horrors of the situation, and 
 the early factories and mines acts, designed pri- 
 marily to protect child and female labor, were the 
 result. Laws against combinations of workingmen 
 were maintained upon the statutes to serve the 
 interests of selfish employers, who also protested 
 against state interference of any kind on behalf of 
 adult males, on the theory that men were weU able 
 to protect themselves But the injustice, as well as 
 the impossibility, of prohibiting associated effort 
 on the part of Labor soon became apparent, as did 
 also the inability of adult Labor, whether organ- 
 ized or not, to protect itself against the dangers 
 of vast mechanical development. In the course of 
 time, the protection of hfe and limb by legislation 
 aimed at the prevention of accident, irrespective of 
 sex or age, came to be recognized as imperative. 
 
 At length it was discovered that, as a cause of 
 industrial inefficiency, disease was vastly more se- 
 rious than accident; and public authority was ex- 
 tended, from dangerous callings and the safeguard- 
 ing of life and limb, to unwholesome occupations 
 and the protection of the health of workers. From 
 insecure and unwholesome occupations, state in- 
 
312 INDUSTRY AND HUMANITY 
 
 terference passed to unsafe and unsanitary sur- 
 roundings, to be supplemented by legislation re- 
 lating primarily to education and subsistence. To 
 this class of legislation belong the Truck Acts, the 
 PubUc Health, Housing and Education Acts, the 
 Minimum Wage Acts, in England, and similar en- 
 actments in America. All share in common the aim 
 of protecting the standard of life against degrada- 
 tion. It is evident that this aim underUes com- 
 prehensive programmes of national reconstruction 
 now being formulated in different countries, of 
 which transportation, housing, health, education, 
 and government in Industry constitute outstand- 
 ing features. 
 
 Where a minimum standard of maintenance is to 
 be assured, the cost of living, the relation of wages 
 and prices, the quality as well as the quantity of 
 commodities, require attention. Hence there has 
 arisen the enactment also of laws pertaining to the 
 restraint of trade, to unjust combinations, to the 
 regulation of rates and prices, and to the adulter- 
 ation of foods. Last of all, has come recognition, as 
 well, of varied social, intellectual, and aesthetic re- 
 quirements. Communities are learning that a pre- 
 scribed minimum of leisure, recreation, education, 
 and subsistence is essential to health and efficiency, 
 and that the estabhshment of such a minimum is 
 a necessary foundation of human well-being. The 
 maintenance of a higher general standard of life by 
 
PRINCIPLES UNDERLYING HEALTH 313 
 
 the extension and unification of liberal labor laws, 
 as well as by their rigid enforcement, is demanded 
 not more by justice and humanity than by economic 
 necessity and industrial efficiency. 
 
 Even in countries which enjoy the reputation of 
 having advanced codes of labor laws, it is not to be 
 supposed that extreme conditions no longer exist, 
 or that the maintenance of labor standards does not 
 require the utmost vigilance. There is, for example, 
 greater unanimity of opinion as concerns the em- 
 ployment of women and children than is to be 
 foimd with regard to any other kind of labor legis- 
 lation. I find in a report I prepared for the Govern- 
 ment of Canada in 1909, respecting conditions in 
 cotton factories in the province of Quebec, the fol- 
 lowing facts concerning the employment of women 
 and children, disclosed under oath at the time of 
 the inquiry : 
 
 "Of the operatives employed in the Quebec cot- 
 ton mills 42.3 per cent are females and 26.6 per cent 
 are persons under 18 years of age. As to the hours 
 of labor of these two classes, it was asserted that in 
 normal times and under normal conditions, work 
 should begin on week days at 6.15 o'clock in the 
 morning and continue to 12 noon, resume at a 
 quarter to 1 and continue till 6, with the exception 
 of Saturdays, when there was work only in the 
 morning. . . . Though the minimum age at which 
 children can be employed is fixed by the Quebec 
 
314 INDUSTRY AND HUMANITY 
 
 law at 14 years, several children were brought be- 
 fore the Commission from among those working in 
 the mills who admitted that they had entered upon 
 employment under the legal age. Some of these 
 children were so immature and ignorant that they 
 were unable to tell the year of their birth, or their 
 age. One httle girl did not know the meaning of the 
 word 'hoUday,' and when it had been explained to 
 her, stated that the only holidays she had known 
 were Christmas and Epiphany. She had never re- 
 ceived a week's vacation. One or two children ad- 
 mitted that they knew their parents had made 
 false declarations as to age, and that they had been 
 told by their parents to say what was untrue, when 
 questioned on the point." ' 
 
 Public opinion everywhere to-day would support 
 the view expressed in the findings with reference to 
 conditions as they were at that time : that the hours 
 of labor of women and young persons in the cotton 
 mills were too long; that the law respecting the em- 
 ployment of child labor should be so amended as to 
 provide against possible infractions in the future; 
 and that, as regards the employment of female and 
 child labor, a special responsibility devolved upon 
 shareholders and all other persons profiting by the 
 results of such labor. 
 
 For PubUc Opinion to be effective, it is necessary 
 that it be made an informed Opinion. Public Opin- 
 
 ' Report of Royal Commission to inquire into industrial disputes 
 in the Cotton Factories of the Province of Quebec, printed by order 
 of Parliament, King's Printer, Ottawa, 1909; pp. 16-17. 
 
PRINCIPLES UNDERLYING HEALTH 315 
 
 ion was sensitive to humane considerations at the 
 time the inquiry in question was being held. It re- 
 quired little more than the pubhcity of the inquiry 
 to cause the Government of the Province of Quebec 
 to act upon recommendations of the Report, and 
 thereby considerably to advance legislation with 
 respect to the employment of women and young 
 persons in that province. The fact, however, that 
 during the inquiry the heads of the companies con- 
 cerned expressed themselves as much surprised to 
 learn that child labor was being employed contrary 
 to law, is perhaps as good an illustration as could 
 be afforded of the wisdom of recognizing four par- 
 ties to Industry, and of ensuring to the Community, 
 as well as to Capital, Management, and Labor, re- 
 spect for its voice in regard to conditions which 
 vitally affect its own well-being. 
 
 A humane conception of Industry demands 
 recognition of many factors. The impairment of 
 health and hfe which comes by slow and imper- 
 ceptible degrees in the form of depletion of nervous 
 energy and exhausted vitahty occasioned by the 
 stram and fatigues of Industry, accounts for enor- 
 mous losses to the Community and to Industry, 
 With the changes that have come through the dis- 
 covery of new processes, the invention of mechani- 
 cal and electrical devices, the utihzation of new 
 powers, intensity, in contrast with duration, of 
 
316 INDUSTRY AND HUMANITY 
 
 effort, has become an increasingly important con- 
 sideration. The dangers incidental to strain which 
 arise from intensity of effort constitute a class of 
 evil against which it is not possible to take too 
 great precautions. The effect of strain and inten- 
 sity of effort in employment is something that can- 
 not be gauged by the generally accepted methods 
 of classification based upon external evidence. Vis- 
 ible criteria, such as age, sex, and hours, may be 
 appHed up to a certain point; then it becomes 
 necessary to take account of other elements in 
 the human equation, and to consider a variety of 
 physiological and psychological reactions. 
 
 As illustrating the many considerations of which 
 account must be taken in safeguarding the health 
 of workers in Industry, and the necessity of great 
 precaution on the part of the State, not only as a 
 protection against present injustice, but in the in- 
 terests of a nation's human resources, it may be 
 opportune to refer at this point to facts ehcited in 
 another important inquiry. In February, 1907, the 
 Canadian Government appointed a Commission, of 
 which I was named the chairman, to inquire into 
 matters pertaining to the employment of tele- 
 phone operators. 1 The Commission held its sittings 
 in Toronto, and seventy witnesses in all were 
 
 ' Report of the Royal Commission on a dispute respecting hours 
 of employment, between the Bell Telephone Company of Canada, 
 Ltd., and operators at Toronto, Ont. Ottawa: Government Printing 
 Bureau, 1907. 
 
PRINCIPLES UNDERLYING HEALTH 317 
 
 examined, including twenty-six physicians, selected 
 mostly from the medical faculties of Canadian uni- 
 versities. 
 
 There seems little about the occupation of tele- 
 phone operating to make it a matter of special con- 
 cern on the part of the State. It is commonly 
 thought that any girl with intelligence may quickly 
 acquire the skill necessary to become a successful 
 operator. To the onlooker, except at the switch- 
 board of some large exchange, when the wires are 
 carrying "the peak of the load," telephone operat- 
 ing seems to afford plenty of opportunities of rest, 
 and even, at times, of recreation. How consider- 
 ably telephone operating differs from other occupa- 
 tions in which women are commonly employed, is 
 not observed until attention is drawn to the strain 
 upon the nervous system which the work under 
 most conditions involves. Contrary to general be- 
 lief, the work is not automatic or mechanical, but 
 requires considerable mental effort, and real men- 
 tal capacity. 
 
 In most occupations in which female labor is em- 
 ployed, strain is mainly physical. In telephone 
 operating, there is physical strain through the 
 reaching required to make connections at switch- 
 boards, through inability to relax, and the fatigue 
 of long continued sitting in one position. In addi- 
 tion, the special senses of sight, hearing, and touch, 
 the faculties of speech, memory, and perception. 
 
318 INDUSTRY AND HUMANITY 
 
 are called into operation not only continuously, 
 but in a concerted manner; when not actually 
 employed, they are not resting, because neces- 
 sarily upon the alert. The brain is in constant use, 
 the mind on the qui vive. Not only are the special 
 senses active, but there is a high tension on the 
 special senses, and a certain amount of mental 
 worry. The strain is in proportion to the nervous 
 force exhausted, and the exhaustion of nervous 
 energy is a matter only of degree. The Uability to 
 occasional injury from shocks, the irritation caused 
 by the intermittent glowing of lights reflecting 
 the impatience of users, the occasional buzzing 
 and snapping of instruments in the ear, the sense of 
 crowding where work accumulates, the conscious- 
 ness of supervision, the sense of responsibility in 
 responding to calls, and the inevitable anxiety occa- 
 sioned by seeking to make necessary connections 
 whenever a rush takes place, all combine to accen- 
 tuate the strain upon the nervous energies of an 
 operator. These factors are present in lesser de- 
 gree in other caUings in which women are engaged. 
 A woman's nature, moreover, is pecuharly sensi- 
 tive to reproaches ; to be hable to harsh words with- 
 out nieans of redress tends to intensify the nervous- 
 ness of operating an exchange. 
 
 The manner in which operating is sometimes 
 carried on adds to a strain which, under almost any 
 conditions, is considerable. Cost, service, and abil- 
 
PRINCIPLES UNDERLYING HEALTH 319 
 
 ity to secure operators are determining factors. 
 They lead, in telephone operating, as in other busi- 
 nesses, to the adoption of methods whereby a max- 
 imum amount of work may be secured at minimum 
 cost. In this connection, elements enter which 
 relate to switch-board economy, and which affect 
 the duration and intensity of employment, such as 
 overloading, high pressure, double work, overtime, 
 and team work. All are necessarily subject to some 
 regulation, but there is hardly a point at which the 
 health and well-being of operators do not come 
 into direct conflict with the desire for gain. 
 
 In estimating the full significance of factors such 
 as those mentioned, it is also to be remembered 
 that the class of persons employed as operators is 
 composed mostly of girls and young women be- 
 tween the ages of seventeen and twenty-three. 
 Persons of these years are preferred to others be- 
 cause of the greater faciUty with which they learn 
 the work and acquire dexterity. These are years 
 during which the nervous and physical system of a 
 woman is pecuUarly sensitive to strain and suscep- 
 tible to injury. Harm done or impairment of the 
 system sustained at that period of Ufe, is apt to 
 be more far-reaching in consequences than effects 
 from similar causes at maturer years. 
 
 It should be mentioned, too, that the work of 
 telephone operating does not appear to be of a kind 
 to fit a woman for any other occupation or calUng. 
 
320 INDUSTRY AND HUMANITY 
 
 There is added significance, therefore, in the fact 
 that the average time spent by operators in the 
 service is from two to three years, and that the 
 period of service is usually given at the time when 
 a young woman is best able to acquire the training 
 which is to fit her for gaining a livelihood. 
 
 Before giving their opinions, the physicians who 
 testified before the Commission were asked to visit 
 the central telephone exchange and consider the ef- 
 fects upon the optic and auditory nerves, and upon 
 the physical and nervous systems of the operators, 
 occasioned by the factors mentioned. Without 
 exception, the physicians testified that conditions 
 as they had witnessed them meant constant nerv- 
 ous strain which could not but seriously react upon 
 the physical health of the operators. Nearly all 
 testified to personal knowledge, acquired through 
 professional experience, of the deleterious effects of 
 the work upon the constitution and nervous sys- 
 tem. The high state of nervous tension was dwelt 
 upon, as well as its inevitable effects in depletion 
 of nervous energy, culminating sooner or later in 
 debility, breakdown, and prostration. Compari- 
 sons were made with other occupations, but none 
 of the physicians were able to cite an industrial 
 calUng in which the tension on special senses was so 
 high over so long a period of time, and in which 
 there appeared to be equal strain during a like 
 period of work. Especially did the doctors refer to 
 
PRINCIPLES UNDERLYING HEALTH 321 
 
 the consequences of prolonged strain in its effects 
 upon community well-being. It was pointed out 
 that, while present strain might lead to nervous 
 breakdown in years to come, the final results of 
 strain might not be apparent even to operators 
 themselves. Ill effects might be passed on to suc- 
 ceeding generations. 
 
 The possible deleterious effects of strain in In- 
 dustry generally upon future generations are mat- 
 ters for medical opinion, and should be made a 
 subject of expert medical investigation. The new 
 place of woman in Industry makes more impera- 
 tive than ever the need for such expert inquiry. 
 Few, I imagine, who are interested in human well- 
 being will take exception to the findings of the 
 Commission that "the working of women at high 
 pressure should be made a crime at law as it is a 
 crime against Nature herself"; and that "where it 
 is a question between the money-making devices of 
 a large corporation and the health of young girls 
 and women, business cupidity should be compelled 
 to make way." * 
 
 ^ I should not like to have it inferred that conditions as they at 
 present exist in telephone exchanges are necessarily injurious to the 
 operators. The inquiry referred to was held over ten years ago, and 
 related to conditions as found at that time, and only at the exchange 
 to which the appointment of the Commission had specisil reference. 
 Before the Commission's duties were completed, conditions were so 
 altered by the Compsmy that the Commission was enabled to report 
 favorably upon the change. Moreover, it was stated in evidence at 
 the time that the exchange in question compared unfavorably with 
 others. Reference is here made to the subject solely for purposes of 
 illustration. 
 
322 INDUSTRY AND HUMANITY 
 
 In estimating strain and tax upon nervous en- 
 ergy and vitality, there are, in addition to concen- 
 trated attention and intensity of effort, four factors 
 which contribute in no uncertain measure. They 
 are speed, noise, complexity, and monotony. Pres- 
 sure of any kind, not included within this group, 
 should be added as a fifth. The consciousness of 
 ever-present supervision may produce a nervous 
 strain upon sensitive workers greater than that of 
 the speeding-up of machinery, the incessant din of 
 hammers, or complications of intricate industrial 
 operations. To a pressure of employment at one 
 time and uncertainty of employment at another, 
 there must be added, in the case of many a wage- 
 earner, ever-present trying domestic circumstances 
 and responsibilities. Thus far in industrial regula- 
 tion, the cumulative effects of subjective influences 
 and of combined physical and mental strain have 
 been all but wholly ignored. They are of the very 
 essence of the forces which are helping to under- 
 mine, not alone the health of hundreds of thou- 
 sands of individuals, but also the vitality of coming 
 generations. 
 
 Wages below the minimum of subsistence must 
 be viewed in much the same light as hours of wo-rk 
 beyond the point of endurance. Experience has 
 proven that, from a social standpoint, "sweating," 
 however occasioned, begets the most pernicious 
 consequences. Experience has falsified the view 
 
PRINCIPLES UNDERLYING HEALTH 323 
 
 that the legal minimum wage begets indifference. 
 It is trae that what is the minimum of subsistence, 
 and what the point of endurance, may vary as be- 
 tween individuals and races. But possible varia- 
 tions do not affect substantial reahties. The recog- 
 nition of a minhnum wage as well as a minimum 
 age, of maximum strain as well as maximum hours, 
 is absolutely essential if regard is to be had for the 
 safety and health of workers. 
 
 What physical and mental overstraia, and under- 
 pay and underfeeding are doing for the race in occa- 
 sioning infant mortality, a low birthrate, and race 
 degeneration, in increasing nervous disorders and 
 furthering a general predisposition to disease, is 
 appalhng. These are the problems which require 
 first consideration, if decadence is not to be the 
 fate of industrial communities. 
 
 The losses which still arise in Industry from pre- 
 ventable causes are enormous. Frightful as are the 
 losses in war, they are paralleled by sacrifices in 
 Industry of which the world takes httle or no ac- 
 count. Indeed, the horrors of war should rouse us 
 to a consciousness of the horrors of Industry, for 
 they are the same. Death by the explosion of a shell 
 in battle is no different from death by the explosion 
 of dynamite in a mine. The loss of a leg, of an arm, 
 of an eye, is the same whether incurred in a factory 
 or in a fort. Tuberculosis is tuberculosis whether 
 
324 INDUSTRY AND HUMANITY 
 
 contracted by the cutting of granite or in a trench.' 
 Poisoning is just as painful and just as fatal when 
 it comes from white lead used in plumbing as from 
 enemy gases. It is questionable if war has any dis- 
 eases more hideous than some from which men and 
 women in Industry have suffered and died. Ex- 
 hausted nerves, wasted energy, depleted vitality: 
 these are not the pecuhar inheritance of armies. 
 Few industries have not had their hosts of shat- 
 tered humans.^ 
 
 In the summer of 1910, I attended a meeting of 
 the International Labor Association, at Lugano, 
 Italy. Among the subjects discussed was the in- 
 dustrial disease known as phosphorus necrosis, or 
 phosphorus poisoning. The aim of the Interna- 
 tional Association is to bring about uniformity in 
 the industrial laws of the different countries. The 
 Association was seeking, at the Lugano meeting, 
 to secure common action among the nations to 
 compel the universal adoption of an available sub- 
 
 1 Vide The Battle with Tuberculosis and How to Win It, by Dr. D. 
 Macdougall King. Lippincotts, 19 17. 
 
 " The reader is referred, amongst other sources, to the many excel- 
 lent reports contained in the United States Department of Labor, 
 Bureau of Labor Statistics, Industrial Accidents and Hygiene Series. 
 The latest report (issued in June, 1918), upon Mortality from Respi- 
 ratory Diseases in Dusty Trades, is one of the most important and 
 illuminating of the entire series. 
 
 The reports of the committee appointed by the British Minister of 
 Munitions to investigate conditions affecting the health and welfare 
 of workers are another exceedingly valuable source. These reports 
 are being printed in condensed form by the United States Depart- 
 ment of Labor. 
 
PRINCIPLES UNDERLYING HEALTH 325 
 
 stitute for white phosphorus in the making of 
 matches. It had arranged international confer- 
 ences on the subject as early as 1905 and 1906. 
 Here the Law of Competing Standards in Industry 
 was in evidence again. The International Associa- 
 tion saw clearly that a much needed reform might 
 lead, in the very countries which adopted it, to the 
 sacrifice or loss of the industry concerned, unless 
 all nations could be induced to adopt essential 
 standards. Matches manufactured under inferior 
 labor standards in one country, being brought 
 through international trade into competition with 
 matches made under superior standards elsewhere, 
 might soon gain the market, and inferior labor 
 standards thereby succeed in driving out the su- 
 perior. Only by giving international scope to the 
 law of mutual aid could this possibility be over- 
 come. 
 
 Phosphorus necrosis has been known in the 
 match industry for over three quarters of a cen- 
 tury. It is caused by the absorption of phosphorus 
 through the teeth or gums. Minute particles of the 
 poison enter, usually through the cavities of de- 
 cayed teeth, setting up an inflammation, which, if 
 not quickly arrested, extends along the jaws, caus- 
 ing the teeth to loosen and drop out. The j awbones 
 slowly decompose and pass away in the form of nau- 
 seating pus, which sometimes breaks through the 
 neck in the form of an abscess. Where swaUowed, 
 
326 INDUSTRY AND HUMANITY 
 
 as is inevitable, the pus induces chronic toxaemia. 
 Treatment is largely preventive, but when the dis- 
 ease is once estabhshed a serious surgical operation 
 is often the only means of arresting the process of 
 decay. In many instances of poisoning, it is neces- 
 sary to remove the entire jaw, and in several cases 
 both jaws have been removed in a single operation. 
 Many cases of necrosis have resulted in death. ^ 
 
 A few years ago, the French Government made a 
 state monopoly of the match business. Numbers 
 of match workers contracted the disease and be- 
 came a charge on the State. The authorities were 
 alarmed, and the Government instituted an in- 
 quiry to find a substitute for white phosphorus. 
 What is known as sesqui sulphite was discovered 
 by two French chemists and adopted by the Gov- 
 ernment. It was this substitute, made available 
 to all countries, that the International Association 
 was seeking to have introduced under international 
 convention. 
 
 It is an interesting commentary on industrial con- 
 ditions as regulated by pubUc and private interests 
 respectively, that when the French Government 
 found itself obliged to use part of the revenue it 
 was deriving from the match industry to maintain 
 diseased workers, it undertook to provide a remedy. 
 Privately owned manufacturing concerns, which 
 
 ' For information on this disease, and the measure of success which 
 has attended its eradication, the reader is referred to the American 
 Association for Labor Legislation, New York. 
 
PRINCIPLES UNDERLYING HEALTH 327 
 
 felt little or no sense of responsibility for the health 
 of workers, continued existing processes without 
 seeking to adopt any substitute for the poisonous 
 material. 
 
 In the session of the Canadian Parhament 
 following the meeting of the International Labor 
 Association, I introduced a bill to prohibit the 
 manufacture and sale of matches made with white 
 phosphorus.! The bill was modelled upon legisla- 
 tion enacted in Great Britain. Before presenting 
 the measure to Parliament, I sought to discover to 
 what extent the disease known as phosphorus nec- 
 rosis had found a beginning in Canada. The fol- 
 lowing statements are from the joint report of two 
 officers of the Department of Labour as quoted in 
 the House of Commons in the course of the debate 
 on the measure: 
 
 "Miss , aged between 22 and 23 years, re- 
 sided with her parents at — — street. Her death 
 took place about a year ago. The following brief 
 statement concerning her illness and death was 
 made by her mother: 
 
 " She commenced work in the match factory at 
 the age of 14. Her term of employment there lasted 
 about 7 years, when she had to cease work. Her 
 trouble commenced with toothache and extended 
 to the jawbones, finally affecting the whole face. 
 
 ' The bill was before Parliament at the time of prorogation in the 
 summer of igi i. It has since been enacted. It was reintroduced at a 
 subsequent session of Parliament by Hon. Thomas W. Crothers, K.C., 
 Minister of Labour in the administration of Sir Robert Borden. 
 
328 INDUSTRY AND HUMANITY 
 
 During the last stages of the disease she was com- 
 pletely bhnd. Her illness covered a period of 19 
 
 months. She was attended by Dr. . She was 
 
 admitted to Hospital on two occasions, where 
 
 operations were performed, and was released from 
 that institution shortly before her death. During 
 the last few years she worked in the match factory 
 she earned 11.25 per day. 
 
 "Dr. , the first of the physicians referred to 
 
 by the mother, states that phosphorus poisoning 
 was the cause of this young woman's death. The 
 other physician did not wish to be interviewed." 
 
 " Miss , 38 years of age, resided at , died 
 
 May 5, 1910, after an illness of seven months. 
 
 "The statement in connection with the illness 
 and death of this woman was obtained at the home 
 of her parents. She had worked in the match fac- 
 tory for eight or ten years before her teeth began to 
 
 give her trouble. Dr. then ordered her to have 
 
 five teeth extracted, the operation being performed 
 
 by Dr. . She continued to get worse, and Dr. 
 
 was consulted, who said that she had poison- 
 ing of the blood, caused by fumes. She was ad- 
 mitted to Hospital on March 5, where she 
 
 remained till May 3, two days before her death. 
 While in the hospital she was operated upon sev- 
 eral times, and portions of the jawbone extracted. 
 Each of the two physicians who attended this 
 woman during her illness was seen in reference to 
 this case, and both stated that the cause of death 
 was phosphorus poisoning." 
 
 "Miss , aged 25 years, resided with her par- 
 ents at , died on April 17, 1910. The following 
 
 facts were eUcited in a conversation with her father, 
 mother, and sister; 
 
PRINCIPLES UNDERLYING HEALTH 329 
 
 "She died on April 17, 1910, after an illness of 
 about a year, at the age of 25. She had worked in 
 the match factory about five years before her trou- 
 bles began. She was admitted to the Hospital 
 
 during the summer of 1909, and was under the care 
 
 of Dr. , of . She had all her teeth extracted 
 
 and portions of the jawbone removed. Was con- 
 fined to bed for five months and endured terrible 
 suffering from ulceration of the jaw and decay of 
 the bone. In describing the cause of her death, the 
 expression used by one of her parents was, 'She 
 died of consumption, caused by swallowing pus 
 from ulcerated jaw.'" 
 
 The three deaths referred to in these quotations 
 all occurred during the very year in which the 
 bill was presented to Parhament. The report men- 
 tioned other persons who were thought to have 
 succumbed to the disease, and cited numerous in- 
 stances of men as well as women who at the time 
 were suffering from phosphorus poisoning. So un- 
 believable were some of the cases reported that 
 before making mention of them in Parliament, I 
 visited the homes of some of the sufferers and veri- 
 fied the statements by personal observation. One 
 woman I talked with had both of her jaws removed 
 entirely, her mouth was full of abscesses, and she 
 had been rendered an invahd for the rest of her life. 
 At another home, I talked with a woman who had 
 been bed-ridden for four years from the effects of 
 this disease. She was without a lower jaw. She 
 told me such was the condition of the bones at the 
 
330 INDUSTRY AND HUMANITY 
 
 time that during her illness she had pulled her jaw 
 out with her own hands, i To such a frightful con- 
 dition can Industry, insufficiently controlled, bring 
 human beings made in the image of God ! 
 
 I cite these examples of a hideous industrial dis- 
 ease to illustrate how httle is known, even to-day, 
 of much that is destructive in Industry at our very 
 doors. Had the Government of Canada not been 
 asked to become a party to an international con- 
 vention to prevent the use of white phosphorus in 
 the manufacture of matches, the disease might 
 have gone on claiming its victims in increasing 
 numbers for years to come. The homes of the 
 workers I visited were httle more than a stone's 
 throw from the buildings of Parhament itself. 
 
 In the light of what the War has revealed of the 
 physical condition of industrial populations, the pa- 
 triotism of such exposures will hardly be doubted. 
 If apology be needed for resurrecting a condition so 
 appalhng, and happily now a thing of the past, it 
 will be found in the words with which I concluded 
 the presentation of the matter to Parhament. In 
 the Hansard report of the House of Commons De- 
 bates, I find the following as of January 19, 1911 : 
 
 "We talk a great deal in these days about the 
 conservation of natural resources, but more im- 
 portant than the conservation of natural resources 
 
 1 Vide Report, Hansaid, House of Commons Debates, Canada, 
 January ig, igii. 
 
PRINCIPLES UNDERLYING HEALTH 331 
 
 is the conservation of human resources, the con- 
 servation of human health and of human hfe. Re- 
 sources are well enough; our lumber, forests, ore, 
 and minerals were given to us for a purpose, but 
 they were given for the preservation, and not for 
 the destruction, of life. So in the Department of 
 Labour we have taken as one of the objects before 
 us, as part of the work which I trust it will be pos- 
 sible to carry on through the years to come, this 
 important question of the preservation of health, 
 the conservation of human life, the protection of 
 the working people, the great mass of the people of 
 this country, from occupational or other diseases 
 which help to undermine the strength of the nation. 
 If this country is to be what we wish it to be, a 
 country of happy, contented and prosperous peo- 
 ple, it will be only by safeguarding the lives and 
 welfare of the many, and by protecting from injus- 
 tice and ill the homes of the humble in the land." 
 
 The War has postponed the hour of social re- 
 form, but it has served to arouse communities to 
 the need of improvement in social conditions. A 
 "revitalized citizenry" is now seen to be a part 
 of the problem of preparedness and defence. An 
 awakened social conscience demands that condi- 
 tions which make for ruin and decay in urban or 
 rural communities must be eliminated, that the 
 well-being of society as a whole may be conserved. 
 I can think of no service possible to render Human- 
 ity greater than that of scientific research into oc- 
 cupational diseases, and the fatigues of Industry, 
 and their effects upon the well-being of mankind. 
 
332 INDUSTRY AND HUMANITY 
 
 The recognition of Industry as being in the na- 
 ture of pubhc or social service is very recent, but 
 the emphasis given this point of view by the War 
 will prove enduring. Once Industry is so regarded, 
 all that is to be said on behalf of those who serve 
 the State in time of war becomes equally appUcable 
 to those who face the perils of Industry through 
 long and continuous service in times of peace. 
 Where Industry exacts toll in life and limb, and in 
 loss of health and vitality, its effects, in these par- 
 ticulars, are identical with those of war, and are in 
 every way as deserving of consideration. 
 
 Just as, prior to the War, fear of accident and 
 disease was responsible for the beginnings of the 
 assertion of community rights, and the recognition 
 of collective responsibiUty on the part of communi- 
 ties, so fears aroused by the War, fears likewise re- 
 lated to the conservation of human hfe and health, 
 have overridden the individuahstic attitude, and 
 asserted the community or coUectivist point of 
 view as respects manhood, resources, industries, 
 talent, and all else. The control which, in times 
 and under the stress of war, has been shown to be 
 possible, as well as necessary, in order that com- 
 munity well-being may be preserved, is pretty cer- 
 tain to be regarded by Labor as equally appUcable 
 in times of peace and greater freedom. 
 
PRINCIPLES UNDERLYING HEALTH 333 
 
 II 
 
 It is not possible to lay down hard and fast lines 
 as to the basis upon which immunity from loss of 
 hfe and physical injury, and from disease and de- 
 terioration, may best be secured. The time, meth- 
 ods, and limits of the appUcation under authority 
 of principles respecting the conservation of health 
 and hfe are not subject to any rule sufficiently 
 absolute to serve as a guide. 
 
 It wiU be observed, however, that the elimin- 
 ation of fear has lain at the root of all regulation 
 Industry has thus far undergone. In the case of 
 women and children, it has been mostly the fear of 
 permanent injury to health; in the case of men, 
 the fear of physical disability. All regulations re- 
 specting safety appliances, sanitation, ventilation, 
 lighting and the like are the outcome of fears of 
 physical injury, or of loss or impairment of hfe or 
 health and efficiency. In determining the need of 
 control in new directions, what is obviously for 
 the good of the community, what will best serve 
 to eliminate fear and thereby bring the greatest 
 happiness to the greatest number, is about all there 
 is to come and go on. 
 
 In determining the good of all hkely to result 
 from the apphcation of any principle by authority, 
 regard must be had to possible evil consequences 
 which may follow through oversight of other de- 
 
334 INDUSTRY AND HUMANITY 
 
 termining factors, or through possible error in the 
 occasion, manner, or degree of the apphcation at- 
 tempted. Good done by the eUmination of fear is 
 sufficient justification only in the absence of proba- 
 bihty that birth will not thereby be given to equal 
 or greater fears. The whole matter of social legisla- 
 tion, as an eminent authority has expressed it, is 
 "a complex calculus of good and evil," "a question 
 of probability and degree." ^ Not one considera- 
 tion, but a multitude of considerations, enter to 
 determine what is best. Probability may indicate 
 direction, but experience and experiment are the 
 only sure guides. At the same time, there is no pri- 
 vate right, or law, or custom, so absolute or inflex- 
 ible that it may not be cast to one side, if it can 
 be clearly shown that it menaces personal health 
 or stands in the way of community well-being. 
 In the confhct between the temporary interests of 
 selfish individuals and the permanent welfare of na- 
 tions, the latter is alone entitled to consideration. 
 Wherever, in social or industrial relations, the 
 claims of Industry and Humanity are opposed, 
 those of Industry must make way. Whilst all man- 
 made law is but a system of arbitrary rules defining 
 the terms on which people may best live in each 
 other's society, and as such is "a system of adjust- 
 ments and compromises founded upon experience 
 
 1 W. Stanley Jevons, The State in Relation to Labor, p. i6. London, 
 Macmillan & Co., 1887. 
 
PRINCIPLES UNDERLYING HEALTH 335 
 
 and trial," both experience and trial have proven 
 that where life and health are at stake there can 
 be no compromise with contrary interests. The 
 guarantee of rest on one day in seven; the restric- 
 tions upon excessive hours of work in the case of 
 men; and the still further restrictions upon night 
 work and upon hours in the case of women and 
 young people; the prohibition of female labor in 
 certain classes of employment and of child labor 
 in general; all these are evidences of a regard for 
 human life which long and tragic experience has 
 shown to be imperative. 
 
 While much may be looked for from motives 
 of self-interest and of humanity, experience has 
 taught, with respect to accident, disease, and 
 strain, that neither self-interest nor humane con- 
 siderations are to be relied upon to protect indi- 
 viduals or the community against ignorance and 
 thoughtlessness, and the still more pernicious in- 
 fluences of viciousness and greed. The enjoyment 
 of normal life can be attained only through con- 
 formity to laws that pertain to health; and con- 
 formity to laws in the matter of health, as in all 
 else, is the result of either voluntary or enforced 
 obedience. By prohibition, by regulation, by in- 
 spection, the State, in numberless ways, has ad- 
 mitted the principle that the Ufe and health of 
 workers is not a matter which the workers them- 
 selves can be expected effectively to safeguard. 
 
336 INDUSTRY AND HUMANITY 
 
 Standards of living conditions and standards of 
 working conditions are now definitely recognized as 
 wholly essential to community well-being. Their 
 maintenance at a proper level over ever-wider 
 areas is becoming more and more recognized as 
 a matter of pubUc concern. 
 
 Wherever, for want of restriction or regulation, 
 there are legitimate grounds of fear of personal 
 harm or anti-social consequences, the community 
 is justified, in order to conserve human life and 
 health, in imposing some measure of restraint upon 
 the liberty of the individual, in his own interest, 
 and ia the interest of the common-weal. World- 
 wide competition places limitations upon success- 
 ful intervention on the part of the State. But 
 where health and life are concerned, competition 
 from without the State's borders is less disastrous 
 than neglect from within, and should not constitute 
 a bar to prudent regulation. Most effort to pro- 
 mote human welfare necessitates some interference 
 with individual liberty. Where wisely appUed and 
 enforced, it is an immediate restriction, that a 
 wider hberty in the end may be secured. The mar- 
 gin of safety as respects pubhc intervention may be 
 said to he along the borderland of legitimate fear. 
 
 There is legitimate fear where, as respects work 
 done, compensation is wholly inadequate and in- 
 sufficient to sustain life. This is the case in the 
 
PRINCIPLES UNDERLYING HEALTH 337 
 
 sweated trades, where men, women, and children, 
 through extreme necessity, ignorance, incapacity, 
 or other cause, sacrifice vitahty to Industry, and 
 well-being to rapacity. It is for the removal of such 
 fear that wages boards, with power to fix minimum 
 wages and maximum hours, have been devised. 
 
 There is legitimate fear where, despite willing- 
 ness to work, work is not to be had. This is 
 the case where, in these days of specialization in 
 Industry, financial crises and industrial depres- 
 sions sweep away customary employment; where, 
 through the play of invention, the importation of 
 foreign labor, tariff changes, crop failures, and 
 emergencies of many kinds, men and women are 
 thrown, either temporarily or permanently, out of 
 trades and occupations to which they have grown 
 accustomed, and in which they have acquired spe- 
 cial skill. It is to meet such fears that labor ex- 
 changes have been planned, and unemployment 
 insurance has been provided. 
 
 There is legitimate fear where, through sickness 
 and invalidity, the capacity to earn is gone, and 
 hard won and scanty savings of months, and often 
 of years, become drawn upon and exhausted. He 
 who has never endured impaired health, where all 
 else is dependent on health, can know nothing of 
 the terrors of this fear. It is to meet such fears that 
 insurance against sickness and invalidity has been 
 devised. 
 
338 INDUSTRY AND HUMANITY 
 
 There is legitimate fear where age is confronted 
 with the alternative of poverty or dependence. 
 Such is the case where the stress of competition 
 drives the weak and infirm to the wall; where em- 
 ployers, because of compensation laws and the 
 risks of Industry, refuse employment to men of 
 years; where mcreasing cost of living and dimin- 
 ished earnings make adequate provision for age 
 impossible apart from constant employment. It is 
 to meet such fears that old age annuities and pen- 
 sions have been provided. 
 
 There is legitimate fear where a woman is sud- 
 denly left without support for her children. This 
 happens where in Industry, as certainly as in war, 
 men suffer death through accident or disease. It is 
 to meet such fears that widows' and mothers' pen- 
 sions have been provided. 
 
 Finally, there is legitimate fear where the priva- 
 tion consequent upon unavoidable loss of work is 
 aggravated by the necessity of extra outlays. Such 
 is the case where to a woman engaged in Industry, 
 or in the family of any worker, a child is born, and 
 domestic happiness is clouded by uncertainties of 
 employment and health; and the habit of saving 
 menaced through inability to protect small sums 
 previously set aside. It is to meet this fear that 
 maternity benefits have been devised. ^ 
 
 ^ For a comprehensive survey of legislation concerning the mini- 
 mum wage, hours of labor, unemployment, safety and health, and 
 
PRINCIPLES UNDERLYING HEALTH 339 
 
 With relationships of Industry no longer what 
 they were, and responsibihty of shareholders to 
 workmen no longer of a kind to render direct re- 
 ciprocal obUgation possible, unemployment, sick- 
 ness, invahdity, and old age, cease all too readily to 
 be matters of personal consideration to investors. 
 Whoever is unfortunate in any of these respects 
 must shift for himself. Industrial depressions and 
 financial crises affect employer and employee ahke. 
 But capital can find investment elsewhere, or, if 
 necessary, can wait for its return, though suffering 
 loss. Labor has to be fed, and cannot wait. Cap- 
 ital may increase its returns through the substi- 
 tution of machines for men; Labor, displaced by 
 machinery, swells the surplus on the market and 
 weakens its own bargaining power. 
 
 By a strange sort of irony, much of the very leg- 
 islation passed in the interest of Labor has occa- 
 sioned new fears to Labor itseK. Employers finding 
 themselves under increasing obligations imposed 
 by the State, oftentimes of necessity, renounce 
 obUgations formerly assumed. The Workmen's 
 Compensation Acts, which in most advanced com- 
 munities have superseded the old Employers' Lia- 
 bility Acts, constitute a case in point. Under the 
 Employers' Liability Acts, many a corporation 
 sought through its superior economic position to 
 
 social insurance, the reader is referred to Principles of Labor Legisla- 
 tion, by John R. Commons and John B. Andrews. Harper & Broth- 
 ers, New York and London, 1916. 
 
340 INDUSTRY AND HUMANITY 
 
 escape liability for injury by offering some consid- 
 eration in lieu of threatened or actual litigation 
 under laws which placed upon the employee the 
 onus of proof of negligence. The Workmen's Com- 
 pensation Acts place upon the State the obligation 
 of assessing and paying damages in case of injury 
 or death in industrial pursuits. The employer is 
 made a contributing factor; he becomes liable to a 
 definite payment from which there is no escape. 
 He is no longer left where indifference or charity 
 may characterize his attitude. A payment known 
 to each of the parties in advance, and secured by 
 the State, removes altogether the existence of per- 
 sonal obhgation either way. 
 
 So far, all appears as gain to Labor. But with 
 payment, in the event of accident, no longer a mat- 
 ter of negotiation, employers cease to take chances 
 with Labor. Since men over a certain age are more 
 liable to accident than young men, when working 
 forces are lessened the older men are let out first. 
 Where working forces are increased, men beyond a 
 certain age are told they need not apply. The em- 
 ployer is not to blame. Neither is the employee. 
 What is important to remember is that the condi- 
 tion which has begotten the necessity of both 
 leaves the isolated worker to face advancing years 
 with ever-lessening chances of employment. Un- 
 employment, however occasioned, is an incident of 
 Industry and cannot be left to take (care of itself. 
 
PRINCIPLES UNDERLYING HEALTH 341 
 
 Individual employers cannot be expected to secure 
 Labor in employment where economic conditions 
 occasion discontinuance of industrial operations. 
 Neither employer nor employee is at fault where 
 each is powerless against cross currents that sweep 
 the face of Industry to the disadvantage of both. 
 
 The fears enumerated, it will be seen, arise, one 
 and all, out of conditions as they have developed 
 in modern Industry under the stress of unregulated 
 competition. They are inevitable in the Uves of 
 multitudes of men and women engaged in Industry. 
 Employers can no more be expected to make ade- 
 quate provision for them than employees can be 
 expected successfully to avoid them. They are 
 social fears bred of social conditions. The choice 
 Ues between meeting them voluntarily and meet- 
 ing them under pubUc authority. Mutual aid and 
 associated effort are a part of the law of progress. 
 Fears which lead to mutual aid within groups 
 may help to make society strong and secure. In 
 every way voluntary effort is superior to State 
 intervention and State assistance. So far as vol- 
 untary effort can be expected or can be made to 
 cope with the fears enumerated, the State should 
 not intervene; so far as voluntary effort can- 
 not be relied upon, it is imperative that the State 
 should. The obligation upon the strong to help 
 bear the biu-dens of the weak, would be described 
 
342 INDUSTRY AND HUMANITY 
 
 in court circles as the doctrine of noblesse oblige. In 
 its relation to industrial opportunity, it is referred 
 to as social justice. 
 
 Opportunity may be due solely to individual 
 effort. Often, however, it arises from conditions in 
 society which permit Fortune to favor one, but to 
 frown upon another. Everywhere there is vast ine- 
 quality of circumstances. It cannot be denied that, 
 under existing conditions, there are multitudes who 
 have Uttle or no chance to begin with; and many 
 who, at some time in their hves, find themselves 
 seemingly robbed of all chance through circum- 
 stances wholly beyond their own control. It is 
 probably true, notwithstanding, that at no previous 
 time in the history of the world were the chances 
 of improvement for the mass of men what they 
 are at the present time. 
 
 In the changes industrial evolution has wrought, 
 whilst the wealth of the world has vastly increased, 
 its distribution has become increasingly dispro- 
 portionate. Through opportunities which monop- 
 oUstic and quasi-monopoUstic control of natural 
 resources and powers bestows, and which skilful 
 investment makes possible, wealth may fabulously 
 increase in the hands of a few, and the many con- 
 tinue to have their lot determined by prevaihng 
 levels of wages and hours. Through community 
 considerations which afford opportunities to some 
 and impose handicaps on others, the economically 
 
PRINCIPLES UNDERLYING HEALTH 343 
 
 strong very often tend to become stronger in the 
 industrial struggle, while the economically weak 
 tend to become weaker. The weak sometimes be- 
 come brutalized and degraded, physically, morally, 
 and spiritually. As respects material wealth and 
 all that it brings, unregulated competition makes 
 possible to-day, as never before, that "unto him 
 that hath shall be given"; it occasions also, as 
 never before, that "from him that hath not, shall 
 be taken away, even that which he hath." 
 
 Industrial policy founded upon recognition of 
 human personaUty and community well-being com- 
 pels a consideration of fundamentals. A point of 
 view which recognizes the Community as a unit 
 with rights superior to those of its individual 
 members, and which places the emphasis in social 
 relations upon people rather than upon prop- 
 erty, necessarily presents a challenge to many 
 accepted institutions. Most of all does it raise a 
 question concerning the institution of private 
 property. 
 
 In any social view of things, private ownership 
 of land and capital can have but one justification. 
 That justification, in a word, is community service. 
 Private property exists because of an imphed re- 
 turn to the Community in virtue of an actual or 
 implied concession. When private ownership in 
 land and capital becomes anti-social, the Commu- 
 
344 INDUSTRY AND HUMANITY 
 
 nity may be expected to see to the organization 
 of society on some other basis. It is not because 
 of inaUenable and indefeasible right that private 
 property exists; it is because no other system has 
 thus far been devised which, having regard for 
 human nature and the complicated character of 
 social relations, seems, on the whole, to serve as 
 well, from generation to generation, the needs of 
 men hving together in an organized society. In 
 days of reconstruction, when change is apt to be 
 advocated just because it is change, thought may 
 well be given to the profound psychological as 
 well as social reasons which have caused the so- 
 cial order through the centuries to continue to be 
 founded upon the institution of private prop- 
 erty. Speaking of ownership, Wilham James says: 
 "The depth and primitiveness of this instinct 
 would seem to cast a sort of psychological dis- 
 credit in advance upon all radical forms of com- 
 munistic Utopia. Private proprietorship cannot 
 be practically abohshed until human nature is 
 changed." 
 
 But the virtues of an institution, any more than 
 the virtues of an individual, need not preclude 
 recognition of inevitable limitations. It is not 
 necessary to deny the wisdom of private ownership 
 in land and capital as the basis of a social system, 
 in order to recognize possible injustices to which 
 private property, under changing conditions, may 
 
PRINCIPLES UNDERLYING HEALTH 345 
 
 give rise. Nor need the desire for the maintenance 
 of private ownership preclude a consideration of 
 ways and means whereby injustices may be reme- 
 died without aboUshing the institution itself. The 
 desire to maintain an institution constitutes the 
 strongest of reasons for the adoption of a course 
 which may lessen or eradicate immical tendencies. 
 Where, as a result of community relations based 
 upon private ownership of land or capital, advan- 
 tages are derived by some which to others are 
 denied, consideration may well be given to the 
 control of Industry, and to the distribution of 
 wealth in a manner which may prove of service to 
 rich and poor alike. How to attain this end without 
 undermining quahties of initiative and self-rehance, 
 on which all real strength and progress depend, is 
 the most perplexing of the problems of Govern- 
 ment. 
 
 Social insurance, which in reaUty is health insur- 
 ance in one form or another, is a means employed 
 in most industrial countries to bring about a wider 
 measure of social justice, without, on the one hand, 
 disturbing the institution of private property and 
 its advantages to the Community, or, on the other, 
 imperilling the thrift and industry of individuals. 
 Social insurance looks upon Industry as in the na- 
 ture of social service. It regards the owner of land 
 or capital as a capitahst, but also as a public trustee. 
 
346 INDUSTRY AND HUMANITY 
 
 It looks upon the worker in Industry as a wage- 
 earner, but equally as a necessary member of the 
 Community. It places the emphasis on personahty 
 rather than on property, and on hfe rather than on 
 wealth. 
 
 Insurance against unemployment recognizes that 
 an isolated human being, not less than a machine, 
 must be cared for when idle. It recognizes also that 
 nothing is so dangerous to the standard of life, or so 
 destructive of minimum conditions of healthy ex- 
 istence, as widespread or continued unemployment. 
 Where idleness is the fault of the social order, 
 rather than of the individual concerned, it places 
 the onus on the State to safeguard its own assets, 
 not more in the interest of the individual than in 
 the interest of social well-being. 
 
 Workmen's compensation, sickness and invalid- 
 ity insurance, widows' pensions, maternity and 
 infant benefits, recognize wherein personal rela- 
 tionships in Industry have changed, and where as 
 a consequence of new conditions permanent handi- 
 caps arise. The social legislation of which these 
 measures are an expression rejects, as unworthy, 
 the thought that men and women voluntarily in- 
 cur accident, sickness, disease, enfeebled health, or 
 dependence in distress, any more than they will- 
 ingly seek enslavement of any kind. It recognizes 
 the difTiculty of differentiating between industrial 
 accident and occupational disease; and between 
 
PRINCIPLES UNDERLYING HEALTH 347 
 
 disease occasioned by occupation or its environ- 
 ments and illness otherwise contracted; also the 
 impossibility of dissociating from economic condi- 
 tions the social waste caused by excessive and pre- 
 ventable illness. It sees that debt binds health as it 
 binds freedom, that sickness represents the most 
 frequent factor of individual destitution, and that 
 it is in painful crises that handicaps for the whole 
 of life are oftenest imposed. To save the spirit of 
 men from being crushed is quite as important as to 
 prevent their bodies from being broken or infected. 
 Many a man's spirit fails when, through no fault of 
 his own, or of his family, efficiency is permanently 
 impaired through accident, or savings become ex- 
 hausted by unemployment or sickness, or where a 
 new life in the home suggests an additional burden 
 instead of a joy. Much invaUdity and penury is 
 due to lack of character and thrift; but much also 
 is evidence of want of effective social control. What 
 society fails effectively to prevent, society is in 
 some measure under obUgation to mend.^ 
 
 Old age pensions are similar. They are based, 
 not on the theory that the State owes every man a 
 living, but rather on the fact that the provision of 
 an assured competence for old age is an easy matter 
 for some, whilst, for others, it is most difficult, if 
 
 1 The reader is here referred to Standards of Health Insurance, by 
 I. M. Rubinow, M.D., Ph.D. (New York, Henry Holt & Co., 1916), 
 and to a volume entitled Social Insurance : An Economic Analysis, by 
 Robert Morse Woodbury, Ph.D. (New York, Henry Holt & Co., 1917;. 
 
348 INDUSTRY AND HUMANITY 
 
 not wholly impossible. After all allowance has been 
 made for superior thrift, intelUgence, and integrity, 
 it must be admitted that to the man who has cap- 
 ital to begin with, or whom society permits to own 
 and control vast natural resources, there are oppor- 
 tunities of saving not possible to the worker who 
 possesses no capital, and who has to face un- 
 certainties of employment and contend, unaided, 
 against all kinds of vicissitudes. It is obvious that 
 existing forces of world competition operate to rob 
 advanced years of opportunities of employment, 
 which, under the less strenuous regime of earlier 
 times, were available to the close of hfe. There is 
 need for society to assist in the protection of its 
 members against a condition which simultaneously 
 places burdens upon the worker whose day's work 
 is done, and on the worker whose day's work is just 
 beginning. If the young are to be given a fair start 
 in hfe, the care of the aged should not be their first 
 responsibiUty. If life-long pubhc service in Indus- 
 try is to receive its fitting reward, years that are 
 denied opportunity of employment should not be 
 subjected to the humiUation of dependence or 
 charity. 
 
 It is the elimination of fears with respect to these 
 fundamental requisites of health that Labor speaks 
 of as a National Minimum standard of life. The 
 Labor Party of Great Britain has recently put for- 
 
PRINCIPLES UNDERLYING HEALTH 349 
 
 ward the universal enforcement of the National 
 Minimum as its first principle. A National Mini- 
 mum is regarded as being as indispensable to fruit- 
 ful co-operation as to successful combination; and 
 as affording the only complete safeguard against 
 an insidious degradation of the standard of life. 
 "Only," it is contended, "on the basis of a univer- 
 sal application of the policy of the National Mini- 
 mum, affording complete security against desti- 
 tution, in sickness and health, in good times and 
 bad ahke, to every member of the Community, can 
 any worthy social order be built up." 
 
 In advocating enforcement of this minimum 
 as the necessary basis of any genuine industrial 
 efficiency or decent social order. Labor fortifies 
 its position by accepting without reservation the 
 Christian precepts that "No man liveth to himself 
 alone," and that "We are members one of another," 
 It applies these teachings to the economic foun- 
 dations of society. " If any, even the humblest," 
 says the programme of the Labor Party, "is made 
 to suffer, the whole community and every one of 
 us, whether or not we recognize the fact, is thereby 
 injured." 
 
 The doctrine of social justice, whereby the eco- 
 nomically strong share the burdens of the economi- 
 cally weak, and on which the principle of the 
 National Minimum is based, is the antithesis of 
 the doctrine of Force. It is founded on a concep- 
 
350 INDUSTRY AND HUMANITY 
 
 tion of Right in contrast to a belief in Might. It 
 signifies brotherhood, not fratricide. It does not 
 proceed upon the theory that the economically 
 strong are necessarily the fittest to survive, or that 
 the economically weak are necessarily the unfit. 
 In estimating fitness, it looks to character and per- 
 sonality, not to possessions. It considers human 
 need rather than human greed. It recognizes that, 
 without the many who comprise the economically 
 weak, the economically strong would cease to have 
 a superior position, or, indeed, any position. Social 
 justice would not deprive position of its advantage, 
 but it would require of advantageous position, a 
 wider measure of social service. 
 
 The wisdom of a National Minimum in matters 
 of health and well-being is not open to question. 
 Difference of opinion there may well be as to the 
 best methods by which it may be attained. Cer- 
 tainly, any doctrine of unrestricted and unregu- 
 lated Competition can no longer be defended. The 
 Law of Competing Standards makes that impos- 
 sible. Something more in accord with the operation 
 of the Law of Mutual Aid is required. The old 
 laissez faire attitude of non-interference with per- 
 sonal rights and private property was based on 
 the self-interest of a privileged few, supported, 
 through a strange antithesis, by the theory that 
 "man's self-love is God's providence"; that each 
 individual in seeking his own mterest is uncon- 
 
PRINCIPLES UNDERLYING HEALTH 351 
 
 sciously, and as if guided by some "Invisible 
 Hand," working out the good of society. The atti- 
 tude of mutual rights and obligations is essentially 
 the Christian one, of man as his brother's keeper. 
 This attitude is supported, not by a pious theory, 
 but by the deplorable fact, notwithstanding an 
 antithesis hardly less singular, that men are largely 
 indifferent to the well-being of their fellowmen, 
 and that selfishness and greed know no bounds, 
 where they are free to work their will. Regulation 
 and control of Industry and PubUc Health are the 
 expression of the necessity of protecting the Com- 
 munity against the ignorance, thoughtlessness, in- 
 difference, and greed of individuals. Whether the 
 idea be congenial or not, the entire code of safety, 
 sanitary, and other regulations is a proclamation by 
 pubUc authority that man is his brother's keeper, 
 and that no man Uveth unto himself alone. 
 
 The necessity of maintaining standards in In- 
 dustry is the justification for the National Mini- 
 mum advocated by the Labor Party in Britain. 
 EnUghtened employers may be ready and willing 
 to guarantee their employees against interruptions 
 in employment, to promote the health and con- 
 tentment of employees by providing at then- own 
 expense medical and nursmg care for the workers 
 and their famihes, and by securing for the em- 
 ployees wholesome and attractive housing, co-oper- 
 ative insurance against accident and sickness, and 
 
352 INDUSTRY AND HUMANITY 
 
 means of outdoor and indoor recreation; but unless 
 such precautionary measures are made universally 
 applicable and thereby incumbent upon employers 
 generally, sooner or later unsupported efforts of the 
 kind may become in the nature of a tax upon en- 
 lightenment. It is a question whether the meeting 
 of social needs of the kind should be regarded as 
 an employer's obligation. Strictly speaking, is the 
 satisfaction of such needs not an obligation to be 
 shared by the four parties to Industry, and not 
 properly the sole obligation of any one? 
 
 I have referred in this book specifically to four 
 investigations with which I have had personally to 
 do : the garment-making industry, the operating of 
 telephones, the match-making industry, and cot- 
 ton-spinning and weaving. Many others might 
 have been cited. I am obhged to ask myself how 
 long any employer could have maintained at his 
 own expense humane and decent standards in these 
 industries, in the particulars above mentioned, and 
 have held out against unscrupulous competitors. 
 Save by associated effort and mutual aid, effected 
 under the compulsion of government in some form, 
 I see no way of circumventing the ill effects of 
 the Law of Competing Standards, and preventing 
 mean men, when brought into competition with 
 nobler natures, from profiting because of their 
 meanness. Where, in coping with inevitable fears, 
 the State ensures fair play all round, there, decency 
 
PRINCIPLES UNDERLYING HEALTH 353 
 
 and good-will receive their opportunity, and be- 
 come of pecuniary advantage, as well as of advan- 
 tage in other ways. 
 
 The doctrine which gives the State rights supe- 
 rior to those of the individual may seem to present 
 resemblances to the theory which claims that the 
 preservation of the State is the supreme necessity, 
 and that the authority of the State knows no supe- 
 rior law. They not only resemble each other; they 
 are, in fact, identical, where by the State is meant 
 all the human beings who comprise it; not an ab- 
 stract idea, or some autocratic or privileged group 
 pursuing selfish ambitions in the State's name. So- 
 cial justice recognizes the State as beyond Indus- 
 try, but it also recognizes Humanity as beyond the 
 State. Humanity, not the State, is the supreme con- 
 cern, and where this is appreciated no conflict can 
 arise as regards either preservation or expansion. 
 
 It is not a National Mimimum only, but an In- 
 ternational Minimum, which is needed, if labor 
 standards are to be protected against the under- 
 mining effects of the Law of Competing Standards 
 operating through international competition. The 
 possible creation of some international agency to 
 further the establishment and enforcement of in- 
 ternational conventions aimed at the maintenance 
 of an International Minimum, is a subject of mo- 
 mentous concern. It is well deserving of considera- 
 tion in any discussion pertaining to a League of 
 
354 INDUSTRY AND HUMANITY 
 
 Nations which may constitute a part of the peace 
 negotiations at the conclusion of the War. 
 
 Ill 
 
 While existing conditions may require much in 
 the way of remedial action on the part of the State, 
 it is well to remember that, in whatever pertains to 
 the conservation of health and hfe, to prevent an 
 ill is infinitely better than to attempt to remedy it. 
 It is important also to remember that self-help is 
 the best of aids, and that voluntary effort not only 
 removes impediments, but develops self-reUance 
 and knowledge. Some degree of compulsion on the 
 part of the State is necessary to secure general en- 
 forcement, by mutual aid or otherwise, of stand- 
 ards such as will guarantee to all the National 
 Minimum which Labor advocates. State aid in the 
 form of financial assistance can be justified only as 
 the one effective means of preventing degradation 
 in the standard of Ufe. 
 
 Without the utmost wisdom in administration, 
 social legislation may accentuate rather than lessen 
 the evils it would avoid. The subversion of motives 
 of thrift and industry, the discouragement of sav- 
 ing and investment, the encouragement of shift- 
 lessness or indifference, are dangers inherent in any 
 scheme of social regeneration at the instance of the 
 State. How to gain economic independence for 
 
PRINCIPLES UNDERLYING HEALTH 355 
 
 workingmen and women under conditions which 
 necessitate collective security; and how to further 
 community well-being without unduly interfering 
 with individual freedom and character, are ever- 
 present problems in matters of social legislation. 
 
 It is wholly in the spirit of preventive rather than 
 of remedial action, that health legislation must 
 be administered, and its justification sought. In a 
 very true sense, so far as community and industrial 
 values go, there is no such thing as remedying loss 
 of hfe or impairment of health through injury or 
 disease. The gaps which accident, sickness, and 
 unemployment occasion constitute blanks never 
 to be filled. Conscription of any kind, whether 
 of wealth or service, is paUiative only. It can 
 never adequately compensate for loss of opportun- 
 ity through unemployment, sickness, invahdity, or 
 other cause. 
 
 Preventive medicine is so new a study that its 
 existence and meaning are still unknown to many 
 informed persons. As an act of pubUc caution, 
 quarantine is more famiUar than medical inspec- 
 tion, and appeals for the support of hospitals and 
 sanitaria are still more urgent and general than 
 demands for the spread of knowledge of the rudi- 
 ments of sanitation. There will be no immunity 
 from disease until individuals and communities 
 become aware that the real dangers are not always 
 the known and apparent ones, but are pernicious 
 
356 INDUSTRY AND HUMANITY 
 
 influences that gather momentum with time. The 
 manifestation of disease is a last call, not a first 
 call, to action. 
 
 Fear is bred of ignorance and incapacity. To 
 develop intelUgence and abiUty should be the aim 
 of all preventive effort and all endeavor to equal- 
 ize opportunity. Both can be materially aided by 
 the improvement of conditions and the spread of 
 knowledge. Education is preventive rather than 
 remedial. "To be forewarned, is to be forearmed," 
 and forearming is as necessary in encountering the 
 vicissitudes of Industry as in combating the perils 
 of actual war. The intemperate man, the iUiterate 
 man, the penniless man, are the first to go to the 
 wall under the pressure of unemployment, sickness, 
 accident, or advancing years. To provide against 
 intemperance, illiteracy, poverty, and the hazards 
 of Industry by preventive and constructive meas- 
 ures, and by a training which will develop thrift, 
 intelligence, and integrity, is more prudent on the 
 part of the Community than to aim at filhng gaps 
 in the depleted ranks of the weak by charges of one 
 kind or another upon the strong. 
 
 "The American democracy," says Dr. Charles 
 W. Eliot, President-emeritus of Harvard Univer- 
 sity, "has never supphed an education which would 
 give every child its most appropriate training — 
 much less the British democracy. No American 
 community has ever voted money enough to the 
 
PRINCIPLES UNDERLYING HEALTH 357 
 
 schools to accomplish that object. Neither has any 
 American community, or any British, ever spent 
 money enough on the promotion of the public 
 health, and the protection of all classes from the 
 physical evils which result from ignorance, vice, 
 self-indulgence, wastefulness, and sluggishness. It 
 is certainly high time that these grave errors should 
 be remedied."^ 
 
 The social settlement stands as a pioneer in the 
 movement which seeks to express the community 
 sense through voluntary effort related to all aspects 
 of community hfe. It is the neighborhood idea con- 
 veyed in a wholly niatural manner. It recognizes 
 that personal contact, study of and familiarity with 
 community conditions and obligations, sympathy, 
 intelUgent direction of municipal activities, and 
 good government, are essential to health and 
 happiness.^ 
 
 The Social Unit Organization, a model commu- 
 nity experiment which aims at getting people to 
 unite for better hving conditions in their own neigh- 
 borhood, is another voluntary effort along similar 
 lines. It is described by its promoters as " a munici- 
 pal social laboratory." A few men and women seek 
 to develop in a truly democratic way a method of 
 
 1 "The War's Lasting Effects on Labor Problems," the Sunday 
 Herald, Boston, July 21, 1918. 
 
 2 Vide Jane Addams, Twenty Years at Hall House (The Macmil- 
 lan Co., New York, 1910), also C. R. Henderson, Social Settlements 
 (New York, Lentilhon & Co., 1898). 
 
358 INDUSTRY AND HUMANITY 
 
 organization by which the people, through their 
 own thought and effort, may secure for themselves 
 the things they need. Health, housing, sanitation, 
 recreation, and employment are studied from the 
 standpoint of the common every-day life of people 
 in neighborhoods or communities, and the carry- 
 ing out of the plan is by the people themselves in 
 co-operation with persons engaged in the discharge 
 of public and quasi-public duties.^ 
 
 Movements of the kind of which the social settle- 
 ment and the social unit organization are typical, 
 are necessarily Umited in scope and influence. It is 
 in what they represent of attitude that they are 
 all important. They stand for systematic effort 
 with respect to community well-being by an intel- 
 ligent agency, and as such embody a method that, 
 whether exercised voluntarily or under pubhc au- 
 thority, must be developed if communities are to 
 grow along right Unes. They render an even more 
 important service. They create a spirit of human 
 brotherhood, and inspire an attitude toward social 
 problems which, carried in different directions by 
 those who possess or are touched by it, will do more 
 than aught else to mould society anew. 
 
 The care with which many new communities 
 are safeguarding their development, and the efforts 
 
 1 The National Social Unit Organization was founded in New York 
 in 1917. The Cincinnati Social Unit Organization is the first social 
 unit formed under its auspices. 
 
PRINCIPLES UNDERLYING HEALTH 359 
 
 being made in older communities to eradicate the 
 slum and to develop suburban and garden city com- 
 munities, by means of cheap and rapid transit and 
 the control of land values, are fine expressions of 
 the new spirit which substitutes a community for a 
 property sense. 
 
 The growth of communities will compel universal 
 regard for the new attitude. Wide and costly ex- 
 perience has made it increasingly apparent that the 
 Uving problem in cities cannot be left to the fortui- 
 tous outcome of unrelated and unregulated individ- 
 ual interest, and the continuous conflict of pubUc 
 and private interest. Its solution is possible only 
 through intelligent community action. 
 
 Town-planning and rural planning and develop- 
 ment were almost unthought-of a generation ago. 
 To-day they are subjects of scientific study, and 
 compel the recognition of Government. It is to be 
 hoped that ere long pubhc opinion will no more 
 tolerate the slum and the overcrowded tenement 
 than it would tolerate plagues such as were preva- 
 lent a generation ago. ^ 
 
 The garden city movement was founded in Eng- 
 land in 1899, and has spread to different countries 
 throughout the world. It recognizes the slum as 
 the product of bad means of transit and high land 
 values, combined with the necessity of men hving 
 near their work. By providing cheap and rapid 
 transit and controlUng land values, it has been able 
 
360 INDUSTRY AND HUMANITY 
 
 "to provide a maximum of comfort, convenience, 
 and happiness at the minimum of financial and 
 personal cost." "It marks a widening of commu- 
 nity rights and an enlargement of community serv- 
 ices, the building of the city by the city itself, from 
 the foundations upward and from centre to cir- 
 cumference." ' 
 
 The garden city is in effect its own landlord. In- 
 directly it is a house builder and house owner. The 
 ordinary city is left to the unrestrained Ucense of 
 speculators, builders, and owners. It is a commu- 
 nity of unrelated, and, for the most part, uncon- 
 trolled, property rights. The garden city, whether 
 promoted by cities, co-operative companies, or 
 private individuals, and whether it be a self-con- 
 tained industrial community, a garden suburb, or a 
 factory village built about a manufacturing plant, 
 is a community intelUgently planned and with the 
 emphasis always on the rights of the community 
 rather than on the rights of the individual property 
 owner. The aim of the garden city is to bring divi- 
 dends in human health and happiness as well as a 
 return on property investment. It has plenty of 
 places of rest, recreation, and play. Building re- 
 strictions are imposed, and the maximum number 
 of houses to the acre is fixed. The improved health 
 and condition of employees due to better homes 
 
 • The Garden Cities of England, by Frederic C. Howe. Scribner's 
 Magazine, July, 1912. Reference to this source is hereby acknowl- 
 edged. 
 
PRINCIPLES UNDERLYING HEALTH 361 
 
 and the open air, yield a return that pays for the 
 investment. The co-ordination of garden cities 
 with rural hfe, and of agriculture with the city, 
 keeps down the cost of hving. Existing garden 
 communities have demonstrated that clean, whole- 
 some, comfortable cottages are possible at a low 
 rental, and th'at hfe is lengthened, the death and 
 infant mortaUty rate reduced, and Labor in these 
 open-air communities rendered more efficient than 
 in the cities. 
 
 The movement reflecting the emphasis upon 
 human as contrasted with material considerations 
 is only at its inception. In a multitude of directions 
 this is already evidenced. Social legislation, which 
 had its beginnings in granting a minimum of pro- 
 tection to powerless individuals, and a maximum 
 of protection to powerful corporations, is slowly 
 reversing that strange antithesis. Preventive meas- 
 ures are being substituted for remedial, in the case of 
 both public authority and voluntary effort. Science 
 is no longer confined in its appUcation to further- 
 ing individual interests, but more and more is help- 
 ing community interests, in matters of education, 
 health administration, care of children, and provi- 
 sion for recreation and amusement. Politics, hith- 
 erto concerned mostly with trade, diplomacy, and 
 foreign relations, have now increasingly to do with 
 social problems. 
 
362 INDUSTRY AND HUMANITY 
 
 Science may do much that is yet undreamed-of 
 to ameUorate the human lot. The intelhgence of 
 the world has been at the command of nations for 
 the building of dreadnaughts, submarines, aero- 
 planes, and all the organization and equipment 
 essential to the work of destruction. Wars will 
 altogether cease when Science is equally at the serv- 
 ice of the nations to further the principles under- 
 lying health, in the building of houses, developing 
 transportation, designing cities, controlling land, 
 improving sanitation, and eliminating slums. 
 
 In Industry the apphcation of Science has been for 
 the most part to the material processes in produc- 
 tion and to mechanical organization, and not to the 
 problems of health, vitaUty, and harmonious rela- 
 tions. The insufficiency of organized effort to bring 
 the results of Science to bear upon the weKare of the 
 masses of the people and social problems is being 
 recognized. The time may yet come when it will be 
 everywhere seen that the maintenance of standards 
 of health is the surest means of maintaining stand- 
 ards of efficiency; and when intelhgence will be not 
 less at the conomand of sure returns in life than it is 
 at the command to-day of sure returns in money 
 values. 
 
 The subordination of the claims of Industry to 
 those of Humanity may necessitate a regard for 
 human life which, in the effort to prevent the sacri- 
 fice of thousands of Uves to the ambition of one, 
 
PRINCIPLES UNDERLYING HEALTH 363 
 
 will place one human life above any industrial 
 achievement. What this may demand of individual 
 states, and require in the way of international ar- 
 rangement, can scarcely be conjectured. In mat- 
 ters pertaining to standards of health and well- 
 being, the world-scope of forces at work makes 
 their presence felt as nowhere else. The state that 
 seeks to enforce worthy standards in Industry is 
 handicapped by the states that are wholly indiffer- 
 ent. The nation that has reached high levels in its 
 concern for human life, is handicapped by the coun- 
 tries that have still to learn the meaning of conser- 
 vation. To bring Industry everywhere within the 
 control of effective regulation is the one great prob- 
 lem of Education and Government. It will never 
 be completely solved until regulation becomes a 
 matter of international concern. Each nation may 
 yet find the salvation of its own industrial hfe 
 by losing itseK in an effort to save the industrial 
 Hves of other and rival nations. It is in such ways, 
 through the course of time, that the economy of 
 God gains world expression. 
 
CHAPTER X 
 
 REPRESENTATION IN INDUSTRY 
 
 If Industry is to advance material and social well- 
 being, which is its twofold purpose, there must be 
 continuous co-operation between all parties in the 
 application of principles underlying Peace, Work, 
 and Health. How to obtain such co-operation is 
 the supreme task. Fundamentally, it is a matter of 
 attitude and spirit. Mutual trust born of whole- 
 hearted belief in the common interests of Industry 
 must supersede the distrust which arises out of mis- 
 givings concerning opposed interests. Fear must 
 give way to Faith, in the several relations. There 
 must be consciousness of a common aim in a com- 
 mon venture in which gains and losses aUke are 
 shared. 
 
 The venture common to all in Industry is the 
 investment by each of some share of his life or for- 
 tune. The aim common to all is that each may 
 render a much needed social service, and share as 
 largely as possible in the joint product. Such a 
 venture combined with such an aim is none other 
 than a partnership. A partnership, in fact, as well 
 as in name, is what Industry must become if its 
 twofold purpose is to be achieved with a maximum 
 
REPRESENTATION IN INDUSTRY 365 
 
 of good-will and efficiency, and a minimum of 
 waste of effort and materials. Partnership, to be 
 worthy the name, presupposes a willingness to 
 share all along the hne, to share in a knowledge and 
 understanding of the enterprise as a whole, and of 
 each other's rights and duties, to share progres- 
 sively in gains and proportionately in losses, and 
 finally to share in the control and the determination 
 of pohcy. If Industry is to be conducted on a part- 
 nership basis, each of the contributing partners is 
 entitled to share in all these particulars. 
 
 The principle of Round Table Conference under- 
 lies partnership. In an association as vast as that 
 comprising Capital, Labor, Management, and the 
 Community, — whether related to individual en- 
 terprise or to Industry generally, — the rights and 
 duties of partnership in the organization and con- 
 trol of Industry obviously must be effected through 
 some device of Representation. If a genuine part- 
 nership can be so effected, and the principle of 
 Round Table Conference thus find an accepted 
 place in the control of Industry, its results cannot 
 be other than beneficial and far-reachmg. It should 
 afford to the several parties to Industry the means 
 of gaining a more adequate understanding of the 
 significance of their respective functions in the va- 
 rious processes; it should ensure that direct inter- 
 est in the success of the undertaking as a whole, 
 so essential to highest efficiency; it should foster 
 
366 INDUSTRY AND HUMANITY 
 
 the co-operative and social spirit aimed at by 
 those who would promote the organization of In- 
 dustry on such lines of voluntary association as 
 copartnership, and other forms of co-operation. It 
 should, whilst avoiding their inherent weaknesses, 
 further the aim which Municipal and State Social- 
 ism, and Collectivism, seek to effect by means of a 
 compulsory change in the ownership of the instru- 
 ments of production. It should afford the most 
 effective method of acquainting all the parties to 
 production with the advantages to be derived from 
 Vocational Training and Technical Education, 
 from the introduction of Labor-Saving Machinery 
 and Scientific Management, from Profit-Sharing 
 and other forms of Industrial Remuneration and 
 Organization, wherever these methods give promise 
 of reducing the cost of production and increasing 
 efficiency. Whilst contributing to secure to Man- 
 agement and to Capital a progressive increase in 
 the profits of Industry, it should help to ensure 
 to Labor, progressive improvement in wages and 
 hours and in other working conditions, and to 
 the Community, progressive enhancement of pur- 
 chasing power in correspondence with increasing 
 productivity. Finally, in whatever pertains to 
 human well-being, it should help to ensure the 
 maintenance of a "National Minimum" through 
 associated effort and mutual aid. 
 Dr. Eliot says: 
 
REPRESENTATION IN INDUSTRY 367 
 
 "To obtain the highest degree of effectiveness in 
 any nation's industries, and at the same time to 
 bring about permanent industrial peace, a new dis- 
 covery or invention must be made — the discovery 
 of the way to make a genuine partnership between 
 Capital and Labor practicable in every business 
 which is conducted for a profit and is steady and 
 permanent rather than experimental and transient. 
 Some of the most important employments are not 
 conducted for a profit — such as household work, 
 national, state, and municipal services, and the 
 services of religious, charitable, and educational in- 
 stitutions. In them there can be no partnership be- 
 tween Capital and Labor and no profit-sharing. On 
 the other hand, in every continuous business which 
 is conducted for a profit, there is great need, to se- 
 cure highest effectiveness, of an automatic method 
 of creating and maintaining for both Capital and 
 Labor a common continuous interest in the success 
 of the particular manufacturing, mining, or trad- 
 ing establishment in which both are enhsted. The 
 great discovery to be made is a working form of 
 profit-sharing, in each estabhshment, the appli- 
 cations being very various, while the principle re- 
 mains one. Any durable method will include some 
 form of co-operative management and a complete 
 disclosure of the accounts of the business to repre- 
 sentatives of the working force." ^ 
 
 Does not the great discovery of which Dr. Eliot 
 speaks lie in viewing the fundamental problem of 
 Industry as one primarily of government? , Has Dr. 
 Eliot himself not forecast the discovery, in suggest- 
 ing the need of some form of co-operative manage- 
 
 ' Boston Sunday Herald, July 21, 1918. 
 
368 INDUSTRY AND HUMANITY 
 
 ment, rendered possible through the principle of 
 representation appUed to government in Industry? 
 Perhaps the expression "community of control" 
 possesses, in this connection, advantages superior 
 to those of the words "co-operative management," 
 since, in the minds of many, Management is a 
 function which does not admit of divided author- 
 ity. Whilst Management may well remain an 
 administrative function exerciseable in Industry 
 without interference from Capital, Labor, or the 
 Community, there would appear to be no reason 
 why its authority, as respects matters of immedi- 
 ate concern to the other parties, should not be re- 
 stricted in accordance with predetermined pohcy 
 arrived at in such a manner as to represent the 
 interests of all. Community of control, effected 
 through the principle of Representation, would be 
 co-operative management in its truest and fullest 
 sense. 
 
 Once the principle of Round Table Conference, 
 with adequate representation of all the parties to 
 Industry, is made the basis of government in In- 
 dustry, Fear will give way to Faith; the conflict of 
 opposed interests will vanish before an understand- 
 ing of common interests; the principles which un- 
 derlie Peace, Work, and Health will find ready 
 apphcation; and Industry itself will gain that spirit 
 of hearty co-operation and constructive good-will 
 which means its highest efficiency both as an in- 
 
REPRESENTATION IN INDUSTRY 369 
 
 strument of production and as an agency of social 
 service. 
 
 Partnership is essentially a matter of status. It 
 does not involve identity or similarity of function 
 on the part of the partners, or equaUty of either 
 service or rewards; but it does imply equality, as 
 respects the right of representation, in the deter- 
 mination of poUcy on matters of common interest. 
 Thus far, this principle has largely failed of rec- 
 ognition. The justice of the principle, however, is 
 apparent. 
 
 Investment in Industry is recognized as affording 
 a right to share in corporate control. Capital and 
 Management receive representation on this basis. 
 If Capital and Management are so entitled, why 
 not Labor also? Industry, as pointed out, is a joint 
 venture, a venture of Labor as well as of Capital, 
 and of the Community as well as of Management. 
 The difference in the nature of the investments 
 of Capital and Labor only serves to emphasize the 
 fundamental justice of Labor's right to representa- 
 tion. The investment of Capital is an investment 
 in the nature of substances and dollars; the invest- 
 ment of Labor is an investment in the nature of 
 skill and Ufe. The one is a material, the other a 
 human, investment. Both, however, are invest- 
 ments; and of the two, the one involving hfe is 
 the more precious. 
 
370 INDUSTRY AND HUMANITY 
 
 The capital investor, the individual who in In- 
 dustry loans and risks his capital, or a part of it, 
 receives for the use of his capital a return in the 
 form of interest. But he receives something more : 
 he becomes, as an investor, entitled to a voice in 
 the control of the industry in which his investment 
 is made. The hf e or labor investor, the worker who 
 in Industry, loans and risks his life, or gives that 
 part of it described as "labor" to Industry, receives 
 for his labor, which is the use of his life and skill for 
 the time in which labor is given, a return in the 
 form of wages. He lacks, however, the additional 
 right, which Capital receives, of a share in the 
 government of Industry. If Capital obtains this 
 right in addition to the financial reward for the use 
 of capital for the time for which it is invested, is 
 Labor not in justice equally entitled, in addition 
 to its monetary reward, to a voice in the control 
 of Industry, in which for the time being its life and 
 skill are invested? As a Ufe or labor investor, is the 
 worker's interest in Industry not akin to that of the 
 investor of capital? If investment in Industry has 
 any meaning at all, it is surely one equally shared 
 by the man who gives his labor and the man who 
 gives his capital. 
 
 For the preferential treatment Capital has thus 
 far received, there is no defence possible on grounds 
 of democratic theory or fundamental justice, only 
 an explanation. Capital has been able to wait; 
 
REPRESENTATION IN INDUSTRY 371 
 
 Labor has not. Capital, through its ability to wait, 
 has been in a position to compel a voice. Labor has 
 seldom been in that position, and therefore has 
 remained, for the most part, unrepresented. ^ 
 
 The Community's right to representation in the 
 control of Industry, and in the shaping of industrial 
 pohcies, is wholly similar to that of Labor. But for 
 Community investment on a local, national, and 
 international scale. Capital, Labor, and Manage- 
 ment would be obliged to make scant shrift under 
 present-day conditions of world competition. In 
 large enterprise, much is said of the magic of Capi- 
 tal and the genius of Management. The Commu- 
 nity as a contributing factor is scarcely thought of. 
 The silent partner remains the unmentioned part- 
 ner as well. But what of the Community's part in 
 Industry? Here, too, is jomt venture: venture 
 on the part of the Community, just as much as 
 on the part of Labor, Capital, or Management. 
 What is ninety-nine per cent, of the expenditure 
 of Government in normal times, but outlays in the 
 nature of investment in Industry: investment in 
 property and services of one kind or another which 
 alone makes possible the vast co-operation and co- 
 ordination of effort which is the very hfe-blood of 
 Industry? 
 
 The vaster industrial organization becomes, the 
 
 * The reader is referred to an article entitled "Democratization of 
 Industry," by Donald R. Richberg, in The New Republic, May 12, 
 191 7, reference to which is hereby acknowledged. 
 
372 INDUSTRY AND HUMANITY 
 
 more it depends, in a multitude of directions, upon 
 the investments of the Community. In bonuses, 
 bounties, subsidies, and the Uke voted to specific 
 enterprises by municipahties and states, there is an 
 actual money investment by the Community cor- 
 responding to the money investments of capitaUsts. 
 As a rule, it receives no recognition, in the form of 
 either interest payments or participation in control. 
 Nor is any participation in control conceded to the 
 Community because of the protection not infre- 
 quently afforded Industry by means of tariffs and 
 in other ways which involve increased outlays on 
 the part of consumers. 
 
 Attention has already been directed to what 
 Government and social organization make possible. 
 Due regard for this will lead to an appreciation of 
 the part played by the Community. ^ Without the 
 maintenance of law and order, of diplomatic and 
 consular services, of agencies of transportation and 
 communication, of systems of money and credit, of 
 means which render the fruits of discovery and in- 
 vention inmiediately and continuously available, 
 to say nothing of a thousand and one other con- 
 siderations, for all of which the Community is 
 involved in continuous outlays. Capital, Manage- 
 ment, and Labor would effect very httle by way 
 of hnldng the world's sources of supply with the 
 world's demand, or by way of transforming natural 
 
 1 Vide chapter v, " The Parties to Industry." 
 
REPRESENTATION IN INDUSTRY 373 
 
 resources into commodities and services available 
 for use. 
 
 Community investment is supposed to receive its 
 return in enhanced purchasing power to consumers 
 as respects the niunber and quahty of available 
 services and commodities. This is a return akin to 
 the interest Capital receives, and to the wages 
 Labor receives. But is not the Community equally 
 entitled, on grounds of investment, to representa- 
 tion in the control of Industry and the shaping of 
 industrial policies? To ignore this right, is to per- 
 mit the other parties, whilst reaping rewards in 
 increasing measure through its benefactions, to 
 exploit the Community and to profit at its expense. 
 
 "Without representation of the Community in the 
 control of Industry, there is nothing to prevent 
 the emergence of a joint-profiteering scheme by the 
 other parties, in which high wages and high profits 
 are secured by charges which fall either immedi- 
 ately or ultimately upon consumers. There ought 
 to be security of Industry as a whole, and of 
 consumers, against possible unjust exactions and 
 monopoly through a control which represents only 
 producers. The inherent right of the State to ex- 
 ercise authority at any time in any direction is not 
 likely to prove sufficient to prevent oversight or 
 deception. Something in the nature of direct repre- 
 sentation of the Community is required, either by 
 specially designated representatives or through a 
 
374 INDUSTRY AND HUMANITY 
 
 compulsory publicity of facts sufficient to permit of 
 the formation of an intelligent and effective Public 
 Opinion. 
 
 Mr. Theodore P- Shonts, President of the dual 
 subway system of New York, has recently outlined 
 a form of partnership arrangement appUcable to 
 the railroads of America, which takes account of 
 the necessary representation in control of all the 
 parties to Industry. That the pubUc need for rail- 
 roads should be determined by pubhc authority is 
 regarded as of primary importance. It is suggested 
 that extensions and improvements be financed by 
 the companies and the Government in partnership. 
 As respects control, it is suggested that supreme 
 authority be vested in a central board consisting 
 of representatives of the pubhc, of the railway in- 
 vestors, and of railway Labor. The Government 
 under this plan would determine what transporta- 
 tion facilities should be furnished; it would likewise 
 have the final determination of the charges to be 
 made for the use of such facihties. Such a plan 
 recognizes that an adequate transportation system 
 is essential to the national health and prosperity; 
 that purely private enterprise, whether subject to 
 Government regulation or not, is not to be rehed 
 upon to secure such a system; and that there are 
 decided limitations in pubhc ownership.^ 
 
 ' Vide article entitled "Instead of Public Ownership," by Alvin 
 Johnson, in The New Republic, April 20, 1918. 
 
REPRESENTATION IN INDUSTRY 375 
 
 The exclusive attitude in the matter of control 
 on the part of Capital and Management is all too 
 plainly evidenced in the present form of corporate 
 organization of Industry. The term shareholder is 
 confined to those who invest money. As share- 
 holders or stockholders, they elect the directors, the 
 directors choose the officers, the officers manage the 
 business, and manage it so as to make as good a 
 showing as possible in dividends to the stockhold- 
 ers. There is no suggestion in the form of organiza- 
 tion that the corporation is run as if the concern of 
 those who contribute their hves, as well as of those 
 who contribute their money; or as if the concern of 
 the pubhc, whose contributions through taxation 
 in its many forms may far exceed the invest- 
 ments of stockholders. Estimated by respective 
 total rewards, Labor investment in Industry is 
 usually many times the investment of Capital; 
 and estimated by the showing of public accounts, 
 financial outlays by the State of immediate con- 
 cern to Industry rival the investments of private 
 capital. Yet there is no apparent representation of 
 either Labor or the Community in the corporate 
 control of Industry. 
 
 This undemocratic and exclusive attitude is fur- 
 ther reflected by forms of expression and terminol- 
 ogy so congenial to many capitaUst investors and 
 large employers of Labor. In speaking of businesses 
 they manage, or in which they hold investments. 
 
376 INDUSTRY AND HUMANITY 
 
 the personal possessive comes naturally to their 
 Ups. There is nothing suggestive in their language 
 of any real partnership with either Labor or the 
 Community. On the contrary, the existence of 
 Labor and the Conununity is often wholly ignored. 
 And yet a very slight appreciation of the nature of 
 industrial operations reveals that it is the industry 
 as carried on by all concerned which ultimately 
 pays the price of the plant and equipment, pays the 
 cost of the Labor, and supphes Capital with its 
 return in the nature of interest; that, in reality. 
 Labor and the Community are necessary partners 
 in production along with Capital and Manage- 
 ment. 
 
 It is to be hoped that ere long the personal pos- 
 sessive, as employed by individuals in reference to 
 businesses of which they are the heads, or in which 
 they hold capital investments, will sound as archaic 
 as does its belated use by some of the monarchs of 
 Europe. Albert of Belgium disclosed his sympathy 
 with the spirit of Democracy, and his understand- 
 ing of co-operation in government, when, at the 
 commencement of the War, he addressed the as- 
 sembled representatives of Belgium as "Broth- 
 ers," and spoke of "our country," "our cause," and 
 "our army," eliminating from his court vocabulary 
 such rehcs of feudal usage as "my subjects," "my 
 armies," and "my navy." If conflicting theories 
 are to be harmonized, and an enduring unity main- 
 
REPRESENTATION IN INDUSTRY 377 
 
 tained, expression in fonn and substance of the 
 democratic spirit and co-operative ideal is as nec- 
 essary to industrial government as to democratic 
 government in the State. 
 
 The undemocratic form of organization is un- 
 happily even more characteristic of Industry as a 
 whole than of individual enterprises. Too often, as 
 Donald Richberg has pointed out,^ the interwoven 
 financial, manufacturing, distributing, and selling 
 interests which dominate Commerce have consti- 
 tuted a complete oligarchy extending its control 
 over Industry, and beyond Industry over Govern- 
 ment. Such control in nations that are pohtically 
 free, is, as this writer suggests, "in the nature of an 
 industrial feudaUsm persisting in and dominating 
 poUtical democracy." 
 
 The necessity of something in the nature of part- 
 nership, of joint-control of Industry by all its par- 
 ties, is becoming more and more apparent as mo- 
 nopoly of control is tried in different directions. 
 Joint-control along with the other parties to In- 
 dustry is better for the other parties, and better 
 for Capital and Management, than Capital or Man- 
 agement control exercised apart from Labor and 
 the Community. The consequences of the over- 
 sight of Labor and the Community, as partners 
 entitled to representation in the government of 
 
 1 Idem, supra. 
 
378 INDUSTRY AND HUMANITY 
 
 Industry, have been unfortunate. Labor and the 
 Community have come to exercise a separatist 
 control in consequence of the disregard of their just 
 claims to representation as partners in Industry. 
 Their interests not being definitely recognized, or 
 represented in industrial control. Labor and the 
 Community have become collectively organized 
 that they may be represented at least in effective 
 opposition to the exclusive control of Capital and 
 of Management. In the case of Labor, this collec- 
 tive organization has taken the form of a mihtant 
 Unionism. In the case of the Community, it has 
 taken the form of an aggressive State SociaUsm 
 which aims at coUectivist control in both the own- 
 ership of capital and the management of Industry. 
 Labor beheves that its exclusion from representa- 
 tion in the control of Industry has led to vast injus- 
 tice, and to the organization of business for profit 
 alone; and that it has occasioned at times the mis- 
 use of official power by the courts, the pohce, and 
 mihtary authorities in support of arbitrary conduct 
 on the part of corporations. Herein Ues the fun- 
 damental cause of the warfare between Capital 
 and Labor. Denied opportunity to co-operate with 
 Capital, Labor competes with Capital. Industrial 
 hfe, instead of being in the nature of a partnership, 
 becomes a sort of guerrilla warfare in which Capital 
 seeks to increase profits at the expense of Labor, 
 and Labor seeks to increase wages at the expense 
 
REPRESENTATION IN INDUSTRY 379 
 
 of Capital. On the one side is a misunderstanding 
 of producing costs; on the other side, a misunder- 
 standing of the workers' needs and aspirations. 
 Strikes and lockouts are the crude expression of the 
 resentment which this mutual misunderstanding 
 begets. Until Labor and Capital are both demo- 
 cratically represented in the control of the business 
 carrying their respective investments, this warfare 
 and anarchy are certain to persist. The organiza- 
 tion of business, its terminology and its spirit, must 
 all change if Industry is to fulfill its true mission 
 and be made to reflect a real partnership. 
 
 Industry based on its present competitive, profit- 
 making system creates and sustains bitter strife be- 
 tween different classes in society. Were our vision 
 sufficiently clear, we should see that this struggle 
 Ues at the root of the appalhng upheaval taking 
 place at the present moment between the armies of 
 the world. Unless Industry comes to be viewed as 
 national service, and the profits of Industry are 
 fairly divided between the capitahst, manager, 
 worker, and consumer, we can never hope for in- 
 dustrial peace. The association of Labor and the 
 Community with Capital and Management, in de- 
 termining policy with respect to matters in which 
 each is vitally concerned, is all-important. 
 
 A change from the old order to the new cannot 
 be brought about by a coup de main. There must 
 be a long period of preparation and transition be- 
 
380 INDUSTRY AND HUMANITY 
 
 fore the parties to Industry hitherto unrepresented 
 in control are in a position effectively to exert the 
 powers which even now they are acquiring. Every- 
 thing depends upon whether the orientation of the 
 new world which the War is evolving will or will 
 not be toward this view of society. The basis of 
 society must in time be altered fundamentally if 
 we are to have true national and international 
 peace, and the development of the best quahties of 
 independence and self-respect among all classes in 
 society. 
 
 Faihng achievement of joint-control in Industry, 
 the only alternative is a continuance of conflict of 
 controls. As matters stand at the present time, 
 there is control to a greater or less degree by each 
 of the several parties; but, collectively regarded, it 
 is a control wholly at cross-purposes with itself. 
 Instead of a united control expressive of a har- 
 mony of interests among partners, it is a struggle 
 for supremacy of control, in which the parties are 
 arrayed as opposing forces, conspiring and combin- 
 ing against each other hke so many warring na- 
 tions. A mihtant Trade-unionism claims exclusive 
 right to speak in the name of Labor and to enforce 
 its newly acquired control by the weapon of the 
 strike, regardless altogether of the interests and 
 well-being of Capital, Management, and the Com- 
 munity. An autocratic Management seeks the 
 maintenance of its accustomed control by exercis- 
 
REPRESENTATION IN INDUSTRY 381 
 
 ing arbitrary powers regardless of their social con- 
 sequences, claiming for itself exclusive right in the 
 employment and dismissal of Labor, while denying 
 to Labor the right of membership in associations 
 for its self-protection. A defiant Capitalism asserts 
 its privileged control by thwarting the principle of 
 Collective Bargaining, and circumventing, in divers 
 ways, the Community's right to just treatment in 
 matters of prices and rates. Finally, a State, be- 
 coming more and more Sociahstic, proclaims the 
 Community's long neglected authority by a con- 
 trol which Capital and Management feel is indiffer- 
 ent to their functions. 
 
 Here of a certainty is anything but Round Table 
 Conference; anything but a conception of Partner- 
 ship. The parties to Industry have a voice, and 
 each makes its voice heard; not, however, in the 
 respectful tones of partners, seeking, on a basis of 
 representation, the promotion of a common inter- 
 est. With neither aim nor method in common, each 
 obtains its hearing in virtue only of the injury it is 
 capable of inflicting, or the power or might it is in 
 a position to conmiand. Within individual enter- 
 prises, it is much the same as with Industry as a 
 whole. Instead of a fraternal attitude between the 
 parties, there is too often a sort of disguised truce 
 between Management and Capital on the one side 
 and Labor and the Community on the other. They 
 look at each other, as one writer has expressed it, 
 
382 INDUSTRY AND HUMANITY 
 
 " across No Man's Land," an area of ever-present 
 possible conflict which, in their common interest, 
 ought to be the ground of joint approach. 
 
 Once the thought is grasped that in matters of 
 government in Industry, forms are wholly second- 
 ary, that attitude and spirit are all-important, and 
 that the appUcation of right principles never fails 
 to effect right relations, the real advance will have 
 begun. That is why joint-control, as the funda- 
 mental idea underlying government in Industry, 
 means so much. It emphasizes the common inter- 
 ests and the common aim; it reUeves antagonisms, 
 and it thwarts coercion; it diminishes Fear, and it 
 estabhshes Faith. 
 
 In the absence of representation of all the par- 
 ties to Industry in visible directorates, it does 
 not follow that industry must fail of joint-control. 
 Equal representation in a single directorate is 
 doubtless an ideal to be cherished, since it symbol- 
 izes partnership on a basis as real as it is appar- 
 ent. Joint-control, however, may be effected, and is 
 being effected, in a variety of ways. It is not to be 
 expected that it will become exerciseable at one 
 and the same time as respects all matters pertain- 
 ing to Industry. One day it will be policy as to one 
 feature that will be so decided; another day, it will 
 be pohcy as respects other and wholly different 
 matters. To-day it may be agreement upon a min- 
 
REPRESENTATION IN INDUSTRY 383 
 
 imum wage, or methods of adjusting industrial dif- 
 ferences; to-morrow, it may be the fixation of a 
 trade agreement governing all conditions of em- 
 ployment, between Management and Labor, the 
 rate of return guaranteed to Capital, and the prices 
 at which commodities and services are to be made 
 available to the Conununity. 
 
 Already a substantial though incomplete ap- 
 proach has been made in a direct way, through 
 voluntary agreement and collective bargaining be- 
 tween Capital and Labor, and through the exten- 
 sion of State control over Industry, where it has 
 been carried on jointly with the other parties. 
 Collective bargaining has been confined thus far 
 to two, or at most to three, of the parties to Indus- 
 try. Seldom have the interests of all four had di- 
 rect representation and consideration in common. 
 Where joint-control has been exercised through the 
 State, usually the identity of the parties has been 
 merged in the instrument of government so com- 
 pletely as to be almost lost. 
 
 Because of the blending of pohtical and indus- 
 trial government and the shifting of influence as 
 between the many groups who share political con- 
 trol, it is often very difficult to determine the na- 
 ture and extent of the representation which may 
 actually be effected in this way. There may be an 
 indirect joint-control of Industry, through pohtical 
 control on the part of Labor and the Community, 
 
384 INDUSTRY AND HUMANITY 
 
 just as effective as the direct joint-control by Cap- 
 ital and Management. Even that pernicious form 
 of joint-control known as "invisible government," 
 which Capital in alhance with pohticians has some- 
 times exercised, may be exercised in no small meas- 
 ure by Labor also. Where, in relation to Govern- 
 ment, joint-control is not openly practised, in nine 
 cases out of ten, it is attempted through pohtical 
 intrigue. 
 
 Most of what has been accompUshed through 
 ordinance and legislation by way of regulating 
 hours, wages, sanitary and other conditions of em- 
 ployment, inspecting premises and commodities, as 
 well as what has been effected in the nature of pub- 
 lic ownership and state and municipal control of tar- 
 iffs, rates, and prices, and all of the so-called "social 
 legislation," is expressive of the control of Indus- 
 try exerciseable by the Community through pohti- 
 cal government. Much of it indicates a control by 
 Labor exerciseable in the same way. Management 
 and Capital have sometimes led in promoting this 
 larger control, the actuating motive of which has 
 been the pubhc interest. For the most part, how- 
 ever, their co-operation has been grudgingly given. 
 It is unfortunately true that such control as Man- 
 agement and Capital have exercised through pohti- 
 cal government has been too often of the invisible 
 kind which has sought to obtain or to maintain 
 special privilege, and to block progressive legisla- 
 
REPRESENTATION IN INDUSTRY 385 
 
 tion which subsequent experience has frequently 
 shown to have been to their own advantage. 
 
 Of recent years in British communities and in 
 the United States and other countries, the measure 
 of control exerciseable by Labor in poUtical gov- 
 ernment, and, through pohtical government, in 
 Industry, has vastly increased. It has been mate- 
 rially enhanced by the estabhshment of Depart- 
 ments of Labor in Federal and State governments, 
 and by special recognition of Labor in the Cabinet. 
 Labor's poUtical influence, with its consequent in- 
 fluence upon the government of Industry, has also 
 steadily increased, not alone through a growing 
 consciousness of it^ power to give or withhold sup- 
 port from individuals seeking pubKc office, but also 
 by the election of increasing numbers of represen- 
 tatives from its own ranks to public bodies. 
 
 As Democracy develops, it is altogether probable 
 that the control by Labor and the Community will 
 considerably exceed the control that Management 
 and Capital have exerted in the past. History is 
 continually presenting paradoxes expressive of the 
 underlying order which tends, in the last analysis, 
 to bring all men and things into conformity with 
 itself. It would almost seem that one of these re- 
 markable paradoxes would yet be exemplified in 
 the control of Industry; and that Management and 
 Capital would be driven to extend to Labor and 
 the Community obvious and direct representation 
 
386 INDUSTRY AND HUMANITY 
 
 in joint-control, in order that the mutuahty of the 
 several interests might be the better understood 
 and preserved. Any lesser step means not only 
 continuing strife amongst themselves, on the part 
 of the several interests in Industry, but also in- 
 creasing conflict between pohtical and industrial 
 control, with confusion and loss to all concerned. 
 
 Whether political and industrial government will 
 merge into one, or tend to remain separate and 
 distinct, the one being supplementary to the other, 
 is a moot question. ^ The probabilities are that for 
 years to come they will exist side by side, mostly 
 distinguishable, but, in much, so merged that sepa- 
 rateness will be possible in theory only. Not a little 
 will depend on the readiness of employers to recog- 
 nize the inevitable trend, and on their wilhngness to 
 acquiesce voluntarily in the government of private 
 enterprises being so changed individually and col- 
 lectively as to ensure the necessary representation 
 of all interests. Much also will depend on the de- 
 gree of self-government of which employees find 
 themselves capable. Already the tendency to en- 
 large the scope of political government so as to 
 include also industrial government has gone a long 
 way. On the other hand, the reorganization of 
 private enterprise on the basis of joint-control by 
 
 1 Vide Earl Dean Howard, "The Development of Government in 
 Industry" (Illinois Law Review, March, 1916); also miscellaneous 
 contributions by J . E. Williams, of Streator, Illinois, to the Daily 
 IndependerU Times, 1917. 
 
REPRESENTATION IN INDUSTRY 387 
 
 all four parties has had substantial though small 
 beginnings.' 
 
 Were direct representation in the joint-control of 
 Industry to become at all general in private enter- 
 prises, individually or collectively, it might be ex- 
 pected that by voluntary agreement amongst the 
 parties, standards in Industry which are all-im- 
 portant to the well-being of the several interests 
 would gradually be established. Through com- 
 pulsion, exerciseable under political government, 
 such standards, sooner or later, would come to be 
 the standards of Industry as a whole. Example is 
 a form of leadership in a Democracy, and where it 
 is to the interests of the many to have standards 
 preserved or raised, there is in a Democracy a 
 guarantee of the general adoption of desirable 
 standards which no other form of government af- 
 fords. In this way, a national minimum of human 
 well-being, as nearly in accord with an enlightened 
 self-interest as conditions will permit, is most likely 
 to be attained, and inferior standards effectively 
 prevented from undermining levels of well-being 
 already reached. 
 
 The War, by compelling, as it has, recognition of 
 fundamentals, has disclosed the entke interde- 
 pendence of the parties to Industry. It has made 
 wholly apparent that there are four parties to be 
 
 ' Vide chapter xn, "Education and Opinion." 
 
388 INDUSTRY AND HUMANITY 
 
 reckoned with : not one or two, or, at most, three, 
 as is commonly assumed; and that each has dis- 
 tinct functions and individual rights which, in the 
 interest of all, require to be safeguarded and pro- 
 moted in common. The world has witnessed each 
 of the parties to Industry voluntarily surrender 
 some measure of its exclusive and separatist atti- 
 tude in response to national necessity. In Europe 
 and America alike. Labor has jettisoned many 
 customary restrictions of output, and held in abey- 
 ance its resort to the strike. Capital has brought 
 forth, from nooks and crevices, savings hitherto 
 concealed, and transferred them readily into in- 
 dustries essential to the successful prosecution of 
 the War. It has gladly followed practices of thrift 
 and economy, in order to augment its substance 
 and thereby increase the power of the State. Man- 
 agement has submitted with more or less grace to 
 regulation by Government, as respects the stand- 
 ards to be maintained in Industry, the distribu- 
 tion of business, and even the disposition of its own 
 abilities. Finally, the Conununity, protecting itseK 
 against exploitation, has enacted laws against prof- 
 iteering, regulated the sale and prices of many 
 commodities and services, and given its sanction to 
 all sorts of measures bearing directly upon the well- 
 being of the workers in Industry. 
 
 Not less important than this "getting together" 
 on the part of Labor, Capital, Management, and 
 
REPRESENTATION IN INDUSTRY 389 
 
 the Community, is the motive which has prompted 
 the change in attitude. Each one has come along 
 hke a partner who shares a joint venture and is 
 wilhng and anxious to participate in what he rec- 
 ognizes as a form of national service. Significant 
 beyond all, perhaps, is the method by which the 
 change in attitude has in large part been accom- 
 pUshed. Performance has usually been preceded 
 by conference, and conference, where it has taken 
 place, has been between representatives of the 
 parties concerned. Representatives of Labor have 
 met with representatives of Capital and Manage- 
 ment, and all three have been brought into joint 
 conference under the segis of the Government, 
 representing the Community. The personnel of 
 Commissions and Boards, where appointed to deal 
 with matters affecting Industry, has, as a rule, 
 been composed of representatives of Labor, Capi- 
 tal, Management, and the PubUc. Here, surely, is 
 the principle of Round Table Conference both in 
 theory and practice ! 
 
 Custom hardens quickly; the usages of one gen- 
 eration become the laws of the next. What has 
 been customary practice in time of war may find 
 enduring expression in succeeding years of peace. 
 
 A new attitude has already been assumed by the 
 several parties to Industry, out of which some ac- 
 ceptable form of joint-control is certain to develop. 
 The parties have recognized their distinct functions 
 
390 INDUSTRY AND HUMANITY 
 
 and personalities as never before; they have seen 
 themselves in their true relations to one another, 
 and to the vast interest, opportunity, and service 
 they have in common. The principle of Round 
 Table Conference has been tested, and tried out 
 with success, in the largest affairs of the nation, 
 and under the most extreme circumstances. The 
 principle of Representation has furnished a key 
 wherewith to unlock the door of every difficulty. 
 Leadership alone is now required to give to the 
 whole. development its permanent setting; to take 
 Industry, through all-round partnership, out of 
 the mire of warring factions, bhnded through self- 
 interest and limited vision, into a consciousness of 
 its mighty and beneficent mission. 
 
CHAPTER XI 
 GOVERNMENT IN INDUSTRY 
 
 In working toward a wise evolution of Govern- 
 ment in Industry, the evolution of Government in 
 the State cannot be studied with too much care. 
 We have seen wherein law and order in demo- 
 cratic communities had their beginnings under a 
 system of government which was highly central- 
 ized and autocratic. We were able to ferret out, 
 from the days of WilUam the Conqueror and the 
 early Henrys, juridical devices of one kind or an- 
 other apphcable to present-day relations between 
 the parties to Industry. Out of the elementary 
 principles embodied in those remote pohtical pre- 
 cedents, the elaborate systems of legal justice and 
 judicial procedure of our times have been evolved. 
 It is to the Reign of Edward I that we look for the 
 origin of Parliament. 
 
 To Simon de Montfort, Earl of Leicester, belongs 
 the glory of having been the first to admit within the 
 pale of the British pohtical constitution the really 
 popular and progressive burgher class, which, with 
 the freeholders of the counties, constituted hence- 
 forth the newly developed Third Estate of the 
 realm. In the summoning of De Montfort's famous 
 ParUament which met in London on the 20th of 
 
392 INDUSTRY AND HUMANITY 
 
 January, 1265, writs were issued to all the sheriffs, 
 directing them to return not only two knights from 
 each shire, but also two citizens from each city, and 
 two burgesses from each borough. The innovation 
 of Simon de Montfort in caUing to the central as- 
 sembly elected representatives of the boroughs, 
 completed the formation of the National ParUa- 
 ment on substantially the same basis as it has ever 
 since retained. But its existence during the next 
 thirty years was still precarious. The period 1265 
 to 1295 was one of transition; it is only from the 
 latter year that we can date the regular and com- 
 plete estabhshment of a perfect representation of 
 the Three Estates in ParUament.^ 
 
 In the development of Government in Industry, 
 it would appear that we are to-day in a transition 
 stage closely resembUng that of Government within 
 the State in the reign of Edward I. Here and there, 
 large-visioned employers, lesser or greater De Mont- 
 forts in their way, are calhng to their Industrial 
 Councils representatives of Labor and the Com- 
 munity, as well as of Capital and Management. 
 They are seeking to work out a wise system of joint- 
 control. They have conceded the principle of rep- 
 resentation, not to privileged classes only, but to 
 all who participate in production. In matters per- 
 taining to collective bargaining and the adjustment 
 of disputes, the machinery of representation is now 
 
 , 1 Vide Taswell-Langmead, Eng. Const. Hist., chap. vn. 
 
GOVERNMENT IN INDUSTRY 393 
 
 quite generally employed. It is interesting to ob- 
 serve that, in the State, representative machinery 
 was employed for judicial and financial purposes 
 before its extension to the domain of politics. Once 
 ideas of election and representation became familiar 
 to the nation in matters pertaining to Justice and 
 Finance, it was inevitable that sooner or later 
 their appUcation should extend to participation in 
 matters of Government as well. Is a like sequence 
 not visible in Industry to-day? On all sides there 
 are evidences of the inevitable trend. 
 
 How vast has been the transformation in the 
 relative powers of King, Lords, and Commons 
 since the days of Edward I! Control in poUtical 
 government has widened from absolutism to ex- 
 ecutive authority, broad-based upon a people's 
 will. In progress toward Self-government in the 
 State, three phases of control are clearly dis- 
 tinguishable. The first may be termed that of 
 the Autocratic Executive; the second, that of Rep- 
 resentative Government; and the third, that of 
 Responsible Self-government. The introduction of 
 the idea of Representation opened the way to par- 
 ticipation in Government by all classes. At the 
 outset. Representation was comparatively mean- 
 ingless. It progressed steadily towards greater 
 effectiveness. Ultimately, it succeeded in bringing 
 about the responsibihty of the Executive to the 
 people at large. The evolution has been differently 
 
394 INDUSTRY AND HUMANITY 
 
 achieved in different countries; but in all free 
 countries, there has gradually come about co-oper- 
 ation, in increasing harmony with the collective 
 will, among the several factors comprising Gov- 
 ernment. The broadening of the basis of Repre- 
 sentation marks the evolution by which the bounds 
 of political Liberty have gradually widened. 
 
 "What the ultimate development of Government 
 in Industry may be is necessarily a matter of specu- 
 lation. If its beginnings are a criterion, it would 
 appear that, as regards essentials, its evolution will 
 follow lines parallel to those which have become 
 famihar in Politics. Social Freedom is both poUti- 
 cal and economic. In the last analysis, the situa- 
 tion as regards the exercise of Control in Industry 
 is on all fours with the exercise of political Con- 
 trol. Wherever in affairs of the State, one class has 
 sought to maintain a monopoly of Government, 
 there, sooner or later, conflict has been inevitable. 
 It will be the same in Industry so long as reasons 
 which are identical persist, and human nature does 
 not change. In the struggle for a wider Freedom, 
 mankind will not rest until in Industry, as in the 
 State, Autocratic Government, whatever its form, 
 is superseded by a form of Government representa- 
 tive of all the parties in interest, and, ultimately, 
 by a system the corner-stone of which is Respon- 
 sible Self-Government. 
 
GOVERNMENT IN INDUSTRY 395 
 
 A system of Responsible Self-Government in 
 Industry would be one in which all those who con- 
 tribute aught in the nature of effort toward pro- 
 duction, who make aught of investment either of 
 life or of possessions, would have a voice in control- 
 hng the conditions under which their services are 
 given, and to whom the executive authority, how- 
 ever it might be constituted, would be answerable 
 for the manner in which executive functions are 
 discharged. Whether this evolution of Government 
 will be attained in Industry without the violent 
 revolutions which have marked its course in Poli- 
 tics, will depend upon the degree to which the les- 
 sons of History are taken to heart. 
 
 It is in the nature of things for Privilege to die 
 hard; and Privilege, where it represents monopoly 
 in industrial control, may find the democratizing of 
 Industry as difficult to concede as did ancient aris- 
 tocracies the abolition of their exclusive rights. 
 But principles as fundamental in the one case as in 
 the other will be contended for, and ultimately 
 won; their slow but certain acquisition throughout 
 the world in the realm of Politics is but paving the 
 way for their more rapid attainment in the sphere 
 of Industry. It will be fortunate for Society if the 
 inevitable trend is recognized, and, by a process of 
 natural evolution in Industry which reveals appre- 
 ciation of the possibihties of men to govern them- 
 selves, the world is spared the kind of convulsions in 
 
396 INDUSTRY AND HUMANITY 
 
 Industry which have attended efforts at democratic 
 control within the State. 
 
 Of all conceivable combinations, the most danger- 
 ous to Liberty is that of Industry and the State, each 
 organized on an autocratic basis. The European 
 War has shown the possible consequences of such a 
 combination, now that Industry has become a world 
 concern, and pohtical ambitions have enlarged cor- 
 respondingly. The free nations were not slow to 
 recognize in the world conflict a supreme struggle 
 between Despotism and Democracy. It took some 
 months of the War, however, to make plain that 
 German despotism had been able to perfect its 
 strength through a combination of political and 
 industrial power rendered possible only through the 
 autocratic organization of both Industry and the 
 State. 
 
 Mr. William Roscoe Thayer has shown, in " Ger- 
 many vs. Civihzation,"! with what design and skill 
 this combination of pohtical and industrial autoc- 
 racy was effected for purposes of world conquest; 
 how the Kaiser arranged it so that the Balhns, 
 Krupps, and scores of similar capitalists became 
 the much honored members of the social organ- 
 ism; how Plutocracy married with Aristocracy, 
 and the two became a united force in main- 
 taining the social and pohtical system on which 
 
 ' Houghton Mifflin Company, Boston, 1916. 
 
GOVERNMENT IN INDUSTRY 397 
 
 their own privileged existence depended, and which 
 assigned the highest privileges to aristocrats. 
 
 The combination of Aristocracy and Plutocracy, 
 and the support of their privileged position by 
 Mihtarism, are in no way new. The combination is 
 one to which nations tend constantly to revert, and 
 which, if Freedom is to be maintained, must be 
 checked at all costs. ^ German Imperiahsm, as de- 
 liberately conceived, was nothing but Mihtarism 
 at the service of the aristocratic junker and the plu- 
 tocratic industriahst for purposes of world conquest. 
 To this ambition every institution and ideal was 
 made subservient. All the human and material 
 resources of the German Empire were organized to 
 further this end. The concentration of capital, the 
 co-ordination of wealth, the credit and banking 
 systems, the aids to Commerce and Industry, the 
 whole financial, commercial, and industrial organi- 
 zation, were so inter-related and inter-woven on 
 the model of autocratic control as to constitute 
 one mighty instrument for purposes of industrial 
 and pohtical conquest. Foreign markets were to be 
 gained and foreign territory conquered by force of 
 arms. Additional resources and colonies, the one to 
 furnish fresh suppKes of raw materials to her indus- 
 tries; the other, new fields of settlement for her pop- 
 ulation : these, with an enlarged centraUzed Europe, 
 
 ' Vide Goldwin Smith, Commonwealth or Empire. The Macmillan 
 Co., New York, 1902. 
 
398 INDUSTRY AND HUMANITY 
 
 were the immediate objectives of a ruthless ex- 
 pansion that aimed at industrial and pohtical dom- 
 ination of the entire world. Even Education and 
 MoraUty did not escape the taint. The school was 
 made the ally of the barracks, and Science was 
 most fostered where most closely related to instru- 
 mentaUties of destruction. 
 
 With the pohtical and industrial government of 
 Germany organized on a basis of autocratic control, 
 there spread, of necessity, through the MiUtarism 
 supporting it, the only spirit which MiUtarism can 
 breed: arrogance, at the one extreme; and at the 
 other, subserviency. Mr. Thayer has shown how, 
 all unconsciously, the entire nation took on the 
 pattern of the Prussian army: perfect organiza- 
 tion, perfect disciphne; but accompanied every- 
 where by a behef in Force and the power of Might, 
 and the subordination of the individual to the 
 material ends of the State and its aggrandisement. 
 By a subtle sophistry, the material ends were held 
 up as the spuitual also. 
 
 The bearing of all this upon government of In- 
 dustry in countries where autocracy in pohtical 
 government has long since been overthrown, was 
 passionately expressed in an article in the London 
 "Weekly Times," of February 23, 1917, by a Brit- 
 ish officer who was wounded on the Somme. Por- 
 traying with rare imaginative insight the meaning 
 
GOVERNMENT IN INDUSTRY 399 
 
 of the great world struggle in its relation to modern 
 industrialism, this soldier says: 
 
 "We ought to recognize that the real struggle, in 
 which this war is only an episode, is not merely be- 
 tween our own country and anything so unstable 
 and transitory as modern Germany, but between 
 permanent and irreconcilable claimants for the 
 Soul of Man, and that what makes the German 
 spirit dangerous is not that it is alien, but that it 
 is horribly congenial to almost the whole modern 
 world. For the spirit of German Imperiahsm is too 
 often the spirit of English and American industrial- 
 ism, with all its cult of power as an end in itself, 
 its coarse material standards, its subordination of 
 personality to mechanism, its worship of an elab- 
 orate and soul-destroying organization. And if we 
 feel that the absolute claim of personahty, the pres- 
 ervation and development of spiritual freedom are 
 worth any sacrifice in time of war, we ought equally 
 to feel that they are worth any sacrifice in time of 
 peace." 
 
 How profound the truth and wisdom of these 
 words! The overthrow of Prussian Despotism is 
 only part of the vast undertaking which the free 
 nations of the world have still before them if Free- 
 dom worthy of the name is to be attained. Indus- 
 trial autocracy and pohtical autocracy may go 
 hand in hand, but not autocracy in Industry and 
 democracy in PoUtics. The latter combination is 
 as ill-mated as the former is natural. To the na- 
 tions that have won political freedom, there re- 
 
400 INDUSTRY AND HUMANITY 
 
 mains the task of reorganizing their industries into 
 harmony with their governments. Anything short 
 of harmony means perpetual conflict. Institutions 
 opposed in organization and spirit can only work 
 against each other till one or the other prevails. To 
 democratize Industry, so that along with democ- 
 racy in government there may be a true Industrial 
 Democracy, is the task that hes ahead. 
 
 To achieve a wise evolution of Government in 
 Industry will require time. While History points 
 the way to Freedom, her teachings not less clearly 
 reveal the wisdom of proceeding slowly, and the 
 part which capacity and preparedness play in the 
 accomphshment of enduring reforms. The surest 
 method is that which proceeds step by step, avoid- 
 ing cataclysmic changes, and neglecting no oppor- 
 tunity to unite all parties in effective co-operation 
 towards a common end. 
 
 The growth of the Enghsh Constitution has been 
 concurrent with the growth of ParUament. There 
 is hope for the evolution of Government in Indus- 
 try when it is recalled that the Enghsh Constitu- 
 tion is the first of all free constitutions in age and 
 in adaptability, and has served more or less as the 
 model for all existing constitutions. It is well to 
 remember that its evolution has been wrought out 
 "Une upon hne, precept upon precept, here a ht- 
 tle, there a httle." Taswell-Langmead says: "In 
 
GOVERNMENT IN INDUSTRY 401 
 
 its practical combination of conservative instincts 
 with liberal aspirations, in its power of progres- 
 sive development and self-adaptation to the chang- 
 ing political and social wants of each successive 
 generation, have always lain the pecuhar excel- 
 lence and at the same time the surest safeguard 
 of our Constitution." 
 
 The chaos which, within the past decade, has 
 accompanied the transitions of the ancient abso- 
 lutisms of China and Russia, reveals the nemesis 
 which sooner or later is bound to overtake resist- 
 ance to change. It evidences equally the tragic 
 consequences of a development beyond that for 
 which a people is prepared. The new RepubUcs 
 had their birth in ideas and forces which had been 
 permeating the unnumbered masses of these un- 
 known peoples. The poUtical evolutions of Eng- 
 land, France, and America, had been as leaven in 
 Chinese and Russian thought. It is in the nature 
 of pohtical ferment to work in many directions at 
 once. The change in these ancient monarchies 
 came with a surprising suddenness, and a no less 
 surprising lack of bloodshed. That was because the 
 privileged circle surrounding Autocracy had been 
 narrowing, while the social pyramid had been 
 steadily widening at its base. The overthrow of 
 Autocracy was followed by reactions hardly less 
 sudden, but full of bloodshed. That was because, 
 of all forms of Government, Self-government by 
 
402 INDUSTRY AND HUMANITY 
 
 numbers of men is the highest of hirnian achieve- 
 ments, and is necessarily in the nature of a growth. 
 It is not an inheritance into which a people can 
 enter at will. Attempted evolutions by means of 
 revolution have a significance, as concerns Govern- 
 ment in Industry, quite as considerable as any they 
 have for Government in the State. 
 
 A glance at forms of Industrial Government 
 which are in the nature of protests on the part of 
 Labor and the Community against monopolistic 
 control of Industry by Capital and Management 
 may help to disclose the superior merits of a 
 method of Industrial Government which seeks to 
 improve the existing order by adjustment of the 
 relations of the several parties to Industry in ac- 
 cordance with principles underlying a genuine 
 partnership. 
 
 SociaUsm is, first and foremost, a form of In- 
 dustrial Government. But the term SociaUsm, like 
 the term Co-operation, is so loosely used that, to 
 appreciate its significance in any relationship, it is 
 more or less necessary to define the sense in which 
 it is being employed. As with forms of Co-opera- 
 tion, so with forms of Sociahsm, one merges imper- 
 ceptibly into another. Some times emphasis is upon 
 the spu-it which the SociaUst movement is intended 
 to express; at others, and with greater accuracy, 
 
GOVERNMENT IN INDUSTRY 403 
 
 it is upon a particular form of Industrial Organiza- 
 tion and Government.! 
 
 The social idea, not dissimilar from the co-oper- 
 ative idea, which lies at the one extreme, in no way 
 necessarily conflicts with the organization of In- 
 dustry on a basis which retains the wages system, 
 and which leaves the control of Industry in the 
 hands of those who provide the capital. Socialism, 
 in this sense, means Uttle else than an attempt to 
 carry on Industry in its existing framework in a 
 manner which will cherish and promote a spirit of 
 conscious good-will, and a regard for social well- 
 being among the several parties to production. It 
 differs from the pure individualism of Industry or- 
 ganized on the capitalistic basis, in that Competi- 
 tion, as the determining factor with respect to the 
 wealth produced, is eUminated; and principles of 
 Reason and Justice, determined in advance, are sub- 
 stituted therefor. This is effected by agreement 
 undei" voluntary association. In this form, Social- 
 ism is not distinguishable from Co-operation on a 
 basis of fair dealing toward all concerned, and is 
 reminiscent of the fact that the beginnings of the 
 SociaUst movement are traceable, in part, to co- 
 operators who styled themselves Christian Social- 
 ists. 
 
 Sociahsm, as viewed at the other extreme, means 
 
 ' Vide Aneurin Williams, Co-Partnership and Profit-Sharing; also 
 O. D. Skelton, Socialism: A Critical Analysis. 
 
404 INDUSTRY AND HUMANITY 
 
 the organization of Industry on a basis the opposite 
 of that which admits of private property, and of 
 individuals pursuing, under voluntary association, 
 their own interests in their own way. It imphes the 
 confiscation of all property by the State, the ex- 
 propriation of the present owners of land and 
 capital, and the organization of Industry, not by 
 voluntary association in any form, but by the new 
 owners, namely the State or Municipahty. This 
 method of organization is what is termed Collec- 
 tivism, or the collective ownership by the State of 
 all the instruments of production, and the collective 
 control of Industry. It represents an excessively 
 centralized sort of omnipotent, ever-present State. 
 
 Between the two extremes lies yet a third form of 
 Socialism, which is commonly referred to as Munic- 
 ipal or State Socialism. It does not go as far as Col- 
 lectivism, which would confiscate private property 
 and place Industry in its entirety under State con- 
 trol, nor is it as indifferent to the State's functions 
 as Christian Socialism, the ends of which would be 
 satisfied apart from any state or municipal owner- 
 ship of capital, or control by pubUc authority, so 
 long as the individual workers shared in the owner- 
 ship of capital and the management of Industry. 
 
 Municipal and State Socialism would transfer 
 the title of ownership of resources and the instru- 
 ments of production from private to pubMc control. 
 Direction of Industry might be delegated to some 
 
GOVERNMENT IN INDUSTRY 405 
 
 body appointed by the State, or be carried on by 
 the State as a state enterprise. In the former case, 
 there would be pubhc ownership only; in the latter, 
 public ownership and operation as well. The con- 
 trol by pubhc authority would permit, in each case, 
 of the division of the product of Industry on prin- 
 ciples which the majority have decided to be just 
 and reasonable; but the means whereby this would 
 be effected would be compulsory and not volun- 
 tary. 
 
 Under State or Municipal Sociahsm, it is gen- 
 erally imphed that Government would own and 
 control only such branches of Industry as seem to 
 afford special opportunities or reasons for Gov- 
 ernment Ownership and Control. Such, for ex- 
 ample, are industries in the nature of monopo- 
 lies, either natural, or created by the combina- 
 tion of businesses: railways, telegraphs, telephones, 
 and the transmission of power, Ught, and heat. 
 These are subject to franchise, and from them the 
 element of competition tends to become elimi- 
 nated. The War has demonstrated how suddenly 
 monopolies or quasi-monopohes may be created in 
 all kinds of commodities and services, as, for ex- 
 ample, food, fuel, transportation, and the hke. The 
 need for pubhc control in many such cases has 
 helped to popularize and extend the idea of State 
 Sociahsm as a kind of protection to the common 
 weal. Municipal and State Sociahsm differ also 
 
406 INDUSTRY AND HUMANITY 
 
 from Collectivism in contemplating the alteration, 
 not the abohtion, of the wages system. They are 
 distinguishable from Individualism, not only in 
 ownership and direction of Industry by Govern- 
 ment, but also in the idea that legislation should 
 secure a national minimum of well-being by insur- 
 ance, minimum wage laws, and other means. 
 
 Of recent years, a new movement known as 
 Syndicalism, which had its origin in France, has 
 spread to different parts of the world. It is repre- 
 sented in America and Austraha by an organization 
 which styles itself the Industrial Workers of the 
 World. Its aims are regarded by some as Socialistic, 
 in that it seeks a social control of Industry; but be- 
 cause of its methods, which are revolutionary, and 
 its attitude to poUtical Government, which is one 
 of indifference, the movement is more accurately 
 described as Anarchistic. It advocates the acquisi- 
 tion, by the workers of an industry or trade, of the 
 entire capital needed and used; and the complete 
 administration by them of the industry or trade, 
 possession and control to be obtained through the 
 instrumentahty of the strike, the use of force, or 
 any other available means. It does not, as Social- 
 ism does, look to Government, which is representa- 
 tive of Organized Society, to obtain ownership and 
 control of the instruments of production, and to 
 administer Industry; it looks to the workers, apart 
 
GOVERNMENT IN INDUSTRY 407 
 
 altogether from Government, and regardless wholly 
 of private rights and interests. 
 
 Whilst the aim of SyndicaUsm, in a sense, is an 
 extension, to Industry or Trade as a whole, of the 
 principle of the self-governing workshops, which 
 represented the ideal of the early Christian Social- 
 ists, its methods represent ideals the opposite of 
 those which the Christian Sociahsts cherished. In- 
 stead of the gradual peaceful acquisition of Indus- 
 try by Labor through the spread of education and 
 the growth of intelHgence, prompting thrift and 
 developing capacity on the part of the workers. 
 Syndicalism makes its appeal to the ignorance and 
 prejudice of the masses. It proceeds upon the 
 theory that if acquisition of territory and property 
 is defensible in the case of nations through the in- 
 strumentahty of war, the acquisition of property 
 by force in a trade or business is equally defensible 
 in the case of individuals to the extent of their 
 power or might. The reasoning of the Syndicahsts, 
 generally apphed, would reduce society to a state 
 of Anarchy, which is the absence of all law; it 
 would substitute Might on the part of the workers 
 as the controlhng element in Industry. 
 
 Though the terms are sometimes used inter- 
 changeably. Anarchy and Socialism represent the- 
 ories of Government and of the State the direct 
 antithesis of each other. In their extreme forms, 
 the one recognizes no State; the other, all State. 
 
408 INDUSTRY AND HUMANITY 
 
 In abstract theory, both Anarchy and SociaUsm 
 are defended on the assumption that Labor creates 
 all wealth, and therefore that all wealth belongs 
 to Labor. Moreover, the method sometimes sug- 
 gested of effecting a regime of Sociahsm is that of 
 forcible expropriation by the State, without com- 
 pensation to owners, of all private property, which 
 is the method of Anarchy. Seeming identity of 
 abstract theory and niethod has given rise to a 
 confusion of piupose and aim in forms of social 
 and industrial organization which are diametrically 
 opposed. In discussions upon Socialism, irrespec- 
 tive of the particular form of Socialism to which 
 reference may be made, it is well that important 
 distinctions should be kept in mind. 
 
 The serviceableness of every form of Socialism 
 as a solution of the problems of Industry, and, in- 
 deed, the value of any form of Industrial Organiza- 
 tion and Government, is to be estimated finally by 
 the fears it tends to eliminate and the degree of 
 faith it helps to inspire between the several parties 
 to Industry, Toward whatever begets the social 
 spirit, which those who advocate Socialism be- 
 lieve it will evoke, there can be but one attitude. A 
 community interest, where it is real, and widely 
 diffused, must prove a stimulus to all the parties to 
 Industry. Labor, Capital, Management, and the 
 Community can have no finer incentive than that 
 
GOVERNMENT IN INDUSTRY 409 
 
 of working together toward the one end, the well- 
 being of the Community. All the parties to pro- 
 duction have everything to gain and nothing to lose 
 from the larger productivity which such a spirit en- 
 sures. The acceptance accorded sociaUstic thought 
 and teaching is mainly attributable to a beUef in 
 the power of Sociahsm to evoke such a community 
 interest and spirit. 
 
 As embodied in concrete proposals for indus- 
 trial reorganization, it is at least an open question 
 whether Socialism has justified, or ever will justify, 
 the hopes and expectations of its advocates. War 
 has demonstrated that the perils and necessities of 
 war may help to beget a social consciousness, and 
 lead to changes in social organization consonant 
 with sociaUstic ideals. Whether, without a change 
 of heart, such as the world has not yet undergone, 
 influences other than those of war are capable of 
 maintaining a hke conception of social obligation, 
 has not been proven. War, by compeUing infinite 
 recourse to expedients to keep society up to its 
 utmost endeavor, provides the stimulus necessary 
 for inventing means to this end. Apart from Chris- 
 tian motive, which as yet is unhappily far from 
 being the main incentive in Industry, is there 
 anything except extreme necessity which may be 
 counted upon to do this? Extreme necessity, more- 
 over, is the very thing Sociahsm aims at bringing 
 to an end. The mistake in drawing deductions from 
 
410 INDUSTRY AND HUMANITY 
 
 what takes place in time of war is that war is a 
 wholly abnormal condition, the full cost of which 
 cannot be known till long after it is all over, and 
 not even then. Sociahsm, to be of value, must be 
 an enduring system. As such alone its merits are 
 to be estimated. 
 
 Since Labor constitutes so important a part of 
 the Community, it might seem that the Sociahst 
 State would make a strong appeal to Labor. In so 
 far as Labor may hope for improvement of its 
 condition, it would appear that opportunity might 
 be found under a form of organization in which the 
 Community, in the stead of private individuals 
 or corporations, is the owner of the instruments of 
 production and the controller of Industry. Con- 
 crete proposals are no sooner thought of, however, 
 than the difficulties to which they give rise become 
 apparent. A series of disquieting questions at once 
 suggest themselves. What is the State or the Com- 
 munity apart from the human beings who compose 
 it? Is it to be expected that a change in external 
 methods of organization will alter the inner work- 
 ings of human nature? Are individuals, as pohti- 
 cians, hkely to be better employers of Labor than 
 individuals whose self-interest prompts them to 
 promote Labor's efficiency? Since all cannot per- 
 form the function of Management, and since some 
 such function must continue even in the Sociahst 
 State, who is to do the directing, and who is to 
 
GOVERNMENT IN INDUSTRY 411 
 
 do as he is told? How are the directing and the 
 working forces to be selected; and their respective 
 rewards to be determined? If differences of capac- 
 ity are to be recognized, who is to determine rela- 
 tive merits; and if differences of capacity are to be 
 ignored, whither will the practice lead? How, on an 
 elective basis, are some to control and direct, and 
 others to work under direction and control, and 
 Industry hold its own in the arena of world compe- 
 tition? Is any basis of choice other than the elec- 
 tive feasible; or, indeed, compatible with socialistic 
 ideals? 
 
 Beset by such confusion and alarm, it is not sur- 
 prising that Labor has seen httle to hope for from 
 a change in the social order of the kind Collectiv- 
 ism necessarily involves. Human nature senses the 
 limitations of such a system. Psychologists are 
 agreed that of all instincts, that of ownership is one 
 of the most deeply rooted, and one of the least 
 likely ever to be eradicated. Labor has long since 
 recognized that the Sociahst State is based too 
 largely on a conception of human nature which 
 leaves human imperfections out of account. It 
 sees quite plainly that advocates of SociaUsm in 
 its extreme forms mistake the end for the begin- 
 ning; that they start out with the perfect individ- 
 ual who is to transform an imperfect social order, 
 not with the imperfect individual whom the new 
 social order is intended to transform. 
 
412 INDUSTRY AND HUMANITY 
 
 Nor would capital be less necessary to Industry 
 under Collectivism than it is with Industry or- 
 ganized, as for the most part at present it is, on a 
 basis of pure individuahsm. If the SociaUst State 
 begets fears with respect to Labor's incentive in 
 the matter of effort, what is to be said of the in- 
 centive to thrift and saving necessary to the ac- 
 cumulation of capital and investment? Capital can- 
 not be called into being by order of Government, 
 however powerful Government may be. Capital 
 may be expropriated through taxation or by other 
 means, but such a course is a mere transfer of own- 
 ership, not the creation of new values. Taxation, 
 to be long continued, requires accumulations begot- 
 ten of strong inducements to save. Up to a certain 
 point, the Collective Owner, in the person of the 
 State, might be expected to conserve and save. It 
 would not be long, however, before what was seen 
 to be everybody's business would come to be re- 
 garded as nobody's business, and a serious blow 
 dealt to individual incentive. 
 
 Of Management under a CoUectivist regime, it 
 is hardly necessary to speak. Management might 
 remain readily discoverable, though this is highly 
 improbable. It might even prefer pubhc recogni- 
 tion to personal gain, and wilUngly accept emolu- 
 ment chiefly in the form of opportunity of pubhc 
 service. The difficulties of Management would 
 lie in the successful discharge of the functions of 
 
GOVERNMENT IN INDUSTRY 413 
 
 Management. Uncertainty as respects both Labor 
 and Capital is not calculated to lighten the tasks of 
 Management and to improve productivity. More- 
 over, in initiative, in furthering invention, in intro- 
 ducing' new processes, and in taking the thousand 
 and one risks upon which industrial development is 
 known to depend, the Socialist State would be apt 
 to go either too far or not far enough. It would go 
 too far if in any particular it accorded preference 
 to individuals. It would not go far enough unless 
 every individual with an idea had his chance. 
 
 Apart altogether from the uniform, conventional 
 mould into which a regime of Collectivism would 
 tend to force all men and things, the fears to which 
 the Sociahst State gives rise are clearly sufficient to 
 destroy the faith which any considerable portion of 
 mankind is ever likely to have in Industry organ- 
 ized on such a basis. The War has added to existing 
 fears by demonstrating in the Sociahst State bane- 
 ful possibihties hitherto unrealized. 
 
 The highly centrahzed control exercised by Gov- 
 ernment in Germany, and beheved by the German 
 people to have had its inspiration in a desire for 
 their social well-being, has been revealed as the 
 sine qua non of the miUtarist state: all-serviceable, 
 it is true, in prosecuting war against other nations, 
 but all-dominating, as well, over the hves and des- 
 tinies of the proletariat. Even the measure of ex- 
 tension of State control which the War has induced 
 
414 INDUSTRY AND HUMANITY 
 
 has occasioned the allied nations to question the 
 restrictions and obhgations it has imposed, and to 
 view, from an opposite angle, the possibiUties of 
 unlimited control by the State; or, in other words, 
 unlimited control by the Government of the day. 
 
 It may be said of Socialism as practically appUed 
 in the modified forms known as Municipal and 
 State Sociahsm, that the absence of competition 
 makes it difficult to estimate whether industrial 
 processes so conducted are as efficient as they 
 should be, or whether the output is all that it other- 
 wise might be. Deficiencies in these particulars are 
 offset in the minds of the Community by the feeling 
 of general satisfaction which comes from all sharing 
 more or less ahke, and from the thought, congenial 
 to human natiu-e, that some individuals are not, as 
 is often supposed, reaping vast personal gains at 
 the expense of their fellows. 
 
 Labor, as a rule, is readily available for munici- 
 pal and state enterprises in the nature of public 
 utiUties and natural monopolies. Public bodies 
 are in a position more or less to disregard consider- 
 ations of economy of which private concerns neces- 
 sarily take account. Especially where competi- 
 tion is eUminated, is it possible to fix standards of 
 wages and working conditions which satisfy Labor; 
 whilst the knowledge that the employer is the pub- 
 lic, not a private individual, or the sole employer 
 
GOVERNMENT IN INDUSTRY 415 
 
 as under Collectivism, begets in Labor a sense of 
 security of tenure and just treatment which some- 
 times is wanting under conditions of competitive 
 employment. 
 
 For enterprises of this class, capital, for the most 
 part, is also readily obtainable. If it cannot be se- 
 cured by loan, it can be raised by taxation, which 
 is possible so long as the different undertakings 
 financed by public bodies are not too numerous, 
 and are confined to those specially adapted to 
 Public Ownership. Management, too, is usually 
 available, since the office it enjoys is a quasi-pub- 
 lic one, carrying with it certainty of reward and 
 tenure, as well as perquisites, and a degree of 
 personal consideration and recognition. Manage- 
 ment, moreover, in the case of pubUc utilities, is 
 not so much discoverable, as already known and 
 proven. 
 
 Industries publicly owned are most frequently 
 acquired by Municipalities or the State after they 
 have reached a high order of efficiency under 
 private management. Where pubhcly operated, 
 they have very often the helpful example and 
 stimulating rivalry of privately conducted con- 
 cerns. Altogether, therefore, favorable conditions 
 may well make probable an enduring measure of 
 success to certain kinds of municipal and state 
 enterprise. It is, however, a success essentially 
 conditioned upon favoring circumstances. 
 
416 INDUSTRY AND HUMANITY 
 
 The protest of a militant Trade-Unionism against 
 the exclusive control of Industry by Capital and 
 Management has found expression in a desire for 
 control quite as exclusive on the part of Labor, 
 in what the promoters of the movement term a 
 system of National Guilds. It is described as "a 
 system of industrial democracy in which the work- 
 ers will control Industry in conjunction with a 
 democratized State." ^ "The workers themselves 
 supplant capitahsm in the control of production." 
 Labor, instead of organizing itself sectionally 
 within particular industries, is urged to have regard 
 only for Industrial Unionism, and to unite in one 
 great society all the workers in each industry; that 
 is to say, to organize in one union the workers 
 in all the branches of a particular industry. The 
 ideal of National Guilds is self-governing associa- 
 tions of workers arising out of the Trades Unions 
 and controlUng Industry in conjunction with a 
 democratized State. Industrial unionism and con- 
 trol are to go together, each giving momentmn to 
 the other. Thus organized, the workers are to seek 
 control of the industry, not by the State, as under 
 Sociahsm, but by the Union with the aid of the 
 State. As the representative of the consumers, the 
 State is to be brought into sympathetic alUance in 
 effecting the complete overthrow of Capitahsm, 
 thereby estabUshing " a system by which the control 
 
 * G. D. H. Cole, Self-Gcnemmerd in Industry, p. 4- London, 1918. 
 
GOVERNMENT IN INDUSTRY 417 
 
 of Industry might be shared between the organiza- 
 tion of producers and consumers, so as to safe- 
 guard the interests of the community of consumers, 
 and at the same time to give the workers freedom 
 to organize production for themselves." National 
 Guildsmen maintain that only in this way can 
 Labor come into its own, and be freed from the 
 "tyranny" of Capital which exists under Indus- 
 try as at present conducted and from the bureau- 
 cratic control which becomes a substitute for cap- 
 itahstic domination, where Industry is controlled 
 by the State and CapitaUsm in any form is per- 
 mitted to flourish. |J 
 
 It is interesting to observe that the National 
 Guild movement places itself in opposition to So- 
 ciaUsm, though it recognizes the State, representing 
 the Consumers, as a necessary partner, along with 
 Labor, in Industry. Like Socialism, it would rule 
 out Capital's place for consideration in joint-con- 
 trol, but, as the predominant factor in control, it 
 would substitute Industrial Unions for the State. 
 In protesting against an actual monopoly of con- 
 trol by Capital under Capitalism, and a possible 
 monopoly of control by the State under Socialism, 
 it would establish a monopoly of control by Labor 
 under Unionism. This is a natural reaction. It rep- 
 resents the extreme of the protest by a miUtant La- 
 bor Unionism against the monopoly of control by 
 Capital, just as Collectivism represents the extreme 
 
418 INDUSTRY AND HUMANITY 
 
 of the protest by an aggressive State Socialism 
 against the monopoly of capitahstic control. 
 
 Industrial Unionism and Collectivism are alike 
 in that each would oust CapitaUsm by setting up a 
 monopoly of its own. Of the two. National Guilds 
 under Industrial Unionism would probably go far- 
 ther in the direction of estabhshing a complete mo- 
 nopoly of control than would the State under So- 
 ciahsm. Industrial Unionism mistrusts the State 
 owing to the possible influence of Capital. Social- 
 ists, whilst giving the State — in other words 
 the Community — preponderating control, are in- 
 chned to pin their faith to Labor, and to look to 
 Labor, under a Sociahst regime, as being well-nigh 
 identical with the State. 
 
 It is clear that the National Guild movement 
 rules out altogether the idea of partnership. There 
 can, in the nature of things, be no relationship be- 
 tween partnership and monopoly. The one stands 
 for joint-control, the other for single control. Sin- 
 gle control, whether it be by Capital, Management, 
 the State, or Labor, sooner or later means auto- 
 cratic control. Whether Labor as the Autocrat 
 would be better for Industry, considered either as a 
 revenue-producing process or as an instrument of 
 social well-being, than Capital, Management, or 
 the Community, is a question that may well be left 
 to Labor itself. Perhaps nothing would better serve 
 to reveal fundamental limitations than a brief ex- 
 
GOVERNMENT IN INDUSTRY 419 
 
 perience of this kind of monopoly. It would soon 
 be discovered that Autocracy in any form is a mis- 
 take; and that the protests separately made by the 
 other parties to Industry against domination on 
 the part of Capital, or of the State, or of Labor, are 
 evidence of an abiding conflict with monopoly irre- 
 spective of the party by which it is exercised. 
 
 National Guildsmen say: "The alternative to 
 Trade Union control of Industry is control by 
 Capitahsm, either directly or through its servant, 
 the CapitaUst State." Is this, in fact, the only pos- 
 sible alternative? Is there not the alternative of 
 joint-control by all the parties to Industry? In- 
 deed, the only rational and enduring solution of the 
 problem of industrial government would appear to 
 be a joint-control by all, where parties possess func- 
 tions which are separate and distinct, but which at 
 the same time are essential and interdependent. 
 
 Whilst it is unUkely that SociaUsm in the form of 
 the omnipotent and ever-present State, or Indus- 
 trial Unionism controUing Industry in conjunction 
 with a democratized State, will ever permanently 
 succeed the present order, it is altogether probable 
 that CoUectivist ideals, and in particular what they 
 represent of the community idea and improvement 
 in the status of Labor, will vastly expand their in- 
 fluence in the years to come. This is but continuing 
 a natural evolution which experience has whoUy 
 
420 INDUSTRY AND HUMANITY 
 
 justified. A belief in the wisdom and justice of a 
 measure of State interference succeeded the older 
 conception of laissez faire, which looked to unre- 
 stricted competition as the ideal in matters of 
 industrial organization. Regulation, especially as 
 respects a minimum of social wfeU-being, is more 
 and more the accepted order of to-day. 
 
 What would appear as most likely to happen is 
 that managers, investors, and workers ahke will be 
 obliged to yield an increasing measure of interest 
 and control to the Community. The function of 
 Government in Industry will cease to be monopo- 
 Kzed by any one or two or three of the parties, and 
 will be shared by all, in ever-increasing measure 
 of equahty. Whilst Industry may continue chiefly 
 a matter of individual enterprise, kindred enter- 
 prises will more and more coalesce and expand. 
 The status of the wage-earner in the control of 
 Industry will gradually rise toward equahty with 
 that of the investor. Labor's voice will become 
 correspondingly important and authoritative. 
 
 Any development which tends to equaUze Con- 
 trol between all the parties is promoting Partner- 
 ship in Industry. Simultaneously, it is helping to 
 evolve genuine Industrial Democracy. If one stops 
 to analyze what Control signifies, it will be seen 
 that, in a very real sense, all Control is in the nature 
 of Ownership. To own a thing is to have the right 
 to control it. Ownership apart from control is a 
 
GOVERNMENT IN INDUSTRY 421 
 
 negative kind of possession ; control with or without 
 ownership is a positive one. Pubhc Ownership and 
 Public Employment do not of themselves bring 
 about any unity of the interests of the worker with 
 those of the pubhc body which employs him. Some 
 direct interest in the results, and some special rep- 
 resentation of the workers actually employed are 
 essential, even in a pubhc enterprise, if individual 
 effort and individual freedom are to be maintained. 
 
 The ideal of Joint-Control of Industry, as re- 
 spects both individual enterprises and Industry 
 as a whole, would doubtless be control by Labor, 
 Capital, Management, and the Community, equally 
 represented on what would be the equivalent of in- 
 dustrial dhectorates, and enjoying an equal voice 
 in round table conference. By such dh-ectorates, 
 pohcies would be framed and agreements reached 
 as the result of discussions in which thought of the 
 common interests of the several partners in Indus- 
 try would be uppermost, just as, in a Cabinet, 
 expression is given to the common interests of a 
 nation. 
 
 The form of industrial organization, and even 
 the immediate ownership of the instruments of 
 production, are wholly secondary to Control. If the 
 contributing factors to production. Labor, Capital, 
 Management, and the Community, were to con- 
 stitute a Directorate of Partners, what any one or 
 all actually owned of the instruments of production 
 
422 INDUSTRY AND HUMANITY 
 
 would be unimportant as compared with the degree 
 of control which each exercised over the workings 
 of Industry and its results. 
 
 Few men have done more to preserve popular 
 liberties and to advance constitutional government 
 than the illustrious statesman John Pym. He was 
 returned in 1614 to the House of Commons at 
 Westminster by men who represented the deter- 
 mined spirit of the nation against the unscrupulous 
 and arbitrary behavior of James I. He was im- 
 prisoned by James for joining with other members 
 in protecting the privileges of the House against 
 the King's disregard of Parliament. He eloquently 
 supported the Petition of Right in protest against 
 the concession of sovereign power to Charles II. In 
 the Long Parhament he denounced unsparingly the 
 arbitrary proceedings of the Government. It was 
 he who characterized the Earl of Stafford as "the 
 greatest enemy to the liberties of his country, and 
 the greatest promoter of tyranny that any age had 
 produced," and who, when the Commons decided 
 on Stafford's impeachment, carried the message 
 to the bar of the Lords. It was he also who exposed 
 in Parhament the design of Charles to bring up the 
 army to overawe the dehberations of the Commons. 
 He decUned to lessen his independence by accept- 
 ing, at the instance of the Crown, the Chancellor- 
 ship of the Exchequer. Because of this refusal, he 
 
GOVERNMENT IN INDUSTRY '423 
 
 was named by royal message one of the five mem- 
 bers in an impeachment which helped to provoke 
 the Civil War. Of this impeachment Macaulay has 
 said: "It is difiicult to find in the whole history of 
 England such an instance of tyranny, perfidy, and 
 folly." 
 
 Speaking of the principles which underhe all free 
 government, Pym said: "That form of govern- 
 ment is best which doth actuate and dispose every 
 part and member of the State to the common 
 good." 
 
 No more splendid maxun of Government has 
 ever been devised. Were Pym's words so trans- 
 posed as to be made apphcable to Industry, the 
 maxim would read: That form of Government in 
 Industry is best which doth actuate and dispose every 
 part and member to the common good. 
 
 Labor, Capital, Management, and the Commu- 
 nity: these are the parts and members of Indus- 
 try. They are the partners in Industry, partners in 
 individual enterprises, partners in Industry as a 
 whole. Self-government in Industry worked out 
 on some basis of adequate representation of all the 
 partners should prove as nearly perfect as any 
 form of Industrial Government it is possible to 
 conceive. 
 
 There is an important distinction between a Di- 
 rectorate and a Management, and it is in the form 
 
424 INDUSTRY AND HUMANITY 
 
 of a Directorate, not as a Management, that a 
 more eqmtable distribution of the control of Indus- 
 try among all its contributing factors is to be de- 
 sired. The function of a Directorate is to create 
 and lay down poUcies, and to find ways and means 
 of providing what is necessary to carry them out. 
 The function of Management is to see that the 
 poUcies determined upon are executed in accord- 
 ance with the spirit by which they are actuated. 
 Once the right relationship of a Directorate to a 
 Management is grasped, the possibihties of Indus- 
 trial Directorates become more apparent, and the 
 whole problem of Government in Industry is re- 
 lieved of many of its embarrassing features. 
 
 The method of conducting pohtical Government 
 in free communities helps to make clear the essen- 
 tial difference between the functions of a Directo- 
 rate and a Management. Government in the State 
 is divided between bodies which make the laws, 
 and bodies which execute them. In other words, 
 there are two main functions in Government : the 
 one legislative, the other executive. In the British 
 Isles, and throughout the self-governing Dominions 
 of the British Commonwealth, the central law- 
 making body is styled Parliament; in America it is 
 spoken of as Congress. Parhament and Congress 
 through legislation define what may or may not be 
 done by men in their relations as citizens. They do 
 not attempt, however, to carry out their own poll- 
 
GOVERNMENT IN INDUSTRY 425 
 
 cies, or to execute the laws they enact. The work of 
 Executive Administration is left to salaried officers, 
 composed, in the countries mentioned, of the Head 
 of the Nation and his Cabinet, the Civil Serv- 
 ice, and the Judiciary. Within the limits prescribed 
 by law, the authority of the Executive in all its 
 branches is supreme. Without permitting wide dis- 
 cretionary authority to the individuals chosen to 
 administer and execute the laws, and without re- 
 servmg to them ample power to give, and to com- 
 pel obedience to orders, it would be impossible for 
 the business of Government in the State to be 
 carried on. 
 
 Because Management exercises what is essen- 
 tially an executive function, it does not foUow that 
 Management may not also be a part, and, for that 
 matter, the most important part, of the Direc- 
 torate which shapes pohcy. Though differing in 
 many particulars, both the British and the Ameri- 
 can constitutions afford conspicuous examples of 
 the exercise of this dual function by the Executive. 
 Under the workings of both, the National Execu- 
 tive sees to the effective enforcement of poUcy and 
 laws. Under both, however, the Executive, in the 
 exercise of its control, is itself controlled by the will 
 of the people as a whole. 
 
 If Government in Industry were to undergo a 
 transition similar to that effected in the evolution 
 of Government in the State, Management need not 
 
426 INDUSTRY AND HUMANITY 
 
 be robbed of any of its necessary measure of con- 
 trol. Its function in Industry would continue to 
 correspond with that of the Executive in the State. 
 As in the case of the State, the distinction in In- 
 dustry between legislative and executive powers 
 would become more and more clearly marked. The 
 executive would be rendered more and more re- 
 sponsible to the body which has to do with the 
 shaping of pohcies. In the case of Industry, this 
 body would be the Directorate representative of 
 Labor, Capital, Management, and the Commu- 
 nity, with Management advising, and often dictat- 
 ing to, the other constituent elements, just as under 
 the British constitution, the Prime Minister and 
 his Cabinet, and under the American constitution, 
 the President and his Cabinet, notwithstanding 
 that their primary function is executive, advise, 
 and, within bounds, dictate to ParUament and 
 Congress respectively. 
 
 If in the coiu"se of industrial evolution something 
 resembhng the system of Representative and Re- 
 sponsible Government in the State is to be effected 
 in Industry, the evolution is certain to be gradual 
 and wholly intermittent. It will come in industries 
 individually before it extends to Industry collec- 
 tively. It will find expression now in this individ- 
 ual enterprise and trade, now in that; here in one 
 group of aUied trades and industries, there in an- 
 other and wholly different group; and the men who 
 
GOVERNMENT IN INDUSTRY 427 
 
 help to promote a peaceful development are the 
 men whom History will honor. 
 
 The appUcation of principles underlying Part- 
 nership, on which all the rest is founded, need not 
 await the day of equal representation of the four 
 partners on Industrial Du-ectorates. A frank recog- 
 nition of the fact that there are four parties to In- 
 dustry, instead of one, or two, or three, and that 
 each is entitled to a voice with respect to conditions 
 affecting itself; and an equally frank acceptance of 
 the principle of round table conference through 
 representation, as the best of methods of arriving at 
 a common pohcy, are all that is necessary to start 
 the machinery of Government in Industry in the 
 right direction. Necessary adjustments will readily 
 disclose themselves, and perfecting processes can 
 be worked out as time and occasion permit. 
 
 Nor in the effort to further Self-Government in 
 Industry, is it necessary to fashion all develop- 
 ments in one and the same mould. It will serve our 
 day and generation if, in the making of necessary 
 adjustments, we are true to the broad conception 
 of Industry as a joint venture in which there are 
 the four partners, each interested in the joint prod- 
 uct, and each concerned in rendering a much 
 needed social service. Progress hitherto has been 
 impeded through a false emphasis, by one or other 
 of the parties, upon a sole right of control; and by 
 
428 INDUSTRY AND HUMANITY 
 
 a forgetting that Industry is something more than 
 a revenue producing process; that it is a form of the 
 highest social service as well. 
 
 The day of ultimate achievement may be far off, 
 but the ideal, if it does nothing more than enlarge 
 our range of vision, serves a useful purpose. It is 
 sufficient, for the present, to comprehend that a 
 Constitution is in the process of making. The ex- 
 pression in words of the Constitution Industry has 
 already won will do much to promote the develop- 
 ment of harmonious and just relations between the 
 parties to Industry. 
 
 The Magna Charta, the Petition of Right, and 
 the Bill of Rights, constitute, in the words of Lord 
 Chatham, "the Bible of the EngMsh Constitution." 
 Taswell-Langmead has pointed out ^ that in each of 
 these docmnents, whether it be of the thirteenth 
 or of the seventeenth century, is observable the 
 common characteristic of professing to introduce 
 nothing new. Each professed to assert rights and 
 Uberties which were already old, and sought to 
 redress grievances which were for the most part 
 innovations upon the ancient liberties of the peo- 
 ple. Is the time not now at hand when, out of 
 rights universally recognized and liberties gen- 
 erally conceded, an Industrial Constitution can be 
 framed which will serve to all the parties to Indus- 
 try as a bulwark of freedom in the period of transi- 
 
 ' Eng. Const. Hist., p. 79. 
 
GOVERNMENT IN INDUSTRY 429 
 
 tion through which even now we are passing, and in 
 distant years to come? After all, have we, perhaps, 
 not reached the stage in the evolution of govern- 
 ment in Industry where we can apply to those 
 highest in authority the dignified utterances of Sir 
 Edward Coke? "Was it ever known that general 
 words were a sufficient satisfaction for general 
 grievances? The King's answer is very gracious; 
 but what is the law of the realm? that is the ques- 
 tion. I put no diffidence in His Majesty; but the 
 King must speak by record, and in particulars, and 
 not in general. Let us put up a Petition of Right; not 
 that I distrust the King, but that I cannot take his 
 trust, save in a parUamentary way." 
 
CHAPTER XII 
 EDUCATION AND OPINION 
 
 The final word in the solution of the problems of 
 Industry lies with an educated and intelligent Pub- 
 lic Opinion. The fundamental assumption of pop- 
 ular government is the control of poUtical affairs 
 by an opinion which is truly public. ^ EnUghten- 
 ment of Opinion is a matter of Education. Only 
 through the agencies of Education and Pubhc 
 Opinion may we hope for a general acceptance of 
 the conception of Industry as being in the nature of 
 pubhc service, and for the change of attitude in the 
 relations of its parties consequent upon a beUef in 
 common as contrasted with opposed interests. Only 
 through Education and Opinion supplementing all 
 that Invention and Government may be able to do, 
 can general apphcation of principles underlying 
 Peace, Work, and Health be assured. 
 
 The renovation of nations, says Wilham James, 
 begins always among the reflective members of the 
 State, and spreads slowly outward and downward. 2 
 The thinkers, the teachers, the spiritual and politi- 
 cal leaders, the practical idealists in business, hold 
 a country's future in their hands. How to trans- 
 
 ' Lowell, Public Opinion and Popular Government, p. 12. J 
 ' Talks to Teachers on Psychology, p. 3. 
 
EDUCATION AND OPINION 431 
 
 mit the force of individual opinion and preference 
 into public action has been described as the most 
 difficult and the most momentous question of Gov- 
 ernment. Intricate as it may appear, in the midst 
 of dire necessity and surrounded as we are by the 
 controversy of contending forces, we must "find a 
 way or make it." 
 
 In the affairs of men and nations, no influence 
 has yet equalled that of example. Nor could it well 
 be otherwise. Example focusses attention, and it 
 is through attention that perceptions become trans- 
 muted into knowledge and action. Especially do 
 men gain confidence with respect to any method 
 they are using when they beheve that it has the 
 support of theory as well as of practice. 
 
 The whole history of industrial relations, from 
 the simple and immediate contacts of the old do- 
 mestic system to the most highly developed forms 
 of collective bargaining between organized groups 
 of employers and workers, might be drawn upon for 
 purposes of illustration of the apphcation to In- 
 dustry of principles underlying Peace, Work, and 
 Health.^ To appreciate the Trade-union move- 
 ment at its true value, it is necessary to understand 
 
 ' The reader's attention is directed to a volume entitled Law and 
 Order in Industry, by Julius Henry Cohen. (The Macmillan Co., 
 New York, 1916.) The account it contains of what has been accom- 
 plished in the garment-making industries through coUeotive bar- 
 gaining and the introduction of juridical methods of adjusting con- 
 troversies is illuminating and instructive. The book is a valuable 
 contribution to this most important subject. 
 
432 INDUSTRY AND HUMANITY 
 
 that what it aims at fundamentally is the establish- 
 ment and maintenance of labor standards, and the 
 introduction into Industry of an effective proce- 
 dure for the settlement of all matters requiring 
 adjustment. Where Trade-unionism has departed 
 from this aim, it has prejudiced its own position. 
 
 Like every other great movement. Trade-unionism 
 has had its weak apostles, and has at times adopted 
 pohcies which, to say the least, have been inimical 
 to progress. Delays and restrictions in output, the 
 monopoly of the closed shop, interference by vio- 
 lence with the liberty and rights of non-union men 
 and women, are practices which have brought 
 Trade-unionism into disfavor with many who, 
 apart from anti-social pohcies of the kind, would 
 have been the first to recognize the merits of a 
 movement founded upon principles of voluntary 
 association and mutual aid. It may not excuse 
 Unionism, but it is at least an explanation, in a 
 measiu'e, that there is not one of these obnoxious 
 practices which has not found its counterpart in 
 pohcies of some employers and of some employers' 
 associations, pohcies in no way less degrading to 
 all who adopt and submit to them. Cutting down 
 wage-rates where output is increased, interfering 
 with the right of legitimate organization, and the 
 employment of spies are practices quite as repre- 
 hensible on the part of Capital and Management 
 as the methods which have brought disrepute to 
 
EDUCATION AND OPINION 433 
 
 Trade-unionism. Both are a part of the warfare 
 of Labor and Capital which belongs to the reahn of 
 ignorance and fear, and neither can have a place in 
 any enhghtened order of relations between them. 
 When allowances are made for mistakes on both 
 sides, and recriminations avoided, it must be con- 
 ceded by all who take an impartial view of the 
 factors of progress that Labor owes to the Trade- 
 union movement more than it is possible to express 
 in words. 
 
 It would be immensely valuable, did space per- 
 mit, to cite, from joint agreements between organ- 
 izations of Labor and Capital, examples of the ap- 
 phcation of the principles enunciated in this book. 
 As within the bounds of so hmited a treatise it is 
 not possible more than to sketch the merest out- 
 lines, I must content myself, for purposes of illus- 
 tration, with examples which may be regarded as 
 signifying the inception and the growth of an im- 
 portant development in Grovernment in Industry. 
 I shall leave it to the reader who is eager for men- 
 tion of the object of his particular devotion, to 
 supplement in thought numerous examples which 
 will come readily enough to mind. 
 
 I take from the United States, as the one ex- 
 ample, the plan of representation of employees of 
 
434 INDUSTRY AND HUMANITY 
 
 the Colorado Fuel and Iron Company, inaugurated 
 in 1915; and from Great Britain, as the other exam- 
 ple, the Joint Standing Industrial Councils, recom- 
 mended in the Whitley Report of 1917-18. The 
 principle of Joint Standing Industrial Councils has 
 been approved by the Parhamentary Committee of 
 the Trades-Union Congress of Great Britain, and 
 by a large number of representative employers' 
 associations and Trades Unions; and the proposals 
 of the Whitley Report have been adopted by the 
 Government of Great Britain as the corner-stone of 
 its industrial reconstruction policy. Of these exam- 
 ples, I choose the former for purposes of illustra- 
 tion, because it has to do with an industry which 
 is still confronted with what may be termed "fron- 
 tier conditions"; and I select the latter because it 
 has to do with the most highly developed organi- 
 zation of Labor and Capital to be found anywhere 
 in the world. I have a further reason for the 
 choice. The Plan of Representation of Employees 
 of the Colorado Fuel and Iron Company was put 
 into operation by the Company while I was en- 
 gaged upon an investigation of industrial relations 
 under the auspices of the Rockefeller Foundation. 
 Without request or suggestion from any soiu"ce, I 
 visited Colorado at the time, and was permitted 
 by the management of the Company and its di- 
 rectors the freest kind of opportunity to study con- 
 ditions, and to present constructive ideas. Of the 
 
EDUCATION AND OPINION 435 
 
 Colorado development, therefore, I know whereof 
 I speak. As for the Whitley Report, I beheve its 
 recommendations represent the most statesman- 
 like proposals thus far made for the future of In- 
 dustrial Government. 
 
 The Colorado Fuel and Iron Company is the 
 largest industrial enterprise in the State of Colo- 
 rado; it is one of the important industries of Amer- 
 ica. It operates coal mines in twenty or more 
 Colorado communities, iron mines in the State of 
 Wyoming, and an extensive steel plant at Pueblo, 
 Colorado. It employs between ten and twelve 
 thousand men, pretty evenly divided between the 
 mines and the Steel Mills. The men at both the 
 mines and the mills are of many nationahties. 
 Prior to the War, only 21 per cent, of the employees 
 at the mines were native Americans (14 per cent, 
 white and 7 per cent, colored), 26 per cent, were 
 Itahans, 17 per cent. Mexicans, 12 per cent. Aus- 
 trians, 8 per cent. Greeks, and 16 per cent, a mix- 
 ture of other nationalities, including English, 
 Scotch, Welsh, Russian, Pohsh, Swedish, Spanish, 
 German, Hungarian, Bulgarian, Roumanian, etc., 
 etc. Of the employees at the mills, a much larger 
 percentage are native Americans. 
 
 The mining camps of the Colorado Fuel and Iron 
 Company are largely in districts unorganized mu- 
 nicipally. Until recently, living conditions in most 
 
436 INDUSTRY AND HUMANITY 
 
 of them were such as are to be found in frontier 
 settlements. Houses and shacks stood in rows 
 unenclosed, or were scattered in clusters about 
 the canyons and prairies. There was Httle in the 
 way of pubhc control. Law and order was main- 
 tained for the most part by Company officials. 
 Stores, churches, boarding-houses, places of amuse- 
 ment, all were owned or assisted by the Com- 
 pany. This condition of affairs owed its origin, not 
 to any desire or determination on the part of the 
 Corporation to be feudahstic or paternal; it was 
 simply that, except for the Company's interest in 
 such matters, facilities of the kind would not have 
 been provided in the locahties where the mines 
 were situated, or, if provided, would have been 
 furnished in all hkehhood by agencies given to ex- 
 ploiting the necessities and weaknesses of wage- 
 earners in isolated communities. Pioneering in 
 industry, hke all forms of pioneering, is necessarily 
 accompanied by much in the way of autocratic 
 control. Especially has this been the case in the 
 unsettled West. It is difficult, till a population 
 ceases to be migratory and becomes more or less 
 stationary, to promote industrial development by 
 democratic means. 
 
 Authority necessarily exercised in an absolute 
 manner in any one direction is apt to become more 
 or less arbitrary in all. Especially is such the case 
 where authority is delegated. To this rule the 
 
EDUCATION AND OPINION 437 
 
 mines of Colorado were no exception. Living and 
 working conditions alike were regulated by au- 
 thority. Conference of any kind with Labor played 
 little or no part. Mine superintendents and pit 
 bosses, however well or ill-disposed, were pretty 
 much a law unto themselves. Management exer- 
 cised a control over its subordinates, but the voice 
 of Management was the one and only voice. Even 
 Capital was hesitant in assuming authority with 
 respect to labor poUcies. The Community, where 
 it was organized and cared to exercise its power of 
 control, was not without a voice, as, for example, in 
 the enforcement of the mining laws respecting 
 safety and accident, hours of labor, and the hke. 
 Except, however, where hving and working con- 
 ditions came within the scope of some State en- 
 actment, the Community made no attempt to 
 control, and these matters were left to Company 
 regulation, and to Company regulation exclusively. 
 Labor's attitude, so long as work was plentiful, was 
 supposed to be that of "being seen and not heard." 
 Nor were these conditions pecuUar to any one 
 company. They were more or less characteristic 
 of every hke concern. They are conditions common 
 to most industries which venture into unsettled 
 regions and grow up under pioneering conditions. 
 Indeed, they are conditions that persist to-day in 
 multitudes of industrial estabhshments every- 
 where. 
 
438 INDUSTRY AND HUMANITY 
 
 In 1915, the Colorado Fuel and Iron Company 
 deliberately adopted a wholly new attitude in the 
 matter of its industrial relations. It changed its pol- 
 icy from one of exclusive control on the part of Man- 
 agement to one of recognized joint-control on the 
 part of the four parties to Industry: Capital, Man- 
 agement, Labor, and the Community. Wherever 
 with prudence it seemed possible to substitute a re- 
 lationship of joint-control by the several parties for 
 the one of exclusive control by Management, a be- 
 ginning in the new kind of relationship was made. 
 
 Assuming the responsibiUties as well as the priv- 
 ileges of a shareholder, Mr. John D. Rockefeller, Jr., 
 went from New York to Colorado to participate in 
 person in the inauguration of the new pohcy. He 
 met the miners in their homes, at the working face 
 in the mines, and in open meeting at several of the 
 camps. To one and all he dehvered the same mes- 
 sage. "They tell you," he said, referring to popular 
 comment on the disturbances of a few months pre- 
 vious, ' ' that we are enemies. I have come here to tell 
 you that we are not enemies, but partners. Labor 
 and Capital are partners, not enemies. Neither one 
 can get on without the other. Their interests are 
 common, not antagonistic." 
 
 And so the new pohcy of Partnership was an- 
 nounced. It was not permitted to evaporate in 
 words. The principle of Representation was made 
 the basis of a plan of goverrmient within the Indus- 
 
EDUCATION AND OPINION 439 
 
 try, which covered every phase of the Company's 
 relations with its employees, and took cognizance, 
 as respects possible readjustments, of the existence 
 of four parties to Industry, and of their common 
 interest in a joint venture. An Agreement in the 
 nature of a Collective Bargain respecting Employ- 
 ment, Living, and Working Conditions was drawn 
 up between Management and Labor, and signed 
 by the representatives of each. 
 
 In addition to a formal statement of terms of 
 employment, the Agreement provided machinery 
 for the uncovering and early elimination of griev- 
 ances, and an orderly and expeditious procedure 
 for the settlement of all matters requiring adjust- 
 ment. It included an undertaking to refer to the 
 State's Industrial Commission all questions not 
 satisfactorily settled by these means, and to regard 
 the findings of that body as binding upon all par- 
 ties. Protection of Employees' Representatives 
 against discrimination was secured in Uke manner. 
 
 An Employees' Bill of Rights was included, in 
 which were incorporated principles and policies to 
 govern the relations of the parties in matters of 
 possible controversy. This Magna Charta asserted 
 the obligation of a strict observance of federal and 
 state laws respecting mining and labor; and the 
 posting, in a conspicuous place at or near every 
 mine, of the scale of wages and the rules in regard 
 to working conditions. It enumerated such funda- 
 
440 INDUSTRY AND HUMANITY 
 
 mental rights as the right of employees to caution 
 or suspension before discharge, the right of free as- 
 semblage, of membership or non-membership with- 
 out discrimination in any society or organization, 
 the right to a full investigation of grievances and 
 to appeal against injustice from the lowest to the 
 highest officer of the Company, and from there, if 
 desired, to the State Commission. 
 
 The principle of the Open Door between the 
 management and employees was emphasized by 
 the provision of comprehensive machinery for the 
 election of representatives by employees, and by 
 providing regular facilities for access by employees' 
 representatives to the management, and for consul- 
 tation by the management with representatives of 
 the employees. Employees were given a voice in de- 
 termining conditions under which they were to work 
 by the provision of means to bargain collectively 
 through chosen representatives, and by represen- 
 tation, along with representatives of the manage- 
 ment, on Joint Standing Committees, with provi- 
 sion for regular meetings of such committees for 
 discussion of matters of common interest, and mat- 
 ters of special concern to employees. In this man- 
 ner it was sought to promote just and harmonious 
 relations between Management and Labor; to en- 
 able Labor to increase its knowledge of industrial 
 processes and interest in the work in which it is 
 engaged; to further a community of interest on all 
 
EDUCATION AND OPINION 441 
 
 matters pertaining to works organization and effi- 
 ciency; to maintain maximum production and 
 avoid the discontinuance of industrial operations. 
 The principle of Round Table Conference and 
 the democratic procedure, which were to be out- 
 standing features of the new partnership, were 
 frankly exhibited in the manner in which the plan 
 of Industrial Representation was matured and 
 adopted. The miners were called upon to choose by 
 secret ballot from among themselves not less than 
 one representative for every one hundred and fifty 
 of their number. Representatives thus chosen as- 
 sembled in joint meeting with representatives of 
 the stockholders and of the management, includ- 
 ing superintendents, and the Plan of Representa- 
 tion in all its details was openly and freely dis- 
 cussed. Subsequently, by secret ballot at each of 
 the camps, it was submitted to vote of the em- 
 ployees for ratification or rejection. Simultane- 
 ously, it was submitted to the Board of Directors. 
 By the latter body, it was adopted unanimously; 
 and at the camps, by a popular majority of 80 per 
 cent, of the votes cast, the total vote at each of the 
 camps representing the great majority of workers, 
 / /' In this manner an Industrial Constitution was 
 
 ; framed and adopted within an enterprise which, but 
 the year before, was involved, together with other 
 
 : mining companies of the State, in one of the most 
 unfortunate conflicts in American industrial history . 
 
442 INDUSTRY AND HUMANITY 
 
 On December 21, 1914, the President of the 
 United States appointed a Federal Commission on 
 the Labor Difficulties in the Coal Fields of Colo- 
 rado. The members were the late Honorable Seth 
 Low, of New York City, Mr, Charles W. Mills, a 
 prominent Eastern coal operator, and the late Mr. 
 Patrick Gilday, a leading official of the United 
 Mine Workers of America. The Commission visited 
 Colorado in the latter part of 1915, and presented 
 its report to the President on February 23, 1916.^ 
 Naturally, the Industrial Representation Plan of 
 the Colorado Fuel and Iron Company came in for 
 extended notice. The Commission gave exhaustive 
 study to the principles underlying the Plan, as well 
 as to its workings in practice. The Commission's 
 /unanimous findings are therefore of special value 
 and interest. They constitute an expert and im- 
 partial verdict by an official federal tribunal on the 
 Wgnificance, purpose, and possibihties of the Plan. 
 
 In their report, the Commissioners say: 
 
 "The plan of the Colorado Fuel & Iron Co. to 
 regulate by contract its relation with its own em- 
 ployees and to provide under the terms of said con- 
 tract for the adjustment of grievances is also a new 
 departure in the United States. Indeed, your Com- 
 mission knows of nothing just like it in force any- 
 where. The importance of it, as an effort on the 
 
 1 Report of the Colorado Coal Commission on Labor Difficulties 
 in the Coal Fields of Colorado during the years 1914 and igiB, 64th 
 Congress, ist Session; Document No. SSg. 
 
EDUCATION AND OPINION 443 
 
 part of a large corporation to regulate its relations 
 with its own employees, by contracting with them 
 instead of through a trade agreement made with a 
 labor union, justifies your Commission in discus- 
 sing this plan with great care. 
 
 "The plan is conceived of by the Colorado Fuel 
 & Iron Co. as something more than a means of es- 
 caping from dealing with the union. If the large 
 significance of it is to be understood, the philosophy 
 upon which it is based should be made clear. The 
 plan assumes that the development in industry in 
 this country has run, and is Ukely to run, parallel 
 in the main to the political development under 
 democratic conditions. In political fife the first 
 struggle with arbitrary power is for a magna 
 charta; or, as we would say, in this country, a bill 
 of rights. This being obtained, the next demand is 
 for representation on the part of those whose rights 
 have been recognized. 
 
 "Representation in the first instance has been 
 achieved by a part of the body pohtic only; but 
 time has inevitably broadened such representation 
 till all are included. Representation being granted, 
 the next step is to make the executive responsible 
 to the representatives, as in England; or directly to 
 the people, as in this country. That, in brief, has 
 been the course of democratic political develop- 
 ment. The Colorado Fuel & Iron Co.'s plan, to be 
 understood, should be studied in the fight of this 
 illustration. The plan assumes that the control of 
 industry is to have a development parallel to that 
 of pubfic affairs; and that this development has al- 
 ready proceeded up to the point now to be indi- 
 cated. The plan recognized that the trade union 
 has striven to secure for labor, unorganized as well 
 as organized, and to a great extent has succeeded in 
 securing for all labor its bill of rights; namely, 
 
444 INDUSTRY AND HUMANITY 
 
 among other things, its right to organize, its right 
 to representation, and its right to collective bar- 
 gaining as to everything relating to hours of labor, 
 rates of pay, and conditions of employment. To 
 the extent that labor is organized the men in the or- 
 ganization have secured industrial representation, 
 while unorganized labor is without such representa- 
 tion. 
 
 "Following out this idea, the Colorado Fuel & 
 I Iron Co. has put into its contract with its men that 
 \ every one of them has the absolute right openly to 
 ^elong to a labor union or not, as he pleases; but, in 
 [View of the fact that many men in the company's 
 ; employ do not belong to labor unions, it offers the 
 rights of representation, which are embodied in the 
 company's plan to unorganized labor in its employ 
 J as well as to organized labor. In other words, as be- 
 itween the company and its employees, all have the 
 bright of representation, and not those only who are 
 I organized. If the political parallel is to be further 
 * justified, the time is likely to come when, in some 
 way, the working force will have some measure of 
 control over the executive; but, pending that de- 
 velopment, the Colorado Fuel & Iron Co.'s plan 
 provides for the submission by agreement to the 
 State Industrial Commission of Colorado of all 
 questions in dispute between the company and 
 its employees as to ' any matter pertaining to the 
 prevention and settlement of industrial disputes, 
 terms, and conditions of employment, maintenance 
 of order and disciphne in the several camps, com- 
 pany's stores, etc' The contract binds the com- 
 pany to accept the industrial commission's findings 
 on any of these matters. . . . 
 
 "The essential features of the plan seem to your 
 commission to be (1) that the relations between the 
 company and its employees, as a body, are defined 
 
EDUCATION AND OPINION 445 
 
 by contract; (2) that every employee is guaranteed 
 the right to belong to a labor union or not, as he 
 pleases; and (3) that the men in each mine under 
 this contract are entitled to choose their own repre- 
 sentatives, these representatives being protected 
 against abuse by the company by a clause in the 
 contract which entitles them, if they even think 
 they have been discriminated against because of 
 their action as representatives of the men, to appeal 
 to the industrial commission of the State; and the 
 contract binds the company on this point also, to 
 accept as final the finding of the State industrial 
 commission. The contract provides that any miner 
 having a grievance, or any group of miners, may 
 appeal from one authority to another until the pre- 
 sident of the company is reached. The influence of 
 this provision, although the contract has been in 
 operation so short a time, has been greatly to modify 
 the attitude of the mine foremen and mine superin- 
 tendents and of the subordinate officials. 
 
 "The temptation to be arbitrary is greatly les- 
 sened when an official knows that an appeal will lie 
 from his decision, and the company is already find- 
 ing that an increasing number of complaints are 
 adjusted locally. The plan provides further for the 
 selection of four joint committees representative of 
 the company and of its employees: (1) On industrial 
 co-operation and concihation; (2) on safety and ac- 
 cidents; (3) on sanitation, health, and housing; and 
 (4) on recreation and education. This part of the 
 plan went into operation only with the beginning 
 of this year. It evidently contemplates the most 
 far-reaching co-operation between the employees 
 as a body and the corporation, as to all matters 
 which affect the working and living conditions of 
 the employees. It assumes co-operation between 
 the parties and not antagonism. . . . 
 
446 INDUSTRY AND HUMANITY 
 
 "Your Commission is of the opinion that the 
 plan has been adopted by the Colorado Fuel & 
 Iron Co. in entire good faith and is being operated 
 with a single-hearted desire to make it successful. 
 . . . Your Commission cannot beheve that a body 
 of American men granted such rights as the Colo- 
 rado Fuel & Iron Co.'s employees now enjoy under 
 this plan by formal contract can permanently be 
 deprived of those rights." 
 
 The Industrial Representation Plan of the Colo- 
 rado Fuel and Iron Company has been in operation 
 for a period of over three years.^ The most preju- 
 diced observer could not deny the abundant growth 
 of good-will there has been within that time. The 
 industry has progressed as never before in its entire 
 existence. Happy and prosperous communities, 
 assuming the aspect of garden villages, in which 
 community activities are being more and more 
 community controlled, speak of the new citizenship 
 which is receiving its training in government, while 
 it safeguards working and living conditions, and 
 contributes to the establishment of an Industrial 
 Code, — a Code of Procedure, and of Principles in 
 the Adjustment of Matters of Industrial Contro- 
 versy, — on which Industry will yet build anew. 
 The Joint Committees have been a revelation to 
 the Management not less than to the workers. 
 They have stunulated a friendly atmosphere, and 
 have led to the adoption of many important sug- 
 
 1 The Plan was duly inaugurated on October 2, igiS. 
 
EDUCATION AND OPINION 447 
 
 gestions, with not less of gain to Capital, Manage- 
 ment, and the Community than of immediate 
 benefit to Labor. 
 
 The annual joint meeting of all the representa- 
 tives and Company officials, another feature pro- 
 vided by the Constitution, is an Industrial Parlia- 
 ment in embryo. It is called to receive reports by 
 the several Joint Committees covering the work 
 of the year, and to consider matters of common in- 
 terest requiring collective action. There is no dis- 
 tinction of race or creed, of color or of language. 
 Organized and unorganized, skilled and unskilled 
 Labor, all are represented there together with rep- 
 resentatives of the Directors and Management. 
 Nowhere could a more cosmopolitan assemblage be 
 found. Over thirty nationaUties find representation 
 in that annual gathering. As many as ten have had 
 representatives of their own race. The Constitu- 
 tion itself is printed in seven different languages. 
 
 The Plan of Industrial Representation is not yet 
 fully developed; it may have decided hmitations; 
 it may not be all that some of Labor's advocates 
 may wish it to be. It is well, perhaps, to remember 
 that it is but a beginning; and that the beginnings 
 of pohtical democracies are crude enough when 
 contrasted with developments of later times. It is 
 at least an honest attempt permanently to improve 
 relations between the parties to Industry; to in- 
 troduce democratic means of preserving Law and 
 
448 INDUSTRY AND HUMANITY 
 
 Order in Industry; and to open the way for the de- 
 velopment of Industrial Self-Government among 
 workers many of whom are learning the principles 
 of freedom for the first time. Ignorance of its true 
 purpose, or wilful endeavor to thwart its possibili- 
 ties, may destroy the usefulness of the Plan, — they 
 will destroy anything, — but given a fair chance, 
 and fostered in the spirit which promoted its incep- 
 tion, there are no limits to the service its develop- 
 ment is capable of rendering both the State and 
 Industry. 
 
 After three years' successful operation, the Plan 
 must be regarded as something other than an ex- 
 periment. If it had done nothing more than suggest 
 the possibihties of the representative idea applied 
 to Industry under circiunstances as untoward and 
 difficult as any ever likely to be faced, it would be 
 deserving of every recognition. But it has done 
 more than that. It has conclusively demonstrated 
 that monopoly of control in Industry may give way, 
 with common advantage, to Round Table Confer- 
 ence and Joint-Control of Industry based upon the 
 idea of Partnership: a demonstration highly signifi- 
 cant in a time of political and industrial transition 
 like the present. As such, it is entitled to a place in 
 the foundations of a new order, wherein all that the 
 past has achieved in the development of free pohti- 
 cal institutions will yet play a part in the evolution 
 of the highest forms of Industrial Government. 
 
EDUCATION AND OPINION 449 
 
 II 
 
 In Great Britain the attention recently given to 
 methods of improving the relations of Capital and 
 Labor has been due to a much needed solution of 
 practical problems in Industry for which the War 
 is responsible, and to the question of the control 
 of Industry which it has forced to the fore. Con- 
 fronted with the necessity of vastly increasing out- 
 put, all classes have been compelled to recognize 
 the great importance of Labor's part in production. 
 
 Assent to methods of highest efficiency involved 
 on the part of Labor a surrender of restrictive de- 
 vices by which through the past Labor has sought to 
 fortify itself against the exclusive control of Capital 
 and Management. To win Labor's acquiescence, 
 the Government (obliged, in its representative ca- 
 pacity, to assert the position of the Community as 
 one of the parties to Industry) found it imperative 
 to extend to Labor something of that participation 
 in control of policy which underlies partnership. 
 From sharing confidences with Labor in conference, 
 it passed to a consideration of methods whereby the 
 control of Industry might also be effectively shared. 
 Official .expression of the new attitude was given 
 in three important government inquiries: one con- 
 ducted by the Reconstruction Committee (now 
 the Ministry of Reconstruction) through a Sub- 
 committee on Relations between Employers and 
 
450 INDUSTRY AND HUMANITY 
 
 Employed, of which the Right Honorable J. H. 
 Whitley, M.P., was the chairman; another by the 
 Ministry of Labor, through members of the De- 
 partment, . as to the constitution and working of 
 Works Committees in a number of different indus- 
 tries; and the third by a Commission on Industrial 
 Unrest, appointed by the Prime Minister. 
 
 The Sub-committee of which Mr. Whitley was 
 chairman was appointed by the Reconstruction 
 Committee early in 1917. Before the close of the 
 year, it had issued three reports : an Interim Report 
 on Joint Standing Industrial Councils, during the 
 month of March; i a second Report on the same 
 subject; ^ and a supplementary Report on Works 
 Committees, during October. ^ These reports were 
 printed and widely circulated. Associated with the 
 name of the Chairman of the Committee, their 
 recommendations became a subject of general dis- 
 cussion in the months immediately succeeding. 
 
 The Report of the inquiry by the Ministry of La- 
 bor into Works Committees was made in March, 
 1918.* 
 
 The Prime Minister's Commission was appointed 
 on June 12, 1917, subsequent to the pubhcation of 
 
 ' Reconstruction Committee. Sub-committee on Relations between 
 Employers and Employed. Interim Report on Joint Standing Indus- 
 trial Councils. [Cd. 8606.] London, 1917. 
 
 2 Second Report, ditto. [Cd. 9002.] 1918. 
 , ' Supplementary Report on Works Committees. [Cd. 9001.] 1918. 
 
 * Works Committees. Report of an Enquiry made by the Ministry 
 of Labor. Ministry of Labor Industrial Reports, No. 2. 
 
EDUCATION AND OPINION 451 
 
 the first Whitley Report. There were in reality eight 
 special divisional commissions (each consisting of 
 representatives of employers and employed, and a 
 judge or other impartial chairman), constituting 
 in combination one large Commission whose duty 
 it was to inquire into and report upon industrial 
 unrest, and to make recommendations to the Gov- 
 ernment at the earliest practicable date. The Com- 
 missions discharged their duties with remarkable 
 promptitude and unanimity. Their findings, to- 
 gether with their recommendations, were in the 
 hands of the Government by July 17, just a little 
 over a month from the date of the Commission's 
 appointment. 1 
 
 Four recommendations of the Prime Minister's 
 Commission are of special importance in their bear- 
 ing upon government in Industry. The Commis- 
 sion recommended that the principle of the Whitley 
 Report as regards industrial councils should be 
 adopted; that each trade should have a constitu- 
 tion; that Labor should take part in the affairs of 
 the community as partners, rather than as serv- 
 ants; and that closer contact should be set up as 
 between employer and employed. In a summary 
 by the Right Honorable G. N. Barnes, M.P., and 
 Mr. G. M. Hodgson, the Commission's Secretary 
 (which summary accompanied the presentation of 
 
 ' Reports of the Commission of Inquiry into Industrial Unrest, Lon- 
 don, 1917. (Reprinted, Bulletin of the U.S. Bureau of Labor Statistics, 
 No. 287. Washington, 1917.) 
 
452 INDUSTRY AND HUMANITY 
 
 the Reports to the Prime Minister), emphasis is 
 laid upon the fact that the Reports bear a striking 
 testimony to the value of the proposals made in the 
 Report of the Sub-committee of the Reconstruction 
 Committee (i.e., the Whitley Report) dealing with 
 the relations of employers and employed. It is 
 pointed out that the Report was pubUshed while 
 the Conmiissioners were sitting, and that, broadly 
 speaking, the principles therein laid down appear 
 to have met with general approval. The summary 
 adds : "The feeling in the minds of the workers that 
 their conditions of work and destinies are being 
 determined by a distant authority over which they 
 have no influence requires to be taken into consid- 
 eration, not only by the Government, but by the 
 unions themselves." Not the least significant find- 
 ing of all is the assertion that "the great majority 
 of the causes of industrial unrest specified in the 
 reports have their root in certain psychological 
 conditions." 
 
 The personnel of the Sub-committee of the Re- 
 construction Committee, the occasion and manner 
 of its creation, the prominence given its recom- 
 mendations in Parhament, in the press, by trade 
 unions and associations of employers, and, above 
 all, the inherent worth of the principles it expounds, 
 make the Whitley Report one of the most impor- 
 tant pubhc documents which have appeared in 
 
EDUCATION AND OPINION 453 
 
 England since the commencement of the War. 
 No document of Uke significance to the future 
 relations of Labor and Capital has been pub- 
 lished, unless it be the Report on Reconstruc- 
 tion by the Sub-committee of the British Labor 
 Party,! or the Memorandum on the Industrial 
 Situation After the War, issued by the Garton 
 Foundation. 2 It is impossible to compare the three. 
 The Whitley Report is the outhne of a scheme of 
 government; it is in the nature of a Constitution 
 for Industry as a whole. The Report of the British 
 Labor Party is a political programme; carefully for- 
 mulated, comprehensive, exceedingly radical and 
 persuasive, a document certain to have far-reaching 
 influence in the shaping of opinion. The Memo- 
 randum of the Garton Foundation is a study of the 
 more permanent causes of industrial friction and 
 inefTiciency, and of the means by which these causes 
 may be removed or their action circumscribed. As 
 a scientific analysis of the fundamental facts of 
 industrial life, and the principles underlying indus- 
 trial pohcy, nothing anywhere pubhshed is com- 
 parable to it. 
 
 In appearance, compared with the Report of 
 the British Labor Party, or the Memorandum of 
 
 1 Report on Reconstruction by the Sub-committee of the British 
 Labor Party, 1918. (Repriated in The New Republic, New York, Feb- 
 ruary 16, 1918.) 
 
 2 Memorandum on the Industrial Situation After the War. The 
 Garton Foundation. Harrison & Sons, London, 1916. . 
 
454 INDUSTRY AND HUMANITY 
 
 the Garton Foundation, the Whitley Report lacks 
 impressiveness. It is all contained in a few pages 
 of a Government White Paper. It is so simple, so 
 brief, one might wonder how it escaped obUvion in 
 the presence of the momentous issues amid which 
 its appearance was made. To a single outstanding 
 feature it owes its distinction. It appUes to the 
 whole of Industry the principle of Representative 
 Government. 
 
 England has long been known as the Mother of 
 Parhaments. The pecuhar genius of the British 
 peoples and of their kith and kin has lain in their 
 abiUty to lead the world in the development of free 
 institutions. This has been achieved by putting 
 forth one idea at a time, but linking it on to all that 
 has preceded. Enlarging the conception underlying 
 Industry to one of pubhc service, and extending to 
 Industry, under pubhc authority, the principle of 
 representative government, a principle inseparable 
 from British hberty, is as mighty a stroke of gen- 
 ius as the War has produced. 
 
 Great changes are being wrought in human soci- 
 ety; pohtical and industrial transformations well- 
 nigh beyond comprehension are being effected. 
 Reverses may follow successes, and successes re- 
 verses in the fortunes of war; but, come what may, 
 this thing at least has been accompUshed within 
 Industry and the State. At a single bound. Free- 
 dom has leaped forward in a manner hitherto un- 
 
EDUCATION AND OPINION 455 
 
 paralleled. Industrial Service has become the moral 
 equivalent of Military Service. 
 
 Once industrial service is recognized as being also 
 in the nature of national service, it will never brook 
 repression as the basis of future government in 
 Industry. Representation on the basis of indus- 
 trial service will assert its inseparable union with 
 all of Freedom that has gone before, or is yet 
 to come. Representation, founded upon service in 
 Industry and regarded as inseparable from serv- 
 ice to the State, will endure storm and conflict; 
 vanquished it will never be. In the end it will 
 conquer everywhere throughout Industry and the 
 State. 
 
 i 
 
 What, then, are the concrete proposals of the 
 Whitley Report? Perhaps they may best be told 
 in the words of the Report itself. Briefly, they are 
 that for each industry there should be constituted 
 Joint Industrial Councils, composed of representa- 
 tives of employers and employed, organized on a 
 threefold basis. The interim Report says: — 
 
 "In the interests of the community it is vital 
 that after the War the co-operation of all classes 
 estabhshed during the War, should continue, and 
 more especially with regard to the relations be- 
 tween employers and employed. For securing im- 
 provement in the latter, it is essential that any pro- 
 posals put forward should offer to work-people the 
 means of attaining improved conditions of employ- 
 
456 INDUSTRY AND HUMANITY 
 
 ment and a higher standard of comfort generally, 
 and involve the enlistment of their active and con- 
 tinuous co-operation in the promotion of industry. 
 To this end, the estabhshment for each industry of 
 an organization, representative of employers and 
 work-people, to have as its object the regular con- 
 sideration of matters 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 community, appears 
 to be necessary. With a view to providing means 
 for carrying out the policy outlined above, we rec- 
 ommend that His Majesty's Government should 
 propose without delay to the various associa- 
 tions of employers and employed the formation 
 of Joint Standing Industrial Councils in the sev- 
 eral industries, where they do not already exist, 
 composed of representatives of employers and em- 
 ployed, regard being had to the various sections 
 of the industry and the various classes of Labor 
 engaged." 
 
 It is suggested that in the well-organized indus- 
 tries, one of the first questions to be considered 
 should be the estabhshment of local and works 
 organizations to supplement and make more effec- 
 tive the work of the central bodies. To enUst the 
 activity and support of employers and employed in 
 the districts, and in individual establishments, is 
 regarded as equally necessary to securing co-oper- 
 ation at the centre between the national organiza- 
 tions. The National Industrial Council is not 
 therefore to be regarded as complete in itself; what 
 
EDUCATION AND OPINION 457 
 
 is proposed is a triple organization — in the work- 
 shops, the districts, and nationally. Organization 
 at each of these three stages is to proceed on a com- 
 mon principle, and the greatest measure of common 
 action between them is to be secured. District 
 Councils, representative of the Trades Unions and of 
 the Employers' Associations in the industry, are to 
 be created, or developed out of existing machinery, 
 for negotiation in the various trades. Works Com- 
 mittees, representative of the management and of 
 the workers employed, are to be instituted in par- 
 ticular works to act in close co-operation with the 
 District and National Councils. The design for 
 these Committees is to be a matter of agreement 
 between the Trades Unions and Employers' Asso- 
 ciations concerned. 
 
 The Report does not attempt to define the re- 
 spective functions of Works Committees, District 
 Councils, and National Councils, but concedes that 
 they will require to be determined separately in 
 accordance with the varying conditions of the dif- 
 ferent trades. It is pointed out that care needs to 
 be taken in each case to deUmit accurately their 
 respective functions to avoid overlapping and 
 friction. In the case of all three — the National 
 Councils, the District Councils, and the Works 
 Committees — stress is laid upon the necessity of 
 regular meetings and continuity of co-operation. ^ 
 
 ' Among the questions which it is suggested the National Councils 
 
458 INDUSTRY AND HUMANITY 
 
 The policy recommended in the Whitley Report 
 is based upon organization on the part of both em- 
 ployers and employed. Indeed, the extent to which 
 organization in England has gone has not only sug- 
 gested, but has rendered imperative, the working 
 
 should deal with or allocate to District Councils or Works Commit- 
 tees, the following are selected for special mention: 
 
 (i) The better utilisation of the practical knowledge and experience 
 of the work-people. 
 
 (ii) Means for securing to the work-people a greater share in and 
 responsibiUty for the determination and observance of the conditions 
 under whieh their work is carried on. 
 
 (iii) The settlement of the general principles governing the condi- 
 tions of employment, including the methods of fixing, paying, and 
 readjusting wages, having regard to the need for securing to the work- 
 people a share in the increased prosperity of the industry. 
 
 (iv) The establishment of regular methods of negotiation for issues 
 arising between employers and work-people, with a view both to the 
 prevention of differences, and to their better adjustment when they 
 appear. 
 
 (v) Means of ensuring to the work-people the greatest possible se- 
 curity of earnings and employment, without undue restriction upon 
 change of occupation or employer. 
 
 (vi) Methods of fixing and adjusting earnings, piecework prices, 
 &c., and of dealing with the many difficulties which arise with regard 
 to the method and amount of payment apart from the fixing of gen- 
 eral standard rates, which are already covered by paragraph (iii). 
 
 (vii) Technical education and training. 
 ' (viii) Industrial research and the fuU utilisation of its results. 
 
 (ix) The provision of facilities for the full consideration and utilisa- 
 tion of inventions and improvement designed by work-people, and for 
 the adequate safeguarding of the rights of the designers of such 
 improvements. 
 
 (x) Improvements of processes, machinery, and organization and 
 appropriate questions relating to management and the examination 
 of industrial experiments, with specifd reference to co-operation in 
 carrying new ideas into effect and full consideration of the work- 
 people's point oLview in relation to them. 
 ,^ (xi) Proposed legislation affecting the industry. 
 
EDUCATION AND OPINION 459 
 
 out of some plan which would accept conditions, 
 and the inevitable trend, as they are, and change 
 the Battle Array of competitive organization into 
 something in the nature of Partnership. It has 
 at last been seen that national order and security 
 ahke demand that the government of Industry 
 be so framed that work-people, of right, and not 
 because of their possible resort to threatened or 
 actual force, shall have opportunity of partici- 
 pating in the discussion about and adjustment of 
 those parts of Industry by which they are most 
 affected. 
 
 Not only does the plan presuppose organiza- 
 tion; it follows in structure existing organization 
 amongst associations of employers and the trades 
 unions. That is where the British genius in matters 
 of Government comes in. New structures are 
 reared upon old foundations. Existing institutions 
 are accepted as they are and adapted to meet the 
 requirements of the age, and the changing spirit 
 of the times. In the United Kingdom, the trades 
 unions have their local, district, and national or- 
 ganizations, and their federations; the employers 
 are similarly organized. What the Whitley Plan 
 does is to take both the organizations of Labor 
 and the organizations of Capital and unite them by 
 the bond of a common interest in a common ven- 
 ture. It changes at a single stroke the attitude of 
 these powerful aggregations of class-interest from 
 
460 INDUSTRY AND HUMANITY 
 
 one of militancy into one of social service. It es- 
 tablishes a new relation in Industry.^ 
 
 Under the Whitley scheme, there thus extends 
 over the enterprises of each industry, taken col- 
 lectively, a National Industrial Council represent- 
 ative of the Trades Unions and of the Employers' 
 Associations in the industry. At the broad base of 
 the structure, and within the several enterprises, 
 are Works Committees representative of the Man- 
 agement and of the workers employed. The Dis- 
 trict Councils are an intermediary link. Two fun- 
 damental aims underhe this arrangement : the one 
 related to the equal enforcement of standards 
 throughout the industry; the other to securing 
 co-operation by granting to work-people a greater 
 
 ' Obviously, organization is necessary to such an end. Where or- 
 ganization is incomplete it is proposed that organization should be 
 extended. Here, again, the scheme takes account of conditions as 
 they are. It divides the industries of the country into three groups: 
 group A, consisting of industries in which organization on the part of 
 employers and employed is suiSciently developed to render their re- 
 spective associations representative of the great majority of those 
 engaged in the industry; group B, comprising those industries in 
 which, as regards either employers or employed, or both, the degree 
 of organization, though considerable, is less marked than in group A; 
 and group C, consisting of industries in which organization is so im- 
 perfect, as regards either employers or employed, or both, that no 
 associations can be said adequately to represent those engaged in 
 groups B and C 
 
 It is proposed, as respects industries in group B, that the triple 
 organization of national, district, and workshop bodies 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 ad- 
 visory capacity. For group C, something in the nature of specied or 
 additional machinery is proposed. 
 
EDUCATION AND OPINION 461 
 
 share in the consideration of matters affecting their 
 employment. Both are to be achieved by adhering 
 to the principle of keeping employers and work- 
 people in constant touch. 
 
 With that degree of rare caution which Enghsh- 
 men exhibit in viewing whatever threatens to be- 
 come an encroachment upon their liberties, the 
 framers of the Whitley Report say: "It appears to 
 us that it may be desirable 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 them- 
 selves." "It is desirable," they say, "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." 
 The Joint Industrial Councils provide the machin- 
 ery whereby, under voluntary agreement, worthy 
 standards are to be determined. 
 
 To ensure the enforcement of standards, it is not 
 enough that agreements be reached and ratified by 
 the State. Voluntary co-operation of all parties is 
 essential. Hence it is represented by the Whitley 
 Committee that, in order to secure the co-operation 
 of Labor, it is necessary to grant to Labor a larger 
 opportunity of participating in the discussion about 
 and adjustment of those parts of Industry by which 
 
462 INDUSTRY AND HUMANITY 
 
 it is most affected, and amid which its Ufe service is 
 carried on. This, the Committee asserts, is equally 
 necessary as a means of promoting industrial har- 
 mony and efficiency and the maintenance of just 
 relations between employer and employed. It is in 
 this connection that "Works Committees" are of 
 such importance. 
 
 The function of Works Committees, in their rela- 
 tion to the District and National Councils, is set 
 forth in a paragraph of the Supplementary Report 
 on Works Conomittees, referred to above. It may 
 be quoted in full to advantage. Section 2 says: 
 
 "Better relations between employers and their 
 work-people can best be arrived at by granting to 
 the latter a greater share in the consideration of 
 matters with which they are concerned. In every 
 industry there are certain questions, such as rates 
 of wages and hours of work, which should be set- 
 tled by District or National agreement, and with 
 any matters so settled no Works Committee should 
 be allowed to interfere; but there are also many 
 questions closely affecting daily hfe and comfort in, 
 and the success of, the business, and affecting in no 
 small degree efficiency of working, which are pe- 
 culiar to the individual workshop or factory. The 
 purpose of a Works Committee is to estabhsh and 
 maintain a system of co-operation in all these 
 workshop matters." 
 
 The report does not suggest any definite form of 
 Constitution for the Works Committees, observing 
 
EDUCATION AND OPINION 463 
 
 very wisely that it is best to reserve to representa- 
 tive bodies of employers and employed in each in- 
 dustry the maximum degree of freedom to settle 
 this for themselves, with regard in each case to the 
 particular circumstances of the trade and attendant 
 conditions. What the report seeks to emphasize is 
 the importance of Works Committees as a means 
 of enlisting the interest of the workers in the suc- 
 cess both of the industry to which they are at- 
 tached, and of the workshop or factory or mine 
 where so much of their life is spent. The report 
 suggests regular meetings at fixed times, as a gen- 
 eral rule not less frequently than once a fortnight. 
 As concerns the Works Committees, it is urged that 
 the idea of constructive operation in the improve- 
 ment of the industry to which they belong should 
 be kept to the forefront; that suggestions of all 
 kinds tending to improvement should be frankly 
 welcomed and freely discussed; and that practical 
 proposals should be examined from all points of 
 view. "Problems old and new," says the report, 
 "will find their solution in a frank partnership of 
 knowledge, experience and good-will."^ 
 
 1 The report prepared by the Ministry of Labor on the experience 
 available with reference to Works Committees is a valuable treatise 
 on the objects, functions, methods of procedure, and constitutions 
 which have been tried in actual practice. It points out that, while 
 committees representative of all the work-people in an establishment 
 existed before the War in various industries, in certaio industries, not- 
 ably engineering, the conditions of -wacc have produced such a change 
 in both the form and function of workshop organization, that the 
 
464 INDUSTRY AND HUMANITY 
 
 Once the significance of all this is grasped, a 
 whole cloud-bank of mystifying doubt concerning 
 the solution of the problems of Industry lifts, and a 
 flood of hght is let in upon dark places and bafiling 
 situations. Through a regard for the world aspect 
 and the human aspect of industrial problems, a way 
 is at last discerned whereby order may be brought 
 out of confusion. 
 
 To render impossible the undermining of indus- 
 trial standards by unscrupulous competitors; to 
 prevent the base from driving out the pure, the low 
 from dragging down the high; to circumvent the 
 Law of Competing Standards, constitutes, as we 
 have seen, the problem of problems in Industry. 
 Its solution is nowhere to be found, save in making 
 equal standards prevail over entire competitive 
 areas. In two ways only can this be effected: by 
 Force, or by Consent; by compulsion, at the in- 
 stance of the State, or by voluntary agreement be- 
 tween the parties concerned. Compulsion means 
 more and more of authority, more and more of in- 
 terference with Industry by the State, and involves 
 inevitable dissatisfaction, inadequate performance, 
 and vast expense. Voluntary agreement, on the 
 other hand, means increase of good-will, self- 
 direction, and control, and a minimum of expense. 
 The framers of the Whitley proposals beheve that, 
 
 discussion of the general idea of Works Committees may be said to 
 have developed out of these conditions. 
 
EDUCATION AND OPINION 465 
 
 having received the sanction of a majority in an in- 
 dustry on both sides, standards can readily be made 
 binding upon all in the industry, and cannot be 
 rendered incapable of general enforcement through 
 the action of deficient or unscrupulous minorities. 
 Here is faith in Government based on Opinion; 
 here also are foundations of the broadest kind for 
 the development of Self-Government in Industry. 
 
 Ill 
 
 It is impossible to read the Whitley Report 
 without being impressed by the similarity of the 
 ideas of its recommendations and those underly- 
 ing the Plan of Industrial Representation in Colo- 
 rado. What the latter attempts for a single indus- 
 trial enterprise, the former regards as essential for 
 Industry as a whole. They are alike in providing 
 a Constitution for Industry; in effecting organiza- 
 tion that collective bargaining may ensue; in em- 
 phasizing the importance of joint agreement be- 
 tween Capital and Labor on terms and conditions 
 of employment; in bringing about a community of 
 interest and common action through the represen- 
 tation of the parties on Joint Standing Committees 
 whereby Management and employees are kept in 
 constant touch; and in their recognition of the 
 State's function both as a partner in Industry and 
 as the guardian of Community well-being. They 
 
466 INDUSTRY AND HUMANITY 
 
 are alike based on the theory that the day of auto- 
 cratic control of Industry by any one of its partners 
 is past, and that the place of single control must 
 more and more be taken by joint control on the 
 part of all. In both the Whitley proposals and the 
 Colorado Plan, the principle of the Open Door be- 
 tween Management and Labor, the principle of 
 Representation, and the principle of Round Table 
 Conference, are made to pave the way for a genuine 
 Industrial Partnership. Both seek the introduction 
 of Representative Government into Industry. 
 
 It may add to such interest as attaches to simi- 
 larity in these developments, separated by over 
 two years in time, and by vast distance in space, 
 to have it known that the one was in no way con- 
 nected with the other. The Whitley Report owed 
 its inspiration to sources which were wholly inde- 
 pendent. In a sense, both owe their origin to ideas 
 that were "in the air." Both ahke are certainly 
 indebted to past developments in the Trade-union 
 movement.! 
 
 While Works Committees, in the nature of joint 
 committees representative of Management and La- 
 
 '■ The Memorandum of the Garton Foundation was issued in Octo- 
 ber, 1916. It had been privately circulated among employers, repre- 
 sentatives of Labor, and public men of all parties, between the months 
 of May and September of that year. It was pubUshed as revised in 
 the light of criticisms and suggestions received. In many particulars 
 the recommendations of the Whitley Committee and suggestions con- 
 tained in the Garton Foundation Memorandum bear evidence of a 
 common inspiration. 
 
EDUCATION AND OPINION 467 
 
 bor, have come into existence and prominence in 
 Britain chiefly since the beginning of the War, and 
 have commenced to find a place in industries in 
 America, the Works Committee, on the whole, 
 springs from the common methods of Trade-union 
 organization inside the workshop. The Unions 
 have set the example; they have forced the pace. 
 The long and persistent struggle of Labor to effect 
 and develop organization, a struggle extending in 
 England over a century, and in America for a 
 period briefer only by a generation, has made the 
 siibstance and the structure of Trade-unionism in 
 the Old World and in the New what they are to-day. 
 It is that structure in its entirety which the Whit- 
 ley Report proposes the State should frankly rec- 
 ognize and continue to build upon; that, and the 
 structure of Organized Management and Organized 
 Capital, reared in large part to oppose it. 
 
 Were mihtancy to remain the distinguishing 
 characteristic of these hitherto opposing forces, 
 the program outUned in the Whitley Report would 
 be a hazardous experiment indeed! But with 
 partnership, or the promise of partnership, sub- 
 stituted for class interest, in the relationship of 
 Capital and Labor, the raison d'itre of militancy is 
 gone. A new and wholly different motive on the 
 part of all the parties to Industry appears; and 
 with it, a new attitude. 
 
 There are but two positions possible in the rela- 
 
468 INDUSTRY AND HUMANITY 
 
 tion of straight lines to each other. They may be 
 parallel to each other, or they may point toward 
 each other. Where they point toward each other, 
 they will, if projected in one direction, sooner or 
 later intersect; if projected in the opposite direc- 
 tion, they will become farther and farther apart. 
 Where parallel, their position continues indefinitely 
 in an harmonious relationship. It is precisely the 
 same with the vast numbers of human beings who 
 go to make up the ranks of Capital and Labor. 
 Attitude in himian relations corresponds to posi- 
 tion in material relations. Labor and Capital may 
 assume an attitude which means either that they 
 will ultimately clash, or that they will grow farther 
 and farther apart. In such a case, they can render 
 full measure of service neither to Industry nor to 
 the State. The only enduring attitude is one which 
 makes possible continuous co-operation; a parallel 
 outlook inspired by Faith, not an outlook distorted 
 by Fear. Such an attitude is necessarily founded 
 upon recognition of mutual rights and reciprocal 
 obligations. 
 
 To brir g every one into line, organization is nec- 
 essary. It is for this reason the Whitley Committee 
 emphasize again and again that the policy they 
 recommend is based upon organization on the part 
 of both employers and employed; and have even 
 gone the length of framing machinery whereby in 
 unorganized sections a large measure of Govern- 
 
EDUCATION AND OPINION 469 
 
 ment assistance can be made available to encourage 
 organization.^ 
 
 It is impossible to exaggerate the service that 
 may be rendered by Works Committees and Joint 
 Standing Councils in the adjustments which recon- 
 struction will render necessary. Indeed, it is diffi- 
 cult to imagine how reconstruction in Industry is 
 to proceed at all without some organization which 
 will afford a basis for continuous consultation and 
 co-operation between the parties to Industry as 
 
 ^ In a paragraph which they repeat, the Whitley Committee say it 
 is their considered opinion "that an essential condition of securing a 
 permanent improvement in the relations between employers and em- 
 ployed is that there should be adequate organization on the part of 
 both employers gnd work-people. The proposals outlined for joint 
 co-operation throughout the several industries depend for their ulti- 
 mate 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 effec- 
 tively carried out." Elsewhere the Committee say: "We think it 
 important to state that the success of the Works Committees would 
 be very seriously interfered with if the idea existed that such commit- 
 tees were used, or likely to be used, by employers in opposition to 
 Trade Unionism." Obviously, having regeird to the well-being of 
 Industry as a whole, opposition of the kind would be both harmful 
 and stupid. 
 
 It has been represented that the Industrial Representation Plan 
 of the Colorado Fuel and Iron Company was aimed against trades 
 unions. Such a contention has surely been made in ignorance of a 
 section of the Plan which specifically states that "there shall be no 
 discrimination on account of membership or non-membership in 
 labor or other organizations," and without knowledge of the fact that 
 ever since its inception, in both the mining camps and the steel works 
 of the Company, many of the workmen's representatives have been 
 members of trades unions, and some of them officeholders in those 
 organizations. 
 
470 INDUSTRY AND HUMANITY 
 
 respects all sections, grades, and interests, in indi- 
 vidual enterprises, in associated industries, and in 
 Industry as a whole. The Government of Great 
 Britain has announced that its adoption of the 
 Whitley Report is an invitation to the industries of 
 the country to organize themselves in the way it 
 suggests for their own benefit and the benefit of the 
 community. 
 
 To regularize the relations between employers 
 and employed is the great need. It cannot be met 
 without bringing employers and work-people to- 
 gether. Joint Councils effect this. Standing Coun- 
 cils ensure regular meetings for discussion of mat- 
 ters of common interest. Industrial Councils throw 
 into reUef the questions that concern each industry 
 as a whole, foster a common feeling for the indus- 
 try, and help all parties to realize the social impor- 
 tance of the industry as distinct from their private 
 interest.^ Regular meetings to discuss matters of 
 common interest are calculated to produce an at- 
 mosphere in which disputes, when they arise, can 
 be settled by an appeal to reason. The subjects 
 from which disputes arise come up for discussion 
 before feeling is excited. Mutual misunderstanding 
 and unnecessary suspicion are reduced to a mini- 
 mum. Fear is replaced by Faith. 
 
 There is another urgent need which joint bodies 
 
 ' Vide circular Ministry of Laior re Industrial Councils, H. Q. 7 B. , 
 1918. 
 
EDUCATION AND OPINION 471 
 
 of the kind serve. In meeting this need they give 
 to the workers in their respective industries a status 
 not hitherto enjoyed. As mentioned repeatedly 
 in these pages, there is a large body of problems 
 which belong both to Industry and to Pohtics. 
 "They belong to pohtics because the community is 
 responsible for their solution and the State must 
 act if no other provision is made; they belong to 
 Industry, because they can be solved only by the 
 knowledge and experience of the people actually 
 engaged in Industry." Such problems are the 
 regularization of employment, industrial training, 
 utilization of inventions, industrial research, the 
 improvement of design and quaUty, legislation af- 
 fecting workshop conditions — all of them ques- 
 tions which have hitherto been left in the main to 
 employers, but which in reahty constitute an im- 
 portant common interest on the basis of which all 
 engaged in an industry can meet. The termination 
 of the War will bring with it a mass of new prob- 
 lems of this nature: for example, demobihzation, 
 the training of apprentices whose training was in- 
 terrupted by mihtary service, the settlement in In- 
 dustry of partially disabled men, and in general the 
 reconversion of Industry to purposes of peace. It 
 is urgently necessary that on all these questions 
 Governments should be able to obtain without de- 
 lay the experience and views of the people actually 
 in Industry. Recognizing this, the British Govern- 
 
472 INDUSTRY AND HUMANITY 
 
 ment has wisely decided to treat Industrial Coun- 
 cils as Standing Consultative Committees to the 
 Government and the normal channel through 
 which it will seek the experience and advice of 
 industries. 
 
 Not only will these industrial parhaments out- 
 hne general policy over a wide field of action; they 
 will be able to give pubUc utterance to the views 
 and needs of each industry, in its relation to the 
 whole national life. In the words of the Memoran- 
 dum of the Garton Foundation, "They will take 
 account not only of economic but of moral and aes- 
 thetic values. Their object will be not merely to 
 increase the productive efficiency of the industry 
 and to reconcile the competing interests of those 
 engaged in it, but to emphasize the worth and dig- 
 nity of industrial life, and to enlarge the scope 
 offered by it to the energies and ambitions of those 
 concerned. It will be a part of their task to em- 
 phasize the close connection between industrial 
 questions and those relating to education and social 
 conditions."^ 
 
 Could there be more definite recognition of the 
 four parties to Industry: Capital, Management, 
 Labor, and the Community; or a safer beginning in 
 democratic joint-control? Where problems can be 
 handled by each industry for itself, through an 
 organization representative of all sections and in- 
 
 ' Garton Foundation Memorandum, par. 176. 
 
EDUCATION AND OPINION 473 
 
 terests within it, a large amount of "Government 
 interference," which at present is unavoidable, will 
 be made unnecessary, and for it will be substituted 
 a real measure of "self-government" in Industry. 
 Thus, in the midst of war, is parhamentary govern- 
 ment finding its beginnings in Industry ! In accord- 
 ance with principles underlying judicial and parha- 
 mentary procedure, the new Industrial Revolution 
 is to work its way. The methods and weapons will 
 be those of argument and debate, of reason and 
 consent, not those of Force and its attendant evils. 
 
 While the aim of the Plan of Industrial Repre- 
 sentation in Colorado and that of the scheme out- 
 Uned in the Whitley Report are the same, there is a 
 difference in the place of beginning. The Whitley 
 scheme begins at the top with Joint Industrial Coun- 
 cils, and works down. The Colorado Plan, as it 
 stands, does not extend much beyond the stage of 
 "the Works Committees" outhned in the Whitley 
 scheme. Of these bodies, however, the Whitley 
 Committee say: "We look upon successful Works 
 Committees as the broad base of the industrial 
 structure which we have recommended." 
 
 The Colorado Plan was framed with a view of 
 exhibiting a structure and method of industrial 
 government, based on the idea of representation; 
 one which would be readily adaptable to other in- 
 dustrial enterprises, and which, in the course of a 
 
474 INDUSTRY AND HUMANITY 
 
 natural evolution, might be expected to extend to 
 industries generally and to Industry as a whole. 
 
 The best place of beginning and the extent to 
 which it may be possible to work through Trades 
 Unions and Employers' Associations are necessarily 
 a matter of the stage of development in organiza- 
 tion of Capital and of Labor; and of the character 
 of organization and its growth. Perhaps it is the 
 part of wisdom to suggest that, as concerns indus- 
 trial government, there is a difference between what 
 is possible under organization as it exists among 
 workmen of like origin, schooled in traditions and 
 methods of Trade-Unionism as found in long estab- 
 lished industries and trades, and what is possible 
 under the kind of organization sometimes found in 
 recently estabhshed industries among workmen of 
 diversified nationaUties, many of whom come from 
 countries which have yet to learn the meaning of 
 political freedom, and who themselves are unable 
 to carry on conversation in a common tongue. 
 
 Whether in the long run greater progress in the 
 introduction of representative government into 
 Industry will be made by seeking a beginning, as in 
 England it is proposed, with National Joint Councils 
 and extending down to "Works Committees," than 
 by beginning at the base of the structure and es- 
 tabhshing, as in the Colorado Fuel and Iron Com- 
 pany, carefully devised "Works Committees" and 
 working up to an organization which will have re- 
 
EDUCATION AND OPINION 475 
 
 gard for Industry as a whole, will depend, in part, 
 on the industry concerned, and on the number and 
 nearness of relationship of competing enterprises; 
 and, in part, on the degree of self-government of 
 which members of organizations prove themselves 
 capable. Where existing organization of Capital 
 and Labor will permit, there is every reason why 
 reconstruction should begin at the top, and work 
 down. The more extensive organization is, the 
 greater the possibihty of unpropitious develop- 
 ments if the attitude of opposing organizations is 
 not changed from one of mihtancy into one of effec- 
 tive co-operation in the creation and maintenance 
 of right standards. Where organization is non- 
 existent, or is of questionable character, the begin- 
 ning in individual enterprises had better be made 
 with "Works Committees." It must always be 
 remembered that the success of any pohcy of the 
 kind will depend upon the elasticity with which it 
 can be adapted to existing conditions, and to prac- 
 tical needs and opportunities as they reveal them- 
 selves. 
 
 The place of beginning on either continent, in any 
 industry, is wholly secondary in importance to the 
 fact that on both continents, and in all kinds 
 of enterprises, the principle of representation is 
 being accepted as the basis of Government in In- 
 dustry. This must ultimately serve, not only to 
 unite industrial with pohtical development, but to 
 
476 INDUSTRY AND HUMANITY 
 
 make possible a union of industries between com- 
 peting nations on lines which will advance effi- 
 ciency in production, and at the same time ensure an 
 ever-expanding measure of international good-will. 
 Surely, the significance of this cannot be made too 
 apparent! A principle which, widely enough ap- 
 plied, should end industrial unrest and also inter- 
 national strife is certainly deserving of all the recog- 
 nition it can receive; and its application is worthy 
 of the best endeavor of two continents. 
 
 It is probable that the structure of industrial 
 government will assume its true proportions sooner 
 in England than in America. England is the older 
 and much the smaller country. Some of its institu- 
 tions are more fully developed. It has not, to dis- 
 tract it, many of the problems inherent in a popu- 
 lation which is widely scattered, and which an 
 American author has described as constituting "a 
 mosaic of races and tongues." Moreover, in Eng- 
 land, more than in America, the parties to In- 
 dustry are likely to look to themselves rather than 
 to Government. The vast State Control the War 
 has induced is shaping the temper of the Enghsh 
 mind for a reaction against excessive State Con- 
 trol when the War is over. To meet this reaction, 
 to save the nation from its ill-effects, the poUcy 
 of leaving to the parties in interest the manage- 
 ment of their own affairs, subject always to the in- 
 
EDUCATION AND OPINION 477 
 
 herent over-control of the State, has come none 
 too soon. Joint Standing Industrial Councils and 
 Works Committees should prove the place of rec- 
 onciUation for conflicting interests. ^ 
 
 In America, it will not be so easy to meet the 
 adverse effects of the operation of the Law of Com- 
 peting Standards by mutual aid, voluntarily en- 
 tered upon by the parties to Industry. A measure 
 of State control will be required to effect general 
 recognition of the significance of "Works Commit- 
 tees." It would seem, that the Government of the 
 United States was fully aware of this. Already, the 
 National War Labor Board ^ has intimated that it 
 will lend its good offices to assist industrial corpora- 
 tions in the formation of committees representative 
 
 ' It would be inappropriate to conclude reference to the scheme of 
 Joint Standing Industrial Councils contained in the Whitley Report 
 without notice of a Memorandum on Industrial Self-Government pre- 
 sented by Mr. Malcolm Sparkes in January, 1917, to the Reconstruc- 
 tion Committee. Mr. Sparkes's Memorandum contains a draft 
 scheme for a Builders' National Industrial Parhament, and recom- 
 mends the formation of Joint Industrial Parliaments comprised of 
 representatives of employers and employed for each of the great 
 staple industries. The inception of the scheme was entirely due to 
 Mr. Sparkes, who for many years was himself an employer in the 
 Building Trades. The formulation and organization of the scheme 
 was done under the auspices of the Garton Foundation. In the case 
 of the Building Trades, the scheme was first accepted by the work- 
 men and formally proposed by them to the employers for accept- 
 ance. Subsequently, the scheme was accepted by the employers at a 
 joint conference of the Associated Trades Unions and the Employers' 
 Federation, and the organization of a Joint Standing National Build- 
 ing Trades Parliament has since gone forwMd. 
 
 2 Vide reference to National War Labor Board, chap. vn. Prin- 
 ciples Underlying Peace. 
 
478 INDUSTRY AND HUMANITY 
 
 of management and employees. Where such Com- 
 mittees exist, and develop means for adjusting con- 
 troversies as they arise, the Board's policy is to 
 refuse to take cognizance of controversies between 
 employers and workers until the means of settle- 
 ment provided have been invoked. In this manner 
 emphasis is given to the desirability of joint agree- 
 ment by the parties themselves. 
 
 The principles and pohcies laid down by the 
 National War Labor Board to govern relations be- 
 tween workers and employers in War industries for 
 the duration of the War, and to be observed by the 
 Board itself in the exercise of its powers and func- 
 tions, are intended to assist the Government in 
 meeting problems to which competing standards 
 in Industry give rise, and to further the universal 
 enforcement of standards. The principles include 
 definite pronouncement upon such fruitful sources 
 of friction as the right to organize, the right to bar- 
 gain collectively through chosen representatives, 
 the right to a living wage, the estabhshment of 
 minimum rates of pay, equal pay for equal work 
 by women, the consideration of welfare, health, 
 and proper comfort in the fixation of hours of labor, 
 and the maintenance of a maximum production. 
 In this manner the enforcement of standards is 
 being brought about through the machinery of 
 Government, under methods which, in the absence 
 of estabhshed practices in individual enterprises, 
 
EDUCATION AND OPINION 479 
 
 leave little in the way of option to any of the 
 parties. 
 
 The formation of Works Committees, and of 
 District and National Joint Standing Industrial 
 Councils, is proceeding steadily in the United 
 Kingdom under the segis of the Ministry of Labor. 
 There is reason to beheve that in the not distant 
 future joint councils will form a dominant feature 
 of British industrial pohty. The movement is not 
 without its critics among both employers and labor 
 leaders, and it encounters of necessity the opposi- 
 tion of upholders of mihtancy in industrial affairs 
 and the advocates of class hatreds. It will reveal 
 shortcomings, make mistakes, experience setbacks 
 and failures; and it is probable that some time 
 must elapse before its benefits will be appreciated. 
 "The change of attitude involved is too vital, the 
 field of activity is too large, to hope for any but 
 gradual development." But the scheme has in it 
 the germ of all that has made for freedom in politi- 
 cal evolution; and it has to promote it the genius 
 for self-government which the British peoples have 
 evolved through centuries of struggle. It is there- 
 fore destined to win its way. Meanwhile, it will 
 remain the surest method of approach to the solu- 
 tion of the problems of Industry which wide knowl- 
 edge of actual conditions, combined with many- 
 sided opinion, has thus far evolved. ' 
 
 1 A further word on the Colorado Plan may be permissible. Stand- 
 
480 INDUSTRY AND HUMANITY 
 
 IV 
 
 Education has been far too generally restricted 
 to mean a schooling in a few elementary subjects 
 essential to the gaining of a Uvelihood. It has been 
 commended because commercially profitable. Too 
 often, so-called higher education has meant only 
 the knowledge which will command higher rates of 
 remuneration. The emphasis has been upon ma- 
 terial considerations, rather than upon hfe as spir- 
 itually interpreted. Education ought to be valued 
 chiefly as enabhng human beings to realize their 
 highest capacities, and to serve and conserve, 
 rather than to dominate and destroy. Education 
 requires to be so fashioned as to be of practical 
 
 ing by itself, this scheme of representation, this attempt at co-opera- 
 tion between Management and Labor, may have seemed to some an 
 isolated and passing experiment. The support of such high authority 
 as that cited seems to light it up with a certain dremiatic reality, and 
 to give to its structure and tmderlying principles new significance in 
 their bearing upon Ae future of American industrial relations. Al- 
 ready the essential features of the Plan are being adopted by other 
 important industries. 
 
 The reader is referred to the Appendix for a diagram illustrative of 
 the Colorado Plan. A perusal of the Plan will show with what ease 
 its general structure could be made applicable to any number of in- 
 dustrial enterprises in a single industry, or to industries as a whole. 
 The substitution of representatives of Employers' Associations and 
 of Trades Unions for the representation of the management and em- 
 ployees respectively as described in the Plan, would give for industries 
 as a whole precisely what the Whitley Report suggests as the kind 
 of structure necessary in the organization of District and National 
 Joint Standing Councils; or what would appear as the necessary 
 structure of National Industrial Parliemients, as proposed by Mr. 
 Malcolm Sparkes. 
 
EDUCATION AND OPINION 481 
 
 advantage in manhood and citizenship. It should 
 teach men and women how to hve completely, how 
 to recognize and observe duties as well as rights. 
 It should inspire the community sense and teach 
 the art of co-operation. 
 
 The Community point of view is gradually com- 
 ing to the fore. The popular conception of Educa- 
 tion is enlarging so as to include a knowledge of 
 matters pertaining to health, such as physical and 
 mental hygiene, sanitation, housing and recreation, 
 and a training for vocations and trades. The inter- 
 relation of health and efficiency is becoming more 
 apparent. It is seen that the physically and men- 
 tally sound not only have chances in the competi- 
 tive arena that their weaker brethren never have, 
 but that they also have a keener enjoyment of life. 
 The skilled mechanic, the specially trained indi- 
 vidual, possesses the technical equipment which 
 ensures larger rewards for work done; he has also 
 the knowledge which adds to the capacity for en- 
 joyment in the discharge of duties. It was this 
 broad conception of Education Lord Haldane had 
 in mind when he urged that Education was "the 
 foundation of all industrial reconstruction, of all 
 social reform, and of all democracy." 
 
 As the recognized basis of industrial efficiency 
 and social well-being. Education in matters per- 
 taining to health and vocation bids fair to become 
 an integral part of conventionally accepted Educa- 
 
482 INDUSTRY AND HUMANITY 
 
 tion, and voluntary effort to be more and more 
 supplemented by community regulation and con- 
 trol. Just as Education in its more common aspects 
 was found to be insufficient when left to voluntary 
 effort, so, too. Education as respects social hygiene, 
 sanitation, preventable diseases, industrial and 
 vocational training and the hke, will come more 
 and more to be regarded as a matter of community 
 obligation arising from community need. Indus- 
 trial progress and community well-being are ahke 
 dependent upon "the apphcation of a trained intel- 
 ligence to the practical affairs of hfe." 
 
 With the growth of democracy, there is need of 
 Education to teach the right use of power. With 
 the growth of communities, handicapped by prob- 
 lems of poverty and intemperance, and continually 
 menaced by contagion and infection, there is equal 
 need to teach the rudiments of health. In pohtical 
 democracies, it is essential to guard against iUit- 
 eracy, and to secure to every child a minimum of 
 education. In industrial democracies, under condi- 
 tions where specialization in Industry and depend- 
 ence of workers upon machinery create problems 
 of unemployment, there is hke necessity to train 
 the hand and mind for specific vocations. ^ 
 
 To each individual there belongs some share of 
 responsibihty for conditions as they are, a respon- 
 sibihty in direct proportion to individual influence. 
 Especially is there a duty upon all who have to do 
 
EDUCATION AND OPINION 483 
 
 with Government, Education, and the moulding 
 of Opinion, to see that right ideas are made to pre- 
 vail. In matters of Government, this responsibiUty 
 is shared by the elector, the representative, and the 
 administrator, and applies to all that pertains to 
 the franchise, the form and method of government, 
 and pubhc poUcies. » In matters of Education, re- 
 sponsibihty is not restricted to those who determine 
 national systems of education or who instruct in 
 universities and schools; it extends to the home 
 and the ethical standards exempUfied in family 
 Ufe. In the shaping of Opinion, the journaUst, the 
 author, the pubhc speaker, indeed whoever pos- 
 sesses capacity to think and ability to express his 
 thoughts, has a duty to assist in the spread of ideas 
 which may inspire a right attitude in Industry and 
 improve the conditions under which men and wo- 
 men earn their daily bread. 
 
 There is a special responsibiUty upon consumers, 
 as members of the Community, to see that fair and 
 just standards are maintained in Industry. Con- 
 sumers need to be educated to this responsibiUty. 
 Pm-chasing power is not a power Umited to obtain- 
 ing commodities; it is power which extends to con- 
 trolUng conditions under which commodities are 
 produced and services rendered. The utiUzation 
 of the power of the consumer to affect sanitary 
 and other working conditions is the most effective 
 of aU instrumentalities for enforcing standards 
 
484 INDUSTRY AND HUMANITY 
 
 throughout an industry. Capital, Management, 
 and Labor are helpless to ensure equaUty of mini- 
 mum standards without the aid of the Community. 
 Where consumers extend their patronage to un- 
 scrupulous competitors, a handicap is immediately 
 placed upon those who are interested in preserv- 
 ing peace in Industry and securing the welfare of 
 working people. Consumers' Leagues have already 
 demonstrated the service which voluntary effort 
 may render in obtaining a guarantee of the condi- 
 tions under which articles are produced. It would 
 appear that in no other way could the Community, 
 as a partner in Industry, exert its control so effec- 
 tively as by extending the principle of certification 
 to the adoption of some device which would serve 
 as a pubhc guarantee of adequate labor standards. 
 Such an extension would be a protection not less of 
 the Community itself than of Labor. ^ 
 
 If undermining influences occasioned by neglect 
 and misfortune, whether of character or of caUing, 
 are to be counteracted. Education, in the broadest 
 acceptation of the term — physical, mental, and 
 moral — cannot be too widely diffused. Moreover, 
 if men and women are to live together as citizens of 
 enUghtened communities, they must have intelli- 
 gent and varied interests. Because men and women 
 are human beings and not machines, they require 
 
 ' Vide Cohen, Law and Order in Industry, chapter xx, " The White 
 Protocol Label." 
 
EDUCATION AND OPINION 485 
 
 leisure; and require Education to teach them the 
 right use of leisure. There must be free hours, and 
 the scope of enjoyment of free hours should be wid- 
 ened by stimulating interest in new fields. To create 
 standards of character, not less than Labor stand- 
 ards, and to have them also adopted in ever-widen- 
 ing circles, is essential to democracy. This may 
 demand, in a material and commercial age, the 
 entire reconstruction of many an educational pro- 
 gramme. It will certainly require that men and 
 women, however hiraible or impoverished, be re- 
 garded as beings capable of exalted sentiments and 
 noble dehghts, and not as mere means to the ends 
 of others in a struggle for industrial supremacy. 
 
 Education in health and character is the best 
 insurance against the hazards of industrial hfe, and 
 the surest guarantee of its rewards. It begins with 
 the relations between parent and child. It impUes 
 education in the home, as well as by the State; and 
 means training with respect to habits as well as 
 with regard to occupations. Character is the de- 
 termining factor in all things. An inner sustaining 
 motive is more necessary than external support if, 
 across the reaches of Time, the spirit "^of workers 
 in Industry is not to flag. A pure faith, such as 
 seems to have fled the world, is the final element 
 of a firm endurance through [years of arduous and 
 sustained toil. 
 
486 INDUSTRY AND HUMANITY 
 
 Education should enable us to go on to new 
 points of insight into other hves, and into the 
 depths of our own Uves. It should beget sympathy 
 with all human hfe, and afford gUmpses of "the 
 vast world of inner life beyond us, so different from 
 that of outer seeming." Above all, it should teach 
 us our duty to our neighbor, and to know him as a 
 part of ourselves. To lighten our darkness is the 
 end of all Education. 
 
 Wilham James has given us the underlying cause 
 of industrial and international unrest. ^ Let him 
 disclose something of the sympathy whereby our 
 human blindness is to be removed. We shall need 
 our vision of the heroic in days of reconstruction. 
 His words may help to unite in a true perspective 
 the sacrifices of the soldiers in the field and the 
 patient service of all who toil: 
 
 "Not in clanging fights and desperate marches 
 only is heroism to be looked for, but on every rail- 
 way bridge and fire-proof building that is going up 
 to-day. On freight-trains, on the decks of vessels, 
 in cattle-yards and mines, on lumber-rafts, among 
 the firemen and the policemen, the demand for 
 courage is incessant; and the supply never fails. 
 There, every day of the year somewhere, is human 
 nature in extremis for you. And wherever a scythe, 
 an axe, a pick, or a shovel is wielded, you have it 
 sweating and aching and with its powers of patient 
 endurance racked to the utmost under the length 
 of hours of the strain. 
 
 'J Vide chapter i, Industrial and International Unrest. 
 
EDUCATION AND OPINION 487 
 
 "As I awoke to all this unidealized heroic hfe 
 around me, the scales seemed to fall from my eyes; 
 and a wave of sympathy greater than anything I 
 had ever before felt with the common hfe of com- 
 mon men began to fill my soul. It began to seem as 
 if virtue with horny hands and dirty skin were the 
 only virtue genuine and vital enough to take ac- 
 count of. Every other virtue poses; none is abso- 
 lutely unconscious and simple, and unexpectant of 
 decoration or recognition, like this. These are our 
 soldiers, thought I, these our sustainers, these the 
 very parents of our hfe. . , . 
 
 "In God's eyes the differences of social position, 
 of intellect, of culture, of cleanhness, of dress, 
 which different men exhibit, and all the other rari- 
 ties and exceptions on which they so fantastically 
 pin their pride, must be so small as practically 
 quite to vanish; and all that should remain is the 
 common fact that here we are, a countless multi- 
 tude of vessels of Hfe, each of us pent in to pecuhar 
 difficulties, with which we must severally struggle 
 by using whatever of fortitude and goodness we 
 can summon up. The exercise of the courage, pa- 
 tience, and kindness, must be the significant por- 
 tion of the whole business; and the distinctions of 
 position can only be a manner of diversifying the 
 phenomenal surface upon which these underground 
 virtues may manifest their effects. At this rate, the 
 deepest human life is everywhere, is eternal. And, 
 if any human attributes exist only in particular in- 
 dividuals, they must belong to the mere trapping 
 and decoration of the surface-show. 
 
 "Thus are men's lives levelled up as well as lev- 
 elled down, — levelled up in their common inner 
 meaning, levelled down in their outer gloriousness 
 and show." ^ 
 
 .* Talks to Teachers, etc., pp. 274-78. 
 
488 INDUSTRY AND HUMANITY 
 
 In ways undreamed of, individuals and institu- 
 tions may play their part in the solution of indus- 
 trial and international problems. For example, if 
 women and if the Church could but reahze and 
 be true to their special opportunities of service 
 to the world, the vast problems of Industry and 
 of the State would soon be solved. Except to 
 shield them, men have no desire to circumscribe 
 their activities. Men understand the fields of 
 sacred influence which are pecuharly theu-s, and, 
 amid the strife of the world, look for sustained 
 inspiration to a devout womanhood and a con- 
 secrated Church. It is from the reverence for 
 life which men get from their mothers, and from 
 the faith which a religion pure and undefiled im- 
 parts, that there comes the spirit of mutual aid 
 through which the material interests of the world 
 make way for the nobler aspirations of the soul. 
 "The main reason," says Dr. Eliot, "that Chris- 
 tian society is slowly proving stronger than any 
 other is that the fundamental doctrines of Jesus 
 were love to God and the neighbor, and the broth- 
 erhood of man." "It is time," he adds, "to apply 
 these doctrines thoroughly to modern industrial 
 relations. That is the sure road to industrial peace 
 and order in democracies. ^ 
 
 The teachings of Jesus bring us into direct oppo- 
 sition to the doctrine of Force. What He left the 
 
 * Boston Sunday Herald, July 21, 1918. 
 
EDUCATION AND OPINION ' 489 
 
 world of His method of the settlement of contro- 
 versy and removal of injustice, is simply told in 
 three consecutive sentences as recorded in the 
 eighteenth chapter of the Gospel according to 
 Matthew: 
 
 v. 15 : " If thy brother shall trespass against thee, 
 go and tell him his fault between thee and him 
 alone: if he hear thee, thou hast gained thy 
 brother." 
 
 That is the method of ConciUation and Mediation. 
 
 I V. 16: "But if he will not hear thee, then take 
 with thee one or two more, that in the mouth of 
 two or three witnesses every word may be estab- 
 lished." 
 
 That is the method of Investigation and Arbitra- 
 tion. 
 
 V. 17: "And if he shall neglect to hear them, tell 
 it unto the Church : but if he neglect to hear the 
 Church, let him be unto thee as an heathen man 
 and a pubUcan." 
 
 That is the method of reUance upon an informed 
 PubUc Opinion, and upon the power of the Com- 
 munity to ostracize where a wrong is done its sense 
 of justice. 
 
 These words lose none of their significance by the 
 sentence which precedes them: 
 
 V. 14: "Even so it is not the will of your Father 
 which is in heaven, that one of these Uttle ones 
 should perish." 
 
490 INDUSTRY AND HUMANITY 
 
 Force or Consent : these are the alternative sanc- 
 tions in all matters pertaining to Law and Govern- 
 ment. The democracies of the world have chosen 
 government by Consent. Prussianism, when it in- 
 vaded Belgium and set out to conquer the world, 
 staked its all on Force. That is why the upholders 
 of these opposing doctrines are locked in mortal 
 combat, and why the champions of Force must be 
 overborne, if the world, as has been said, is to be 
 made safe for Democracy. There can be no genuine 
 democracy where the doctrine of Force prevails; 
 neither can there be a Christian civilization. 
 
 The War has revealed the hideousness of Force 
 and the anguish its use may bring to an entire 
 world. Are the fundamental lessons of the War to 
 be taken to heart, or, as respects the problems of 
 Industry, is the sacrifice of the world's young life 
 to have been in vain? Are the false and cruel meth- 
 ods which have occasioned war to be repeated in 
 an endless series of intermittent conflicts between 
 Capital and Labor? Let there be no mistake. The 
 method of the strike and the lockout is not dis- 
 tinguishable from the method of Force. Both are 
 demonstrations of Might. Violence, in one form or 
 another, by one party or the other, is in most in- 
 stances an inevitable accompaniment. All indus- 
 
EDUCATION AND OPINION 491 
 
 trial strife is a form of anarchy. It is a method no 
 longer required in countries whose governments 
 have made adequate provision for the investiga- 
 tion of injustice in Industry; at least, until the 
 method of investigation has been tried and fails to 
 reveal its merits. 
 
 Investigation gives to the worker, where his 
 claims are just, a better chance of redress than 
 striking affords. Investigation leads to a study of 
 conditions which are fundamental. The effort to 
 conquer by force diverts attention to other con- 
 siderations, such as the relative strength of the 
 parties and the chances of success or failure in 
 confhct. Striking weakens the worker's economic 
 position by depriving him of wages and reducing 
 him daily nearer a minimum of subsistence. In- 
 vestigation enables hun to sustain his economic 
 position and at the same time to secure justice in a 
 manner which works no injury to third parties. 
 "Justice," said Edmund Burke, "is the common 
 concern of mankind." Injustice will not neces- 
 sarily be remedied by force. Investigation, if it 
 reveals injustice, is irresistible. It can marshal to 
 its support an informed piiblic opinion and the 
 agencies that create it, which in the use of force are 
 antagonized rather than made sympathetic. There 
 can be no interference with real hberty in a measure 
 which protects society and at the same time pro- 
 tects the individual who beheves himself to be 
 
492 INDUSTRY AND HUMANITY 
 
 wronged. The prohibition of a strike pending in- 
 quiry merely says to the worker: "You shall not 
 use the economic power involved in quitting in 
 concert as a weapon to coerce employers to yield 
 demands, so long as that method of securing your 
 purpose is unnecessary in the first place, and is con- 
 trary to the pubhc welfare." ^ When it is known 
 that most of the serious industrial conflicts would 
 never have taken place if prior to their outbreak 
 there had been investigation of the differences 
 between the parties, or even statutory authority to 
 compel investigation, is it not inviting disaster for 
 countries to remain indifferent to hke recurrences, 
 so long as anywhere in the world measures exist 
 which, given a fair trial, are capable of avoiding 
 such catastrophes? 
 
 Strikes and lockouts do not help to make the 
 world safe for Democracy. Viewed from the stand- 
 point of democracy, what are they but "a combi- 
 nation by men not elected by the people and not 
 accountable to the people, to prevent other citizens 
 from exercising their rights "?2 Where there are 
 tribunals with adequate powers to do justice, 
 strikes or lockouts in defiance of their existence are 
 
 1 Thomas T. Parkinson, ConstiiutioTml Aspects of Compulsory 
 Arbitration, Proceedings, Acad. Pol. Sc, vol. vn, no. i, p. 65. 
 f ' Everett P. Wheeler, Discussion of Trades Unions and Compulsory 
 Arbitration, Proceedings, Acad. Pol. Sc, vol. vn, no. i (January, 1917), 
 p. 84. 
 
EDUCATION AND OPINION 493 
 
 violations of fundamental rights. To shut off sup- 
 plies of food and coal, by means of a strike, is 
 equivalent to a forcible blockade, which may result 
 in starvation. 
 
 In disputes which adversely affect communities, 
 the position of the public is very similar to that of 
 neutral nations whose legitimate interests are af- 
 fected by other nations engaged in war. A neu- 
 tral may come to suffer as much as a belhgerent. 
 Tragic experience has caused this to be recognized 
 in international affairs, and the avoidance of war 
 is now looked upon as the common concern of all 
 countries. The avoidance of industrial war is not 
 less the common concern of all communities. Even 
 industrial disputes may become matters of grave 
 international concern. The strike of seamen in 
 1911 was international. It involved 600,000 men, 
 18 countries, and 300 harbors in Europe and Amer- 
 ica. Strikes upon the railways and in the coal fields 
 of America and Britain have affected industrial 
 and social conditions in other lands. 
 
 If the recent past has revealed the frightful con- 
 sequences of industrial strife, do not present devel- 
 opments all over the world afford indications of 
 possibilities infinitely worse? Syndicalism aims at 
 the destruction by force of existing organization, 
 and the transfer of industrial capital from present 
 possessors to syndicates or revolutionary trades 
 unions. This it seeks to accompUsh by the "general 
 
494 INDUSTRY AND HUMANITY 
 
 strike." What might not happen, in America or in 
 England, if upon a few days' or a few weeks' notice, 
 the coal mines were suddenly to shut down, and the 
 railways to stop running! Suppose, for example, 
 that in Great Britain, all the men who belong to the 
 Railway Employees' Unions, the Transport Work- 
 ers' Union, and the Coal Operatives' Union were 
 to act in concert and cease operations for the space 
 of two or three days, to say nothing of a longer 
 period! Is this a possibility so remote as not to 
 be worth considering? These organizations are all 
 part of one Federation which at any moment may 
 act under instructions from a single Board. Here 
 is power which, once exercised, would paralyze the 
 British nation more effectively than any blockade 
 in time of war. 
 
 Fortunately, these great organizations have had, 
 for the most part, able and patriotic officers. But 
 the best of leaders are not always able to control. 
 Europe and America have had numerous instances 
 of industrial conflicts due to the inability of leaders 
 to command their foUowings. On the other hand, 
 it is an interesting and suggestive fact, as one with 
 experience in labor matters has pointed out, that 
 opposition to government mediation is stronger 
 among union leaders than among their followers. 
 "Strikes," says Dr. Victor Clark, "are hke wars; 
 they open opportunities for prominence and dis- 
 tinction to the officers who lead them, but only 
 
EDUCATION AND OPINION 495 
 
 hardship and suffering to the rank and file who 
 fight them." i 
 
 Where there are "conditions that prompt irre- 
 sponsible men to impulsive action," either on the 
 part of leaders or on the part of the rank and file, 
 a measure that acts as a check upon hasty and ill- 
 conceived action is surely not less in the interests of 
 Labor itself than in the interests of the community 
 at large. Investigation prior to severance of indus- 
 trial relations is an effort by the community to pro- 
 tect itself against the anti-social consequences of 
 open warfare. The community, as one of the part- 
 ners in Industry, has a right to this protection. 
 
 In 1907 the Parliament of Canada enacted what 
 is known as The Industrial Disputes Investigation 
 Act. That measure apphes to Industry the princi- 
 ple of investigation prior to a lockout or strike. It 
 is founded upon the idea of introducing into In- 
 dustry a system of adjusting industrial differen- 
 ces based on principles of law and order. It takes 
 away no right of strike or lockout from the parties 
 to industrial disputes. With respect to agencies 
 of transportation and communication, mines, and 
 industries in the nature of pubhc utihties, it merely 
 postpones the exercise of the right until there has 
 been an investigation at the pubUc expense. These 
 
 " The Canadian Industrial Disputes Act, Proceedings, Acad. Pol. 
 Sc, vol. vn, no. i, p. i8. 
 
496 INDUSTRY AND HUMANITY 
 
 are industries upon the uninterrupted operation of 
 which the well-being of other industries and the 
 Community largely depends. Upon consent of the 
 parties, the provisions of the Act may be made 
 apphcable to any industrial dispute involving an 
 appreciable number of persons. 
 
 The Act establishes a procedure to which men 
 have become accustomed in judicial and parUamen- 
 tary processes. It gives to the parties to industrial 
 controversies the right to appeal before a recog- 
 nized pubhc tribunal in order to have the merits of 
 respective positions or contentions examined into 
 in an orderly method. Boards may be estabHshed 
 at the instance of either workers or employers, 
 wherever a dispute arises which threatens a lockout 
 or strike. Each of the parties concerned is entitled 
 to name one member of a Board. The third mem- 
 ber, who becomes the Chairman, is selected by the 
 two members named, or, faihng selection in this 
 way, is appointed by the Government. Thus con- 
 stituted, each Board has all the powers of a Court. 
 It may summon witnesses, take evidence upon 
 oath, compel the production of documents, inspect 
 premises, or adopt any method of getting at facts 
 which appears to be necessary to a full understand- 
 ing of the matter in dispute. The parties are en- 
 titled to be represented before the Board in person, 
 or by any persons of their own choosing. All ex- 
 penses incidental to the inquiry, including allow- 
 
EDUCATION AND OPINION 497 
 
 ances to members of the Board for their services, 
 fees to witnesses for attendance, remuneration of 
 experts and the hke, are paid out of the pubUc 
 treasury. No obligation is imposed upon the par- 
 ties except to refrain from severing theu relations 
 until the Board has had opportunity of fully inves- 
 tigating the matter in dispute, and making public 
 its findings in reference thereto. 
 
 If in the course of an inquiry conciUatory efforts 
 on the part of a Board fail to effect an adjustment 
 of the difference, or if the findings of a Board do 
 not prove acceptable to either of the parties, and 
 a settlement on hnes recommended cannot be 
 reached, either party is then free to take such ac- 
 tion as in the circumstances it beheves is best 
 calculated to further its own special interests. The 
 right to strike or to lockout may then be exer- 
 cised if so desired. Meanwhile, however, the pub- 
 he has been afforded opportunity to learn of the 
 existence of the dispute, and to gain some idea of 
 its merits. 
 
 The real significance of the Canadian Act has 
 been well set forth by Sir George Askwith, Chief 
 Industrial Commissioner and Chairman of the 
 Industrial Council of the United Kingdom, who 
 visited Canada in the autumn of 1912 for the pur- 
 pose of inquiring into its working. In his Report 
 thereon to the British Government, Sir George 
 Askwith says: 
 
498 INDUSTRY AND HUMANITY 
 
 "It will be seen that the Act differs essentially 
 from compulsory arbitration. It only endeavours 
 to postpone a stoppage of work in certain indus- 
 tries for a brief period and for a specific purpose. 
 It does not destroy the right of employers or work- 
 people to terminate contracts. It does not attempt 
 to regulate details of administration of business by 
 employers or interfere with organization of associa- 
 tions of employers or of trade unions. It legalises 
 the community's right to intervene in a trade dis- 
 pute by enacting that a stoppage either by strike 
 or lockout shall not take place until the commu- 
 nity, through a Government Department, has in- 
 vestigated the difference with the object of ascer- 
 taining if a recommendation cannot be made to the 
 parties which both can accept as a settlement of 
 the difference. It presupposes that industrial dif- 
 ferences are adjustable, and that the best method 
 of securing adjustment is by discussion and negoti- 
 ation. It stipulates that before a stoppage takes 
 place the possibilities of settlement by discussion 
 and negotiation shall have been exhausted, but, 
 and here it differs from Compulsory Arbitration, it 
 does not prohibit a stoppage either by lockout or 
 strike if it is found that no recommendation can be 
 made which is acceptable to both sides. If no way 
 out of the difficulty can be found acceptable to both 
 parties, there is no arbitrary insistence upon a con- 
 tinuance of either employment or labour, but both 
 sides are left to take such action as they may think 
 fit. As a result, it does not force unsuitable regula- 
 tions on industries by compulsory and legal insist- 
 ence, but leaves an opportunity for modification 
 by the parties. It permits elasticity and revision, 
 and, if it does not effect a settlement, indicates a 
 basis on which one can be made.''^ 
 
 ' Report to the Board of Trade on the Industrial Disputes Investiga- 
 
EDUCATION AND OPINION 499 
 
 The Industrial Disputes Investigation Act has 
 been on the statutes of Canada for a number of 
 years. It was introduced in the House of Com- 
 mons, during the session of 1906-07, by the Honor- 
 able Rodolphe Lemieux, Postmaster General and 
 Minister of Labor at the time, and was assented to 
 on March 22, 1907. i Since its enactment, the parties 
 to disputes have failed in some instances to take 
 advantage of its provisions, and strikes and lock- 
 outs have occurred notwithstanding its existence. 
 In such cases, there has been either ignorance of the 
 law or a behef in the superior merits of Force. On 
 the whole, however, the law has been well observed. 
 On this point, Sir George Askwith says: 
 
 " It will have been gathered from the preceding 
 explanation of the working of the Act that where it 
 was frankly accepted as a means of preventing dis- 
 putes it has worked extremely well, but where, for 
 reasons, some apparent and others which can only 
 be guessed at, its introduction has been resented, 
 it has notsucceeded to the same extent." ^ 
 
 Personally, I do not know of a single instance, in 
 cases where the provisions of the Act have been 
 ignored, in which gain has come to any of the 
 parties. On the other hand, the number of disputes 
 
 tion Act of Canada, 1907, p. 7, by Sir George Askwith, K.C.B., K.C., 
 Chief Industrial Commissioner. [Cd. 66o3.] London, igiS. 
 
 ' 6-7 Edward VII, c. 20. Amendments, g-io Edward VII, c. 29, 8-9 
 George V, c. 27. 
 
 2 Idem, p. i5. 
 
500 INDUSTRY AND HUMANITY 
 
 which have been amicably adjusted under the Act 
 without loss of a dollar to Capital, a day's wage to 
 Labor, or a moment's inconvenience to the public, 
 is so considerable as to constitute the vast majority 
 of the cases which have been referred under its 
 provisions.! 
 
 Since the commencement of the War, the appli- 
 cation of the Act has been extended by the Cana- 
 dian Government to all industries carrying on work 
 essential to the prosecution of the War. As already 
 mentioned, the Government has also estabhshed 
 a Board of Appeal, composed of representatives of 
 Capital, Labor, and the PubUc, to which either of 
 the parties may take an appeal from the findings 
 of a Board of Investigation. This Board is in the 
 nature of a permanent Court of Appeal. 
 
 There has not been at all times entire satisfaction 
 with the manner in which the law has been admin- 
 istered; there has been no attempt in Parliament, 
 however, to repeal the statute. The amendments 
 introduced have been aimed at overcoming limita- 
 tions which experience of its working has disclosed. 
 On the whole, the Act has grown in favor as its 
 provisions have become better known and more 
 generally adopted in the adjustments of disputes. 
 
 * The Tenth Report of the Registrar of Boards of ConcUiation and 
 Investigation of proceedings under the Industrial Disputes Investiga- 
 tion Act shows that of 227 disputes referred under the Act in the ten 
 years 1907-17, there were only 21 instances in which strikes were not 
 averted or ended. Vide Report for the Fiscal Year ending March 3i, 
 1917- 
 
EDUCATION AND OPINION 501 
 
 Where opposition on the part of Labor existed at 
 the time of its introduction, that opposition has 
 continued in part, but in part also it has been over- 
 come. 
 
 Of the attitude of employers and the general 
 pubhc in Canada, the Report of Sir George Ask- 
 with says : 
 
 "With the exception of one employer, who was 
 averse to any interference, and anxious to fight out 
 any differences which might arise between himself 
 and his employees, I found the many employers 
 whom I interviewed generally favourable to the 
 Act, certainly to its principle and pohcy. Many ex- 
 pressed themselves as being wiUing to accept any 
 tribunal which promised a fair and impartial con- 
 sideration of industrial differences, and pronounced 
 the Industrial Disputes Investigation Act as being 
 the best that had been devised. Others stated that 
 the Act did not go far enough, but agreed with it so 
 far as it did go. . . . 
 
 "The public men with whom I discussed the Act 
 were practically, without exception, favourable to 
 it, and thought that it might be extended with ad- 
 vantage to other trades. They particularly em- 
 phasized the advantages of the conciliatory work 
 effected under the Act, and the value of the mutual 
 understanding which had been in many instances 
 obtained by means of it." 
 
 Opinion respecting the Act has changed very 
 Httle. Sir George Askwith's summary may be 
 taken as true to-day. 
 
 Of Labor's attitude, Sir George Askwith says: 
 
502 INDUSTRY AND HUMANITY 
 
 "In considering the attitude of Labour towards 
 the Act, it should be remembered, therefore, that 
 the Act had a hostile reception from some of those 
 most immediately affected, not so much because of 
 any demerits it might possess, but because it was 
 believed to have been introduced with a view to 
 frustrate their efforts in the effective use of the 
 strike weapon. 
 
 "I beheve this conception to have been errone- 
 ous, but my present point is simply to show that 
 the Act was prejudiced in the early stages of its 
 work, which prejudice has retarded the full bene- 
 fits that might have resulted from its becoming 
 law. . . . 
 
 "As regards the Western coal miners, this atti- 
 tude of opposition has been maintained, and has 
 been more or less supported by many leading trade 
 unionists. With respect to the railway unions, 
 however, a reversal of their former attitude has re- 
 sulted from their experience under the Act, and no 
 more warm supporters of the Act are now to be 
 found in the Dominion than leaders of railway 
 unions." 
 
 The cause alleged by Sir George Askwith ac- 
 counts, without doubt, for such opposition as there 
 has been to the measure on the part of Labor, and 
 for the fact that some leaders of Labor in countries 
 outside of Canada have sought to arouse prejudice 
 against the introduction of similar legislation else- 
 where. Labor has been told that the Act takes 
 away "the only weapon" Labor has; that it means 
 "industrial servitude." For having had to do with 
 the drafting of the measure, I was represented 
 
EDUCATION AND OPINION 503 
 
 before the United States Commission on Industrial 
 Relations, by one leader of Labor, as "an alien, 
 whose contribution to the industrial problem is a 
 law that prescribes a jail sentence for the worker 
 who dares to lay down his tools." ^ 
 
 Let me invite Labor into my confidence with 
 respect to the Canadian Industrial Disputes Inves- 
 tigation Act and the circumstances which led to 
 its enactment. I beUeve a true appreciation of its 
 real purpose will serve considerably to modify what 
 Uttle prejudice, if any, may still exist against the 
 principle of investigation before resort to Force in 
 the settlement of industrial disputes. The circum- 
 stances which led the Government of Canada to 
 estabUsh machinery for the investigation of Labor 
 controversies were far from being confined to those 
 connected with any single strike. They related to 
 injustices done Labor both in Canada and abroad. 
 The Government's purpose was more than that of 
 simply finding a means to prevent strikes and lock- 
 outs. It was the large purpose of providing an in- 
 strument that would be effective in uncovering 
 industrial wrongs and exposing injustice in indus- 
 trial controversies. 
 
 During the sunamer 1906, the Canadian Govern- 
 ment sent me to confer with the British authorities 
 
 * Commission on Industrial Relations. Testimony, vol. vm, 
 p. 8007. Washington, 1916. 
 
504 INDUSTRY AND HUMANITY 
 
 as to the desirability of the enactment of a law 
 which would make it a criminal offence for persons 
 in the United Kingdom and Ireland to induce labor, 
 through fraudulent representations, to go abroad. 
 The mission followed an investigation I had previ- 
 ously made in Canada as to the manner in which 
 a party of skilled printers, some seventy in num- 
 ber, had been induced to leave England for Winni- 
 peg under representations that they were to obtain 
 good positions in the Dominion, when in reality 
 they were being brought to the country as strike- 
 breakers.^ Only a year or two before, several thou- 
 sand ItaUans had been induced to come to Canada 
 from Italy under circumstances which were gigan- 
 tically fraudulent.^ The exposures of the inves- 
 tigation into the circumstances surrounding this 
 extraordinary influx were followed by legislation 
 making it a criminal ofTence for any person resident 
 in Canada to make fraudulent representations with 
 a view of inducing foreign labor to come to Canada.' 
 This legislation, it will be observed, was made ap- 
 pUcable necessarily only to persons resident in Can- 
 ada. It could not reach individuals who might 
 
 ' Vide " Investigation of Alleged Fraudulent Practices in England 
 to Induce Printers to Come to Canada." Labour Gazette, vol. vi, no. lo, 
 April, 1906, pp. ii22-ii3o. 
 
 ^ Vide " Report of Deputy Minister of Labour on Causes of Influx 
 of Italians to Montreal during 1904." Labour Gazette, vol. vi, no. 12, 
 June 1906, pp. i347-i35i. 
 
 ' An Act respecting false representations to induce or deter immi- 
 gration. 4-5 Edward VII, c. 16. 
 
EDUCATION AND OPINION 505 
 
 carry on fraudulent manoeuvres in other countries. 
 What was desired of the British Government was 
 the enactment of similar legislation in Great Brit- 
 ain to prevent fraudulent representations on the 
 part of persons resident in the British Isles. 
 
 The Rt. Hon. David Lloyd George was President 
 of the Board of Trade at the time. Along with 
 other legislation, Mr, Lloyd George was piloting 
 through Parhament a revision of the Merchants 
 Shipping Act. He took the matter in hand, and 
 introduced as an amendment to the Merchants 
 Shipping Act a clause which adequately covered 
 what was desired. ^ This amendment is part of 
 British law to-day. It is as applicable to fraud- 
 ulent representations to induce persons to emigrate 
 to the United States or any other country as to 
 fraudulent representations with respect to Canada. 
 
 I was returning from this mission to England 
 when, upon arrival at New York, I received a com- 
 munication from Sir Wilfrid Laurier advising me 
 that there was a critical situation in the Canadian 
 West owing to a prolonged strike in certain of the 
 coal mines in Southern Alberta. Winter was ap- 
 
 ' The Merchants Shipping Act, 1906, Sec. 24: "If any person, by 
 any false representation, fraud, or false pretence, induces or attempts 
 to induce any person to emigrate or to engage a steerage passage in 
 any ship, he shall for each offence be liable on summary conviction to 
 a fine not exceeding fifty potmds, or to imprisonment with or without 
 hard labour for a period not exceeding three months." 
 
506 INDUSTRY AND HUMANITY 
 
 proaching, snow had already begun to fly on the 
 prairies, and representations had been made to the 
 Federal Government by the Government of Sas- 
 katchewan that unless the strike could be speedily 
 terminated, and a supply of coal immediately ob- 
 tained, settlers would certainly freeze to death in 
 their homes. I was asked to proceed at once to 
 Alberta, and lend the good oflices of the Govern- 
 ment in an endeavor to effect a settlement. 
 
 As I went west across the prairies, it looked 
 as though winter had already set in. For miles 
 and miles on either side of the railway were bleak 
 stretches of snow-covered ground, nothing to be 
 seen anywhere except the solitary dwelling of some 
 settler, and, now and then, a coyote or prairie 
 wolf. 
 
 As I came into Southern Alberta, the scene com- 
 pletely changed. There the weather was bright and 
 clear, a delightful Indian summer, not a sign of 
 snow anywhere. It was difficult to get the parties 
 to the industrial controversy to appreciate the 
 gravity of the situation farther north. They were 
 set in their attitude of long defiance towards each 
 other, and seemed incapable of looking beyond the 
 horizon. 
 
 I tried to bring about an immediate conference 
 between the leaders of the strikers and the mana- 
 ger of the Company, but at once I was told that 
 that would mean "the recognition of the Union," 
 
EDUCATION AND OPINION 507 
 
 and that it was on the question of recognition the 
 fight was being made. The leaders of the men 
 were ready enough for a conference, but the Com- 
 pany would not hear of it. I tried every means 
 to bring about a conference of some kind between 
 the strikers and the management, knowing full 
 well that no settlement could ever be reached to 
 which both sides were not parties. It was of no 
 avail. I could propose nothing which did not seem 
 to imply " recognition." Meanwhile, telegrams kept 
 pouring in from all parts of Northern Alberta and 
 Saskatchewan teUing of the dire distress with 
 which municipalities as well as isolated settlers 
 were confronted, and demanding that somehow 
 the mines commence operations. 
 
 Along with hundreds of communications re- 
 ceived, there came to my notice in the press an 
 open letter addressed to the Prime Minister of Can- 
 ada. The letter seemed to me then, and has ever 
 since appeared, a splendid example of what is meant 
 by participation in Government through the in- 
 forming of PubUc Opinion. It was one of those 
 assertions of fundamental rights upon the part of a 
 citizen which really stand for government by the 
 people. It belongs to the instruments of govern- 
 ment by which the liberties of a free people are 
 maintained. I quote the communication just as it 
 appeared : 
 
508 INDUSTRY AND HUMANITY 
 
 Local Improvement District of Ramsay 
 Bladworth, Sask., Nov. 19, 1906. 
 
 Dear Sir Wilfrid: 
 
 The hamlet of Bladworth is the supplying point 
 for settlers in approximately twelve townships sur- 
 rounding. 
 
 These townships have approximately 50 settlers 
 each settled therein. The country is open rolling 
 prairie, devoid of trees. The settlers depend for 
 fuel on wood and coal obtained at the nearest rail- 
 way station, Bladworth. The local dealers secure 
 their wood from the Prince Albert country, and 
 their coal from the Gait Mines, Lethbridge. No 
 coal has been obtained from this latter source since 
 April last. One oar was obtained from Banff in 
 September last, since which no coal has been re- 
 ceived here. Ten cars are under orders from Leth- 
 bridge, and none delivered. One car is ordered 
 from Estevan and promised by the mine operator 
 for December 17 next. 
 
 Wood has been ordered from the Cowan Com- 
 pany, Prince Albert, and their answer is : 
 
 "We have neither slabs, edgings, nor cuttings, 
 and though we have inquired we are unable to pur- 
 chase any cordwood — there is none in the city." 
 
 Settlers have been burning lumber at $30.00 a 
 thousand, willow bramble, twisted hay and grain. 
 These sources are well-nigh exhausted. 
 
 Dr. J. Fyfe reports from observation that no fuel 
 is in the settlers' hands, and that suffering and per- 
 haps death will ensue therefrom. All pubhc schools 
 are closed for want of fuel. The Saskatchewan 
 Hotel, a thirty-roomed house, has but one fire. 
 
 A bhzzard had been blowing on November 15, 
 16, and 17, with zero weather. I leave you, sir, to 
 imagine what the condition of your fellow-subjects 
 
EDUCATION AND OPINION 509 
 
 is in the electoral district of Batoche — a name not 
 unknown in history. This condition is not local, 
 but general. 
 
 We are informed that those persons operating 
 the mines of the people are disputing over their 
 rights — regardless of the right of the people to 
 live. 
 
 I would respectfully ask that you, sir, put an end 
 to a dispute that is intolerable, and the mainten- 
 nance of which endangers the life and happiness 
 (inahenable rights of all free people) of all settlers. 
 
 I ask you, sir, on behalf of a suffering people, 
 that by the powers vested in you the right of emi- 
 nent domain be exercised. 
 
 I can assure you, sir, without exaggeration, that 
 this matter is one of hfe and death to the settlers 
 here, one requiring inunediate action. 
 Your obedient humble servant 
 Wm. L. Ramsay 
 
 Chairman of Committee 
 
 To the Right Hon. Sir Wilfrid Laurier 
 Premier of Canada 
 
 Ottawa, Can. 
 
 Having read this letter, I discussed it with each 
 of the parties, pointing out how, in a crisis such as 
 it depicted, every hour was a matter of the most se- 
 rious import. I supplemented this step by reading 
 over to the parties communications which came 
 to hand from the Government of Saskatchewan, 
 stating that the utmost distress was existing 
 throughout that province on account of an actual 
 coal famine, and that the distress was increasing 
 
510 INDUSTRY AND HUMANITY 
 
 hourly, with the prospect of the most alarming 
 consequences if immediate rehef were not afforded. 
 Even then, it was impossible to reach an agreement. 
 What stood in the way of settlement? Abso- 
 lutely nothing but the difficulty of bringing about 
 a conference; and the absence of any machinery to 
 get at the facts, once, after days of delay, a con- 
 ference was finally effected. A fully informed pub- 
 lic opinion, supplemented by the probability of ac- 
 tion on the part of the Government, was all there 
 was wherewith to exert any pressure upon the par- 
 ties to bring them to a sense of their responsibility 
 to the country. It proved sufficient in the end, but 
 not until after much suffering had been endured by 
 hundreds of innocent settlers. A strike that prob- 
 ably never would have taken place had there been 
 in existence machinery such as the Industrial Dis- 
 putes Investigation Act provides, and which with 
 the facilities of investigation provided by the Act, 
 might have been ended in two days, was kept on, 
 day in and day out, week in and week out, and 
 month in and month out, owing to the lack of any 
 such measure. 1 ^ 
 
 When I returned to Ottawa, Sir Wilfrid Laurier 
 
 invited me to a conference in his office. He spoke 
 
 ' of the strike and the very critical situation it had 
 
 1 For a detailed account of the settlement of the strike herein re- 
 ferred to, the reader is referred to The Labour Gazette, vol. vn, no. 6, 
 December, 1906, pp. 647-66a. 
 
EDUCATION AND OPINION 511 
 
 occasioned in the country. He mentioned other 
 strikes that had taken place, and the possibihty of 
 similar happenings in the future. He said the in- 
 terests of the country demanded that something 
 be done to make impossible the recurrence of such 
 a disastrous situation. He asked me if I had any 
 suggestions to make. 
 
 The experiences of the strike I had just dealt 
 with were vividly before me. DifTiculties encoun- 
 tered as a mediator in the adjustment of other dis- 
 putes were also present to my mind. I spoke of 
 these to Sir Wilfrid and of the services which 
 proper machinery for investigation might have 
 rendered Labor in the case of the deceived Ital- 
 ians, and the wrongs which compulsory investi- 
 gation might have avoided in the case of the Win- 
 nipeg Printers' Strike. I had no doubt as to what 
 was necessary if Labor was to have just treatment 
 in matters of industrial controversy. Having out- 
 lined concrete difficulties, I suggested that if the 
 Government would enact a law which would com- 
 pel parties to industrial controversies to meet to- 
 gether and discuss their differences before rela- 
 tions were severed through a lockout or strike, 
 and which would provide machinery whereby, 
 when they were together, it would be possible to 
 get at the truth, I beheved that such a law would 
 eliminate ninety per cent, of lockouts and strikes. 
 Sir Wilfrid then said, "Well, draft such a law." ^ 
 
512 INDUSTRY AND HUMANITY 
 
 The Christmas vacation of 1906 was devoted to 
 the task. Save the embodiment of the principle of 
 conference prior to the severence of relations be- 
 tween parties to industrial controversies, there was 
 very httle in the new law that was original. In the 
 sources of labor legislation consulted, the experi- 
 ences of Great Britain, of the United States, of 
 AustraUa and New Zealand, were all drawn upon. 
 Such features of compulsion as the law contained 
 were confined to those essential to compelling a 
 conference, and to giving to the Public, as well as to . 
 the inunediate parties to industrial controversies, 
 opportunity of ascertaining the truth before the com- 
 mencement of hostilities. The right to strike or to 
 lockout was not taken away; the right was merely 
 suspended. The Act was framed with a view to 
 rendering unnecessary any resort to a strike as a 
 means of compelling consideration of grievances or 
 demands. For this reason, pending the necessary 
 period of investigation, the right to strike was held 
 in abeyance, not more in the interest of the public 
 than in the interest of the parties themselves. 
 
 In drafting this legislation, I was not seeking to 
 take away from Labor any right. I was seeking to 
 gain for Labor a right which in the whole of its 
 history it had never theretofore enjoyed : namely, 
 the right, not to be withheld, of having investi- 
 gated, at pubUc expense, upon Labor's own motion, 
 and in part by its own named investigators, any 
 
EDUCATION AND OPINION 513 
 
 adverse industrial condition likely to involve a 
 lockout or strike. Such power, extending to the 
 examination of documents, the taking of evidence 
 under oath, the inspection of premises, surpassed 
 the liveUest expectations of Labor at the time. 
 Little wonder there were grave doubts in my own 
 mind, and in the minds of officers of the Do- 
 minion Trades and Labor Congress, with whom I 
 conferred while drafting the measure, and whom 
 I consulted as to Labor's acceptance of the prin- 
 ciple involved, whether Parliament would enact a 
 law extending such powers, in return only for the 
 enjoyment by the community of uninterrupted 
 service in the industry, pending the use of the 
 powers the Government was conceding. 
 
 The right of pubUc investigation in matters of 
 labor controversy is a very far-reaching and potent 
 right. Compared with it, as a means of securing 
 justice, the strike and lockout fade into insignifi- 
 cance. I know of no instrument so powerful to put 
 a stop to arbitrary conduct. There is no direction 
 in which the right of investigation cannot be em- 
 ployed with the utmost advantage to Labor and to 
 the Community. It is worth any concession Labor 
 is able to make. Think what its exercise meant in 
 the case of the telephone and cotton mill opera- 
 tives, of which mention has been made elsewhere 
 in these pages. Think what it might have meant. 
 
514 INDUSTRY AND HUMANITY 
 
 effectively applied, to the work of men, women, and 
 girls in the garment-making industry and in the 
 match-making industry, to mention only two other 
 examples referred to. Labor cannot, with any sense 
 of fair play, demand the exercise of this right in 
 matters of health or of injustice as concerns itself, 
 and deny the same right to the other parties to In- 
 dustry, when its exercise means the preservation of 
 the well-being of the entire community. If Indus- 
 try is to be regarded as in the nature of social serv- 
 ice, and Labor has everything to gain by such a 
 conception of Industry being entertained, then the 
 rights of all the parties must be respected, and the 
 Community, along with Labor, Capital, and Man- 
 agement, must be accorded full knowledge of situ- 
 ations which bear directly upon its immediate in- 
 terests. There cannot be regard on the one hand 
 for the rights of Labor and Capital by the Com- 
 munity, and, on the other, indifference to the well- 
 being of the Community by Labor or Capital. 
 
 Labor will do well to reflect upon all that is in- 
 volved in the gradual extension of the right of in- 
 vestigation. Investigation means pubhcity in the 
 matter of profits as well as in the matter of wages. 
 Why should there not be like publicity if both are 
 honestly earned? Investigation can be extended 
 to publicity in the matter of excess prices, as well 
 as to the exposure of all forms of profiteering. The 
 presence on the Statutes of Canada of the Indus- 
 
EDUCATION AND OPINION 515 
 
 trial Disputes Investigation Act of 1907 enabled me, 
 in 1910, to introduce and support in Parliament a 
 Combines Investigation Act, giving to consumers 
 rights and powers of investigation, similar to those 
 embodied in the Industrial Disputes Act, with re- 
 spect to alleged enhancement of prices or restraint 
 of trade from combinations in the nature of Trusts, 
 Combines, MonopoHes, and Mergers. ^ This statute 
 is part of the law of Canada to-day. Were full ad- 
 vantage taken of its provisions, it would make pro- 
 fiteering in any form impossible. Had the Govern- 
 ment of Sir Wilfrid Laurier continued in office, 
 these two measures would have been supplemented 
 by a third designated the Industrial Conditions In- 
 vestigation Act, with machinery, functions, and 
 powers similar to those pertaining to the investi- 
 gation of industrial disputes but applicable to any 
 industrial situation demanding investigation in the 
 pubhc interest. The principle of such a measure had 
 been accepted, and its provisions in the form of a 
 draft bill prepared, by the Administration. It was 
 denied introduction into ParUament only because 
 of the summary dissolution of Parhament at the 
 time of the Reciprocity proposals. 
 
 If I have sought to promote legislation which 
 would make investigation available in many di- 
 rections, it is because I have faith in the power of 
 
 1 Statutes of Canada, 1910; 9-10 Edward VII, c. 9. An Act to 
 provide for the investigation of Combines,' Monopolies, Trusts, and 
 
 Mergers. 
 
516 INDUSTRY AND HUMANITY 
 
 an intelligently formed Public Opinion to remove 
 any injustice and to redress any wrong. There is 
 a class of evils which pubhcity is more effective 
 to remedy than penalty. Most industrial wrongs 
 belong to this class. As respects all such measures, 
 may I repeat here what I said in the Canadian 
 House of Commons, over eight years ago, in the 
 course of the debate on the Combines Investigation 
 Act.i The words are equally appUcable to" the in- 
 vestigation of industrial disputes prior to a lockout 
 or strike, and as such I would address them es- 
 pecially to Labor. 
 
 "It is in the machinery for investigation and for 
 the framing and shaping of an inteUigent pubhc 
 opinion which the measure provides, that its main 
 features exist. It aims to get at the truth and to 
 have the truth, when ascertained, so presented that 
 the remedy for a wrong disclosed will be self-evi- 
 dent. It is framed in the belief that, once in posses- 
 sion of the facts which are of first importance to it- 
 self, the public will find a way of seeing that any evil 
 under which it may be wrongfully suffering will be 
 removed and that no situation, however compli- 
 cated, will prove too intricate for a satisfactory 
 solution. To ascertain the facts, to get at the 
 truth, is the first of all essentials. It rehes on the 
 moral sense of the community as a compeUing 
 force, when concentrated inteUigently on a busi- 
 ness wrong. IntelUgent public opinion will protect 
 honest business and condemn unfair practices. 
 
 1 Hansard, House of Commons Debates, April 12, loio, pp. 
 6860-6861. 
 
EDUCATION AND OPINION 517 
 
 "In the publicity, therefore, which this measure 
 secures, not to private affairs of honest business 
 men, as may be urged by those who are interested 
 in thwarting legislation of this kind, but to the 
 wrongful acts of mean men, lies its strength in se- 
 curing the well-being of the people, which it is its 
 purpose to maintain. It is an honest endeavour to 
 grapple in a fearless, practical, and thorough man- 
 ner with what is, undoubtedly, the most compli- 
 cated, intricate, and far-reaching of those prob- 
 lems to which our present social, industrial, and 
 commercial life have given rise, and which pre- 
 sents, I believe, more difficulties than any other 
 single problem in the world to-day. If it does noth- 
 ing more than restrain to some extent the aggres- 
 sive tendencies of large aggregations of wealth, and 
 secure as respects those powerful interests, some 
 measure of that social control which is essential to 
 the protection of the well-being of the many, it 
 will prove not only a benefit to this nation, but, I 
 beheve, an onward step in the march of social 
 progress." 
 
 The acceptance of the principle of investigation 
 prior to the lockout or strike marks the beginning 
 of the introduction of Law and Order into Industry ; 
 also the beginning of Joint-Control. To secure its 
 universal application, its enforcement by the State 
 is necessary, just as the universal enforcement of a 
 National Minimum or of any Labor standard re- 
 quires some element of compulsion. In measures 
 aimed at the protection of society, the police power 
 must not be confused with aggressive force; the 
 two are fundamentally different. 
 
518 INDUSTRY AND HUMANITY 
 
 Private rights cease when they become pubhc 
 wrongs. Is not this the principle underlying law 
 and order in all civilized communities? Is it a prin- 
 ciple from which communities can depart without 
 inviting anarchy? It cannot be contended that 
 what is a matter of grave concern to the pubhc is 
 a matter of exclusive concern to private parties. 
 There is no right superior to that of the community 
 as a whole. The pubhc has a right to be informed 
 impartially on the merits of situations which 
 threaten its well-being. If there is to be orderly 
 organization of Industry, on a partnership or any 
 other basis; if joint industrial councils and works 
 committees are to have their chance in the days of 
 reconstruction, there must be procedure in accord- 
 ance with known principles and rules, with respect 
 to the adjustment of all disputes. 
 
 There is a crafty opportunism which would pre- 
 fer that principles and rules should not be too 
 definitely stated, an unprincipled strategy that is 
 continually shifting its position in order to avoid 
 impending responsibiUties, or repudiating prin- 
 ciples that some immediate temporary advantage 
 may be gained. Such practices are destructive of 
 the very foundations of industrial justice. Law 
 and order cannot exist without stabihty; and sta- 
 bihty cannot endure where opportunism prevails. 
 
 We have become accustomed to juridical meth- 
 ods in the settlement of most matters of civil con- 
 
EDUCATION AND OPINION 519 
 
 troversy. Is there an argument to be urged in 
 support of the apphcation of this method to civil 
 disputes which does not apply with even vaster 
 significance to the prevention and settlement of 
 industrial and international disputes? We know 
 how indispensable is the parhamentary method 
 with respect to the conduct of government in the 
 State. Is there aught to be said in its favor which is 
 not equally applicable to government in Industry? 
 The parhamentary and juridical methods are ahke 
 methods of argument and debate. They make theu- 
 appeal to Reason, not to Force. The scientific 
 method is hkewise the method of appeal to Reason. 
 Is Industry so different from all else that it can 
 afford as respects its evolution to dispense with 
 methods upon which Law, Government, and Sci- 
 ence alike depend? 
 
 The War has obhged us to reflect upon these 
 matters, and reflection, happily, is having a whole- 
 some effect upon Opinion. By emphasizing the 
 need of maximum production and uninterrupted 
 operation in essential industries, the War has com- 
 pelled, in most countries, the estabhshment of ade- 
 quate machinery for the adjustment of industrial 
 controversies in accordance with the juridical and 
 parhamentary methods. The provision of adequate 
 means of investigation has been accompanied by 
 an insistence, as a part of government pohcy, upon 
 
520 INDUSTRY AND HUMANITY 
 
 acceptance of the principle of investigation prior 
 to a lockout or strike. The two necessarily go to- 
 gether. If there are to be no strikes or lockouts 
 prior to investigation, the facihties for investigation 
 must be adequate and efTicient. Though the govern- 
 ments of both Great Britain and the United States 
 have not provided specific penalties for failure to 
 comply] with the principle of investigation prior 
 to a severance of industrial relations, they have 
 not hesitated to let the power of public authority 
 be felt toward this end in ways which render insig- 
 nificant penalties of the extent the Canadian law 
 imposes. Moreover, the present poUcy in those 
 countries extends beyond that of suspension of the 
 right to strike or lockout, to complete prevention 
 of strikes and lockouts in industries essential to the 
 prosecution of the War.' 
 
 The really important fact is that the appUcation 
 of the principle of investigation to industrial con- 
 troversies prior to the lockout or strike is itself 
 producing a marked change in sentiment toward 
 this method of procedure. Many leaders of Labor, 
 as well as many others who formerly hesitated to 
 advise a restriction of the right to strike or lockout 
 prior to investigation, have become the strongest 
 
 » While this took has been passing through the press, the Can- 
 adian Government has absolutely prohibited, for the duration of the 
 War, strikes and lockouts in industries to which the Industrial Dis- 
 putes Investigation Act applies, and has adopted measiires for the 
 enforcement of obedience and compliance with the orders or decisions 
 of Boards. (Order in Council, October ii, 1918.) 
 
EDUCATION AND OPINION 521 
 
 advocates of the adoption of this principle. The 
 fact that such persons are influenced in their atti- 
 tude by motives of patriotism only lends emphasis 
 to the wisdom of the principle itself. In times of 
 peace, the principle is the same as in times of war. 
 
 No one will deny that Organized Labor in the 
 United States has sought to uphold the Federal 
 Administration in its war poUcies. The pohcy of 
 organized Labor and the pohcy of the Federal Ad- 
 ministration have been one as respects the preven- 
 tion of strikes and lockouts ever since the entry of 
 the United States into the War. I might quote 
 from any number of communications to illustrate 
 the Administration's pohcy. One quotation, char- 
 acteristic of the rest, will perhaps suffice, since 
 there has been no variation in the note sounded 
 from Washington. 
 
 On May 4, 1918, the Honorable W. B. Wilson, 
 Secretary of Labor of the United States, sent a 
 lengthy message to employees who had gone on 
 strike in an important industry in the Eastern 
 States. 1 The message loses none of its significance 
 from the circumstance that Secretary Wilson was 
 for some time Secretary and Treasurer of the 
 United Mine Workers of America, and has lost 
 none of his understanding of or sympathy with 
 Labor's aspirations.^ In this despatch, which was 
 
 ' Strike of cranemen and riggers in the employ of the General 
 Electric Company at Schenectady and Pittsfield. 
 ^ An attitude similar to that of the Secretary of Labor in the United 
 
522 INDUSTRY AND HUMANITY 
 
 sent in the first instance by telegram, Mr. Wilson 
 says in part: 
 
 "If no other means had been provided for ad- 
 justment of Labor disputes, strikes might be justi- 
 fiable as a means of protecting the workers against 
 arbitrary wrong. Other means have been provided. 
 The National War Labor Board has been created, 
 composed of equal numbers of representatives of 
 Labor selected upon the nomination of the Presi- 
 dent of the American Federation of Labor, and 
 representatives of employers selected upon the 
 nomination of the National Industrial Conference 
 Board. The Board is so constituted that Labor 
 can get a fair hearing and fair judgment at its 
 hands. From my personal knowledge of the Labor 
 movement, I know that that is all that Labor is 
 asking. The method has the approval of the Presi- 
 dent of the United States who, in a proclamation 
 issued under date of April eighth of this year, 
 said, ' I do hereby urge upon all employers and em- 
 ployees within the United States the necessity of 
 utilizing the means and methods provided for the 
 adjustment of all industrial disputes, and request 
 that during the pendency of mediation or arbitra- 
 tion through the said means and methods, there 
 shall be no discontinuance of industrial operations 
 which would result in curtailment of the produc- 
 tion of war necessities.' Our boys are at the front. 
 They are making the supreme sacrifice for the pro- 
 tection of the hves of our people and the mainten- 
 
 States has been taken in Canada by the Honorable Senator Gideon 
 Robertson, member of the Cabinet without portfolio. Mr. Robert- 
 son's appointment to the Senate was regarded as a recognition of 
 Organized Labor, as was also his appointment as Chairman of a Sub- 
 committee of Labor Relations of the Committee on Reconstruction. 
 
EDUCATION AND OPINION 523 
 
 ance of our institutions. Surely it is not asking you 
 too much in their name to urge that you return to 
 work, submitting your disputes to the War Labor 
 Board for adjustment." 
 
 "In their name!" Has not Secretary Wilson 
 given to the world the base line from which coun- 
 tries must make their new beginnings when the 
 War is ended? What is it for which they have 
 fought and died, our honored dead, the chivahy of 
 our race ! Is it that we may leave the bloodstained 
 fields of Europe to begin anew the struggle between 
 man and man which has its origin only in a belief 
 in Force? Or shall we become the beneficiaries of 
 their sacrifices, the inheritors of their victories, nay 
 more, the trustees of their honor, their valor, and 
 their virtue; and, in the part which it is ours to play, 
 make the appeal to Reason, and not to Force; and 
 aim in all things at government by Consent? It is 
 the only memorial worthy of their memories which 
 it is within our power to raise ! 
 
 There would have been no war had the principle 
 of investigation before resort to Force been the 
 guiding principle in the affairs of nations. What a 
 momentous thought; what a responsibility upon 
 those who in industrial or international relations 
 may remain indifferent to this principle! Can we 
 fight for one principle abroad, and act upon an 
 opposite principle at home? 
 
524 INDUSTRY AND HUMANITY 
 
 If Industry is to serve Humanity, it can only be 
 through general acceptance of the principle of in- 
 vestigation prior to the severance of relations, on 
 the part of the parties to Industry, and on the part 
 of rival nations. So long as nations place rehance 
 upon Force and not upon Reason, so long will war 
 be inevitable, and the fear of war continue to make 
 of Industry a vast machine to aid in the destruction 
 of Hiunanity, instead of being, as it ought to be, 
 the mightiest instrument for the reUef of mankind. 
 
 Throughout the universe and within the soul of 
 man, the battle is forever between Fear and Faith. 
 Fear puts its rehance on Force; Faith, its rehance 
 on Consent. Each plays its part in all human en- 
 deavor. Faith gives wings to every effort; Fear 
 binds with unrelenting power. We cannot too 
 often repeat that it is the fear of war which begets 
 necessary preparation for war; and that the prep- 
 aration for war means the use of Industry to forge 
 and manufacture the equipment of the world's vast 
 armies and the not less mighty equipment of its 
 huge navies, as weU as war's extensive parapher- 
 nalia. In times of actual war, this feeding of the 
 forces of Blood and of Death, through the utiliza- 
 tion of a nation's capital and labor, is visible to 
 all. In times of peace, the difference is not in kind, 
 only of degree. ' 
 
 As fears are aroused, impulses which stimulate 
 competitive arming are revived, and as these im- 
 
EDUCATION AND OPINION 525 
 
 pulses find expression in increased armaments and 
 increased efficiency in military and naval organiza- 
 tion, they in turn foster fresh fears. And so the 
 hideous process goes on. More and more of a na- 
 tion's power in Labor and Capital is drawn away 
 from the channels of Industry that minister to the 
 rehef of Humanity, and is forced through channels 
 that sooner or later lead to certain destruction. 
 Well may we ask, is there no power on earth which 
 can break the vicious circle that holds the world's 
 populations in such appalling servitude? Is there 
 no influence as potent as a world's fears to unloose 
 the burden Humanity is forever binding upon it- 
 self, till it lies crushed and bleeding beneath the 
 load? Is there no way to ensure obedience to the 
 Law of Peace, Work, and Health? 
 
 In education by precept and practice, Ues the 
 last hne of defence against industrial and interna- 
 tional strife. Whatever advances a right principle 
 in the one sphere, will help to advance it in the 
 other; and whatever hinders it in the one will hin- 
 der it also in the other. The nation that exalts 
 Might above Flight, that encourages its people to 
 look to Force rather than to Reason, is helping to 
 bring destruction not only upon others but upon 
 itself. Statesmen who encourage rehance on Force 
 in international affairs need not be surprised if 
 within the borders of their own countries the classes 
 
526 INDUSTRY AND HUMANITY 
 
 engaged in Industry are also constantly engaged in 
 strife. Labor and Capital, likewise, need experience 
 no surprise if, indifferent to the use of Force in their 
 own 'relations, and fostering its use by example, 
 industrial strife becomes an undermining process, 
 leading to international unrest and begetting the 
 very fears which drain productive Industry of its 
 vitality. That nation alone furthers a regard for 
 the sovereign power of Reason, which so regulates 
 affairs within its own borders that investigation of 
 industrial wrongs precedes all efforts at redress by 
 Force. It alone gives to the family of nations the 
 example of how best to promote "on earth Peace, 
 Good-will towards men." 
 
 The methods of preserving peace between na- 
 tions are precisely similar to those that obtain in 
 Industry. International conciliation is the same 
 in principle as industrial conciUation; international 
 arbitration, the same as industrial arbitration; ju- 
 dicial settlement of international disputes by a 
 Hague Tribunal and supported by a world opinion 
 enforceable by an international pohce, the same in 
 principle and method as the compulsory investiga- 
 tion of industrial disputes under statutory author- 
 ity. In all these great movements toward world 
 peace, beginnings have already been made. It 
 rests with Labor and Capital to decide in what 
 measure they will succeed. 
 
EDUCATION AND OPINION 527 
 
 The affairs of Industry are matters of more gen- 
 eral concern than those of NationaUty. The meth- 
 ods, therefore, which Labor and Capital employ in 
 the elimination of industrial fears, will inevitably 
 become the methods by which international fears 
 will be allayed. It is simply a matter of education. 
 Where, in the affairs of every-day hfe, principles 
 which lie at the basis of industrial peace are com- 
 monly applied, it is unreasonable not to expect 
 the apphcation of the same principles as the basis 
 of international peace. And with the application 
 of these principles to Industry and Nationality 
 alike, what a new epoch would come into being 1 
 No longer, either within Industry or between coun- 
 tries, would there be massing of resources for use 
 in possible conflict, or the diversion of Industry to 
 the service of war. There would be the releasing 
 everywhere of energy and power to meet the needs 
 of Humanity, to increase the sum of its enjoyments 
 and to widen the bounds of its freedom. 
 
 The acceptance by nations of the principle of in- 
 vestigation before resort to hostihties would mark 
 the dawn of a new era in the history of the world. 
 It is within the power of Labor and Capital to 
 evoke that dawn. Let Labor and Capital agree, 
 where differences arise between them, that they 
 will not sever relations, until at least the points of 
 difference have been inquired into; let them place 
 
528 INDUSTRY AND HUMANITY 
 
 their faith in an enlightened Public Opinion as 
 more fruitful of Justice than an appeal to Force, 
 and they will have set out with tenfold energy 
 upon the mightiest service ever rendered Mankind. 
 
 It is not alone a new dawn Labor and Capital 
 may summon forth; they can create a wholly new 
 civilization. Let Labor and Capital unite under 
 the inspiration of a common ideal, and human so- 
 ciety itself will become transformed. Such is the 
 method of creative evolution. Substances and forces 
 hitherto separate and distinct, brought into har- 
 monious relationship, become transformed into sub- 
 stances and forces capable of rendering higher and 
 greater service. So it is in the whole realm of life. 
 Men or nations unite for a given purpose. Under 
 the inspiration of an hitherto unknown ideal, they 
 become capable of a service vaster than any of 
 which they have ever dreamed. Let Labor and 
 Capital unite under the ideal of social service : the 
 work of material production will go on; not only 
 will it vastly increase, but the whole complexion of 
 Industry will become transformed. No longer will 
 Industry be the battle-ground of rival and con- 
 tending factions; it will become the foundation 
 of a new civilization in which life and happiness 
 abound. 
 
 Is it too much to believe that, having witnessed 
 Humanity pass through its Gethsemane, having 
 seen its agony in its Garden of Fears, having beheld 
 
EDUCATION AND OPINION 529 
 
 its crucifixion upon the cross of Militarism, Labor 
 and Capital will yet bring to a disconsolate and 
 brokenhearted world the one hope it is theirs alone 
 to bring; and that, in the acceptance of principles 
 which hold deliverance from the scourges that be- 
 set Mankind, they will roll back the stone from the 
 door of the world's sepulchre to-day, and give to 
 Humanity the promise of its resurrection to a more 
 abundant life? 
 
 THE END 
 
APPENDIX 
 
 CHARTS AND DIAGRAMS ILLUSTRATIVE 
 OF INDUSTRIAL RELATIONS 
 
I. Chart illustrative of the Nature of In- 
 dustrial Relations 534 
 
 II. Chart illustrative of Progress in In- 
 dustry 536 
 
 III. Chart illustrative of Important Contrib- 
 
 uting Factors in Industrial Relations . 538 
 
 IV. Chart illustrative of the Nature and 
 
 Scope of Important Contributing Factors 
 
 IN Industrial Relations 540 
 
 V. Chart illustrative of the Law of Peace, 
 Work, and Health, in Relations within 
 
 AND without Industry 542 
 
 VI. Chart illustrative of the Action and 
 
 Reaction of Discovery and Invention, 
 
 Government, Education, and Opinion, in 
 
 Relations within and without Industry 544 
 
 VII. Chart illustrative of Factors influencing 
 
 Relations within and without Industry 546 
 VIII. Chart illustrative of the Parties to In- 
 dustry and Suggestive of Factors and 
 
 Influences 548 
 
 IX. Chart Illustrative of the Terms and the 
 Working-out of Industrial Agreements, 
 AND Important Contributing Influences 552 
 
 Plan of Industrial Representation in the Min- 
 ing Camps of the Colorado Fuel and Iron 
 Company in Colorado and Wyoming . . . 556 
 
534 APPENDIX 
 
 NO. I 
 
 CHART ILLUSTRATIVE OF THE NATURE OF INDUS- 
 TRIAL RELATIONS 
 
 Chart No. I is intended to illustrate that industrial rela- 
 tions are in the nature of relations between human beings, 
 arising in connection with the parties to, the terms of, and 
 the working-out of, an agreement, expressed or implied, 
 between Capital, Labor, Management, and the Commu- 
 nity (the parties to Industry) to unite in the work of 
 production; also that all phases of the relationships thus 
 created are affected by the observance or disregard of 
 principles underlying the Law of Peace, Work, and Health. 
 
TH£ 
 
 INDCSTRIAL RELATIONS 
 
 COMPRISE 
 RELATIONS BETWEEN HUMAN 
 
 AS THESE ARISE IN CONNECTION WITH 
 
 BEINGS 
 
 CHART ILLUSTRATIVE OF 
 THE NATURE OF INDUSTRIAL RELATIONS 
 
536 APPENDIX 
 
 NO. II 
 
 CHART ILLUSTRATIVE OF PROGRESS IN INDUSTRY 
 
 Chart No. II is intended to illustrate that progress in In- 
 dustry depends upon proper adjustments between Capital, 
 Labor, Management, and the Community, in accordance 
 with principles underlying the Law of Peace, Work, and 
 Health. 
 
 From the Chart, it will be observed that, while Industry 
 is primarily dependent upon available Capital, Labor, Man- 
 agement, and Community services and needs, its extent 
 depends upon the extent of co-operation between the parties 
 in the work of production. It will be seen that the area rep- 
 resentative of Industry (either of Industry as a whole or 
 of individual industries) is comprised of the extent to which 
 Capital, Labor, Management, and the Community unite 
 in the work of production. If any one or more of the circles 
 representative of Capital, Labor, Management, and the 
 Community, were to be withdrawn from any part of the 
 area illustrative of co-operation between the parties rep- 
 resented by the several circles, the area representative of 
 Industry would correspondingly diminish. As the several 
 circles approach coincidence, the area of Industry enlarges. 
 Within Industry, progress depends upon the extent to 
 which co-operation, and co-ordination of function, between 
 the parties is in accordance with principles underlying the 
 Law of Peace, Work, and Health. Wherever in Industry 
 there is not this regard, confusion results. 
 
MANAGEMENT 
 
 CHART IIXUSTRATIVE OV^ PROGRESS IN INDUSTRY 
 
538 APPENDIX 
 
 NO. Ill 
 
 CHART ILLUSTRATIVE OF IMPORTANT CONTRIBU- 
 TING FACTORS IN INDUSTRIAL RELATIONS 
 
 Chart No. Ill is intended to suggest that, of the factors 
 bearing immediately and continuously on industrial rela- 
 tions, the most important are Discovery and Invention, 
 Government, Education, and Opinion. It is further in- 
 tended to suggest that all of these factors are continually 
 affecting industrial relations on a scale which expands from 
 being local to being world-wide in significance; also that 
 influences which are distinctly local, state, national, or 
 international act and react upon each other. The undulat- 
 ing lines are intended to convey the impression that, not 
 only do Discovery and Invention, Government, Education, 
 and Opinion affect industrial relations, but that whatever 
 transpires in Industry has likewise its effect upon Discovery 
 and Invention, Government, Education, and Opinion. 
 
 Not only do the factors mentioned affect Industry as a 
 whole, and in a large way, in the manner indicated; they 
 also continually affect, beneficially or the reverse, the par- 
 ties to Industry, the terms and the working-out of agree- 
 ments, expressed or implied, according as there is care or 
 neglect in the application of principles underlying the Law 
 of Peace, Work, and Health. 
 
DISCOVERT AND rNVENTION-GOVERNMENT-EDUCATION— OEINION 
 
 MAT AFFECT FAVORABLY OR ADVERSELY 
 
 ON 
 
 ^NATI^NAL^SC^i^ 
 
 OR ON " ^ 
 
 j^ STATES04I,£ 
 LOCALLT^ 
 
 CHART IJLtUSTRATIVE OF 
 IMPORTANT CONTRIBUTING 
 FACTORS IN INDCSTKIAX 
 KEtATIONS 
 
 NOTE: 
 
 Industrial BelatioDS May 
 
 Similariy Affect 
 
 DiBCOTcry k Invention, 
 
 Qovemment, Education^ Opinion 
 
540 APPENDIX 
 
 NO. IV 
 
 CHART ILLUSTRATIVE OF THE NATURE AND SCOPE 
 OF IMPORTANT CONTRIBUTING FACTORS IN IN- 
 DUSTRIAL RELATIONS 
 
 Chart No. IV is similar to Chart No. Ill, except that the 
 several factors indicated are transposed in a manner which 
 serves to emphasize their nature and scOpe. 
 
 The Chart suggests that influences which are local, 
 state, national, or international in extent, are operating 
 continually upon Discovery and Invention, Government, 
 Education, and Opinion, as these several factors affect 
 the parties to Industry, the terms and the working-out of 
 industrial agreements, expressed or implied, as respects 
 individual industrial enterprises, and Industry as a whole. 
 

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 CHART ILI-USTRATIVE OF NATURE AND SCOPE OF 
 IMPORTANT CONTRIBUTING FACTORS IN INDUSTRIAt RELATIONS 
 
542 APPENDIX 
 
 NO. V 
 
 CHART ILLUSTRATIVE OF THE LAW OF PEACE, WORK, 
 AND HEALTH, IN RELATIONS WITHIN AND WITH- 
 OUT INDUSTRY 
 
 Chart No. V is intended to suggest that the principles 
 underlying the Law of Peace, Work, and Health affect all 
 human relations; that they bear upon relations arising 
 within Industry, and upon relations arising between human 
 beings wholly apart from Industry. 
 
 The Chart is also intended to indicate that the Law of 
 Peace, Work, and Health, in its operation (within or with- 
 out Industry) is not restricted to particular localities, but 
 is operative everywhere, within localities, states, nations, 
 and between different countries. 
 
 The Chart is further intended to indicate that the Law 
 of Peace, Work, and Health is one, and that whatever 
 (within or without Industry) may appear to affect Peace, 
 Work, or Health, individually, affects in reaUty these three 
 constituent elements of the one Law. 
 
CrOART II,JLUSTBATIVE OF THE I, AW OP PEACE, WORK, AND HEALTH 
 IN JtELATIONS WITHIN AND WITHOUT INDUSTRY 
 
544 APPENDIX 
 
 NO. VI 
 
 CHART ILLUSTRATIVE OF THE ACTION AND REACTION 
 OF DISCOVERY AND INVENTION, GOVERNMENT, 
 EDUCATION, AND OPINION, IN RELATIONS WITHIN 
 AND WITHOUT INDUSTRY 
 
 Chart No. VI is intended to suggest the action and reac- 
 tion of Discovery and Invention, Government, Education, 
 and Opinion upon the relations arising between human 
 beings within and without Industry, and to emphasize the 
 circumstance that these factors not only operate continu- 
 ally within and without Industry, on a local, state, na- 
 tional, and international scale; but that they are also con- 
 tinuously affecting each other and being affected by all 
 that transpires in human relations. 
 
 The arrows which take their beginning at the circum- 
 ference of the area indicating the relations within Industry 
 serve, with the undulating circles, to indicate the possible 
 far-reaching effect upon the Community and the world of 
 Tvhatever transpires within Industry. The arrows which 
 take their beginning within the circumference of the outer- 
 most circle suggest, with the undulating lines, the man- 
 ner in which the relations within Industry itself may be 
 affected by influen.ces operating on an international, na- 
 tional, state, or local scale. The arrows which take their 
 beginning at the base of the lines descriptive of Discovery 
 and Invention, Government, Education, and Opinion, are 
 intended to suggest that whatever affects any one of the 
 several factors. Discovery and Invention, Government, 
 Education, or Opinion, whether within or without Indus- 
 try, may affect all. 
 
CHART ILLUSTRATIVE OF THE ACTION AND REACTION OF DISCOVERY, 
 
 INVENTION, GOVERNMENT, EDUCATION AND OPINION IN 
 
 KEI/AIIONS WITHIN AND WITHOUT INDUSTRY 
 
546 APPENDIX 
 
 NO. VII 
 
 CHART ILLUSTRATIVE OF FACTORS INFLUENCING 
 RELATIONS WITHIN AND WITHOUT INDUSTRY 
 
 Chart No. VII is similar to Chart No. VI, in indicating 
 the operation of Discovery and Invention, Government, 
 Education, and Opinion, on a local, state, national, or inter- 
 national scale, upon all the relations arising between hu- 
 man beings within and without Industry, in the manner 
 described in Chart No. VI. It is supplementary in indicat- 
 ing that the several factors act and react, on the scale and 
 in the manner indicated, both in Industry as a whole and 
 in individual industries, as respects the parties to Industry, 
 the terms and working-out of the industrial agreement 
 (expressed or imphed) between them in relation to all that 
 affects the observance or disregard of principles underly- 
 ing the Law of Peace, Work, and Health. 
 
CHART ILLUSTRATIVE OF FACTORS INFLUENCING 
 RELATIONS WITHIN AND WITHOUT INDUSTRY 
 
548 APPENDIX 
 
 NO. VIII 
 
 CHART ILLUSTRATIVE OF THE PARTIES TO INDUSTRY 
 AND SUGGESTIVE OF FACTORS AND INFLUENCES 
 
 The parties to Industry are Capital, Labor, Management, 
 and the Community. Chart No. VIII is intended to sug- 
 gest factors and influences of which account has to be taken 
 in any effort finally to determine the actual and relative 
 positions of the parties at any given moment; and like- 
 wise the factors and influences which are continuously 
 operating to change the positions of the parties. The 
 main purpose of the Chart is to indicate that the prob- 
 lems of Industry constitute essentially studies in social 
 dynamics. The Chart is also intended to emphasize the 
 futility of expecting a solution of industrial problems by 
 changes in the static structure of Industry other than 
 such as are based upon principles which accord with some 
 law sufficiently comprehensive to be part of an order un- 
 derlying all human relations. 
 
552 APPENDIX 
 
 NO. IX 
 
 CHART ILLUSTRATIVE OF THE TERMS AND THE 
 WORKING-OUT OF INDUSTRIAL AGREEMENTS, AND 
 IMPORTANT CONTRIBUTING INFLUENCES 
 
 Chart No. IX is intended as supplementary to Chart No. 
 VIII. To convey any adequate conception of the factors 
 and influences of which account has to be taken in dealing 
 with the problem of industrial relations as a whole, Charts 
 Nos. VIII and IX would have to be studied together. 
 Chart No. VIII relates primarily to the parties to Indus- 
 try. Factors and influences affecting the parties to Industry 
 affect also the terms, and the working-out of industrial 
 agreements (expressed or implied) as regards individual 
 industries and Industry as a whole. As respects the terms 
 and working-out of agreements, there have developed in 
 practice, methods of Industrial Peace, Industrial Remu- 
 neration, Industrial Organization, Industrial Training, 
 methods of meeting Industrial Risks, methods of Indus- 
 trial Retterment, and of Industrial Government, all of 
 which, in their relation to the principles underlying the 
 Law of Peace, Work, and Health, have a direct bearing 
 upon progress or confusion in Industry. 
 
 The Chart is also intended to suggest something of the 
 world and human aspects of the problems of Industry; and 
 that the most important and significant of the concerns of 
 Industry are those which relate to standards of living and 
 labor standards. The Chart ought also to suggest that the 
 fundamental problem in Industry is one of Government, 
 and that that form of government alone is best which 
 "doth actuate and dispose every part and member of In- 
 dustry to the common good." 
 
556 APPENDIX 
 
 PLAN OF INDUSTRIAL REPRESENTATION IN THE 
 MINING CAMPS OF THE COLORADO FUEL AND IRON 
 COMPANY IN COLORADO AND WYOMING 
 
rj 
 
INDEX 
 
INDEX 
 
 Accidents and disease, SaS-Sa. 
 
 Agreements, rules, and regula- 
 tions, 193-06. 
 
 Alberta, coal-mining strike in, 
 5o5-io. 
 
 Anarchism, 407, iio8. 
 
 Angell, Norman, 119. 
 
 Annuities, 338. 
 
 Arbitration, ai2-i4, 217, 218, 
 221, 222. 
 
 Askwith, Sir George, 497; quoted, 
 498, 499, 5oi, 5o2. 
 
 Australia, arbitration in, 218. 
 
 Barnes, G. N., 45i. 
 
 Blindness, human, io-i5, i53. 
 
 British Labor Party, 453 and 
 note. 
 
 Builders' National Industrial Par- 
 liament, 477 note. 
 
 Campbell, William Wilfred, 
 quoted, n4- 
 
 Canada, Department of Labor, 
 78, 327, 33i; Industrial Dis- 
 putes Investigation Act, 228, 
 495-5i3", employment of wo- 
 men and children in, 3i3-i5; 
 telephone operators in, 3 16-21; 
 Parliament's action on phos- 
 phorus, 827-31; Combines In- 
 vestigation Act, 5i5-i7. 
 
 Capital, origin of, 87, 88; mobil- 
 ity and fluidity, 49-5i; defini- 
 tion, i3o and note, 181; inde- 
 pendence of, 286; fears be- 
 setting, 24o-46. 
 
 Capitalism, prejudice against, 
 98-101; not evil in itself, 101- 
 07. 
 
 Character, 170-74. 
 
 Child Labor, 3io-i5. 
 
 China, 4oi. 
 
 Chinese labor, 78-79. 
 
 Clark, Victor, quoted, 494. 
 
 Cohen, Julius Henry, his Law 
 and Order in Industry, 43 1 note. 
 
 Coke, Sir EdwMd, quoted, 429. 
 
 Cole, G. D. H., his Self-Goiiern- 
 ment in Industry quoted, 4i6 
 and note. 
 
 Collectivism, 4o4, 4ii-i3. 
 
 Colorado CoeJ Commission, Re- 
 port of, 442-46. 
 
 Colorado Fuel and Iron Com- 
 pany, 434-48. 
 
 Colorado plan , the, 434-48, 465, 
 466, 469 note, 478, 474, 479 
 note, 480 note. 
 
 Commission on Industrial Unrest, 
 45o-52. 
 
 Communities, model, 358-6i. 
 
 Community, the use of the word, 
 80 note; as a party to industry, 
 i84-36; industrial fears caused 
 by, 247-61; industrial com- 
 binations against the welfare 
 of, 262-54; its interest in the 
 prevention of industrial acci- 
 dents and disease, 383-36, 348- 
 45; its right to representation 
 in the control of industry, 871- 
 90. 
 
 Competition, world-wide nature 
 of, 54, 57; foreign, 62-66; 
 the law of, 66-80. 
 
 Conciliation, 206-09, 216-17, 219, 
 221, 222. 
 
 Conference, importance of, 2o4- 
 06, 280. See also Round table 
 conference. 
 
 Confidence, 169-86. 
 
 Constitution, an industrial, 428, 
 429. 
 
 Consumers, responsibility of, 483, 
 484. 
 
 Consumers' Leagues, 484- 
 
 Contract, 106-09. 
 
564 
 
 INDEX 
 
 Control, virtual ownership, 419- 
 
 21. 
 Co-operation, 299-802. 
 Co-partnership, 296-802. 
 Crothers, Thomas W., 827 note. 
 Cunningham, William, 82 note, 
 
 85, 87. 
 
 Directorates, 428-27. 
 
 Directors, responsibility of, 178- 
 
 80. 
 Discipline, 196, 197. 
 Diseases, occupational, 828-81, 
 
 346, 347. 
 Discovery, 36-38, 98, 94. 
 
 Education, supplementing inven- 
 tion and government in the 
 improvement of industritd re- 
 lations, 43o; the community 
 view of, 48o-85; as insurance, 
 485; and insight, 486; a de- 
 fence against industrial and 
 international strife, 525. 
 
 Education, industrial, 269-71. 
 
 Efficiency, 265-71. 
 
 EKot, Charles W., quoted, 356, 
 357, 366, 867, 488. 
 
 Employers' liability acts, 889. 
 
 England, co-partnership in, 298; 
 outlook for industrial govern- 
 ment in, 476, 477- See also 
 Great Britain. 
 
 English Constitution, 4oo, 4oi. 
 
 English Retail Co-operative So- 
 cieties, 800. 
 
 Fair Wages Resolution, 78. 
 Fears, ii5-i7, 282-68, 332-4i. 
 Force, 490, 628-26. 
 Fosdick, Harry Emerson, i55 
 
 note. 
 Freedom in industry, struggle of, 
 
 ii8-i5. 
 
 Garden cities, 359-61. 
 
 Garretson, Austin B., on indus- 
 trial war, 20, 21. 
 
 Garton Foundation, 477 note; 
 its Memorandum on the Indus- 
 trial Situation after the War, 453 
 
 and note, 454. 466 note; quoted, 
 472. 
 
 General Electric Company, Sec- 
 retary Wilson's message to 
 strikers, 521-23. 
 
 George V., 229. 
 
 Germany, militarism and the 
 industrial system, 896-98, 4i8. 
 
 Great Britain, industrial restric- 
 tions and regulations in, 24i; 
 the national minimum in, 348, 
 349; recent improvements in 
 relations of capital and Isibor, 
 449-76, 479- See also England. 
 
 Gresham's Law of the precious 
 metals, 65, 66. 
 
 Hart, Schaffner and Marx, 281. 
 
 Health, principles underlying, 
 8o4-63; the basis of efficiency, 
 3o4-o6. 
 
 Henderson, Arthur, quoted, i4i. 
 
 Hodgson, G. M., 45i. 
 
 Howard, Prof. Earl Dean, quoted, 
 281 and note. 
 
 Howe, Frederic C, his Garden 
 Cities of England quoted, 36o 
 and note. 
 
 Hull House, 67, 68. 
 
 Humanity, necessity for its su- 
 premacy in industry, 26, 27. 
 
 Industrial areas, changes in, 45, 
 46. 
 
 Industrial conflict, of the same 
 character as war, 19-26, 490, 
 491; international aspects of, 
 498, 494. 
 
 Industrial Councils, 456-62, 469- 
 75. 
 
 Industrial problems, relation to 
 international problems, 27, 28; 
 spirit, not form of organization, 
 must solve, i47, i48. 
 
 Industrial service, 455. 
 
 Industrial Training and Techni- 
 cal Education, Royal Com- 
 mission on, 270 note. 
 
 Industrial Workers of the World, 
 4o6. 
 
 Industry, unrest, 1-28; the world 
 
INDEX 
 
 565 
 
 aspect, 3g-58; world expan- 
 sion, 46-58; the human aspect, 
 59-90; possibilities of progress, 
 91-126; large-scale organiza- 
 tion of, 98-107; stability and 
 instability, log-iS; definition, 
 127; the four parties to, 128- 
 48; the basis of reconstruction 
 of, 149-166; justice and mercy 
 necessary to peace in, 167-232; 
 eifects of fear and faith on pro- 
 duction in, 233-3o3; the rela- 
 tion of health and living con- 
 ditions to, 3o4-63; ri^t of 
 representation of labor and the 
 community in the control of, 
 364-90; government in, 3gi- 
 429; influence of public opinion 
 on, 43o-523; and war, 523-26; 
 a new era in, 626-29. 
 
 Insurance, 337, 345-47- 
 
 International Labor Association, 
 324-26. 
 
 Invention, 38-4i, 94-98, 284. 
 
 Investigation, 206 and note, 209- 
 12, 2i5-22, 491, 495-523, 526, 
 527. 
 
 Investments of the parties to 
 industry, 369-76. 
 
 James, William, quoted, 344, 
 43o, 486, 487. 
 
 Japanese labor, 73-76. 
 
 Jesus, teachings of, 488, 489. 
 
 Jevons, W. Stanley, his Slate in 
 Relation to Labor quoted, 267- 
 59, 334. 
 
 Joint Standing Industrial Coun- 
 cils, 434- 
 
 Justice, and mercy, 167-71; in 
 English history, 186-87, 189- 
 92; machinery of, 222-82. 
 
 Justiciar, the, 186-87. 
 
 Kingsmere, i49, 160. 
 
 Labor, Oriental lahor, 78-79; 
 associated effort, 109, no; 
 "recognition" of, 200; organi- 
 zation of, 200-02; fears that 
 beset, 235-89; its investment 
 
 in industry, 869, 870, 876; 
 
 its right to representation in 
 
 the control of industry, 870-90. 
 Labor disputes, human blindness 
 
 in, i3-i5. 
 Labor exchanges, 387. 
 Labor Party of Great Britain, 
 
 848, 849. 
 Labor problem, the, a community 
 
 problem, 29-82. 
 Leijor-saving machinery, 282-87. 
 Laurier, Sir Wilfrid, and the 
 
 Alberta coal strike, 5o5-o9; 
 
 and the Industrial Disputes 
 
 Investigation Act, 5 10, 5ii. 
 Law, industrial, 280. 
 Law of Blood and Death, the, 4- 
 
 19, ii4, ii5, i55, 160. 
 Law of Christian Service, 126, 
 
 126. 
 Law of Competing Standards, 
 
 66-80, 126, 826, 800, 862, 353. 
 Law of Peace, Work, and Health, 
 
 the, 4-19, ii4, ii5, i54-66. 
 Law of the Survival of the Fittest, 
 
 117-26. 
 Laws, the struggle of two con- 
 trary, 4-19, ii4, ii5. 
 Lemieux, Rodolphe, 499- 
 Lloyd George, David, 5o6. 
 Lugano, 824. 
 
 Macgregor, D. H., his Evolution 
 of Industry quoted, g4, 96. 
 
 Machinery, influence on indus- 
 try, 4i-45;labor-saving, 282-87. 
 
 McPherson, Logan Grant, his 
 How the World Makes Its Liv- 
 ing, 81 note; quoted, 129. 
 
 Magna Charta, 189-92. 
 
 Maine, Sir Henry, 106. 
 
 Management, needed in industry, 
 i3i-38; its relation to indus- 
 trial fears, 289, 24o, 245-48, 
 262 ; scientific management, 282, 
 287-91 ; personnel management, 
 292; under socialism, 4i2, 4i8, 
 4i5; its relation to the directo- 
 rate, 428-26. 
 
 Matches, disease caused by, 826- 
 3o. 
 
566 
 
 INDEX 
 
 Maternity benefits, 338, 346. 
 
 Mediation, 206, 207, 209. 
 
 Memorandum on the Industrial 
 Situation after the War, i38 
 note. 
 
 Merchants Shipping Act, 5o5 and 
 note. 
 
 Mill, John Stuart, 255. 
 
 Montfort, Simon de, Sgi, 392. 
 
 Mortality from Respiratory Dis- 
 eases in Dusty Trades, Sad note. 
 
 Mulock, Sir William, 70, 71, 73. 
 
 Nasmyth, George, 119 note. 
 National guilds, 416-19. 
 National minimimi, 348-54. 
 National War Labor Board, 226- 
 
 27, 477, 478, 522, 523. 
 
 Nationality, parallel evolution 
 
 with industry, 32-36. 
 Nervous strain, 3i7-23. 
 New Zeedand, arbitration in, 218. 
 
 Old age, provision for, 34?, 348. 
 Opium, 76 and note. 
 Organization, 200-02. 
 
 Parkinson, Thomas T., his Con- 
 stitutional Aspects of Compul- 
 sory Arbitration quoted, 492. 
 
 Parkman, Francis, quoted, i5o. 
 
 Parliament, the English, 391, 
 392. 
 
 Pasteur, Louis,'4-6, i54 and note, 
 i55-57. 
 
 Pensions, 338, 346-48. 
 
 Personality, 59-90. 
 
 Phosphorus poisoning, 324-3o. 
 
 Piece-work, 274-78. 
 
 Political economy, 87, 88. 
 
 Political intrigue, 384. 
 
 Preventive medicine, 356, 357. 
 
 Price, his Co-Operation and Co- 
 partnership, 296 note. 
 
 Production, cost of, 266, 267. 
 
 Profit-sharing, 280, 281, 292- 
 3o2. 
 
 Public opinion, 220, 3i4, 3i5, 
 43o, 483, 5o7, 5io, 5i6, 528. 
 
 Public ownership, 4i5, 421. 
 
 Pym, John, 422, 423. 
 
 Quebec, Province of, employ- 
 ment of women and children 
 in cotton factories, 3i3-i5. 
 
 Railways, in China, 96, 96. 
 
 "Recognition," 200. 
 
 Reconstruction Committee, 449, 
 45o and note. 
 
 Remuneration, 271-81. See also 
 Rewards. 
 
 Representation in control of in- 
 dustry, 364-90; in the Colorado 
 Fuel and Iron Company, 443- 
 48; as treated in the Whitley 
 Report, 454-76. 
 
 Representation in government, 
 393, 394. 
 
 Revolution, 4oi, 4o2. 
 
 Rewards, i36, 187, 254-6o, 271- 
 81. 
 
 Richberg, Donald R., 371 note, 
 377; quoted, 377. 
 
 Robertson, Gideon, 522 note. 
 
 Rochdale Plan, the, 3oo. 
 
 Rockefeller, John D., Jr., his 
 address on The Personal Rela- 
 tion in Industry, 176, 177 and 
 note; and the Colorado miners, 
 438. 
 
 Round table conference, 365- 
 68, 389, 390, 44 1. See also 
 Conference. 
 
 Rules, regulations, and agree- 
 ments, 193-96. 
 
 Russia, 4oi. 
 
 Scientific management, 282, 287- 
 
 91- .^ 
 
 Scientific research, 122, I23. 
 Scottish Wholesale Societies, 298, 
 
 299- 
 Settlements, social, 357, 358. 
 Shadwell, Arthur, 275, 276; his 
 
 Industrial Efficiency, 272 note; 
 
 quoted, 274, 278, 280. 
 Shonts, Theodore P., 874. 
 Slums, 68, 69. 
 Smith, Adam, 8; quoted, 100 
 
 note. 
 Social Unit Organization, 357, 
 
 358 and note. 
 
INDEX 
 
 567 
 
 Socialism, 4o2-i4. 
 
 Soutii Metropolitan Gas Com- 
 pany, 298. 
 
 Sparkes, Malcolm, his Memoran- 
 dum on Industrial Self-Govern- 
 ment, 477 note. 
 
 Spiritual interpretation of life, 
 
 123-25. 
 
 Square Deal, The, quoted, 243. 
 
 State, the, and industry, 8, 9; 
 relations and parallelism of its 
 government to that of indus- 
 try, 391-429. 
 
 Stockholdfers, responsibility of, 
 177, 178. 
 
 Strikes and lockouts, 491-99- 
 
 Sun-dials, 1 49-53. 
 
 Survival of the fittest, 117-26. 
 
 Sweating, 69-71. 
 
 Syndicalism, 4o6, 407. 
 
 Taswell-Langmead, Thomas Pitt, 
 his English Constitutional His- 
 tory quoted, 4oo, 4oi, 428. 
 
 Telephone operators, 3i6-2i. 
 
 Thayer, WiUiam Roscoe, his 
 Germany vs. Civilization, 896, 
 398. 
 
 Times, London Weekly, article 
 quoted, 898, 899. 
 
 Trade-unionism, militancy of, 
 878, 38o; fundeimental aims, 
 43i, 482; mistaken policies, 
 432, 438; achievements, 433. 
 
 Unemployment, 287, 846. 
 
 United States Department of 
 Lcibor, reports, 824 note; policy 
 in the World War, 521-28. 
 
 Vocational training, 269-71. 
 
 Wages. See Remuneration and 
 
 Rewards. 
 Wages boards, 887. 
 War, the fundamental cause of, 
 
 10; its relation to industry, 
 
 528-27. 
 War, the World, a Frankenstein 
 
 monster, i-4; and industry, 3, 
 4; and science, 4-7; labor ad- 
 justment in, 224-29; has dis- 
 closed the interdependence of 
 the parties to industry, 887- 
 89; and the Rritish industrial 
 system, 449-76; labor legisla- 
 tion in, 519-28. 
 
 War Labor Conference Board, 
 224, 226. 
 
 Watt, James, 8. 
 
 Webb, Sidney, his Restoration 
 of Trade Union Conditions, 
 285 note. 
 
 Welfare work, 2o3, 2o4. 
 
 Wheeler, Everett P., his Dis- 
 cussion of Trades Unions and 
 Compulsory Arbitration quoted, 
 492. 
 
 Whither? 128 note. 
 
 Whitley, J. H., 45o; his Reports 
 of a sub-committee of the 
 British Reconstruction Com- 
 mittee, 484, 485, 450-75. 
 
 Wholesale Productive Co-opera- 
 tive Societies of Scotland, 298, 
 
 299- 
 Williams, Aneurin, his Co-Part- 
 
 nership and Profit-Sharing, 296 
 
 note. 
 Wilson, President, 229. 
 Wilson, Secretary W. B., 52i- 
 
 23. 
 
 Wister, Owen, his Pentecost of 
 Calamity quoted, 3i. 
 
 Women and children, employ- 
 ment of, 810-28. 
 
 Work, principles underlying, 288- 
 808; influence of fear and of 
 faith on, 288; production its 
 immediate objective, 284. 
 
 Workingman, his position based 
 on contract rather than status, 
 106-09. 
 
 Workmen's compensation acts, 
 889, 340, 346. 
 
 Works Committees, 45o, 45?, 
 460, 462, 468 and note, 466, 
 467, 469 and note, 478-75. 
 
CAMBRIDGE . MASSACHUSETTS 
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