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 ~OBIO STATE UNIV 
 
 “Teavene- 
 
Report of the 
 _ Senate Select Committee 
 
 Appointed to Investigate Causes 
 and Circumstances of the Akron, 
 Ohio, Strike, to the 80th General 
 Assembly of the State of Ohio 
 
 1913 
 
REPORT 
 
 OF THE 
 
 Senate Select Committee 
 
 appointed to investigate causes and 
 circumstances of the 
 
 AKRON, OHIO, STRIKE 
 
 TO .HE 
 
 80th General Assembly of the 
 State of Ohio 
 
 RLS 
 
 SO SBIR 
 
 CoLumsus, Onto: 
 Tue F. J. Heer Printine Co. 
 1913 
 
(SENATE RESOLUTION NO. 29.) 
 Réopted February 25, 1913. 
 
 Under the provisions of which a committee composed of Senators 
 William Green, James P. Seward and C. J. Howard, was appointed to 
 investigate the cause and circumstances relating to the strike in the rubber 
 factories at Akron, Ohio: 
 
 Wuereas, A serious situation has arisen at Akron, Ohio, as a re- 
 sult of a strike of many thousands of employes employed in the manu- 
 facturing rubber industries, and 
 
 Wuereas, An industrial conflict of such magnitude and fraught with 
 such serious consequences iff inimical to the public welfare and a matter 
 of great public concern, and 
 
 WHEREAS, The rubber manufacturers of Akron who dominate and 
 largely control the manufacture of rubber goods in the United States, 
 are the beneficiaries of special governmental favors in the way of a high 
 protective tariff by which they are permitted to collect enormous profits 
 from the American people, and 
 
 WHEREAS, Growing out of this government subsidy many of these 
 great corporations have over capitalized, much of their stock have been 
 watered so that enormous profits are required in order to pay dividends 
 upon a fictitious stock valuation all of which must come from the creat- 
 ive. genius of their employes and the pockets of the consuming public, 
 and 
 
 WueEreAs, Notwithstanding the favors extended to them by the 
 people’s government, these corporations have assumed an autocratic and 
 arrogant attitude, refusing to meet and treat with their employes for 
 the purpose of hearing their grievances, and making an honest effort 
 to reconcile and settle their differences; therefore be it 
 
 Resolved, That a committee of three senators be appointed to investi- 
 gate all the facts regarding the strike, the capitalization, investment and 
 earnings of the aforesaid corporations, the wages paid employes, hours 
 of labor, conditions ‘of employment, and the relations thereto of the 
 manufacturers of rubber goods, and report their findings at the earliest 
 possible date to the senate within the present session of the general 
 assembly. Be it: further 
 
 Resolved, That such committee be given power to send for persons, 
 _ papers and documents to compel the attendance of witnesses before the 
 committee, to administer oaths and to take testimony. The said com- 
 mittee shall not receive any compensation, but the expenses of the in- 
 vestigation, not to exceed one thousand dollars, shall be paid out of the 
 fund for the expense of legislative committees. 
 
 (3) 
 
 453330 
 
MAJORITY REPORT OF COMMITTEE. 
 
 Fo the Ohio Senate: 
 
 Your committee, acting in accordance with Senate Resolution No. 
 29 providing for an investigation of the cause and circumstances relating’ 
 to the strike in the rubber factories of Akron, Ohio, herewith submits 
 the following. report: 
 
 ~* We arrived in- Akron, Ohio, on February 28th, 1913, ine on the same 
 day met and conferred with a number of the committee representing the 
 striking employes, and with representatives of the rubber manufacturers. 
 We were accompanied by first assistant sergeant-at-arms, Edward 
 Schweitzer, and held our sessions in a room at the Portage Hotel, Akron, 
 Ohio. 
 
 On Saturday, March Ist, 1913 we subpoenaed a number of witnesses 
 and began taking testimony relative to the matter under consideration,,. 
 and proceeded thereafter from day to day with diligence until the investi- 
 gation was concluded. 
 
 _ We examined a large number of witnesses and took 3,568 pages of 
 testimony, including numerous exhibits of various kinds, all of which 
 we examined carefully. The employers and employes were each repre- 
 sented by attorneys. The widest latitude was allowed both in the exami- 
 nation and cross-examination of witnesses. All witnesses offered by 
 both sides, except those whose testimony was clearly irrelevant, were 
 subpeeneed and heard, Every witness called on behalf of the employes 
 was given the fullest opportunity to state every grievance and narrate 
 every fact pertaining to the subject at issue. Also every witness called 
 on behalf of employers was given the fullest and widest latitude in meet- 
 ing all charges against the rubber companies, and likewise narrating any 
 fact pertaining to the quéstion at issue. 
 
 The services of Mr. Aaron Mowles, an expert accountant from 
 the State Bureau of Accounting, was placed at the disposal of the Com- 
 mittee, and under our direction examined the books, papers, etc., of the 
 various rubber manufacturing companies. 
 
 There are seven companies engaged in the manufacture of rubber 
 goods in the city of Akron: The Goodrich Company, Goodyear Tire & 
 Rubber Company and the Firestone Tire & Rubber Company represent 
 about nine-tenths of the entire rubber business of Akron. In the limited 
 time we spent in the investigation the Committee was confined to an 
 examination of these three companies. This was due largely to the fact 
 that the testimony offered by the striking employes was confined to these 
 
 (4) 
 
5 
 
 three companies. A complete transcript of the testimony, together with 
 all exhibits, is filed herewith. We also made a personal inspection of 
 the Goodrich, Firestone and Goodyear factories. 
 
 We respectfully submit our findings as follows: 
 
 On February roth, the date on which the strike began, there were 
 employed in the rubber factories of Akron approximately 22,500 men and 
 women. The highest number idle, either as strikers or in sympathy with 
 those on strike, was about 15,000. At times the strike assumed serious 
 and threatening proportions. Feeling ran high. There were parades of 
 striking employes through the streets of the city and near the rubber 
 factories. Picketing was resorted to by the striking employes. Many 
 additional police and deputy sheriffs were sworn in, while the peace and 
 tranquility of Akron was greatly disturbed. The rubber industries were 
 crippled and business generally injured. 
 
 The strike originated in the automobile tire department of the Fire- 
 stone Tire and Rubber Company on February roth, 1913. It soon spread 
 to other departments of this factory and in rapid succession to the Good- 
 year Tire & Rubber Company, Goodyear Company, Swinehart Company, 
 Buckeye Company, and other smaller companies until al: were to a greater 
 or lesser degree involved. 
 
 The testimony shows that the strike at the Firestone Tire & Rubber: 
 Company’s factory, which began on February toth, 1913, was caused 
 by a reduction in the piece work price paid to finishers in the automobile 
 tire department. This reduction resulted from a re-adjustment of prices 
 due to the introduction of machines in the manufacture of automobile 
 tires. A notice was posted by the Firestone Company on February roth 
 advising their employes that the new schedule would take effect imme- 
 diately (that day). This gave no time for consideration by the employes 
 affected, nor did it afford an opportunity for conference between em- 
 ployers and employes prior to the date set on which the new schedule 
 would take effect. Had there been a reasonable amount of time between 
 the date on which the notice providing for a re-adjustment of prices 
 was posted and that fixed when it would take effect so as to insure due 
 deliberation and conference, the strike might have been averted. 
 
 Immediately after the strike occurred the State Board of Arbitration, 
 in accordance with instructions from the Governor of Ohio, visited Akron 
 and tendered its services in an effort-to bring about a settlement of the 
 strike. -The employers indicated an unwillingness to confer with their 
 striking employes either through committees or to submit the cause or 
 causes of the strike-to the State Board of Arbitration for settlement. 
 No conference, therefore, was held either directly or indirectly- between 
 committees representing the striking employes and their employers at any 
 time after the strike occurred for the purpose of understanding or ad- 
 
6 
 
 justing any conditions, wages of grievances which may have been either 
 the chief or contributing cause or causes which precipitated the industrial 
 conflict. Likewise no grievances were submitted, nor was a schedule 
 of wages proposed by the striking employes of the rubber factories to 
 the management of the different factories before they ceased work, so 
 that no effort was made to bring about an adjustment of any grievances 
 at the factories discontinuing work. 
 
 A new schedule of wages and conditions of employment was sent 
 to the representatives of the manufacturers through the mail by the strik- 
 ing employes several days after they had discontinued work. 
 
 SPEEDING“UP SYSTEM, 
 
 Complaint was made by numerous witnesses of the striking employes 
 on account of the so-called “speeding up system” in vogue in a number 
 of departments in which rubber goods were made. It was claimed that 
 the most efficient and speedy of the workers in a department would be 
 selected for the purpose of making a test as to the amount of finished 
 material which could be completed in a given length of time. Upon a 
 result of this test the wages paid were fixed. It was alleged that it re- 
 quired great speed on the part of the average worker to earn reasonable 
 wages at the price fixed by the test. After the test had been made and 
 the piece work price established, in some cases a bonus was offered for 
 an additional amount of work done over and above that fixed as a rea- 
 sonable day’s earnings. By this method it was claimed many workers 
 speeded up in order to earn the bonus thus offered. This plan, it was 
 claimed, resulted in injury to health because it inspired the workers to 
 physical exertion both injurious and destructive. On the other hand the 
 employers claimed that where this method was employed it was for the 
 purpose of affording the efficient and ambitious employe an opportunity 
 to earn increased wages. It placed a premium upon skill and efficiency. 
 It also gave them in times of rush, finished material which they so 
 urgently required in order to take care of their increasing business. 
 
 An analysis of the conflicting testimony would seem to justify the 
 conclusion that the so-called “speeding up system” could be wisely dis- 
 pensed with because it is fraught with danger both to employers and 
 employes. “Under its operation the health of the employe, especially 
 women workers, might be injured, while in@frior finished material as a 
 direct cause thereof might injure the employer’s business. It is a mat- 
 ter of supreme importance and of public concern that the health of em- 
 ployes be protected and conserved in all our factories and various indus- 
 tries, while it is of great importance that well finished material be placed 
 on the market and superior workmanship always maintained. 
 
HOURS OF LABOR. 
 
 In the automobile tire building department of the Goodyear Company 
 the employes work eight hour shifts. In the other departments of this 
 factory, as well as in all the other rubber factories of Akron, the hours 
 of labor for male employes are ten and eleven during the day and 
 thirteen at night. One half hour is allowed for lunch. All women em- 
 ployes work fifty-four hours per week. Very few violations of the state 
 law regulating the hours for women employes were developed in the 
 testimony taken. In view of the general tendency toward shorter hours 
 of employment in all industries, the complaint regarding the long hours 
 of employment by male employes at night is justifiable. 
 
 FEAR OF EMPLOYES, 
 
 The most striking feature of the evidence given was that the em- 
 ployes refrained because of fear of discharge to submit grievances for 
 adjustment to the foreman or superintendent. The employers testified 
 that they never knew of the existence of complaints such as shown in 
 the evidence, and supposed that they had a contented body of workers 
 in their employ. The testimony of the employes was that while griev- 
 ances existed, complaint had not been made because of fear of ‘discharge. 
 We are convinced that such a fear existed among the employes of the 
 rubber factories. The testimony, however, shows no overt act on the 
 part of the men highest in authority which would justify the employes 
 in entertaining such belief. 
 
 It is but natural, however, that employes should stand in some fear of 
 the men to whom they owe their employment and who have the power 
 to terminate that employment at any time. The testimony indicates that 
 many foremen and superintendents in the rubber factories are fair and 
 just in their relations with the men under them, and hold the regard and 
 confidence of their employers, but that failure to correct complaints, 
 adjust grievances and convince the employes of their purpose and desiré 
 to treat with any employe who had a grievance without prejudice or 
 punishment by any of those in authority has contributed largely toward 
 the discontent among the employes in the rubber factories. 
 
 Mr. Shaw, General Manager of the Goodrich Rubber Company ; 
 Mr. Sieberling, President of the Goodyear Company; and Mr. Firestone, 
 President of the Firestone Tire & Rubber Company, each said in their 
 testimony that they were open at all times to hear their employes’ com- 
 plaints and grievances, and asked that their employes feel free to come 
 to them with their complaints and for the adjustments of their griev- 
 ances. In view of this invitation we are of the opinion that some rule, 
 or notice, ought to be posted in the factories advising employes that 
 
8 
 
 they may appeal any complaint which they may have to the highest au- 
 thorities in the factories with the emphatic assurance that they would 
 not be co-erced, discriminated against or discharged by reason thereof. 
 
 BLACK LIST AND CARD SYSTEM.’ 
 
 The employes*complained that a black list is kept by the manage- 
 ment of the rubber factories. Questions were asked by the attorney for 
 the striking employes indicating the claim that the companies’ managers, 
 either themselves or through the Employer’s Association of Akron, main- 
 tained such a list. No conclusive evidence, however, was adduced show- 
 ing that such a list was kept by the factories for black list purposes. 
 The following facts were established: 
 
 Each company maintained an employment department. When a 
 person is employed a minute description of the employe is entered upon 
 a card on which is. recorded the name, age, height, complexion, color of 
 hair, color of eyes, etc. When a person applies for employment, the 
 employment agent frequently inquires if the applicant has been previously 
 employed by any of the other companies. If answered in the affirmative, 
 he calls the company where the applicant was formerly employed, by 
 telephone, and generally in the presence of the applicant, inquires as 
 to the applicant’s record, etc., while in their employment. The testi- 
 mony shows that persons have been refused employment on the strength 
 of information in reply to such inquiries so made by telephone. Evi- 
 dently, instances of this kind have led to the general impression among 
 the employes that a black list is maintained as set forth in their com- 
 plaints. 
 
 A strong feeling against this method developed in the testimony of 
 the employes. It cropped out continually during the taking of testi- 
 mony. They seemed to regard the minute description of them taken 
 upon the employment card as an unfair and humiliating espionage. The 
 employers claimed that the system is necessary to protect them against 
 persons who have bad records. The employes claim that it amounts 
 to a black list, and at least prevents persons who may have done wrong 
 from having an opportunity to redeem themselves. In some of the fac- 
 tories it is the rule to require an employe to secure permission to leave 
 the factory during working hours, which permission is given in the form 
 of a card issued to the employe. Some witnesses complained about 
 this, claiming the right to leave the factory at any time. A rule of 
 some of the factories required an employe complaining of illness, or 
 who is injured, to go to the factory hospital. There is some complaint 
 of this rule, especially in one or two instances where a workman claimed 
 to. be sick and where the nurse in charge thought otherwise. 
 
9 
 
 LABOR ORGANIZATION, 
 
 There was practically no organization existing among. the rubber 
 employes prior to the strike on February roth, 1913.. A small local 
 of the Industrial Workers of the World comprised of between fifteen 
 and fifty members had been formed. This formed a sort of nucleus, 
 and when the strike occurred the employes joined this organization in 
 large numbers. The testimony developed the fact that very few knew 
 the principles, doctrines and methods of the Industrial Workers of the 
 World, and scarcely any had read their constitution or declaration of 
 principles. Simultaneously with the beginning of the strike, organizers 
 of the Industrial Workers of the World appeared on the ground in- 
 viting and urging the striking employes to unite with their organiza- 
 tion. The time was opportune, the occasion propitious, and so the 
 striking employes turned rather instinctively to the available machinery 
 through which they hoped to secure redress and recognition. 
 
 The Industrial Workers of the World teach among other things 
 the following doctrines : 
 
 1. All employes shall belong to one general union. 
 
 2. No contract providing for wages or conditions of employment 
 shall be entered into for a definite length of time between employer and 
 employe. 
 
 3. Sabotage. This means that if an employe, or a group of em- 
 ployes, have grievances and cannot secure a settlement thereof, instead 
 of ceasing work, they should do poor work, turn out inferior products, 
 loaf during working hours, injure or destroy machinery, create expense, 
 and inflict damage upon the employers until the grievance about which 
 they complained should be satisfactorily adjusted. This, they term, 
 striking while at work, The teaching of such doctrine is both alarming 
 and dangerous. The leaders of the Industrial Workers of the World, 
 who advocate sabotage as a last resort in industrial disputes, justify its 
 practice on the ground that the employer resorts to adulteration of the 
 manufacture of food stuffs, etc. supplied to the general public and in the 
 deception practiced in the manufacture of goods supplied to and used 
 by the people everywhere. This process of reasoning is predicated 
 upon the assumption that one wrong justifies another. 
 
 We submit to the General Assembly that this dangerous doctrine is 
 a matter of grave importance and public concern, not only to the state 
 of Ohio but to the nation at large. The line of distinction between this 
 doctrine and anarchy is so indistinct as to be almost imperceptible, 
 Those who labor must suffer in the end because of the spread of a doc- 
 trine of this kind. There can be neither moral nor material improve- 
 ment among those who labor, if they allow the leadership of men who 
 practice and preach such immoral and destructive doctrine. In the last 
 analysis it is labor which is injured most. The leaders of the organiza- 
 tion of the Industrial Workers of the World instead of helping the 
 
ice) 
 
 striking employes of the rubber factories of Akron did them much 
 injury and are largely responsible for their failure to secure a redress for 
 any wrongs which may have existed and the adjustment of any grievances 
 about which they complained. Very few of the striking employes, how- 
 ever, testified that they believed in the doctrine of sabotage, but almost 
 universally they stated they had affiliated with the Industrial Workers of 
 the World’s organization because they hoped, through collective action, 
 to increase their wages and improve their conditions of employment. 
 Many of them admit this doctrine as dangerous and destructive, and 
 asserted they would not subscribe to such principles or practice. 
 
 The testimony strongly indicated that the reason why no conferences 
 were held between committees representing the striking employes and 
 the management of the different rubber factories was because of the 
 teaching of sabotage, etc. by the leaders of the Industrial Workers of 
 the World. To this extent, therefore, this organization and its leaders 
 injured rather than helped the thousands of men and women on strike. 
 
 The doctrine that employers and employes shall not enter into term 
 contracts providing for wages, conditions of employment, etc., strikes 
 at the very foundation of human relations and human activity. Men 
 must make contracts, and they must keep them in honor and integrity. 
 As civilization advances it becomes more complex and men are more de- 
 pendent upon one another. Civilization Cannot exist, nor is the brother- 
 hood of man possible save as men will give to each other their plighted 
 word and loyally keep their contracts. Any other policy| means uncer- 
 tainty, strife and warfare. 
 
 WAGES. 
 
 The testimony shows that the wages paid generally compare favora- 
 bly with those paid in other industries. In the automobile tire building 
 and tire finishing departments, the wages earned are evidently higher 
 than the amount earned in other industries where like skill and effort 
 are required. The employes in these departments are paid piece work 
 prices, consequently their earnings vary according to the ability and 
 skill of each employe and the dexterity with which each perform their 
 work. In the manufacture of other rubber goods in other departments 
 piece work prices are paid also, and as in the tire department the wages 
 earned depend upon the amount of work done. Many workers acquire 
 skill and work rapidly, therefore their earnings are equally as high as 
 that earned in the automobile tire department. Employes working by 
 the day are paid from 17% cents per hour to 25 cents per hour. Their 
 day’s work, as previously stated, is ten hours in the day time and thirteen 
 hours at night. The wages paid female employes range from five to 
 twelve dollars per week. In some instances the wages earned were less, 
 and in others more than the above stated minimum and maximum. These 
 cases, however, were the exception. 
 
II 
 
 The difference in earnings is due to the piece work plan. Each fe- 
 male employe in the Goodrich rubber factories and the Goodyear fac- 
 tories is paid ten cents per hour as beginners. After from two to four 
 weeks’ experience they are assigned to work at the prevailing piece-work 
 “prices. Asa rule they can earn more than ten cents per hour. However, 
 evidence was submitted by which it was shown that in some cases their 
 earnings were less than the day work rate. Where this occurred the 
 representative of the manufacturers testified their rule was to pay the 
 minimum of ten cents per hour. The testimony disclosed two extremes 
 in the earnings of the employes in the rubber factories. Some were 
 paid fair wages while others’ earnings were comparatively small. This 
 was true regarding both male and female employes. Your Committee 
 collected during the investigation much valuable data that can be used 
 in the consideration of a minimum wage for women workers. 
 
 Filed as exhibits with this report are the earnings of the ten lowest 
 and ten highest male and female employes of the different factories. 
 These figures were verified by our expert accountant from the pay rolls 
 of the different rubber manufacturers. 
 
 In connection herewith we recommend that a transcript of the testi- 
 mony taken, together with copies of exhibits, be filed with the newly 
 created Industrial Commission, also with the Governor, for use in deal- 
 ing with the problems of the minimum wage. 
 
 CAPITALIZATION. 
 
 The Goodyear Tire & Rubber Company was incorporated in 1898 
 with one hundred thousand dollars capital. It has steadily grown until 
 now it is capitalized at ten million dollars. The following figures sub- 
 mitted in evidence as exhibit “K’”’ show the amount in cash and stock 
 dividends declared by the Goodyear Tire & Rubber Company between 
 
 the years 1907 and 1913. 
 MANUFACTURER’S- EXHIBIT “K”, 
 
 THE GOODYEAR TIRE & RUBBER COMPANY. 
 
 DivIDENDS. 
 
 Cash 
 Years. | Stock. 
 Preferred. | Common. 
 (Se Ee ee ee PRI CS Sir nae te Seen | Wee Pananeae & 
 ay OMIM eas, clans ute ts ale dav Ganemme's e619. 02 49 200 00 400,000 00 
 LATE NCE DPS et 9 a ee a 43 088 84 120,000 00: 1,000,000 00 
 MeMUCvemtcA WN ieteleePenekarcs ee, fee (fa, me leruhs «aig: | 70,000 00 BWA UO OU ulieeee ter weet, cout 
 [MOT EOU BD 668 a ae ee LESS Rt Ole Solio ceten Wer he ce 2,289,100 00 
 SS ee A ee a $ 280,566 41 |$ 443,292 00 |$ 3,689,100 00 
 | 
 
12 ; 
 
 The Firestone Tire & Rubber Company was incorporated in 1900 
 with a capital of fifty thousand dollars. It is now capitalized at four 
 million dollars, of which three million is common and one million pre- 
 ferred stock. The following figures showing the earnings, the amount 
 paid in dividends, and the amount passed to surplus by the Firestone Tire 
 & Rubber Company between the years 1910 and 1912 were submitted as 
 a part of Exhibit No..45: 
 
 THE FIRESTONE TIRE & RUBBER COMPANY OF OHIO. 
 
 arr Paid in | Passed to 
 Earnings. Dividends. Surplus. 
 Mar Ath 1910: t0-Jaly 3h, 1010h 2 ae $ -91,087 37 1$ 48,208 25 |$ 47,879 12 
 SR OIE poeta ctei reek ee aie leat ene 620,001 71 189,040: 25: | 430,961 46 
 EEO hae acca ho aoe es Rese ee ee 1,189,927 67 253,018 30 936,412 37 
 $1,415,252 95 
 Rremiitin Ot: StOGK |. > ccm fete detec os ee tae 416,646 00 
 
 Hopal: Swept sack ecw eee ce SE oe $ 1,831,898 95 
 
 The present B. F. Goodrich Company is a corporation which was 
 formed in April, 1912, through a consolidation of the old B. F. Goodrich 
 Company and the Diamond Rubber Company. The old B. F. Goodrich 
 Rubber Company started in the form of a partnership in 1869, and was 
 incorporated under the laws of the state of Ohio on May roth, 1880, with 
 a capital stock of one hundred thousand dollars. Increases in the capital 
 stock were made from time to time until on. January Ist, 1912, the capital 
 stock outstanding was sixteen million dollars, ten million common. and 
 six million preferred. 
 
 The Diamond Rubber Company was organized under the laws of 
 Ohio in 1894 with a capital stock of fifty thousand dollars. Through 
 various changes in the organizations between the years 1894 and 1912 
 the capital stock was increased to ten million dollars. 
 
 At the time of the consolidation of the old B. F. Goodrich Company 
 and the Diamond Rubber Company, both Ohio corporations which formed 
 the new B. F. Goodrich Company of New York, the capital stock of 
 the old B. F, Goodrich Company was sixteen million and the Diamond 
 Rubber Company ten million. Thus the old Goodrich Company surren- 
 dered sixteen million capital stock and the Diamond Rubber Company 
 ten million capital stock, and in addition four million undivided profits, 
 making a total of thirty million surrendered. 
 
 The new B. F. Goodrich Company of New York organized by the 
 consolidation of the old B. F. Goodrich Company and the Diamond Rub- 
 ber Company in April, 1913, increased its capital stock to ninety million 
 
2 
 aire This additional sixty “million. qin ‘Of tt increased stock was 
 distributed among the stockholders less approximately three million dol- 
 lars of the common stock, which was ‘paid to the bankers -for underwriting 
 the new organization. This sixty” milfion’ dollars increase of stock is 
 carried on the books of the B. F. Goodrich Company and classed as 
 good will. ~ 
 
 The evidence shows that the earnings of the rubber manufacturers 
 have been and are such as to justify the payment of high wages to em- 
 ployes and the maintenance in their factories of good conditions of em- 
 ployment. PAR RACE 
 
 The increase of the capital stock of the’ Goodyear and Firestone 
 Companies represent earnings of the company réinvested and_ the pro- 
 ceeds of the sale’ of stock invested in the extension of the two plants. 
 
 The thirty million dollars of stock of the Goodrich Company at the 
 time of the sixty million dollar increase was worth on the market about 
 ninety million of dollars. The difference between the par value of thirty 
 millions and the market value of ninety millions was capitalized by the 
 issue of sixty millions of stock, the details of which are fully set. forth 
 in the record. 
 
 On Tuesday, March 25th, we made a personal inspection. of the 
 factories of the Goodrich Company and the Firestone Tire & Rubber 
 Company. On the following day we visited the Goodyear Tire and Rub- 
 ber Company’s factory. 
 
 Many acres are covered by their buildings, all of which are prac- 
 tically fireproof. Steel structures with reinforced concrete is the prevail- 
 ing type, although some of them are of the slow burning type. The 
 buildings are well lighted and so constructed as to provide good ventila- 
 tion. The machinery etc. seem to be well equipped with modern safety 
 devices. Hospitals are maintained in each of the larger factories with 
 physicians and nurses in attendance to which employes are sent when ill 
 or injured. Well aired and well lighted dining rooms, where food is 
 sold at the cost of production, are arranged in most of the larger fac- 
 tories, and the sanitary conditions appear to be up to the standard. 
 
 The investigation had proved to be profitable and of great value to 
 the rubber manufacturers, the employes and the general public. The 
 testimony developed abuses which had crept in and grievances of which 
 the management of the rubber factories were not aware. Many of these 
 have no doubt already been corrected, all of which is to the advantage 
 of all concerned. ‘The publicity attending the investigation and the data 
 collected is of great value to the general public. In addition the data 
 contained in the record made will prove to be of incalculable value to 
 the Industrial Commission created by action of the present legislature. 
 and also to this legislature and succeeding ones which may give con- 
 sideration to questions affecting the relations of capital and labor. 
 
14 
 
 We. wish to acknowledge the co-operation and courteous treatment 
 accorded us by the rubber manufacturers, the representatives of the em- 
 ployes, and the people of Akron as a whole. 
 
 Respectfully submitted, 
 WM. GREEN, 
 J. P. SeEwarp. 
 C. J. Howarp. 
 
 TARIFF ON RUBBER GOODS. 
 
 The evidence shows that all raw rubber used in the manufacture of 
 rubber goods is admitted free and without the payment of any duty what- 
 ever. The tariff on manufactured rubber goods is 45%. Mr. Seiberling, 
 President of the Goodyear Company, and Mr. Firestone, President of 
 the Firestone Tire & Rubber Company, testified that the manufacturers 
 of rubber goods did not require any tariff on manufactured rubber 
 goods as a matter of protection. Mr. Shaw, President of the Goodrich 
 Company, testified the rubber industry needed a tariff for protection 
 against competition from abroad. All admitted, however, that the pres- 
 ent tariff duty of 45% is practically prohibitive. The testimony of the 
 rubber manufacturers justify the conclusion that a large reduction could 
 be made in the present tariff schedule on manufactured rubber goods 
 without inflicting any injury upon the rubber industry. 
 
 April 18, 1913. 
 Wo. GREEN, 
 J. P. SEwarp, 
 
MINORITY REPORT OF COMMITTEE. 
 
 To the Senate of Ohio: 
 
 GENTLEMEN: | submit the following minority report relative to the 
 tariff on rubber goods. 
 
 Mr. F. A. Seiberling, President of the Goodyear Company, Mr. H.. 
 S. Firestone, President of the Firestone Company, and Mr. E. C. Shaw, 
 Vice-President and Manager of the Works of the Goodrich Company, 
 were each examined as to the tariff on rubber goods levied by the Fed- 
 eral Government, their evidence relating mainly to the tariff on rubber 
 tires. 
 
 The evidence of Mr. Seiberling and Mr. Shaw was especially valu- 
 able, as it was shown that Mr. Seiberling, while abroad, had made an 
 exhaustive study of the conditions of the tire industry of Europe, and 
 that the Goodrich Plant, of which Mr. Shaw is Vice-President and 
 Factory Manager, has for sometime been operating a tire factory in a 
 suburb of Paris, France. ; 
 
 The United States first levied a tariff duty of forty-five percent 
 ad valorem on rubber goods which has since been reduced to thirty- 
 five percent. France and Germany each maintain a duty of forty-five 
 percent. 
 
 All the witnesses are agreed that this duty practically prohibits 
 foreign competition in the United States and that the same is true of 
 Germany and France. 
 
 All the witnesses are agreed that there is no combination of the 
 Rubber Factories of the United States for the regulation or maintenance 
 of prices and that under the present high tariff, competition is not only 
 keen but intense. 
 
 All are agreed that the wages of the hand tire workers of Eng- 
 land, France and Germany are less than fifty per cent of the hand tire 
 workers of the United States. 
 
 Mr. Seiberling states, as his opinion, that the American Companies, 
 which use machinery, are fortified to defy competition, because of their 
 machinery and consequently improved methods. Because of the patents 
 however, but three American Companies use machinery. All others 
 make tires by hand. 
 
 Mr. Shaw on this point takes issue with Mr. Seiberling. He testifies 
 that the Goodrich Company uses machines in its Paris Plant and that it 
 is paying its machine tire makers from ninety four cents to one dollar and 
 eighteen cents per day, and the evidence adduced by this committee, 
 
 (15) 
 
16 
 
 shows that for the same work for which the foreigner is paid from 
 ninety four cents to one dollar and eighteen cents per day, the American 
 workman earns, stating in it general figures, from tw dollars to four 
 dollars and over per day. 
 
 Mr. Seiberling states that the difference between the wages of the 
 foreign and our own workmen is “startling.” 
 
 Mr. Shaw testified that in his opinion a reduction of ten or fifteen 
 per cent might be made in the traiff, but if you make a large reduction, 
 using almost verbatim his own words, he could with his Paris Plant 
 beat the Akron Manufacturers off the face of the earth. 
 
 There is but one conclusion which can be based upon the evidence. 
 A tariff should be maintained to cover the difference between the wages 
 of the American and European Workmen. Reduce the tariff to a reve- 
 nue basis and the workmen of Akron must come to the wages of the 
 workmen of France. An adjustment of the traiff can be made, but it 
 should be merely an adjustment of the schedule with reference to present 
 needs and should not interfere with the protective feature. To reduce 
 the tariff to a revenue basis in the face of the fact that Germany and 
 France maintain a prohibitive tariff, would open our markets to their 
 product with their markets closed to our own. ; 
 
 Every thousand tires bought abroad would mean one thousand 
 less tires made by our own people, with no return of favors whatever. 
 The American workman is entitled to the best that the world has and 
 the Federal Tariff should always be levied to give him all possible pro- 
 tection. 
 
 April 18, 1913. Respectfully submitted, 
 C. J. Howarp. 
 
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