UNIVERSITY OF CALIFORNIA 
 AT LOS ANGELES
 
 7J
 
 INDUSTRIAL ARBITRATION
 
 INDUSTRIAL 
 ARBITRATION 
 
 A World-Wide Survey of Natural and Political 
 
 Agencies for Social Justice and 
 
 Industrial Peace 
 
 By 
 CARL H. MOTE 
 
 AUTHOR, WITH JOHN A. LAPP, OF 
 LEARNING TO EARN 
 
 INDIANAPOLIS 
 
 THE BOBBS-MERRILL COMPANY 
 
 PUBLISHERS
 
 Copyright 1916 
 The Bobbs-Merrill Company 
 
 PRESS OF 
 
 BRAUNWORTH & CO. 
 
 BOOKBINDERS AND PRINTERS 
 
 BROOKLYN, N. Y.
 
 S4-SI 
 
 CONTENTS 
 
 CHAPTBR PAGE 
 
 I Elements of a Vast Problem 1 
 
 II English Experiments 22 
 
 till German Social Justice 58 
 
 IV French Experiments 87 
 
 V A Country Without Strikes 118 
 
 VI Australian Experiments 146 
 
 VII Official Investigations 167 
 
 VIII Initial Experiments at Home .... 191 
 
 IX Legislation in United States .... 215 
 
 X Some Devices in Operation 239 
 
 XI Interstate Strikes 268 
 
 XII The Colorado Coal Strike 288 
 
 XIII Trade Agreements 300 
 
 XIV Concluding Observations 321 
 
 Appendix iii 
 
 Index xxix 
 
 20SiS2
 
 INTRODUCTION 
 
 Originally undertaken with an object of finding 
 some tangible device for the prevention of strikes 
 and lockouts, if any such device existed, this work 
 in its present form aims to present a consideration 
 of those devices now extant. It aims to present 
 certain pertinent facts showing how the various de- 
 vices or political agencies have worked or have 
 failed to work. The study is meant to be an impar- 
 tial discussion of industrial conciliation and arbitra- 
 tion and of social and industrial conditions, which, 
 in the author's opinion, have a direct bearing on the 
 results of legislative methods. 
 
 Although there appears to be little real hope in 
 the promises of temporizing processes, certain basic 
 reforms are important and these have been empha- 
 sized. 
 
 Here in America, we have been impressed by the 
 thoroughness with which Germany appears to have 
 mastered industrial processes. This scientific thor- 
 oughness was well understood by most students at 
 the outbreak of the present war and is the keynote 
 of the autocratic organization of the German Em-
 
 INTRODUCTION 
 
 pi re. It was well fitted to withstand the strain of a 
 devastating war. After the war, Germany may find 
 it necessary to rebuild her industrial system on more 
 nearly democratic foundations. Rebuilding on this 
 plan will certainly be necessary if, perchance, the 
 inefficient democracies of Great Britain and France 
 emerge triumphant from this colossal struggle with 
 precisely organized and efficient autocracy. 
 
 Measures adopted by the English government, 
 since the beginning of the war, to accelerate indus- 
 trial processes and in which the workers have 
 yielded largely to the economic demands of the na- 
 tion may be regarded as the sequel, in a crisis, to a 
 program of social and industrial legislation success- 
 fully carried out during the last ten or fifteen years. 
 The mixed success of David Lloyd-George, how- 
 ever, can not very well be compared to the success 
 or failure of devices for industrial peace in normal 
 times. 
 
 With the exception of the Chicago street railway 
 strike, the settlement of which in this country cer- 
 tainly supports the contention that industrial peace 
 is more probable when labor is well organized, there 
 were no especially disastrous strikes in 19 15 in the
 
 INTRODUCTION 
 
 United States. Many new trade agreements were 
 ratified, many renewed, and in a few cases agree- 
 ments were broken or abandoned. 
 
 The Industrial Relations Commission, created in 
 1912, had not reported when this volume was fin- 
 ished. Although the work of the commission, espe- 
 cially that of its chairman, Franklin P. Walsh, heis 
 been bitterly assailed in some eminently respectable 
 quarters, the assaults appear to have emanated from 
 a misunderstanding of the purpose for which the 
 commission was created. As a matter of fact, the 
 commission has performed a most helpful mission 
 in behalf of a better understanding of the basis of 
 industrial peace. The chairman of the commission 
 was well equipped for the duties of a rigorous inves- 
 tigation and the publicity he obtained for his work 
 has been of the very greatest value. The hearings 
 served to disclose the "seats of the mighty," the 
 seats of industrial and political tyranny, and to sug- 
 gest certain first steps which may be taken as the 
 basis of greater harmony in our most aggravated 
 industrial centers. 
 
 Very little has ever been written to show the un- 
 derlying reasons why political agencies, conciliation
 
 INTRODUCTION 
 
 and arbitration devices, fail to produce expected re- 
 sults. In fact, very little has been written that gives 
 a comprehensive view of the many schemes in opera- 
 tion. So far as possible, this is the purpose of this 
 volume. Certainly, no subject commands a more 
 wide-spread interest to-day than the waste and 
 losses due to strikes and lockouts. This is more par- 
 ticularly true since the causes are identical with 
 those of our unpreparedness for peace and our un- 
 preparedness for war as well. 
 
 It has been suggested that the sources from which 
 certain chapters of this work are drawn may not 
 be wholly trustworthy; that the reports of state 
 boards of arbitration naturally claim a liberal meas- 
 ure of success for this particular agency. The issue, 
 however, is unimportant. It was taken for granted 
 that they would present their best case. Assuming 
 that they have done so, they nevertheless have 
 failed to establish the adequacy of conciliation and 
 arbitration by state agency and for this reason pri- 
 mary measures are advanced in preparation for an 
 era of fundamental harmony between Capital and 
 Labor. If the reader, therefore, is impressed with 
 the emphasis placed on social conditions among
 
 INTRODUCTION 
 
 workers, in a volume purporting to deal with con- 
 ciliation and arbitration, he should bear in mind 
 that the author has not been unmindful that social 
 conditions among workers determine largely the 
 success or failure of conciliation and arbitration. 
 
 Carl H. Mote.
 
 INDUSTRIAL ARBITRATION
 
 Industrial Arbitration 
 
 CHAPTER I 
 
 ELEMENTS OF A VAST PROBLEM 
 
 EVERY word that has ever been written about 
 Capital and Labor has one focus of interest. 
 That focus is an intangible ideal of relationship be- 
 tween two social factors which everybody has sought 
 and nobody seems to have found. If any one were 
 able to offer an ideal it might not have been neces- 
 sary to write this book. Nobody seems to know quite 
 to what end we are working. No other realm of 
 our social life is more barren of definite, universal 
 ideals. 
 
 The struggle for a larger dish of porridge among 
 small business men, trades people and farmers is a 
 problem in which the rest of the world does not seem 
 to be particularly interested, but when a large body 
 of people bind themselves together In one way and 
 
 I
 
 2 INDUSTRIAL ARBITRATION i 
 
 another and present a demand collectively, the prob- 
 lem assumes a wider significance. 
 
 The question of a little more porridge for one 
 group and a little less salad for another, involving 
 a wide range of standards from private exploitation 
 of the wage earner to collectivism and from col- 
 lectivism to syndicalism, is no simple one. Actually 
 it is the basis of the conflict between Capital and 
 Labor. Whether the Sherman act should exempt 
 trade and labor unions ; whether the "open" or 
 "closed" shop shall prevail; what shall be done 
 about sympathetic strikes and jurisdictional disputes 
 between trade unions; what about the boycott, the 
 blacklist and the picket; what about sabotage? — 
 these are all incidental and minor questions as com- 
 pared to that of how the profits of industry will be 
 divided between the master and his men. Must the 
 men be content with a subsistence wage or are they 
 entitled to a subsistence wage plus some luxuries, 
 and if so, how many or what? Or, is industry to 
 be managed tacitly upon a cooperative basis and are 
 the men to share with the master the profits of pro- 
 duction? If so, how are the profits to be divided? 
 The master's contention is for the lion's share of 
 the profits because he risks his capital in an enter- 
 prise. He is the entrepreneur. Yet he does not for-
 
 ELEMENTS OF A VAST PROBLEM 3 
 
 bear to reduce wages when business is bad and prof- 
 its are low. He would deny the right of his men 
 to share the profits from his capital and their labor 
 when profits are abnormally high, yet he would re- 
 duce their wages when the earning power of his 
 capital and their labor is impaired. 
 
 When any one talks about industrial arbitration, 
 he at once raises every problem that has to do with 
 the relation between Labor and Capital. Having 
 raised every problem, he may wrestle with them 
 until his mind grows weary and his heart quits 
 throbbing without ever knowing very much about 
 the point at which he is trying to arrive. The ques- 
 tion of temperance is a simple one beside that of 
 meting out justice to Capital and Labor. No one 
 believes very ardently that intemperance is defensi- 
 ble, at least under average conditions, and the ideal 
 In this problem is a very definite one. It may be 
 difficult to rid great cities of vice, yet most every 
 one is willing to admit the end to which our cru- 
 saders labor. Likewise, men may differ about the 
 modern application of eugenics, but they do not dis- 
 agree about the worthy purpose of biological fitness. 
 While these problems seem to abide with us, any 
 one who cares to attempt a solution is not wanting 
 in aims or objects.
 
 4 INDUSTRIAL ARBITRATION 
 
 Not so with the seemingly irrepressible conflict 
 between master and men, employer and employee, 
 the bourgeoisie and the proletariat, Capital and 
 Labor ! 
 
 Socialists have pitched their fight against the 
 present industrial order on the theory that there is 
 a class consciousness in the industrial world and 
 that Capital and Labor represent fairly the division 
 of the industrial world into two great classes. If 
 the Socialists are correct, their philosophy must be 
 accepted as the proper basis for finding the ideal. 
 If they are wrong, their philosophy will not avail 
 much. If they are partly right and partly wrong, 
 conclusions must be tempered by such limitations as 
 appear in an examination of our industrial fabric. 
 Socialists proceed on the theory that Labor and 
 Capital have nothing in common ; that industrial 
 warfare is therefore inevitable. In fact. Socialists 
 welcome the industrial conflict as a means by which 
 the socialized state is to be made a fact. 
 
 If our present civilization amounts to anything, 
 it is difficult to get the Socialist view-point. Much 
 may be said for and against the skyscraper and the 
 railroad, but it is hard to conceive how they might 
 have been builded without the cooperation of the 
 two factors in industry. Furthermore, Socialism
 
 ELEMENTS OF A VAST PROBLEM 5 
 
 espouses the cause of only one party in the alleged 
 inevitable conflict and would raise the proletariat 
 only to higher and higher pinnacles of privilege. 
 Socialism ignores the interests of the capitalist, the 
 small business man, the farmer — the proprietary 
 class. It off"ers no hope and no encouragement to 
 such as these. Some Socialists will dispute this 
 point but they can hardly make their case even 
 though they were able to change human nature, a 
 program with doubtful consequences. 
 
 After all, the Socialist may be nearer right than 
 anybody else. He is so if the readjustment between 
 Labor and Capital is to be a readjustment in one 
 direction only; if Labor is to gain what Capital is 
 to give up and if the man who is part laborer and 
 part capitalist is to be ignored altogether. The So- 
 cialist program is replete with suggestions as to how 
 the readjustment may be accomplished. But we 
 should ask ourselves whether the collectivism of the 
 Socialists is the suggestion we want to follow and 
 whether we want to precipitate the revolution which 
 collectivism involves. Do we want to ignore the in- 
 terests of the small business man, the farmer — the 
 man who is part capitalist and part laborer and 
 whose concern in solving the problem is not a direct 
 one? Do we want to turn our backs on a century of
 
 6 INDUSTRIAL ARBITRATION 
 
 kaleidoscopic industrial and commercial magic or 
 suddenly pronounce the era of private enterprise a 
 failure? Are we willing to admit that the present 
 regime has done its work and that the time has come 
 to usher In a new order of society? Some of us are 
 willing to answer all these questions in the affirm- 
 ative. A majority are not. All of which neither 
 dispels our confusion nor discloses, amidst the con- 
 fusion, even the vague outlines of an ideal. 
 
 With every shade and measure of justice possible 
 from peonage to syndicalism and with philosophies 
 which represent these varying measures of indus- 
 trial justice, it is going to be rather difficult to es- 
 tablish an ideal. Some one may rise up to suggest 
 a middle ground, but who knows what a middle 
 ground is, or who believes it would satisfy anybody 
 if a middle ground were found? Any device for 
 industrial arbitration is not going to recognize the 
 validity of peonage. Nor are the syndicalists likely 
 to witness the fruition of their ideals in any award 
 which an industrial arbitration board may hand 
 down. Between these two opposite poles there is a 
 vast unexplored wilderness, a confusion of ideas and 
 ideals that baffles any man who seeks a fair rem- 
 edy. Perhaps we shall never find a panacea. Prob-
 
 ELEMENTS OF A VAST PROBLEM 7 
 
 ably we must content ourselves with palliatives and 
 be resigned to their discovery from time to time 
 under new and changing conditions. Our social fo- 
 cus Is subject to incessant change. What is good 
 for the present generation is obsolete for the next. 
 Is it not fair to believe that we can hope only to 
 do a few of the things in the present generation that 
 seem, most timely and proper? Perhaps it is too 
 much to expect to find a fixed ideal in these days 
 of political, social and industrial revolution. 
 
 With all that has been done, it does not seem that 
 strikes are becoming less frequent in this country. 
 Four of the most disastrous strikes in the history 
 of the country have occurred in the last few years. 
 The strikes of the French government employees 
 in 1909, the English railway strikes of 191 1, the 
 general strike in Italy, the miners' strikes in Colo- 
 rado and Michigan, offer little encouragement to the 
 i"nventors of devices now extant for adjudicating 
 industrial controversies. Of course, it may be that 
 the cause of the trouble is not industrial unrest so 
 much as a deep-seated spirit of revolt in the hearts 
 of men and akin to the militancy of an army, sur- 
 mounted with banners' and stepping to the tune of 
 martial music. The world has been at peace for a
 
 8 INDUSTRIAL ARBITRATION 
 
 long time and who knows but this so-called indus- 
 trial unrest is merely the effervescence of a rampant 
 spirit of revolution abroad in the world/ 
 
 To call forth an idea suggested by William James 
 in his Moral Equivalent for War, perhaps our 
 strikes and lockouts are the immoral equivalent of 
 war, the price we pay for nearly a half century of 
 world peace. If this is so, may we not expect to find 
 a working basis in a moral equivalent for industrial 
 warfare? Frankly, it would appear that a moral 
 equivalent does exist and I believe that it has ap- 
 peared in the new spirit of inquiry, examination and 
 introspection now causing old thrones to totter and 
 old bulwarks of privilege to crumble. The search 
 for the ideal, we may find, is quite as invigorating 
 as the pursuit of, or progress toward, the ideal. 
 
 Specifically, no social or industrial question has 
 arisen anywhere but has some relation, proximate 
 or remote, to the political systems under which we 
 live. It is the demand for a larger measure of so- 
 called industrial democracy which has set on foot 
 
 ^ When this was written the European war was merely 
 threatened. It was not a fact. The statement may stand, how- 
 ever, with the further statement that industrial unrest is 
 almost certain to subside with the end of the war. If English 
 unionists pursue their struggle, even during the war, it goes 
 to prove only that a considerable portion of the English work- 
 ing men, having had no part in the war, are not yet able to 
 accept it as a serious crisis in which their government is 
 involved.
 
 ELEMENTS OF A VAST PROBLEM 9 
 
 an Introspective examination of our political insti- 
 tutions. Lately we have learned in this country 
 that political freedom is no end in itself; that it is 
 futile unless it raise to a plane of greater independ- 
 ence economically the mass of our people. 
 
 Former President Roosevelt In his Neiv Nation- 
 alism and President Wilson in his New Freedom 
 stopped a long way short of the Ideal, though the 
 former seems to have been nearer the goal because 
 he evidently had an ideal in mind. Mr. Wilson ap- 
 pears to hold that political freedom is everything; 
 that all the rest follows after that. As a matter of 
 fact, it does not follow necessarily, and experience 
 shows that it has not always done so, as witness the 
 doubtful success of direct primaries, the initiative, 
 referendum and recall In some states. 
 
 But Industrial democracy, so-called, Is no Ideal 
 at all. It Is merely a term that may mean every- 
 thing or nothing. 
 
 This country has proceeded very far in the direc- 
 tion of political independence and It does not seem 
 that the barriers still remaining will long prevail. 
 Men may resist and oppose such institutions as di- 
 rect primaries, the Initiative, referendum and recall, 
 but they are the Inescapable response to a growing 
 need for a governrnent which will concern itself
 
 10 INDUSTRIAL ARBITRATION 
 
 with the intimate and human affairs of life rather 
 than the "red herrings" of obsolete political plat- 
 forms. 
 
 "Give the people more power," is a current slogan 
 which, however, is meaningless unless the people 
 are educated to use the new power wisely. It is 
 not sufficient to give the people more power with- 
 out tangible suggestions as to what they are to do 
 with it. Fortunately, a program is not wanting — 
 a program that has a direct bearing on the subject 
 of this book; a program that, to some degree, an- 
 swers the question, "What shall we do to be saved 
 from the inhumanity and wastefulness of industrial 
 warfare?" 
 
 It is a sweeping program of social and industrial 
 measures that will take care of our most aggravated 
 examples of industrial iniquity. It is a program 
 of primary importance and fundamental relation to 
 the worker's welfare. But it is no Utopia because 
 there is nothing about it that is fixed, nothing per- 
 manent, nothing very definite. 
 
 The mere fact that we have failed to find a pan- 
 acea to curb inordinate ambitions and aspirations 
 of master and men is no proof that the history of 
 a world-wide, century-old effort to find such a pan- 
 acea is wholly uninteresting. Even though we find
 
 ELEMENTS OF A VAST PROBLEM ii 
 
 legislative taboos In England, France, Germany, 
 Australia, New Zealand, Canada and our own coun- 
 try have been almost universally unsuccessful in se- 
 curing Industrial peace, an examination of those 
 failures will be a source of helpfulness to the stu- 
 dents of our paramount world problem. If the 
 world-wide failure of the taboo Is established, per- 
 haps that failure will be suggestive of additional 
 steps that may be taken to accomplish what the taboo 
 has failed to do. 
 
 There is just one Instance, New Zealand, where 
 the taboo has worked better than anywhere else. It 
 may be interesting to seek the causes of its success. 
 It may be a source of enlightenment to find that the 
 taboo has worked well in New Zealand and Aus- 
 tralia because it was not much heeded there; because 
 Its adoption was prefaced by a code of primary and 
 constructive industrial and social measures, in oper- 
 ation when the taboo was invented ; also, because 
 that code has been supplemented from time to time 
 by a comprehensive program of measures that re- 
 flects the most intimate concern of the government 
 In the health, well-being and comfort of its work- 
 ing people. 
 
 But we can not be quite sure that the workers of 
 New Zealand will* always be willing to accept a
 
 12 INDUSTRIAL ARBITRATION 
 
 wage which constitutes a comparatively small share 
 of the profits of industry. Who is able to say that, 
 even though workers anywhere are assured of every 
 comfort of life, they will be content with comforts, 
 alone? Who knows when they will rise up and de- 
 mand to share, with the man who risks his capital 
 and directs enterprise, the luxuries that he enjoys? 
 Under our present economic order it is difficult to 
 maintain that any particular measure of industrial 
 justice, short of a measure which gives the worker 
 an equal share with the master, will always be satis- 
 factory to the worker. Any one who sets a limit 
 short of this mark must do so arbitrarily, and do so 
 disregarding the economic tendencies of several cen- 
 turies. If, however, we find certain things which 
 experience seems to show ought to be done now, may 
 we not leave the discovery of our Utopia to the fate 
 of generations, wiser by our experiments and our 
 experience? 
 
 Among many peoples, it may be surprising to find 
 the endeavor to avert controversies and disturbances 
 has attributes of striking likenesses. Monopolistic 
 combinations of Capital and of working people. In- 
 cluding the right of workers to organize, restriction 
 of apprentices, an unskilled surplus, wages, hours 
 of labor, cost of living, sympathetic strikes, Juris-
 
 ELEMENTS OF A VAST PROBLEM 13 
 
 dictlonal disputes, sabotage, the boycott, the black- 
 list and a score of other less important manifesta- 
 tions of an unceasing conflict — all are problems 
 common to every country where industrial develop- 
 ment has reached an advanced stage. 
 
 1. Most people acquiesce in the wisdom of cap- 
 italistic combinations. Even those who oppose are 
 not able to present an alternative that squares with 
 the principle of economic production. By no means 
 is this the case with labor organizations. Combina- 
 tions of Capital still resist combinations of Labor and 
 the so-called public either looks on with ill-con- 
 cealed disgust or is openly arrayed on one or the 
 other side of the controversy. 
 
 2. The right of Labor to organize precipitates 
 a clash between two opposing theories in industry : 
 First, the arbitrary right of the employer to control 
 every element of his enterprise, the privilege of get- 
 ting his labor where he can get it cheapest and of 
 imposing whatever conditions his humanity or in- 
 humanity inspires; secondly, the right of the work- 
 ers to combine for mutual self-help against their 
 employer and to resist his will with the strike, the 
 boycott and the picket, either peaceably or by force. 
 One group of Socialists adheres to peaceful meth- 
 ods. Another group openly advocates violence.
 
 14 INDUSTRIAL ARBITRATION 
 
 The latter group comprises the syndicalists, whose 
 most powerful organization in this country is the 
 Industrial Workers of the World. 
 
 Trade and labor unions have served to raise 
 wages and working conditions of their membership, 
 but they accomplish little directly for the working 
 men outside the pale of organization. In the United 
 States, not to exceed one-sixth of the wage earners 
 belong to organizations which practise collective 
 bargaining. Five-sixths of the wage earners con- 
 stitute the surplus available supply of labor. It is 
 here that wages and working conditions are subject 
 to the caprice of the employer. It is here that he 
 is able to make his will the law of industry. This 
 fact may be interpreted as an argument in favor of 
 organization. But conceding the thorough organ- 
 ization of all working people, many problems yet 
 remain and trade unionism is not wholly satisfactory 
 in a country where individualism has been the dom- 
 inant stepping stone of human endeavor, because it 
 puts the efficient and the inefficient worker in the 
 same straight jacket. There is something dull and 
 prosaic in the idea of putting every man on the 
 same plane and limiting his progress by the prog- 
 ress of the group or crowd in which he toils. There 
 is something repugnant to every man in the tyranny
 
 ELEMENTS OF A VAST PROBLEM 15 
 
 of majorities; something discouraging, something 
 devitalizing. On the other hand, the trade union 
 Is an institution by which a considerable number of 
 workers have been able to raise themselves out of 
 the slough of despondency ; an expression of chaotic 
 and cataclysmic mutterlngs and munnurlngs re- 
 duced to a philosophy, translated into a "cause." 
 The organization of one-sixth of the workers, it may 
 be said, points the way to the other five-sixths. Or- 
 ganization is the stepping stone of the unorganized. 
 It Is a command to the unorganized to go and do 
 likewise. 
 
 3, Restriction of apprentices is merely one 
 method by which trade unions seek to limit the sup- 
 ply of labor within a particular trade and to protect 
 themselves against recruits from the unskilled sur- 
 plus. 
 
 4. Wages and living are the subject of endless 
 controversy. Not only does the question of wages 
 involve the division of porridge at a particular time, 
 but it Involves frequent alterations in the portions 
 because the cost of living is never fixed and work- 
 ing people have very much to say about the pur- 
 chasing power of their wages. In the last twenty 
 years in this country, the tendencies of wages and 
 living both have been upward, but the rise in wages
 
 i6 INDUSTRIAL ARBITRATION 
 
 has not been so great as the rise in living and this 
 is the cause of unceasing controversy and intermit- 
 tent conflict. It is likewise true the world over. 
 
 5. Hours of labor have a double-barreled signifi- 
 cance. Not only does the reduction of hours afford 
 the worker more time for leisure and the enjoyment 
 of life, as leisure reflects enjoyment, but reduced 
 hours may mean and sometimes does mean a cur- 
 tailment of labor's output, thus increasing the 
 demand for labor and consequently the rate of 
 wages. 
 
 6. Sympathetic strikes — the stoppage of work In 
 one industry to promote the success of a grievance 
 in another — represent nothing more than many 
 units with common aims acting together. Sym- 
 pathetic strikes are the answer of Labor to the secret 
 or open combinations of Capital. One is no more 
 defensible than the other. If the issue of wages, 
 hours and working conditions is one to be settled 
 arbitrarily by employers, are not employees war- 
 ranted in summoning their combined strength to 
 defeat the imperious ultimatum of the employer? 
 If one has the capitalistic view-point, he is not very 
 likely to indorse a sympathetic strike, but if he has 
 another view-point he is likely to believe the sym-
 
 ELEMENTS OF A VAST PROBLEM 17 
 
 pathetic strike amounts to a fair method of retalia- 
 tion. 
 
 7. Then, there are the jurisdictional disputes be- 
 tween labor and trade organizations which the sym- 
 pathetically-minded may regard as one of the un- 
 fortunate by-products of a very wise system, and 
 which the contrary-minded are likely to regard with 
 embittered opposition. 
 
 8. Sabotage, as openly urged by one working 
 men's organization, is a deplorable expression of a 
 class grievance. But can we say very much in be- 
 half of an Industrial epoch that gives birth to an 
 expression of violence? Is it not likely that some- 
 where we have failed — failed to erect the proper 
 safeguards against the distress of a not inconsider- 
 able mass of humanity? Are we to believe blindly 
 that there are no excuses for and no extenuating cir- 
 cumstances connected with the philosophy which 
 espouses direct action? The history of strikes has 
 been written in blood. It is a history replete with 
 nauseous disclosures of working conditions. Nor 
 must we forget the private detectives and special 
 police of those employers who maintain a despicable 
 system of espionage in season and out of season, 
 strike or no strike.
 
 i8 INDUSTRIAL ARBITRATION 
 
 So long as nations fly at one another's throats for 
 some commercial advantage of doubtful value, may 
 we not expect the worker to believe he has the right, 
 even though he dare not exercise it, to use force, if 
 necessary, to obtain a minimum measure of justice? 
 We eulogize the heroes of past wars but we condemn 
 with scorn the man who resorts to less drastic meas- 
 ures to win a strike. Yet the worker has little, if 
 anything, to gain by a war and everything to gain 
 by a strike. In a strike, he may win the right to 
 meet his employer on equal terms and freely to bar- 
 gain with him as to wages, hours and working con- 
 ditions. In which case he knows his employer will 
 not find it expedient to say, "If you don't like your 
 job, you may quit." 
 
 "The resistance of syndicalism is a new kind of 
 revolt — more dangerous to capitalism than the de- 
 mand for higher wages," says Walter Lippmann. 
 And again: "You can not treat the syndicalists like 
 cattle, because, forsooth, they have ceased to be cat- 
 tle. 
 
 "We are not civilized enough," says Lippmann 
 in another place, "to meet an issue before it becomes 
 acute. We were not intelligent enough to free the 
 slaves peacefully — we are not intelligent enough to- 
 day to meet the industrial problem before it devel- 
 ops a crisis. That is the hard truth of the matter. 
 And that is why no honest student of politics can 
 plead that social movements should confine them-
 
 ELEMENTS OF A VAST PROBLEM 19 
 
 selves to argument and debate, abandoning the mil- 
 itancy of the strike, the insurrection, the strategy of 
 social conflict." 
 
 The eight propositions already cited comprise the 
 greatest problems with which industrial conciliation 
 and arbitration has to do. They are not the only 
 problems. In fact, there are scores of problems per- 
 taining to particular industries about which the lay- 
 man never hears. The boycott, the blacklist and the 
 picket have been mentioned. These three problems 
 are secondary but there remains a vast number of 
 others, if not secondary, then tertiary, or still fur- 
 ther removed from the arena of the conflict. 
 
 Since the industrial conflict involves deep-seated 
 causes and since it has to do with every element of 
 the social organization, every factor in social prog- 
 ress, we shall know very little about industrial con- 
 ciliation and arbitration unless we view it in the 
 light of the social and political institutions prevail- 
 ing where experiments have been carried on. We 
 must not forget that we are dealing with a problem 
 having its roots deep in the past — deep in centuries 
 of ignorance, political inequality, economic bondage. 
 Nor should we be disappointed if we fail forthwith 
 to develop a millennial solution of the problem since 
 we are not so far removed from the ignorance and
 
 20 INDUSTRIAL ARBITRATION 
 
 inequality of past centuries. But this is the excuse, 
 in each instance, for presenting a kaleidoscopic view 
 of social and political life in the several countries. 
 
 This volume attempts to present in concise form 
 a history of conciliation and arbitration in England, 
 Germany, France, New Zealand, Australia, Canada 
 and the United States, together with an analysis of 
 the operation of the several schemes. No system 
 so far devised has worked with any conspicuous de- 
 gree of perfection. If conciliation and arbitration 
 have not done what they were designed to do, the 
 reasons ought to appear from the analysis of the 
 several experiments. However imperfect the 
 schemes may be, an effort has been made to deal 
 sympathetically with them. Conciliation and arbi- 
 tration by state agency may be regarded as a mile- 
 post of the greater movement, contributing in some 
 measure to the ultimate solution of the problem and 
 the realization of harmony in the industrial world. 
 
 Although conciliation and arbitration function to 
 the same end, they are different processes. Con- 
 ciliation Is an Informal method of settling industrial 
 disputes or of preventing them. Conciliation may 
 be carried on between the parties, or representatives 
 of the parties, directly or through unofficial or state 
 agencies. With the rise of trade unions, we have
 
 ELEMENTS OF A VAST PROBLEM 21 
 
 seen Labor, acting through its committees of the 
 trade organization, barter with Capital directly in 
 joint conference. We call this collective bargaining. 
 We have also seen it join with Capital, without, 
 however, any formal agreement to that effect, in 
 accepting the good offices of third parties. Arbi- 
 tration is a formal process. In those countries where 
 the submission of matters in controversy is not com- 
 pulsory, it generally follows a signed agreement in 
 which both parties bind themselves to carry out the 
 award. Formal hearings are held in which testi- 
 mony is taken and a written award is made, inform- 
 ing each party what it is to do. Where arbitration 
 is carried on under sanction of law, the award may 
 be and generally is legally binding.
 
 CHAPTER II 
 
 ENGLISH EXPERIMENTS 
 
 NDUSTRIAL conciliation and arbitration, like 
 many economic, social and political institutions 
 now on trial in this country, has a European origin. 
 It was an invention of the last century, but the germ 
 of the idea is to be found in the rise of the indus- 
 trial state. The beginnings of the industrial state 
 are to be found in England, Germany and France, 
 and date from the sixteenth century. 
 
 Since the operation of every device for concilia- 
 tion and arbitration is intimately dependent upon 
 basic political, social and industrial conditions, all 
 of which, in turn, reflect the temper of working peo- 
 ple and the masters of enterprise, it is necessary 
 to examine the background of English society in 
 connection with the study of particular devices for 
 conciliation and arbitration. 
 
 When feudalism gave way to commercialism in 
 England, the guild began to appear. The merchant 
 guilds were associations of traders and within cer- 
 
 22
 
 ENGLISH EXPERIMENTS 23 
 
 tain fixed jurisdiction they enjoyed a complete mon- 
 opoly of manufacture and trade under special char- 
 ters from the Crown. For instance, one guild held 
 control of the trade of Oxford and suburbs and 
 another of cloth-dyeing in Nottingham and ten 
 leagues around. 
 
 Craft guilds or associations of artisans sprang up 
 about the same time. Several English towns had 
 weavers' guilds as early as 1130. They appeared 
 as rivals of the merchant guilds and finally suc- 
 ceeded in breaking up the monopolies enjoyed by 
 the merchant guilds. They were legalized by the 
 Crown about the middle of the twelfth century. 
 
 In the beginning, the guilds were guardians of 
 commercial morality, protecting the people against 
 short weights and shoddy material. They per- 
 formed social, educational and religious functions, 
 acted as benefit, Insurance and burial societies. 
 Many of the guilds became wealthy, acquiring large 
 sums of money, vast tracts of land, buildings and 
 colleges. The guild lands, with the exception of 
 those held by the London guilds, were confiscated 
 during the reign of Edward VI. 
 
 Provisions for the settlement of Individual disputes 
 between master and workmen were common in Eng- 
 lish laws as far back as the middle of the sixteenth
 
 24 INDUSTRIAL ARBITRATION 
 
 century. Beginning with the Statute of Apprentices 
 in 1562 and ending with a special act of Parliament 
 in I 747, these laws simply referred all disputes be- 
 tween employer and employee to the local magis- 
 trate for adjudication. Reference of disputes was 
 compulsory on the request of either party and de- 
 cisions likewise were binding upon both parties and 
 enforceable by proceedings of distress and sale or 
 imprisonment. 
 
 The Statute of Apprentices, which grew out of 
 monopolistic labor conditions fostered by the guilds, 
 was designed as a legal restraint on wages. Among 
 other things, it provided that no person should, un- 
 der a penalty of forty shillings a month, use or 
 occupy any art, mystery or manual occupation with- 
 out a previous seven years' apprenticeship. The 
 number of apprentices was limited to three to one 
 journeyman, and for every additional apprentice 
 after the third, another journeyman was required. 
 The act probably would have favored traders and 
 artisans by limiting the supply at the expense of 
 non-apprenticed labor, except that the justices in 
 Quarter Sessions were empowered to fix the rate 
 of wages in husbandry and handicrafts. This act 
 was one of the contributing causes to the wide- 
 spread pauperism which followed. During the pe-
 
 ENGLISH EXPERIMENTS 25 
 
 riod the statute was In force, the residuum of labor 
 was driven into agriculture or into new industries 
 where apprenticeship did not prevail. 
 
 England has had one notable experience in an 
 effort to compel working men to labor when they 
 are otherwise disposed. Because that experience is 
 suggestive of the consequences of compulsory arbi- 
 tration if attempted in this country, it is of interest 
 here. 
 
 Wages rose enormously after the Black Plague 
 of 1348 and Parliament passed the Statute of La- 
 borers in 135 1. This act sought to compel every 
 man and woman under sixty years of age to serve 
 the first employer who should demand his or her 
 services and at the prevailing wage before the 
 plague, or in 1347. Fines and imprisonment were 
 provided as punishments for violations of the act. 
 The statute also attempted to regulate prices. It 
 was a miserable failure and accomplished none of 
 the objects designed by its f ramers. Additional leg- 
 islation Increasing, the severity of the statute was 
 just as futile, just as foolhardy. 
 
 With the rise of the industrial state and especially 
 the cotton industry in England, disputes between 
 employer and employee multiplied. The old hand- 
 loom weaver was in sore straits with the Introduce.
 
 26 INDUSTRIAL ARBITRATION 
 
 tion of machinery in the cotton industry, and skilled 
 artisans in the textile fabrics, thrown out of em- 
 ployment, suffered the severest penury. The work- 
 ers looked upon the introduction of machinery with 
 deep-seated hostility. Riots were frequent and ma- 
 chinery was destroyed by mobs of working men. 
 Stocking and lace frames, installed at Nottingham, 
 were broken up by the imperiled workmen, when a 
 law of 1812, extending the scope of an act of 1727 
 that had applied to stocking frames, specifically 
 made it a capital offense to destroy machinery. 
 Lord Byron, In denouncing the act in Parliament, 
 insisted that the jury to try the frame breakers 
 should consist of twelve butchers and that a Judge 
 Jefreys should preside on the bench. 
 
 "We are accustomed to measure prosperity by 
 the millions of dollars' worth of cheese and butter 
 and machinery and leather put on the market," says 
 John R. Commons. "Let us measure it by the thou- 
 sands of men and women turned out and placed 
 upon the labor market." 
 
 If we are to measure the prosperity, or lack of 
 it, in English society during the first half of the 
 nineteenth century, we must examine the impov- 
 erished condition of the English working people at 
 that time. We must remember that England at the
 
 ENGLISH EXPERIMENTS 27 
 
 beginning of the French Revolution was still agra- 
 rian in industry; that the government was still aris- 
 tocratic, and that the spirit of individualism was 
 the prevailing note of philosophical thought. But 
 we must know also that a change had been taking 
 place; that about half the population was urban in 
 1770. This proportion is in strong contrast with 
 the vocational divisions in 1688 when it was esti- 
 mated that eighty per cent, of the population was 
 engaged in agriculture and only twenty per cent, in 
 the trades and handicrafts; when seventy-eight per 
 cent, of the annual income of the nation was from 
 agriculture, but fourteen per cent, from the trades 
 and only eight per cent, from the handicrafts. 
 
 More than a century, agriculture and trade had 
 enjoyed liberal subsidies from the government while 
 the interests of the v/orking man had been wholly 
 subordinated or totally disregarded. In fact, the 
 laws against combination, emigration and mobility 
 were aimed specifically to restrict the liberties of the 
 working man. Doctor G. Von Schulze-Gaevernitz 
 relates* that the system of state nursing became so 
 prodigal that a regulation in behalf of the woolen 
 trade required that no corpse was to be interred 
 without a woolen shroud. At the same time the 
 
 ^Social Peace, p. 5.
 
 28 INDUSTRIAL ARBITRATION 
 
 anti-combination law of 1799 aimed at the "Insti- 
 tution of Halifax" had failed to accomplish its pur- 
 pose because exemptions were recognized under the 
 Statute of Apprentices, which, however, was sus- 
 pended in 1802 and repealed in 1814. 
 
 The consolidation of small farms into great es- 
 tates marked the decline of agriculture and forced 
 the small landholder into the towns where the labor 
 market was already overrun. Immigration during 
 the first half of the last century from Ireland, where 
 the standard of living was lower, further accentu- 
 ated the distress of the English working people, 
 tending to augment the number of unemployed and 
 to reduce wages to the minimum level of subsistence. 
 
 We must remember that the development of steam 
 for power shifted the seat of industry from the 
 banks of rivers to the towns where labor was more 
 plentiful and that the town population increased 
 rapidly during the last years of the eighteenth and 
 first years of the nineteenth century — at a much 
 faster rate than the population of the whole coun- 
 try. Between 1801 and 1839 the population of the 
 whole country increased about fifty per cent, while 
 such cities as Liverpool, Manchester and Glasgow, 
 during the period from 1801 to 1831, increased
 
 ENGLISH EXPERIMENTS 29 
 
 from one hundred thirty-eight to one hundred sixty- 
 one per cent. 
 
 The toilers were entirely unprotected from un- 
 sanitary workshops and accident from defective ma- 
 chinery. Disease was far more common among the 
 working people than among other classes and there 
 was no relief. Education was almost wholly neg- 
 lected by the state, the workers being dependent 
 therefor upon the philanthropy of the church. 
 
 A working day of twenty hours was not excep- 
 tional, and hours were practically unlimited between 
 1790 and 1820. Children, obtained in large gangs 
 from the poor law guardians, worked In twelve- 
 hour shifts. As late as i860, evidence is cited in 
 Karl Marx's Capital to show that in the lace trade, 
 children of nine or ten years were "dragged from 
 their squalid beds at two, three or four o'clock in 
 the morning and compelled to work for a bare sub- 
 sistence until ten, eleven or twelve at night, their 
 limbs wearing away, their frames dwindling, their 
 faces whitening and their humanity absolutely sink- 
 ing Into a stone-like torpor, utterly horrible to con- 
 template." The conditions under which pottery was 
 made were especially bad and half the workers in 
 the manufacture of matches were children under
 
 3© INDUSTRIAL ARBITRATION 
 
 thirteen and young persons under eighteen, accord- 
 ing to Marx. Bakeries, cotton manufactories, blast 
 furnaces, forges and plate rolling-mills exacted a 
 terrible toll of human energy and sapped the vitality 
 alike of men, women and children. According to 
 Lord Ashley only twenty-three per cent, of the fac- 
 tory hands in 1839 were adult males. The remain- 
 ing seventy-seven per cent, were women and chil- 
 dren. 
 
 Naturally, there was very little social peace dur- 
 ing the first years of the century, although the work- 
 ers were little organized. Many "rebellions of the 
 belly," waged by hungry hordes bearing banners of 
 "Bread or Blood," were suppressed by the military 
 authorities between 18 10 and 1820. 
 
 With the founding of the Working Men's Asso- 
 ciation in 1836 in London, the avowed object of 
 which was to obtain universal suffrage, chartism 
 was born. An address sent out to working men 
 demanded "an equality of political rights," in order 
 that they might probe "social ills to their source," 
 and "apply effective remedies to prevent, instead of 
 unjust laws to punish." This so-called People's 
 Charter attracted millions of working men who first 
 undertook to gain their ends by peaceful means. 
 When the Parliament rejected a petition, bearing a
 
 ENGLISH EXPERIMENTS 31 
 
 million and a quarter signatures and praying for 
 the adoption of universal suffrage, a general strike 
 was called. The strike failed. Other petitions fol- 
 lowed and were similarly rejected. 
 
 Upon the outbreak of the French Revolution of 
 1848, disturbances were renewed and for a year 
 London was guarded from invasion of the workers 
 by soldiers and special constables. 
 
 "The general public," says Doctor G. Von 
 Schulze-Gaevernitz, "understood nothing of the 
 movements going on amongst the working classes. 
 As usual they attributed everything to the personal 
 Influence of a few demagogues. They took what 
 comfort they could get from the idea that the peo- 
 ple were being 'inflamed' and 'misled' without con- 
 sidering that a great and wide-spread revolutionary 
 movement does not show itself without a cause, and 
 never without some fault on the part of the powers 
 against which it is directed." 
 
 We pause ! Wc are almost startled by the accu- 
 racy with which Doctor Von Schulze-Gaevernitz' 
 description of the general public in England sixty 
 years ago fits the average American small proprietor 
 with capitalistic Inclinations when a strike to-day 
 interferes with his business or the business of some 
 industrial potentate whom he is trying to ape. 
 
 The agitation for shorter hours of labor began
 
 32 INDUSTRIAL ARBITRATION 
 
 about 1 796 when a board of health appointed in 
 Manchester brought in a startling report. During the 
 year 1802, Sir Robert Peel introduced and had 
 passed a bill applying only to pauper apprentices, 
 which limited the hours of little children to twelve 
 a day. There was a parliamentary inquiry into the 
 subject of hours of labor in 181 5, while an act of 
 1 81 9 forbade the employment of children under nine 
 and fixed the hours of children from nine to six- 
 teen at seventy-two a week, exclusive of meals. 
 Trade unions, having been given the right to incor- 
 porate in 1824, the agitation took on additional im- 
 portance. Sir John Hobhouse obtained a Saturday 
 half holiday in 1825. 
 
 But it was even more difficult to get the new laws 
 enforced than to obtain their enactment. The local 
 magistrates were notoriously under the influence of 
 the employers, and justice was arbitrarily distorted 
 to the prejudice of the working classes. A justice 
 of the peace was wholly unfit to act as mediator 
 between employer and employee, because he was 
 always a party in interest. 
 
 From 1800 to 1824, Robert Owen, who later be- 
 came famous on two continents, was working out 
 his industrial reforms, first at Manchester and later 
 at New Lanark, Scotland. At New Lanark, he ban-
 
 ENGLISH EXPERIMENTS 33 
 
 ished the storekeepers, removed the taverns and gin- 
 mills, and erected cozy dwellings for his employees. 
 
 Owen was one of the first men of the last century 
 to demand a comprehensive scheme of legislation 
 for the protection of the working men. He favored 
 a limitation on the hours of labor in mills to twelve 
 a day, including one and one-half hours for meals; 
 the prohibition of the employment of children un- 
 der ten in mills and then only six hours a day and 
 insisted that children should not be admitted into 
 mills after ten, unless able to read and write and 
 understand the first four rules of arithmetic, and 
 girls unless able to sew. Also, Owen demanded uni- 
 versal compulsory education. 
 
 The employment of persons under twenty-one in 
 the cotton trade at night was forbidden in 1831. 
 Two years later, due to the activity of Lord Ash- 
 ley, the working hours of children under thirteen 
 were limited to forty-eight a week. As a result of 
 the investigation of the commission appointed in 
 1840, the mining act, forbidding the employment 
 of children under ten underground, was passed. It 
 was the first act to provide for government inspect- 
 ors. The Fielding ten-hour bill became a law in 
 1847. By the extension act and workshop regula- 
 tion act of 1867, the ten-hour day was made to apply
 
 34 INDUSTRIAL ARBITRATION. 
 
 to other industries besides the manufacture of tex- 
 tiles. All the laws were consolidated in 1878. 
 
 In the midst of England's industrial revolution 
 the English Parliament passed a series of four acts, 
 in 1800, 1803, 1804 and 181 3 applying to England, 
 Scotland and Ireland, and designed to regulate the 
 relations between master and workman.^ A notable 
 departure from the earlier forms of this legislation 
 was made. Substantially the acts provided for the 
 appointment of two arbitrators, one by the employ- 
 ers and one by the employees, from nominations 
 made by the local justice of the peace. These laws 
 applied only to the cotton trade. Like the former 
 acts they made reference of disputes compulsory and 
 decisions binding. 
 
 The act of 1824, which consolidated the three 
 acts then in force, extended the operation of the 
 principle of conciliation and arbitration, as defined 
 by law, to all trades. To insure the maintenance 
 of the freedom of contract between employer and 
 employee, first secured by the repeal of the Statute 
 of Apprentices in 1814, mutual consent of master 
 and workmen was made necessary as a condition 
 precedent to the fixing by local magistrates of rate 
 
 '39-40 Geo. Ill, Ch. 90; 43 Geo. Ill, Ch. 151; 44 Geo. Ill, 
 Ch. 87; 53 Geo. Ill, Ch. 57.
 
 ENGLISH EXPERIMENTS 35 
 
 of wages or price of labor or workmanship. This 
 clause abolished the compulsory features of earlier 
 legislation on the subject and is noteworthy only 
 for this reason. The consolidation act of 1824 re- 
 mained in force until 1896. 
 
 The repeal of the Statute of Apprentices was de- 
 manded by the employers and its avowed object 
 was to cheapen labor. Every effort was being made 
 to intensify the hatefulness of laws enacted up to 
 1800 against combinations of working men. 
 
 The act of 1824 was amended in 1837 to provide 
 for compulsor}^ arbitration between employers and 
 workmen, upon the application of either party. The 
 local magistrate was empowered to nominate four 
 or six arbitrators, half workmen and half masters. 
 In the event of the arbitrators' failure to agree, it 
 was provided that the case should be referred to the 
 appointing magistrate. 
 
 Subjects for arbitration included price for work 
 done, hours of labor, injury or damage to work, 
 delay in completing work or bad material. The 
 act provided that in emergencies, the justice of the 
 peace might grant a summary hearing. Mutual con- 
 sent was a condition precedent to the fixing of fu- 
 ture rates of wages and standards of workmanship.
 
 36 INDUSTRIAL ARBITRATION 
 
 The awards of the boards could be enforced by dis- 
 tress or imprisonment. This act was intended 
 mainly for the textile industries. 
 
 The council of conciliation act, drawn from the 
 French system, was passed in 1867. It made it pos- 
 sible for any number of employers and workmen 
 to agree to create a council of conciliation and ar- 
 bitration and receive a license from the government 
 with all the powers of the boards under the act of 
 1824. Fixing wages was expressly forbidden. Dis- 
 putes, before reaching the council, must have been 
 referred first to the "committee on conciliation," 
 consisting of one master and one workman. Al- 
 though this act remained in force until 1896, it was 
 never more than a dead letter, no application for 
 license ever having been made under it. 
 
 The only definite answer offered in explanation 
 of the failure of this act, according to Leonard W. 
 Hatch, in referring to the later debates in Parlia- 
 ment, is that the act was too inelastic, laying down 
 too many hard and fast rules as to the constitution 
 and procedure of the councils, so that no latitude 
 was left to employers and workmen who might de- 
 sire to form them. The act provided for little more 
 than conciliation committees for collective disputes. 
 But this feature of the act is noteworthy for the
 
 ENGLISH EXPERIMENTS 37 
 
 reason that it Is the first instance of legal recog- 
 nition in England of collective disputes and con- 
 sequently of collective bargaining between employer 
 and employee. Councils were empowered to take 
 cognizance of disputes involving one or more work- 
 men. 
 
 In 1872 Parliament passed the masters and work- 
 men act. It provided that masters and workmen 
 might contract as to terms of employment and bind 
 both parties to submit their disputes to arbitration. 
 It, however, offered no inducement to the parties 
 to enter into contracts and permitted either party 
 to withdraw from such contracts, after a brief notice 
 to the other party. Although penalties could be 
 provided for under the contracts, no provision was 
 made to enforce them. This act was in force until 
 1896, but no practical results ever came of it. 
 
 Private boards of conciliation were established in 
 England as early as 1856, and private voluntary 
 boards were common in England at the time of the 
 passage of the council of conciliation act in 1867. 
 
 Trade boards of conciliation and arbitration, 
 made up of an equal number each of employers and 
 workmen were quite successful in averting trouble 
 in the iron and steel industry in England. Joint 
 committees of conciliation and arbitration similar 
 
 !G8132
 
 38 INDUSTRIAL ARBITRATION 
 
 to the trade boards but with less machinery and 
 jurisdiction in particular establishments also made 
 notable progress toward friendly relations between 
 employer and employee. District boards of concil- 
 iation and arbitration had general jurisdiction over 
 a variety of employments. 
 
 The first permanent and successful board of con- 
 ciliation was organized in i860 In the hosiery and 
 glass trade at Nottingham, England, by A. J. Mun- 
 della. 
 
 Modern conciliation and arbitration In England 
 dates from the dock laborers' strike in 1889. The 
 movement for Industrial peace following that strike 
 was begun by Sir Samuel Boulton. 
 
 Under the direction of the London Chamber of 
 Commerce, two panels of twelve members each were 
 selected, one from the Chamber of Commerce and 
 one from the trade unions. Every dispute brought 
 before the Chamber of Commerce was referred to 
 a special committee of one, two or more members 
 from each panel. The third person, known vari- 
 ously as referee, umpire or chairman, was elim- 
 inated in this plan. The operations of the Chamber 
 of Commerce were confined, of course, to the city 
 of London. 
 
 An act of Parliament of August 7, 1896, pro-
 
 ENGLISH EXPERIMENTS 39 
 
 vided for the registration with the English board 
 of trade, corresponding to our Department of Com- 
 merce, of all boards organized for the purpose "of 
 settling disputes between masters and workmen." 
 Registration was optional, but as long as a board 
 or association was registered, the act required it to 
 "furnish such returns of its proceedings, and other 
 documents as the board of trade may reasonably 
 require." The government board of trade was au- 
 thorized to adopt rules of procedure for registered 
 arbitration and conciliation boards. 
 
 By this act the government board of trade was 
 authorized to inquire into anticipated or existing 
 differences between employers and workmen ; to 
 take steps to bring the parties together under the 
 presidency of a chairman mutually agreed upon or 
 nominated by the board of trade, with a view to 
 amicable settlement; on application of employer or 
 workmen, "after taking into consideration the ex- 
 istence and adequacy of means available for con- 
 ciliation in the district or trade," to appoint a "per- 
 son or persons to act as conciliator or as a board of 
 conciliators." 
 
 In the event of settlement by conciliation or ar- 
 bitration, the terms were to be drawn up in a memo- 
 randum and a copy delivered to and filed by the
 
 40 INDUSTRIAL ARBITRATION 
 
 board of trade. The board of trade was authorized 
 to encourage the formation of boards of conciliation 
 in districts and trades not already provided. 
 
 In 191 1, following the railway strike, an indus- 
 trial council was created at the instance of the pres- 
 ident of the board of trade. This council was es- 
 tablished for the purpose of considering and of 
 inquiring into matters referred to It affecting trade 
 disputes, and especially of taking suitable action in 
 regard to any dispute referred to it affecting the 
 principal trades of the country, or likely to cause 
 disagreements involving the ancillary trades, or 
 which the parties before or after breaking out of a 
 dispute were themselves unable to settle. 
 
 The object of the government in this matter^ was 
 to encourage and foster voluntary methods or agree- 
 ments, rather than to Interfere with them. The in- 
 dustrial council has no compulsory powers. 
 
 At the initial meeting of the council It was unan- 
 imously agreed that, excepting In very special cases, 
 which would be considered on their merits in each 
 instance, the meetings of the council should be pri- 
 vate and confidential. It was decided that matters 
 should be treated by the council as if it were act- 
 
 ' Ninth Report of the Board of Trade of Proceedings under 
 the Conciliation Act, 1896, p. 114.
 
 ENGLISH EXPERIMENTS 41 
 
 ing in a judicial capacity and not as advocates. 
 The activity of the board is indicated somewhat 
 from a letter addressed by the president of the 
 board of trade to the council on June 14, 1912, 
 in which the council is asked to determine the best 
 method of securing the fulfilment of industrial 
 agreements and how far, and in what manner, in- 
 dustrial agreements made between representative 
 bodies of employers and of workmen should be en- 
 forced throughout a particular trade or district. 
 
 The industrial council consists of thirteen repre- 
 sentatives of employers and a corresponding num- 
 ber of representatives of work people with power 
 to add to their number. 
 
 The board of trade has been conspicuously suc- 
 cessful in the settlement of industrial disputes. In 
 1905, it intervened in fourteen disputes and settled 
 all of them ; in 1906, it intervened in twenty instances 
 and settled sixteen; in 1907, there was a settlement 
 of thirty-two out of thirty-nine interventions; in 
 1908, the board was equally successful. 
 
 Since 1908, three panels of fifteen members each 
 have been nominated by the president of the board 
 of trade, one of employers, one of employees and 
 one of neither, the last being persons of eminence and 
 impartiality, and designated for chairmen. Indus-
 
 42 INDUSTRIAL ARBITRATION 
 
 trial courts, so called, are nominated from the three 
 panels by the board of trade. 
 
 In 1909, six disputes involving stoppage of work 
 were settled by conciliation or mediation and sev- 
 enteen disputes Involving stoppage of work were 
 settled by arbitration under the conciliation act of 
 1896. In the same year fifteen disputes Involving 
 stoppage of work were settled by the conciliation 
 or mediation of trade boards, and six disputes were 
 settled by arbitration of trade boards. Four dis- 
 putes Involving stoppage of work were settled by 
 conciliation of district boards, trade councils and 
 federations. Ten disputes Involving stoppage of 
 work were settled by conciliation and twenty-eight 
 disputes Involving stoppage of work were settled by 
 arbitration by Individuals. Six hundred ninety- 
 eight disputes were settled by conciliation and three 
 hundred twenty-seven disputes by arbitration of 
 permanent conciliation and arbitration boards, in- 
 cluding district and general boards, in 1909. 
 
 In 1 9 10 six disputes involving stoppage of work 
 were settled by conciliation and nine disputes in- 
 volving stoppage of work were settled by arbitration 
 under the conciliation act of 1896. Fourteen dis- 
 putes were settled by particular trade boards, two 
 disputes by district boards, trade councils and f eder-
 
 ENGLISH EXPERIMENTS 43 
 
 ations and twenty-eight disputes by individuals. 
 Eight cases were settled before the Industrial Courts 
 created in 1908. In the same year, 19 10, one thou- 
 sand eighty-seven disputes were settled by perma- 
 nent conciliation and arbitration boards, including 
 trade and district boards. In 19 10 there were two 
 hundred eighty-two conciliation boards in Great 
 Britain, of which two hundred sixty-five were for 
 particular trades and seventeen were district or gen- 
 eral boards. Ninety-six trade agreements, In which 
 it was provided that failure of the respective boards 
 of conciliation to reach an agreement should be fol- 
 lowed by a request of the board of trade that It 
 appoint an arbitrator, were reported in force. 
 
 In 191 2, twenty-two disputes were settled under 
 the conciliation act of 1896, thirteen by particular 
 trade boards, twelve by district and general boards 
 and trade councils and fifty-two by voluntary con- 
 ciliation and by individuals. In the same year, two 
 thousand, one hundred thirty-eight disputes were 
 settled by permanent conciliation and arbitration 
 boards and standing joint committees.* Seventy- 
 three disputes were dealt with by the board of trade 
 or Its agents under the act of 1896 In 191 2, this 
 
 * Between 1901 and 1910, 7,784 cases out of 16,561 considered 
 by these boards were settled.
 
 44 INDUSTRIAL ARBITRATION 
 
 number being less than in 191 1, when nineiy-two 
 cases were dealt with, but higher than any previous 
 year with the exception of 191 1, 
 
 These seventy-three cases do not include adjust- 
 ments made under the revised railway conciliation 
 scheme recommended by the Royal Commission ap- 
 pointed in 191 1, as amended by the railway con- 
 ference agreement of December, 191 1. This 
 scheme provided for the establishment on each 
 railway of a suitable number of conciliation boards 
 to deal with questions referred to them relating to 
 the rate of wages, hours of labor or conditions of 
 service, other than matters of management of dis- 
 cipline, of all wage-earning employees engaged in 
 the manipulation of traffic and in the permanent 
 service of the company. For each railway concilia- 
 tion board there is a chairman, the same chairman 
 acting for all the conciliation boards on a company 
 system. The chairman is to be selected by the par- 
 ties, or, failing agreement, he is appointed by the 
 board of trade.° 
 
 The table at the bottom of page 45 shows the 
 proportion of work people and employers involved 
 in industrial controversies between 1903 and 191 2, 
 
 ' Tenth Report of Proceedings under the Conciliation Act of 
 1896, p. 4.
 
 ENGLISH EXPERIMENTS 
 
 45 
 
 and In whose favor the disputes were decided. The 
 proportion of work people directly Involved in dis- 
 putes which were settled In favor of the work people 
 between 1903 and 191 2 was an average of twenty- 
 seven and one-half per cent., while the average pro- 
 portion of work people directly involved In disputes 
 settled in favor of the employers during the same 
 period was twenty-six and one-tenth per cent. 
 
 After 1907 and until the changes of 191 1, English 
 railway companies and employees settled their 
 differences by arbitration and conciliation under 
 an agreement secured by the board of trade and 
 
 TABLE NO. 1 
 
 SHOWING PER CENT. OF DISPUTES SETTLED IN FAVOR OF EACH 
 PARTY AND COMPROMISES, 1903-1912* 
 
 
 Proportion of Work People Directly I 
 
 nvolved in 
 
 
 
 Disputes Which Were 
 
 
 Year 
 
 Settled in 
 
 Settled in 
 
 Compromised 
 
 Indefinite 
 
 
 Favor ol 
 
 Favor of 
 
 or Partially 
 
 or 
 
 
 Workpeople 
 
 Employers 
 
 Successful 
 
 Unsettled 
 
 
 Per cent. 
 
 Percent. 
 
 Per cent. 
 
 Percent. 
 
 1903 
 
 31.2 
 
 48.1 
 
 20.7 
 
 0.0 
 
 1904 
 
 27.3 
 
 41.7 
 
 30.9 
 
 0.1 
 
 1905 
 
 24.7 
 
 34.0 
 
 41.2 
 
 0.1 
 
 1906 
 
 42.5 
 
 24.5 
 
 33.0 
 
 0.0 
 
 1907 
 
 32.7 
 
 27.3 
 
 40.0 
 
 0.0 
 
 1908 
 
 8.7 
 
 25.7 
 
 65.6 
 
 0.0 
 
 1909 
 
 11.2 
 
 22.3 
 
 66.5 
 
 0.0 
 
 1910 
 
 16.3 
 
 13.8 
 
 69.7 
 
 0.2 
 
 1911 
 
 6.6 
 
 74.5 
 
 9.3 
 14.3 
 
 84.1 
 11.1 
 
 0.0 
 
 1912 
 
 0.1 
 
 • Report on Strikes and Lockouts and on Conciliation and Arbitration 
 Beards in the United Kingdom in J912, p. xix. Introduction.
 
 46 INDUSTRIAL ARBITRATION 
 
 representatives of the trade unions.'' The original 
 signing of the agreement followed a threatened rail- 
 way strike. Under the first agreement, there was 
 a central conciliation board for a whole railway 
 system made up of representatives from the sectional 
 boards, but these central boards were abolished after 
 the inquiry of the Royal Commission in 191 1. One 
 hundred seventy-one cases out of two hundred sixty- 
 five handled by thirty boards were settled in 1909. 
 Seventy-two cases out of ninety-seven handled by 
 fourteen boards were settled in 1910.^ 
 
 The inquiry of the Royal Commission of 191 1 
 followed a threatened strike, the men having been 
 greatly dissatisfied with the results of the original 
 agreement of 1907. It was charged that the ma- 
 chinery of the agreement had been used against 
 them as a means of delay ; that this machinery was 
 too slow and cumbersome; and that it had proved 
 far too expensive to the trade unions. 
 
 The recommendations of the Royal Commission 
 were on the point of being repudiated by the em- 
 ployees when, through the. intercession of the House 
 of Commons, the agreement of 1907 as amended by 
 the report of the Royal Commission was further 
 
 ' Bulletin of the Bureau of Labor, No. 98, Vol. 24, p. 82. 
 ' Ibid., p. 83.
 
 ENGLISH EXPERIMENTS 47 
 
 amended in joint conference. This present agree- 
 ment requires the employers to receive a deputation 
 of men, if they wish to send one, within fourteen 
 days after the receipt of a petition, which must be 
 signed by twenty-five per cent, of the employees, 
 unless a different number Is agreed upon by a sec- 
 tional conciliation board. Adverse changes in 
 wages, hours or conditions are not effective until 
 endorsed by a conciliation board. 
 
 Lately, the trade unions have shown hostility to 
 the scheme of the Royal Commission as amended 
 by the railway conference agreement, because only 
 active rallwaymen may become members of the con- 
 ciliation boards. The trade unions, which have a 
 membership of about three million, demand the 
 admission of the trade union officials on the concil- 
 iation boards since, as they contend, the active mem- 
 bers are subjected to victimization when they run 
 counter to the railway companies. Under a recent 
 referendum, 124,415 of the 260,000 members of the 
 Rallwaymen's Federation voted In favor of the total 
 abolition of the conciliation boards. 
 
 The rise In prices, estimated at six per cent, from 
 1900 to 1908, coinciding with the decline of wages, 
 was mainly responsible for the unrest In 1910 and 
 191 1, when numerous strikes occurred, affecting
 
 48 INDUSTRIAL ARBITRATION 
 
 railroads, shipyards, factories and mines. Other 
 causes were increased unemployment, increased pau- 
 perism and a speeding-up process in industry. The 
 English working man pays about two per cent, more 
 than the French workman for rent and about twen- 
 ty-three per cent, less than the German workman. 
 But his food and fuel cost about eighteen per cent, 
 more than the food and fuel of either the German 
 or French workman. Wages of French workmen 
 are, however, a fourth less than those of the Eng- 
 lish workmen and hours per week are seventeen per 
 cent, greater. Hourly rates of wages in French in- 
 dustries are hardly two-thirds of the English rate 
 for the same industries. 
 
 The table on page 49 shows the principal causes 
 of disputes for ten years, 1903- 191 2, and the num- 
 ber of work people directly involved in the disputes. 
 With two exceptions, 1909 and 1910, wages were 
 the predominating cause of the disputes. In 1909 
 the leading cause was hours of labor and in 1910 
 the leading cause was the employment of particular 
 persons or classes of persons. Generally speaking, 
 trade unionism has been the second among the lead- 
 ing causes of industrial controversies. In 191 1, al- 
 most as many people were involved in disputes over 
 trade unionism as over wages.
 
 ENGLISH EXPERIMENTS 
 
 49 
 
 TABLE NO. 2 
 
 CAUSES OF DISPUTES* 
 
 Principal Cause 
 
 Number of Work People Directly Involved in 
 Disputes Beginning in 
 
 
 1903 
 
 1904 
 
 1905 
 
 1906 
 
 1907 
 
 Wages : 
 
 For increase, for 
 minimum wage, 
 against decrease, 
 etc 
 
 49,557 
 4,108 
 
 7,822 
 
 13,609 
 
 17,602 
 
 817 
 
 32,783 
 1,970 
 
 6,081 
 
 7,601 
 
 7,925 
 
 20 
 
 Z%,7Z7 
 3,145 
 
 6,408 
 
 5,546 
 9,377 
 4,440 
 
 87,933 
 7,086 
 
 4,734 
 
 6,536 
 
 50,750 
 
 833 
 
 56,058 
 
 Hours of labor : 
 For decrease, etc.. . 
 
 Employment of par- 
 ticular classes or 
 persons 
 
 Working arrange- 
 ments, etc 
 
 Trade unionism 
 
 Other causes 
 
 2,080 
 
 13,699 
 
 11,802 
 16,439 
 
 650 
 
 Grand total 
 
 93,515 
 
 56,380 
 
 67,653 
 
 157,872 
 
 100,728 
 
 Principal Cause 
 
 Number of Work People Directly Involved in 
 Disputes Beginning in 
 
 
 1908 
 
 1909 
 
 1910 
 
 1911 1912 
 
 Wages : 
 
 For increase, for 
 minimum wage, 
 against decrease, 
 
 etc 
 
 Hours of labor : 
 
 For decrease, etc. . . 
 Employment of par- 
 ticular classes or 
 
 persons 
 
 Working arrange- 
 ments, etc 
 
 Trade unionism 
 
 Other causes 
 
 175,889 
 
 8,377 
 
 11,078 
 
 12,467 
 
 12,218 
 
 3,940 
 
 42,028 
 87,367 
 
 13,492 
 
 8,892 
 12,935 
 
 5,544 
 
 76,474 
 91,927 
 
 114,793 
 
 62,207 
 
 Z2,777 
 
 6,907 
 
 383,215 
 13,161 
 
 32,639 
 
 68,009 
 
 327.588 
 
 6,492 
 
 1,020,420 
 8,961 
 
 34,985 
 
 42,068 
 120,924 
 
 5,658 
 
 Grand total 
 
 223,969 
 
 170,258 
 
 385,085 
 
 831,104 
 
 1,233,016 
 
 • Report on Strikes and Lockouts and on Conciliation and Arbitration 
 Boards in the United Kingdom in 19:2, p. xv, Introduction.
 
 so INDUSTRIAL ARBITRATION 
 
 With the return of Tom Mann from Australia in 
 1910 and the visit of William D. Haywood to Eng- 
 land, that country saw industrial unionism, as pro- 
 claimed by the Industrial Workers of the World, 
 get a foothold there for the first time. There are 
 some points of similarity between the old Chartist 
 movement and the I. W. W., since both espouse 
 direct action. 
 
 It is to be noted that 191 1, especially, was a 
 year of severe strikes in Great Britain. The Welsh 
 miners' strike which had begun in October, 1910, 
 continued through the greater part of 191 1. It in- 
 volved twelve thousand five hundred men. The 
 Lancashire cotton weavers and spinners' strike, in- 
 volving over three hundred thousand operatives, 
 was settled through the intervention of Sir George 
 Askwith. The international strike of the seamen, 
 involving six hundred thousand men, eighteen coun- 
 tries and three hundred harbors in Europe and 
 America, was disastrous to English shipping. The 
 railway strikes in England and Ireland added to the 
 industrial disturbances. 
 
 The table on page 5 1 shows the number of indus- 
 trial disputes in Great Britain, the working men 
 involved and the time lost for each year from 1903 
 to 191 2. There were more disputes in 191 1 than
 
 ENGLISH EXPERIMENTS 
 
 51 
 
 any other year In the period, a slight decrease being 
 shown in 1912. The increased number of working 
 men involved in 1912 is significant, being nearly 
 five times the number involved in 1908. The num- 
 
 TABLE NO. 3 
 
 SHOWING NUMBER OF DISPUTES, WORKING MEN INVOLVED AND 
 TIME LOST THROUGH INDUSTRIAL DISPUTES* 
 
 
 No. of 
 
 Disputes 
 
 Beginning 
 
 in Each 
 
 Year 
 
 No. of Work People Involved in Dis- 
 putes Beginning in Each Year 
 
 Aggregate 
 Duration in 
 
 Working 
 Days of All 
 Disputes in 
 Progress in 
 Each Year 
 
 
 Directly 
 
 Indirectly 
 
 Total 
 
 1903 
 
 1904 
 
 1905 
 
 1906 
 
 1907 
 
 1908 
 
 1909 
 
 1910 
 
 1911 
 
 1912 
 
 387 
 355 
 
 358 
 486 
 601 
 399 
 436 
 531 
 903 
 857 
 
 93.515 
 
 56,380 
 
 67,653 
 
 157,872 
 
 100.728 
 
 223,969 
 
 170,258 
 
 385,085 
 
 831,104 
 
 1,233,016 
 
 23,386 
 
 30,828 
 
 25,850 
 
 59.901 
 
 46,770 
 
 71.538 
 
 130,561 
 
 130,080 
 
 130,876 
 
 230,265 
 
 116,901 
 
 87,208 
 
 93,503 
 
 217,773 
 
 147,498 
 
 295,507 
 
 300,819 
 
 515,165 
 
 961.980 
 
 1,463,281 
 
 1,443,781 
 1,316,686 
 2,295,973 
 2,570,950 
 1,878,679 
 
 10,632.638 
 2.560,425 
 9,545.531 
 7,620.367 
 
 38,142,101 
 
 • Report on Strikes and Lockouts and on Conciliation and Arbitration 
 Boards in the United Kingdom in igi2, p. ix, Introduction. 
 
 ber of working days lost increased alarmingly, 
 amounting to the work of more than one hundred 
 twenty-five thousand men working every work day 
 in the year. In 191 1, nearly one-half of the total 
 number of work people affected by strikes and lock- 
 outs (448,618) were transport workers, the next 
 highest in number (221,433) being textile workers
 
 52 INDUSTRIAL ARBITRATION 
 
 and 140,808 having been employed In mining and 
 quarrying. 
 
 While Thorold Rogers' estimate of the character 
 of English working men seems to have been a bit 
 exaggerated in 1884 when his book, Work and 
 Wages, was published, yet the estimate in the main 
 was true and is true to-day. 
 
 "The remarkable fact in the history and senti- 
 ments of the English workman is that he is neither 
 socialist nor anarchist," said Rogers. "He believes, 
 and rightly believes, that in the distribution of the 
 reward of labour his share is less than it might be, 
 than it ought to be, and that some means should be 
 discovered by which the unequal balance should be 
 rectified. He does not indeed detect the process by 
 which this advantage can be secured to him, and 
 relies, though doubtfully, upon certain expedients 
 by which he thinks he can extort better terms. He 
 has good reason for believing that he can gain his 
 ends, in some degree at least, by association with 
 his fellows; for he can not have forgotten how 
 angrily any action of his in this direction has for 
 centuries been resented and punished, and how even 
 now it is assailed by sophistical and interested crit- 
 icism. But he has never dreamed of making war 
 on capital or capitalist. In his most combative tem- 
 per he has simply desired to come to terms with 
 capital, and to gain a benefit by the harmonious 
 working of a binding treaty between himself and 
 his employer. He is wise in his contention, though 
 not always wise in his strategy."
 
 ENGLISH EXPERIMENTS 53 
 
 The estimate of Doctor Von Schulze-Gajevernitz 
 is equally interesting and somewhat more enlight- 
 ening. It supports the main contention of Thorold 
 Rogers that the English workman is not to be car- 
 ried away by gusts of passion, however great his 
 wrongs may be. 
 
 "Amongst the English working classes," says 
 Doctor Von Schulze-Gaevernitz, "the economic in- 
 vestigator never meets that deep-seated mistrust 
 which makes the German workman regard every 
 man in a good coat as an enemy, if not a spy. . . . 
 The goal of the English Labor movement is still 
 far off, its struggles are often hard and prolonged ; 
 but the efforts made to reach that goal are along 
 thelinesof the existing organization of society. . . . 
 Behind the growth in the outer forms of the social 
 life lies an inner movement, which supports it and 
 gives it unity, viz., the vast revolution in thought 
 which carried men from an individualistic political 
 economy and a utilitarian philosophy to an organic 
 view of society and of the place and duties of the 
 individual." 
 
 No country has done more than Great Britain 
 within the last decade to relieve the distress of wage 
 earners and to lift work people to a plane of greater 
 economic independence. No legislative body has 
 met critical, social and industrial problems since 
 1905 more courageously than the English Parlia^
 
 54 INDUSTRIAL ARBITRATION 
 
 ment. In fact, Great Britain has just passed through 
 a revolution of greater consequences to her work 
 people, of more direct relation to their personal 
 welfare, than any other in the history of Anglo- 
 Saxon civilization. The fruit of this revolution is 
 a number of industrial measures for which the Aus- 
 tralian colonies and New Zealand furnished the in- 
 spiration. It is a historical instance going to show 
 that the parent may gather wisdom, practical wis- 
 dom, at the feet of the child. The beginning of this 
 legislation was the enactment of the workmen's com- 
 pensation act in 1897, followed by the unemployed 
 workmen's act of 1905. 
 
 In 1908, Lloyd-George carried the passage of his 
 old age pension act, strongly supported by organ- 
 ized labor. This act was effective January i, 1909. 
 Originally, the act provided pensions for per- 
 sons seventy years of age, citizens of the United 
 Kingdom, who had lived in the country at least 
 twenty years preceding and who did not belong to 
 the delinquent, defective or criminal classes and who 
 were not public dependents. This latter disqualifi- 
 cation was removed in 191 1 so that persons receiv- 
 ing poor relief were transferred to the old age pen- 
 sion fund. The largest pension provided under the 
 act is five shillings a week to all persons who have
 
 ENGLISH EXPERIMENTS 55 
 
 an income of not more than twenty-one pounds a 
 year. Graduated pensions are paid to persons hav- 
 ing larger incomes. In 19 12, there were one mil- 
 lion pensioners and the annual cost to the govern- 
 ment of maintaining the system was sixty million 
 dollars. 
 
 Unemployment caused great distress during 1908, 
 the number out of work being variously estimated 
 at from one million to two and one-quarter millions. 
 The government extended whatever relief it could 
 under the act of 1905 but a report made late in 
 1909 showed that work done under the public relief 
 act would have cost thirty per cent, less if done by 
 ordinary labor. This report urged the creation of 
 labor exchanges, which suggestions were carried 
 out in 1 9 10, when eighty-two labor exchanges were 
 opened in Great Britain. Work was found for 
 three hundred twenty-five thousand persons during 
 the first nine months of 191 1. In 191 2, the number 
 of exchanges had grown to two hundred fifty. 
 
 In the government insurance scheme instituted in 
 191 1 and eflfective July 1st, 1912, provision was 
 made for insurance against sickness, unemployment 
 for nearly two and one-half million men in the 
 building and engineering trades, and maternity 
 grants to women. Unemployment Insurance is ad-
 
 56 INDUSTRIAL ARBITRATION 
 
 ministered by the board of trade, the employer and 
 employee contributing practically equal amounts to 
 the fund and the government contributing one-third 
 of this amount. 
 
 All wage earners whose annual earnings are less 
 than eight hundred dollars a year and who are un- 
 der sixty-five years of age, except soldiers and sail- 
 ors otherwise provided for, pensioners, government 
 employees, persons working on their own account, 
 wives working for their husbands and casual domes- 
 tics and workers, are entitled to share in the sick 
 insurance provided by the act of 191 1. Fourteen 
 out of the nineteen million wage-earning population 
 are insured under the act. The government con- 
 tributes to a fund assessed against both employers 
 and employees. 
 
 Great Britain passed the first minimum wage act 
 in 1909. It provided for trade boards after the 
 plan of Australian legislation and applied to the 
 tailoring, lace-making, box and chain-making in- 
 dustries. The board of trade was authorized to 
 select a chairman and secretary and to appoint not 
 more than one-half of the members of each special 
 trade board. If women were employed, it was nec- 
 essary to include a woman on the trade board. The 
 specific duty of these wage boards was to fix a wage
 
 ENGLISH EXPERIMENTS 57 
 
 for time and piece work in each industry. The 
 English coal strike of 19 12 resulted in the passage 
 of a minimum wage law applying to coal miners. 
 The act provided for district boards to determine 
 rates of wages in different parts of the country. 
 Immediately after the passage of this act the strik- 
 ing miners returned to work. 
 
 It is safe to say that if this body of legislation 
 will, as may be expected when its benefits are fully 
 developed, contribute materially to the avoidance of 
 strikes and lockouts in Great Britain, the example is 
 bound to have its effect in the United States, where 
 temporizing processes are the prevailing order of 
 statesmanship and where an institution may be suc- 
 cessfully assailed by calling it "Socialistic."
 
 CHAPTER III 
 
 GERMAN SOCIAL JUSTICE 
 
 BEFORE the passage of the act of July 29, 
 1890, regulating the industrial courts, indus- 
 trial conciliation and arbitration in Germany was 
 confined almost altogether to the settlement of in- 
 dividual disputes. 
 
 The industrial courts, originally, were similar to 
 the French Coitseils des Prud'honimes, and de- 
 signed only for individual disputes. They were es- 
 tablished in the Rhine province, formerly under 
 control of France, in the early part of the nineteenth 
 century. Three German states, Prussia, Saxony and 
 Saxe-Weimar, had such tribunals prior to the enact- 
 ment of the industrial code of 1869. That code 
 empowered local authorities to create tribunals for 
 the settlement of disputes between employers and 
 •the working people. Equal representation of em- 
 ployers and employees was required by the code. 
 Not until 1890 was industrial conciliation and arbi- 
 tration placed upon an imperial basis. 
 
 58
 
 GERMAN SOCIAL JUSTICE 59 
 
 Industrial Germany presents such diversified eco- 
 nomic and political phenomena as to make a brief 
 and, at the same time, accurate analysis of indus- 
 trial conditions there next to impossible. This is true 
 because of the questionable unity of spirit in social 
 and political thought. Yet, no study of conciliation 
 and arbitration in Germany would be complete 
 without considerable attention to the paternalistic 
 character of the German state and an accurate 
 understanding of laws designed to protect the work- 
 man against such unforeseen misfortunes as unem- 
 ployment, pauperism and disease. 
 
 Germany, as a whole, is notoriously undemo- 
 cratic, but almost every shade of political opinion 
 may be found. In certain sections of the country 
 political thought barkens back to medievalism, when 
 the feudal state was all-powerful. On the other 
 hand, there is the influence of the Social-Democrats, 
 a growing factor of radicalism and a source of dis- 
 turbance to the ultraconservative industrialism. 
 
 The present German Empire dates from the close 
 of the Franco-Prussian War, 1871, and it is with 
 the political and industrial tendencies, beginning 
 with the present empire, largely, that this chapter 
 has to deal, 
 
 German conservatives still cling tenaciously to the
 
 6o INDUSTRIAL ARBITRATION 
 
 individualistic view of property. They are very 
 much afraid of popular government and resist its 
 encroachments with every means in their power. In 
 1909 they forced the resignation of Billow because 
 he had espoused a small inheritance tax. They ob- 
 jected, not so much to the tax, as to establishing a 
 precedent by which the popularly-chosen Reichstag 
 would acquire control over property rights. Rev- 
 enue for running the government, however, is de- 
 rived largely from a graduated income tax. The 
 rate is very low on small incomes and in Prussia 
 there is an exemption of two hundred fourteen dol- 
 lars. Some three hundred German cities have in- 
 stituted an "unearned-increment" tax on land, a tax 
 based on the theory that the state is entitled to a 
 share of new value added to land from increase in 
 population. 
 
 Urban population in Germany has far outstripped 
 in growth the population of the country districts. 
 When the empire was established in 1871, the city 
 population was only twenty-three and seven-tenths 
 per cent, of the whole, whereas it had grown in 
 1900 to forty-two and twenty-six-hundredths per 
 cent. This shifting of the population has had. a de- 
 plorable effect on the working people. It has in- 
 creased land values enormously in the industrial
 
 GERMAN SOCIAL JUSTICE 6i 
 
 centers, greatly augmented rents and made increas- 
 ingly difficult the problem of housing for the poorer 
 people. The English Board of Trade in an inquiry 
 made in 1909 found that if English rents are rep- 
 resented by one hundred per cent., German rents 
 are one hundred twenty-three per cent, and French 
 rents ninety-eight per cent. Of late years the 
 strictly industrial provinces have gained notably at 
 the expense of those strictly agricultural, a condition 
 however not peculiar to Germany. The growth in 
 population of the German cities illustrates the move- 
 ment of the German people. In 1871, eight cities 
 in Germany had a population of over one hundred 
 thousand. In 1905, there were forty-one cities in 
 this class. Eleven of these forty-one had a popula- 
 tion of two hundred fifty thousand or more, and five 
 a population of more than a half million. 
 
 In 1908, there were about four and one-half mil- 
 lion male work people, including adults, juveniles 
 and children, and somewhat more than a million 
 female work people, a total of five and one-half 
 million. Of the total number engaged in industry, 
 over nine hundred thousand were employed in min- 
 ing, smelting and salt works, over five hundred 
 thousand in metal working and nearly eight hun- 
 dred thousand in machine industries. The textile
 
 62 INDUSTRIAL ARBITRATION 
 
 workers numbered about eight hundred thirty thou- 
 sand. Thus, over three million work people or 
 about three-fifths of the total are engaged in indus- 
 tries which, in the United States, are the source of 
 most of our industrial disturbances — the origin of 
 a majority of our strikes and lockouts. All of these 
 industries have increased their production by leaps 
 and bounds since the present empire was established. 
 
 Industrial development since i860 is revealed in 
 the volume of trade for two years, i860 and 1907. 
 In the former year the imports and exports 
 amounted to about seven hundred million dollars, 
 and in the latter year to more than six times that 
 amount. Imports of raw material for manufactur- 
 ing purposes almost doubled during the ten-year pe- 
 riod from 1895 to 1905. Each year the volume of 
 manufactured goods imported is decreasing and the 
 volume of manufactured goods exported is increas- 
 ing. 
 
 In industry, Germany has been regarded as an 
 imitator of England, from whom she received much 
 of her earliest machinery and methods. But as W. 
 H. Dawson says,^ "While the average Englishman 
 has been accustomed to regard commerce as a purely 
 rule-of-thumb matter, the German has followed it 
 
 * The Evolution of Modern Germany, p. 79.
 
 GERMAN SOCIAL JUSTICE 63 
 
 as a science and an art, and in reality all the meth- 
 ods and measures which he has adopted in compet- 
 ing with his older rivals for the trade of the world 
 may be reduced to one principle, characteristic of 
 the Germans in so many ways, the application of 
 a trained intelligence to the practical affairs of life." 
 Much of her Industrial progress, Germany owes 
 to a splendid and elaborate system of training 
 schools for her own workmen — a system supple- 
 mentary to trade apprenticeship, which has never 
 been abandoned, but for which shop work in the 
 trade schools may now be substituted. Continuation 
 schools have influenced German workmanship since 
 the sixteenth century but in the early nineties these 
 schools were made compulsory for boys under eight- 
 een, not students elsewhere. Only a few cities have 
 not adopted the comjoulsory school system and it 
 has become popular with all classes of people. Some 
 continuation schools are maintained jointly by large 
 manufacturing establishments, unions, the state and 
 the city. Certain voluntary continuation schools re- 
 quire the payment of a small fee. Daytime, Sunday 
 and evening classes are conducted in these schools. 
 Workshop schools are maintained privately and by 
 the state for about two hundred fifty trades. Also 
 certain cities maintain training schools for teachers.
 
 64 INDUSTRIAL ARBITRATION 
 
 Girls, as a rule, are not required to attend compul- 
 sory continuation schools. In the grade schools, 
 girls are taught cooking, sewing, marketing, etc. 
 
 Education in the grade schools is compulsory for 
 both sexes from six to fourteen. School children 
 are under the constant care of a school physician 
 and a carefully planned course of out and indoor 
 exercise is given. Books and breakfast are fur- 
 nished by the school. The school system of Ger- 
 many Is not an expensive institution when compared 
 with the educational systems of other countries. 
 This is due in part to the abnormally low salaries 
 paid teachers. These salaries vary from eight hun- 
 dred dollars to one thousand five hundred dollars 
 paid annually in the technical schools to teachers 
 with university training and long experience. All in 
 all, the German school system is a wonderful institu- 
 tion and to it, more than anything else, is due the 
 rapid industrial advance of the country since 1871. 
 
 Government is a personal matter in Germany and 
 the state shows particular concern for the welfare 
 of the worker, whose hand and mind are trained 
 by the state for specific vocations and who is pro- 
 tected by the state against accidents, sickness, old 
 age and unemployment. University officials and 
 college professors are devoting their lives to the
 
 GERMAN SOCIAL JUSTICE 65 
 
 problems which arise in connection with the work- 
 ing man's welfare and happiness. The problems of 
 unemployment, poverty and housing are attacked 
 with the same weapons which the engineer uses in 
 building railroads, the industrial magnate uses in 
 increasing the output of his factory or his foreign 
 market or the professional man employs in an anal- 
 ysis of the intricate problems with which he is daily 
 confronted. 
 
 Municipal labor registries find work for nearly 
 a million men and women every year. Some of 
 these registries are maintained by the public and 
 others by private agencies. Some are provided with 
 buffets where food and beer are inexpensive and 
 where cobblers and tailors perform their services 
 for inconsiderable pay. Shower baths, a free dis- 
 pensary and medical inspection are furnished. The 
 wandering worker is looked after with unequaled 
 interest and lodging-houses exist by the hundreds 
 where a bed may be had for a trifle, or for work. 
 Wandering workers are not looked upon as vagrants 
 in Germany and as a consequence vagrancy has 
 practically disappeared. This may seem strange to 
 Americans who remember, during the winter of 
 191 3, that thousands of men and women appealed 
 to city officials all over the country, not for charity,
 
 66 INDUSTRIAL ARBITRATION 
 
 but for work, and were denied work because none 
 was to be had. During the winter of 1914, however, 
 several municipalities did attempt to provide public 
 work for a comparatively small per cent, of the un- 
 employed. 
 
 Germany has elaborate schemes of social insur- 
 ance against sickness, accident and old age. Sick 
 insurance is provided for those working in factories 
 and mines, workshops, quarries, transportation in- 
 dustries and public enterprises. Free medical at- 
 tention is included in the insurance benefits. Both 
 the employer and the worker contribute to the in- 
 surance fund. Accident insurance is another feature 
 of German industrialism, and must be provided by 
 the employer. The system is administered some- 
 what after the plan of sick insurance. Old age in- 
 surance is available to certain workers whose 
 earnings are five hundred dollars a year or less. 
 Employers and employees contribute equally to the 
 fund and to this the state also adds. In 1903, eight- 
 een million were insured against accident and more 
 than thirteen million persons against old age. In 
 that year, the total expenditures from the various 
 funds amounted to $100,000,000 and the accumu- 
 lated reserve to $350,000,000. In 1909, the total 
 revenues from the three systems amounted to $210,-
 
 GERMAN SOCIAL JUSTICE 67 
 
 000,000, of which $165,000,000 was paid out in 
 pensions and indemnities. The invested funds in 
 1908 amounted to $496,000,000. It is estimated that 
 the contributions amount to six and seventy-five- 
 hundredths per cent, of the wages received by the 
 insured, of which the employers pay three and sixty- 
 eight-hundredths and the employees three and 
 seven-hundredths per cent. 
 
 The predictions made when the industrial insur- 
 ance laws were first enacted that they would em- 
 barrass and retard industrial development have not 
 been realized. On the contrary, the period from 
 1884, when the sick insurance law first was passed, 
 to the present time, by all odds marks the high tide 
 of industrial development in Germany. 
 
 In 1907, there were nearly three thousand munic- 
 ipal and provincial savings banks with six thousand 
 six hundred branches and deposits amounting to 
 more than three billion dollars. Twenty-eight out 
 of every one hundred of the population held an ac- 
 count in one of the savings banks. 
 
 But Germany's paternalistic care of its citizens 
 does not stop with industrial insurance. The rail-r 
 roads are almost wholly a state institution. The 
 Prussian system is the largest employer of labor 
 in the world and the efl^ciency of its management
 
 68 INDUSTRIAL ARBITRATION 
 
 is universally recognized. It has performed splen- 
 did service and is altogether popular. 
 
 Prussia is a large owner, also, of coal, potash, 
 iron and salt mines. Ten million tons of coal are 
 taken from the state mines every year. Forest and 
 farming lands of nearly a million acres, formerly 
 owned by the Crown, now furnish a considerable 
 revenue to the state. The post-office had an ad- 
 mirable parcel-post system long before the parcel 
 post was attempted in this country. Packages 
 weighing from eleven to one hundred twelve pounds 
 are carried at a very low cost. Telegraphs and 
 telephones are monopolized by the post-office de- 
 partment and the rate per message is not quite half 
 the charge in this country. Postal savings banks 
 are operated in connection with the post-offices. 
 
 German manufacturers have a marked advantage 
 In a less pretentious standard of living among all 
 classes and consequently lower wages. There is a 
 spirit of frugality which pervades all classes of so- 
 ciety, unknown either In England or America. The 
 element of price has given the German exporter an 
 important advantage in world markets. 
 
 A species of social welfare is carried on by the 
 larger German employers. The same hard condi-
 
 GERMAN SOCIAL JUSTICE 69 
 
 tions attach as in this country — a spirit of philan- 
 thropy and condescension on the part of the em- 
 ployer and a necessarily patronizing and dependent 
 spirit on the part of the employees. Social welfare 
 work, as conducted in Germany as well as every- 
 where else, is not really popular with the working 
 class because the workers must sacrifice their most 
 cherished possession — self-respect — to benefit by it. 
 Factory dwellings are one form of privately-main- 
 tained social welfare in Germany, but the worker 
 is reluctant to accept them either as works of benev- 
 olence or disinterest because the selfish purpose of 
 the employer to hold his men has been proved too 
 often. Profit sharing has not gained much headway 
 in Germany. 
 
 Notwithstanding everything the German state has 
 done for Its workers, the worker Is still regarded 
 as an underling. The paternalistic attitude of the 
 government Is not inspired by any spirit of democ- 
 racy. Germany will not be able to throw off the 
 shackle of industrial bondage until a fuller meas- 
 ure of political equality is obtained. No better ex- 
 amples of political inequality are to be found among 
 Teutonic people than the class system of Prussian 
 elections and the Prussian anti-coalition laws, or
 
 70 INDUSTRIAL ARBITRATION 
 
 any better evidence of thirteenth century political 
 thought than the origin of the Prussian constitution, 
 which was handed down by the Crown. 
 
 The great industrial leaders of Germany entertain 
 practically the same ideas about labor organizations 
 and the same attitude toward trade unions as great 
 captains of industry in this country. Many of them, 
 willing to bestow all kinds of contrivances for the 
 welfare of their employees, are equally unwilling 
 to deal with their employees through committees as 
 to hours, wages and working conditions. It is the 
 independence of the worker — his right to barter col- 
 lectively, his right to act in society as an independ- 
 ent economic unit — which the industrial potentate 
 of Germany, as well as of this country, most ve- 
 hemently denies and vigorously resists. One great 
 German industrialist, head of the coal and steel syn- 
 dicates, asserted on one occasion that he would "re- 
 fuse to negotiate with any organization whatever" 
 and that he regretted that the state "interferes at all 
 in labor relationships." 
 
 Employees of the state railroads are not permitted 
 to organize labor unions and are wholly at the mercy 
 of the state officialdom. The sharp outlines which 
 separate the classes socially together with the bu- 
 reaucratic character of the government operate as a
 
 German social justice 71 
 
 depressing element upon the rank and file of state 
 employees. 
 
 Trade unionism In Germany is on the increase. 
 The greatest growth has been in the Socialist unions, 
 which had over one and three-quarters million 
 members in 1906. Other unions had a membership 
 of five hundred twelve thousand that year, bringing 
 the total up to 2,215,154. 
 
 While the German industrialists have persisted in 
 their obstinate opposition to trade unionism, they 
 nevertheless have left nothing undone to bind them- 
 seltes together in great and powerful unions with 
 enormous resources at their command. They take 
 the position that "modern economic development 
 has brought to the front the estate of the industrial- 
 ists, who have superseded the old feudal land pro- 
 prietors as employers," and in a slightly different 
 form they seek to maintain the feudal relationship 
 between the master and the servant. They make 
 free use of the blacklist and the lockout. Between 
 1899 and 1906, the number of lockouts annually 
 in Germany rose steadily from twenty-eight to three 
 hundred five. 
 
 Hours of labor in Germany are longer than in 
 the United States. A very few industries have the 
 eight-hour day, but ten hours is the rule and in some 
 industries it is much more than that. Twelve hours
 
 72 INDUSTRIAL ARBITRATION 
 
 a day was the rule as far back as 1869, when the 
 modern movement for reduced hours began. In 
 1877, the Socialists Inaugurated their demand for 
 a ten-hour day. In 1891 they demanded nine hours 
 and In 1896 their present eight-hour day program 
 was proclaimed. In 1908, an amendment to the 
 industrial code fixed the hours for female workers 
 at sixty a week but this rule Is subject to many ex- 
 ceptions. An investigation made in 1 902 showed 
 that eleven per cent, of the female factory operatives 
 ■worked nine hours or less and that forty-three per 
 cent, worked from nine to ten hours, Sunday rest 
 is still far from universal. 
 
 Advantages which German manufacturers have 
 enjoyed In respect to wages and hours are passing. 
 The cost of living Is rising and the strength of trade 
 unionism Is growing. As the strength of trade un- 
 ionism is augmented, Its power to compel wage in- 
 creases will also grow and cost of production in 
 manufacturing will likewise expand. Present rela- 
 tions between Labor and Capital are extremely bit- 
 ter. Both sides are fortified for a heroic struggle 
 and the fight promises to be long and wasting on 
 the contestants. 
 
 The Industrial code declares that "all prohibitions
 
 GERMAN SOCIAL JUSTICE Ji 
 
 and penal regulations against industrial employers, 
 industrial assistants, journeymen and factory oper- 
 atives regarding agreements and combinations for 
 the purpose of obtaining more favorable conditions 
 of wages and of work, particularly by means of the 
 suspension of work or the dismissal of work people, 
 are repealed," but it does not apply to state employ- 
 ees, agricultural laborers or domestic servants. 
 Otherwise it constitutes a legalizing act for strikes, 
 but interpretations of the courts have been quite 
 unfavorable to strikers in several instances. 
 
 An act of 1890, regulating industrial courts, was 
 the first legislation recognizing the principle of col- 
 lective disputes and providing for collective bar- 
 gaining. 
 
 These courts were empowered to act as concilia- 
 tion bureaus in disputes concerning the "terms of 
 continuation or renewal of the labor contract," but 
 only on condition that both parties requested action, 
 and, if they numbered more than three, appointed 
 delegates to the hearing. Conciliation bureaus con- 
 sisted of the president of the court and at least 
 four members, two employees and two workmen, but 
 there might be added, and it was compulsory when 
 the delegates so requested, representatives in equal
 
 74 INDUSTRIAL ARBITRATION 
 
 number of employers and employees. Representa- 
 tives and members of the bureau could not act If 
 concerned in the dispute. 
 
 The bureau could hear and examine witnesses 
 under the act but could not compel their attendance. 
 After hearing, each side was required to formulate 
 its opinions of the allegations of the other side,- 
 whereupon an effort at conciliation was to be made. 
 Failing in this, a decision followed and the dele- 
 gates were required to declare within a specified 
 time their acceptance or rejection of the award. At 
 the expiration of this time the decision was pub- 
 lished. In some cases, the president of these courts 
 intervened informally with conspicuous success, but 
 in three years, 1899, 1900 and 1901, there were 
 nearly four thousand strikes, one hundred thirty- 
 two only having been settled by the industrial 
 courts. 
 
 The German law of 1890 was quite successful in 
 the settlement of individual disputes but not suc- 
 cessful in the settlement of collective disputes. The 
 act of 1901 took the appointment of arbitrators out 
 of the hands of the president and lodged it with 
 the parties concerned in a controversy. Not only 
 regular assessors of the court may be chosen but 
 any other persons in whom the parties have confi-
 
 GERMAN SOCIAL JUSTICE 75 
 
 dence. The new act made the appearance of par- 
 ties to a dispute compulsory in the event one or 
 both parties call upon the court to act as a board 
 of arbitration. 
 
 When both parties ask for arbitration, the court 
 is constituted as a formal board of arbitration. If 
 only one side applies, it is the president's duty to 
 attempt to obtain the cooperation of the other party. 
 If successful, the board is constituted for the pur- 
 pose of conciliation. If neither party applies for 
 arbitration, it is the president's duty to urge the 
 arbitration of the controversy. This provision per- 
 mits the court to intervene with a view to settling 
 threatened strikes and lockouts. There is nothing 
 novel in the proceedings before an industrial court 
 sitting as a board of arbitration. Failure to appear 
 before the court in answer to a summons of the pres- 
 ident is punishable by a fine. Decisions are given by 
 a majority but the president may abstain from voting 
 if there is a tie. The acceptance of the decision is 
 not compulsory and a failure to declare whether the 
 decision is accepted is construed as a refusal. An 
 award is binding, however, if both parties have pre- 
 viously agreed to such an award. 
 
 The Berlin court, between 1902 and 1908, was 
 appealed to by both sides in one hundred sixty-four
 
 ^6 INDUSTRIAL ARBITRATION 
 
 cases and by one side in sixty instances. Most of 
 the applications from one side are from the work- 
 ers. Out of one hundred forty applications for ar- 
 bitration in the empire in 1908, one hundred thirty- 
 four were from workmen while only six came from 
 the employers. Out of one thousand two hundred 
 sixty disputes submitted by both parties in the em- 
 pire between 1902 and 1908, nine hundred eight 
 were settled either by agreement or awards accepta- 
 ble to both parties. In seventy-six cases the board 
 failed to reach a decision. 
 
 Mercantile courts for the settlement of disputes 
 between merchants and their employees were estab- 
 lished in 1904. 
 
 For the settlement of individual disputes, the 
 German industrial courts are composed of at least 
 four assessors and a president and vice-president. 
 The latter must belong to neither side of the con- 
 troversy. All the officers of an industrial court 
 except the assessors are paid salaries. The position 
 of assessor is regarded as honorary. In disputes of 
 great importance several assessors may be called, 
 but they are always present in equal numbers from 
 both sides. They are drawn from separate lists, 
 one elected by the employers and one by the em- 
 ployees. Different cities elect assessors in varying
 
 GERMAN SOCIAL JUSTICE 'j'] 
 
 numbers according to the business and local regula- 
 tions. Berlin has four hundred twenty, Dortmund 
 three hundred forty-six, Leipzig ninety, and thirty 
 deputy assessors. Small fees are collected by the 
 courts and small fines are levied. The municipality 
 must bear all expenses of the courts not covered by 
 fees and fines. 
 
 Industrial courts operate not only for the concil- 
 iation or legal decision of individual disputes and 
 the conciliation and arbitration of collective dis- 
 putes, but for the guidance of public opinion and 
 of public officials and legislative bodies in matters 
 w^here expert advice is needed. The jurisdiction of 
 industrial courts in individual disputes is limited by 
 the arbitration courts of the guilds, organized quite 
 like the industrial courts, or by legal statute, but 
 generally extending over all industrial occupations. 
 Special courts exist for special industries. Even 
 after a court is organized for hearing in an individ- 
 ual dispute or a collective dispute, it is charged with 
 the duty of attempting conciliation at any time be- 
 fore a decision is given, if conciliation seems feasi- 
 ble. Hearings generally are public, though they 
 may be private. The decisions of the court in in- 
 dividual disputes are determined by a majority vote. 
 In the determination of individual disputes, the de-
 
 78 INDUSTRIAL ARBITRATION 
 
 cisions are subject to appeal to the local civil 
 court, or they may be contested by "opposition" 
 where a judgment has been given by default. Op- 
 position is merely a process by which a defaulted 
 judgment may be reopened. The appeals are lim- 
 ited to amounts involving twenty-three dollars and 
 eighty cents. 
 
 Table No. 4, on page 79, shows an epitomized 
 history of German strikes from 1903 to 1912. The 
 figures for Berlin are given separately but included 
 in the summary for Prussia, the figures of which 
 are included In the summary for the German Em- 
 pire. The summary shows that the empire had the 
 greatest number of strikes in 1906, although fewer 
 strikers were involved than in 1905. For the whole 
 empire, the table shows an average of more than 
 two thousand one hundred strikes for the ten-year 
 period. The last three columns of the table show 
 the result of the strikes for the period. An average 
 of four hundred eight strikes annually were com- 
 pletely successful, while an average of eight hun- 
 dred fifty-eight were partially successful and an 
 average of eight hundred sixty-five were complete 
 failures. 
 
 The table at the bottom of page 80 shows the 
 results of strikes for three years, 1909, 1910 and
 
 GERMAN SOCIAL JUSTICE 
 
 79 
 
 
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 Ot^OOUT-DO.-H'-IVOU?, 
 
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 2,120 
 3,419 
 2,432 
 2,958 
 1,566 
 509 
 1,373 
 4,108 
 5,667 
 7,008 
 
 i/^CN«^O\r0O00'^00TH 
 
 oo'oCio'voo'o'ti-Vi'cvro 
 
 r-KNOWO-rCMCMr^Tt-c-l 
 
 30,059 
 
 44,405 
 
 121,382 
 
 113,021 
 
 73,010 
 
 33,862 
 
 38,818 
 
 56,549 
 
 90,154 
 
 158,150 
 
 1 
 
 d 
 O 
 
 o\r^oo<-<0'3-o-tooi-i 
 
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 1,171 
 3,103 
 2,336 
 
 3,939 
 
 3,349 
 
 430 
 
 417 
 
 818 
 
 1,567 
 
 1,050 
 
 4,193 
 6,939 
 8,492 
 10,245 
 8,055 
 2,360 
 2,716 
 4,058 
 5,993 
 4,277 
 
 7,000 
 
 10,321 
 
 14,481 
 
 16,246 
 
 13,092 
 
 4,774 
 
 4,811 
 
 8,276 
 
 10,640 
 
 7,255 
 
 
 
 txioir)fOOO\'*-'-'tv.ov 
 (Mu->rfOOfOVOO<NOOio 
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 8o 
 
 INDUSTRIAL ARBITRATION 
 
 191 1, computed upon a percentage basis; also the 
 result of strikes computed upon the number of strik- 
 ers involved. For the three years, nineteen per 
 cent, of the strikes were fully successful, forty-one 
 per cent, were partially successful and fifty-nine 
 and seven-tenths per cent, were unsuccessful. Thir- 
 teen per cent, of the strikers were successful in their 
 cause, fifty-four per cent, were partially successful 
 and thirty-two per cent, failed. 
 
 In 191 1, an average year, there were two hundred 
 thirty-two lockouts, involving slightly less than two 
 thousand establishments and about one hundred 
 forty thousand workers out of a total of three hun- 
 dred thousand. Lockouts were fully successful in 
 thirty-one per cent, of the cases, partially successful 
 in sixty-three per cent, and unsuccessful in six per 
 cent, of the cases. 
 
 Between 1902 and 1908, applications for a board 
 of arbitration were made by both sides in about 
 
 TABLE NO. 5 
 
 
 Percentage of Strikes 
 
 Percentage of Strikers 
 
 Year 
 
 Fully 
 Success- 
 ful 
 
 Partly 
 Success- 
 ful 
 
 Unsuc- 
 cessful 
 
 Fully 
 Success- 
 ful 
 
 Partly 
 Success- 
 ful 
 
 Unsuc- 
 cessful 
 
 1909 
 
 1910 
 
 1911 
 
 18.4 
 19.8 
 19.4 
 
 33.8 
 43.0 
 46.2 
 
 47.8 
 37.2 
 34.4 
 
 14.5 
 13.1 
 12.1 
 
 44.9 
 56.1 
 62.3 
 
 40.6 
 30.8 
 25.6
 
 GERMAN SOCIAL JUSTICE 8i 
 
 twelve hundred cases, by employees only in eleven 
 hundred cases and by employers only in less than 
 fifty, a total of two thousand three hundred fifty 
 cases. There was an agreement before an award 
 was given in seven hundred seventy-eight cases, an 
 award in one hundred ninety-three cases, and nei- 
 ther an agreement nor an award in four hundred 
 sixty-one cases. Both sides accepted the award of 
 the arbitration board in one hundred thirty cases, 
 and it was accepted by tlie employers only in twen- 
 ty-seven cases, the employees only in forty-two 
 cases and by neither side in thirteen cases. In 1908, 
 a typical year, there were more than one hundred 
 thousand cases of individual disputes between work- 
 men and employers in the German Empire brought 
 upon complaint of the workmen and about six thou- 
 sand cases brought upon complaint of the employ- 
 ers. Of this number, agreement was reached in 
 nearly fifty thousand cases. There was a judgment 
 by default in eleven thousand cases and final judg- 
 ment in eighteen thousand cases. The claim of the 
 plaintiff was renounced by the defendant in about 
 three thousand cases and acknowledged in fifteen 
 hundred cases. 
 
 The law requires the formation of industrial 
 courts in all towns of over twenty thousand popula-
 
 ,B2 INDUSTRIAL ARBITRATION 
 
 tion, but they may be formed elsewhere at the op- 
 tion of the state or on joint application of employers 
 and work people. 
 
 The industrial code provides for workmen's com- 
 mittees in collieries and industrial works of certain 
 kinds. They constitute a private arrangement be- 
 tween employer and work people. In the larger 
 cities wage agreements are common. They fix the 
 scale of wages, hours, overtime and other conditions 
 of employment. Over three thousand agreements 
 are in force. In 1906 alone, agreements were 
 signed affecting some three hundred thousand work 
 people. Employers complain that such agreements 
 have been made the entering wedge by which higher 
 and higher wages are exacted. Agreements fix a 
 minimum rate and therefore are a boon to the in- 
 efficient and of no avail to the very efficient worker, 
 say the employers. Conciliation boards and courts 
 of arbitration have added greatly to the significance 
 and scope of special agreements by holding them to 
 apply to all workmen in a given industry, whether 
 organized or not. In larger cities, workmen are 
 more perfectly organized than in smaller cities. 
 
 The influence of Socialism as a potent factor In 
 German society and consequently in German Indus-
 
 GERMAN SOCIAL JUSTICE 83 
 
 try Is felt more keenly now than any time since 1875, 
 when the first union of Socialist forces was effected. 
 
 Two great revolutions took place during the 
 eighteenth and early part of the nineteenth century. 
 One was the industrial revolution led by Robert 
 Owen and followed the age of invention when the 
 process of manufacturing textile fabrics was trans- 
 formed by the advent of the machine. This revolu- 
 tion began in England. Another great revolution 
 was that in the realm of thought, having its origin 
 in France and owing its Inspiration to the teachings 
 of Voltaire, St. Simon, Montesquieu and Rousseau. 
 
 In the wake of these revolutions is a third, mainly 
 political, now surging in Germany and Russia. It 
 began after the Revolution of 1848, with a lecture 
 by Lassalle in Berlin, presenting the historical and 
 philosophical origin of the state. This date is called 
 the birthday of German Socialism. Lassalle con- 
 tended that the Revolution of 1848 had freed the 
 fourth estate as the first French Revolution had freed 
 the third. Later he organized the Universal Ger- 
 man Workingman's Association, out of which grew 
 the Social Democratic party. In 1868, the associa- 
 tion adopted the international program of Karl 
 Marx and the next year the Social Democratic 
 Workingman's party was formed at Eisenach.
 
 84 INDUSTRIAL ARBITRATION 
 
 After the Franco-Prussian War, speculation pre- 
 cipitated a wide business depression and a fall in 
 wages. Men were thrown out of employment and 
 distress was universal. What was more natural than 
 the rapid rise of a party which offered a specific 
 program of relief? The first effect of the union of 
 Socialist forces in 1875 was seen in the elections of 
 1877. In 1 87 1, the party cast about one hundred 
 twenty-five thousand votes, electing two members 
 of the Reichstag. In 1877, it cast nearly a half 
 million votes, electing twelve deputies. 
 
 Popular vote Deputies 
 
 1871 124,655 2 
 
 1877 493,288 13 
 
 1887 763,128 11 
 
 1893 1,786,738 44 
 
 1898 2,107,076 56 
 
 1903 3,010,771 81 
 
 1907 3,258,968 43 
 
 1912 4,250,399 112 
 
 The growth of the party since 1871 is indicated 
 by the popular vote and deputies sent to the Reichs- 
 tag in typical years. Although the party polled 
 more votes in 1 907 than in 1 903, the number of dep- 
 uties elected was less, owing to the unbalanced sys- 
 tem of representation. There was an enormous gain 
 in 191 2 both in popular vote and number of dep- 
 uties.
 
 GERMAN SOCIAL JUSTICE 85 
 
 In sixty-eight towns the Socialist party has at 
 least one daily newspaper and in three towns two 
 or more newspapers. Although the membership in 
 the Socialist trade unions is more than two and one- 
 half millions, by no means all the membership is 
 organized for political purposes. A large part of 
 the membership has nothing to do with the political 
 propaganda of the Social Democratic party. 
 
 Social Democratic organizations, however, have 
 been foremost in directing the working men's 
 strikes. The most serious strike ever known in 
 Germany occurred in the coal mines of Westphalia 
 and the Rhenish provinces in 1889. It lasted only 
 a few weeks and resulted in a substantial victory 
 for the strikers. Public opinion and government 
 interference were responsible for a strikers' victory 
 in the Westphalian coal mine strike of 1905. The 
 unyielding attitude of the colliery owners cost them 
 a reduction in hours of labor, abolition of fines, 
 workmen's committees guaranteed by law and other 
 important concessions. 
 
 During the fifteen years, 1890- 1905, the Social 
 Democratic unions were involved in over eleven 
 thousand strikes and lockouts in which nearly one 
 and a half million persons were concerned. In the 
 single year of 1906, these organizations spent three
 
 86 INDUSTRIAL ARBITRATION 
 
 and one-quarter million dollars in strikes and lock- 
 outs.^ 
 
 While Germany has gone very much further than 
 any other European country in doing the small 
 things which secure a minimum of comfort to her 
 work people, the plane of living, measured by world 
 standards, is still far beneath that which painstaking 
 skill in industrial works ought to command. In 
 this respect, the German workman is much worse 
 off than the American wage earner. Particularly 
 is this so if he is highly efficient, because maximum 
 wages and living standards are much lower in Ger- 
 many. But notwithstanding the paternalistic en- 
 deavors of the German state to secure minimum 
 standards of comfort among the working classes, 
 industry is not likely to be established on a stable 
 basis until the shackles of aristocratic preferences 
 are thrown off. The Social Democrats are bent on 
 accomplishing this feat and it is uncertain how long 
 the struggle may continue. 
 
 ' From 2,551 branches with a membership of 277,659 in 
 1891, the Social Democratic unions had grown to 11,878 
 branches with a membership of 2,530,390 in 1912. The total 
 membership of the German trade unions, including the Social- 
 ist unions, in 1912, was 3,256,819.
 
 CHAPTER IV 
 
 FRENCH EXPERIMENTS 
 
 INDUSTRIAL arbitration and conciliation In 
 France dates practically from the creation of 
 the councils of experts {Conseils des Prud'hommes) 
 by Napoleon I In 1806, after his return from Elba. 
 These councils were the successors to the ancient 
 corporative tribunals which had held certain juris- 
 diction in the silk trade and which were swept away 
 when the trade guilds were abolished In 1791. 
 
 The trade guilds had existed In France from the 
 time of the Middle Ages. They had arisen as a 
 counter-irritant to the tyranny of feudalism and In 
 time had come to exercise a tyranny that was quite 
 as obnoxious to Turgot, minister of Louis XVI, as 
 was feudalism to the earlier French monarchs. 
 Work in different trades was conducted by a few 
 master workmen, incorporated into guilds, who en- 
 joyed a complete monopoly of production. 
 
 Inhabitants of Lyons, center of the silk Industry, 
 had been loyal to the first Napoleon and feted him 
 
 87
 
 88 INDUSTRIAL ARBITRATION 
 
 on his return. Incidentally, they took diplomatic 
 advantage of his good feeling toward them in 1806 
 to ask the restoration of the corporative tribunals. 
 The councils of experts were created in response to 
 this request. 
 
 The councils of experts originally were composed 
 of five employers and four foremen, while the guild 
 tribunal was composed entirely of manufacturers. 
 The councils of experts were established to settle 
 minor difficulties by conciliation, or, in the failure 
 of conciliation, to adjudicate formally any matter 
 involving less than sixty francs. The bureau of 
 conciliation, composed of one manufacturer and one 
 foreman, met once a day while the general bureau 
 of arbitration met once a week to decide cases in 
 which the bureau of conciliation had failed. By 
 1804, fourteen French towns had established coun- 
 cils of experts. In 1894, there were one hundred 
 seventeen councils in France. 
 
 As early as 1867 premiums were offered at the 
 exhibition in Paris for conspicuous successes in es- 
 tablishing friendly relations between "masters and 
 men," and many interesting examples of well-re- 
 quited effort from Germany and France were of- 
 fered. 
 
 The explosive character of French society has
 
 FRENCH EXPERIMENTS 89 
 
 become a sinister platitude of the historian, the most 
 familiar phase of that country's political and social 
 life during the last century. While it is true that 
 France enjoyed comparative tranquillity for a period 
 of forty years, the elements of self-destruction are 
 still present, despite heroic sacrifices and remarkable 
 unity in warding off the German invader. 
 
 It is too much to expect that French industry was 
 very peaceful in a period when the people were 
 fighting behind barricades in the streets of Paris 
 for fundamental political rights. It is too much to 
 expect that France made any considerable progress 
 toward industrial peace when its people were sub- 
 merged in blood by succeeding political revolutions. 
 While the political revolution has flourished in 
 France the Industrial revolution has also waged 
 with increasing fury. 
 
 Within a brief space, it is difficult to present a 
 true picture of French industry during the years 
 immediately following the Restoration — the en- 
 thronement of Louis XVIII in 181 5. It is true that 
 until after the Revolution of 1830, the working 
 classes were passive. But their misery was in in- 
 verse proportion to the government's concern for 
 them. The working classes were hostile to the gov- 
 ernment because they were bitter against the Boiir-^
 
 90 INDUSTRIAL ARBITRATION 
 
 bons. They had really gained very little by the 
 first revolution, since it made no difference who were 
 their oppressors, if oppression remained a fact. The 
 revolution had merely marked the rise of an indus- 
 trial bourgeoisie, equally as unfortunate for the 
 workers as the old landed aristocracy of the Bour- 
 bons. The French working classes suffered severe 
 hardships from the introduction of machines — di- 
 minished wages and unemployment. Imperfect and 
 defective machines and unventilated mines took a 
 heavy toll of lives and spread disease. The intro- 
 duction of women and children into industry as 
 competitors of males further depressed wages. 
 Damp cellars without light or air, where the work- 
 men were compelled to live, added to their torture. 
 The French constitution of 1791 had declared 
 that there should be a general bureau of public aid 
 for the purpose of bringing up foundlings, of car- 
 ing for the infirm poor, and of providing work for 
 such of the able-bodied poor as were unable to ob- 
 tain it by their own efforts. This was merely the 
 English poor tax in another form. The constitu- 
 tion of 1793 declared that society owed a living to 
 its unfortunate citizens, either by procuring work 
 for them or by assuring the means of life to those 
 unable to labor. But the constitution of 1793 also
 
 FRENCH EXPERIMENTS 91 
 
 declared that society not only should provide labor 
 for its citizens but that this labor should insure their 
 subsistence. After 1793, this theory was dropped 
 in the constitutions of the French people but the 
 revolution of 1848 revived the doctrine and it later 
 was adopted as a formula of the socialistic school. 
 
 The Revolution of July, 1830, the Revolution of 
 1848 and the establishment of the present republic 
 are beacon lights which shed their rays on bivou- 
 acked armies through which and by which French 
 society, purged of the curse of Bourbonism, has 
 been plunged into woes scarcely less bitter. But 
 there is a cause for hope. Between two extremes of 
 irresponsible socialism, syndicalism and anarchy, on 
 the one hand, and a reactionary spirit of aristocratic 
 atavism on the other, the social consciousness of the 
 French people has flowed on in ever-increasing vol- 
 ume and more and more devoid of the elements 
 which make for self-destruction. 
 
 If we are to understand what France has accom- 
 plished toward the achievement of industrial peace, 
 we must at least know briefly the succession of 
 events of the last century. 
 
 In 1815 the use of machinery in the difl"erent 
 branches of industry had not become general. The 
 home and not the factory was the seat of the textile
 
 92 INDUSTRIAL ARBITRATION 
 
 industry. Now, all this has changed. To-day, the 
 industrial output of France is valued at more than 
 three billion dollars annually. This sum is more 
 clearly understood when we remember that French 
 industry consumed about one million tons of coal 
 annually in the last century and thirty-seven times 
 that amount at the beginning of the present. The 
 consumption of raw cotton has increased enormously 
 from 1 815 to the present date; the production of 
 brass from a little over two hundred thousand tons 
 in 1830 to somewhat less than three million tons; 
 the production of iron from one hundred fifty thou- 
 sand tons in 1830 to about a million tons; and the 
 production of steel from five thousand tons in 1 830 
 to more than two hundred thousand times that 
 amount. These contrasts present one aspect of the 
 industrial revolution and signify the growing acute- 
 ness of the industrial problem due to the multiplica- 
 tion of industry. 
 
 At the close of the reign of Charles X in 1830, 
 twenty-four per cent, of the French people lived 
 in the city. In 1896, the percentage of the urban 
 population had increased to forty per cent. In 1906, 
 it was only two per cent, greater than in 1896. 
 France probably is less troubled from a congested 
 population than any other European country.
 
 FRENCH EXPERIMENTS 93 
 
 The Revolution of July, 1830, was not without its 
 effect on the industrial life of the country. Dis- 
 turbances became more and more common. In Oc- 
 tober, 1 83 1, the silk weavers at La Croix-Rousse 
 at Lyons demanded an increase in wages. The pre- 
 fect made an attempt at mediation which was bit- 
 terly resisted by the employers. A minimum tariff 
 of wages, drawn up under the direction of the 
 mayor by delegates from the working men, the em- 
 ployers' delegates having refused to act, was abol- 
 ished, but not until the national guard had been 
 compelled to retreat in the face of an armed body 
 of strikers. The years 1832, 1833 and 1834 were 
 marked by serious insurrections of the working men 
 in a score of industrial cities. Paris passed through 
 a fierce conflict at this time. 
 
 Following these outbreaks, a law of Aj^ril 10, 
 1834, against meetings and associations raised the 
 fine of from sixteen to two hundred francs in the 
 Napoleonic code to five times that amount and per- 
 mitted imprisonment. But the law applied to in- 
 dividual members of an association whereas the 
 Napoleonic code was aimed only at the instigators, 
 chiefs or directors. 
 
 In 1 84 1 a child labor law, bitterly opposed by 
 the employers, was passed. The act applied to es-
 
 94 INDUSTRIAL ARBITRATION 
 
 tablishments where mechanical motive power was 
 used and which gave work to twenty or more em- 
 ployees. It fixed the age limit at twelve years but 
 authorized eight hours of labor, broken by rest, for 
 children of from eight to twelve years ; twelve hours 
 of labor from twelve to thirteen, and forbade night 
 work for children under thirteen. Under the age 
 of twelve, apprentices were required to attend 
 school. 
 
 It was during the reign of Louis Philippe, 1830- 
 48, that the ideas of St. Simon, Enfantin and Che- 
 valier began to find a lodgment in the minds of the 
 French people. Fourier Cabot, Pierre Leroux and 
 Louis Blanc, all of whom were either collectivists 
 or communists, found scores of followers during this 
 period. Proudhon, who denied the validity of all 
 property, was also an influential figure of this epoch. 
 The philosophies of these teachers added to the un- 
 rest of the times. 
 
 The Revolution of February 24, 1848, which over- 
 threw the monarchy of Louis Philippe, increased 
 the electorate from two hundred forty-one thousand 
 to ten million, annulled all laws restricting freedom 
 of the press, set on foot the free and compulsory 
 education of the masses, the establishment of adult
 
 FRENCH EXPERIMENTS 95 
 
 schools as complements of the primary schools and 
 also technical instruction. 
 
 The Revolution of 1848 also proclaimed the right 
 of its citizens to labor. On February 26th the fol- 
 lowing decree was posted on the walls of the cap- 
 itol : 
 
 "The provisional government of the French re- 
 public guarantees the subsistence of the workmen 
 by labor. It agrees to guarantee labor to all citi- 
 zens. It recognizes the fact that working men should 
 associate themselves together in order to enjoy the 
 legitimate profit of their labor." 
 
 After the Revolution of 1848, and under the dic- 
 tatorship of Monsieur Louis Blanc, France under- 
 took seriously the socialization of credit, labor, 
 banks, insurance companies and the railroads. Na- 
 tional workshops were established by the govern- 
 ment. One article of the Luxemburg proclamation 
 read : 
 
 "The right to labor is the right of every man to 
 labor by working. Society ought by all productive 
 and benevolent means at her disposal and by those 
 which will be subsequently organized, to furnish 
 labor to able-bodied men who can not procure it in 
 any other way." 
 
 Another article of the same proclamation read :
 
 96 INDUSTRIAL ARBITRATION 
 
 "The main guaranties of the right to labor are lib- 
 erty of labor itself, freedom to form labor associa- 
 tions, free instruction, professional education, sav- 
 ings and other banks and the establishment by the 
 state of great works of public utility to provide labor 
 in case of the stoppage of work, for unoccupied 
 hands." 
 
 After the Revolution of 1848 had subsided, there 
 was an abundance of work, due to the reconstruction 
 of the capitol, all of which made Napoleon III very 
 popular with the working people. An army of 
 nearly a half million was employed in building and 
 other public works. Under the influence of the 
 English trade unions and the mutual credit system 
 and people's banks of Germany, obtained by 
 Schulze-Delitzsch, cooperative societies in the field 
 of consumption, production and credit began to mul- 
 tiply in France. These societies had grown to a 
 membership of one and three-quarters millions at 
 the beginning of the present century. 
 
 The establishment of the national workshop which 
 followed in the wake of the revolution, was just 
 about the last step in the demoralization of the 
 French workmen. The national workshops exacted 
 only a nominal service for a daily wage from the 
 government, varying from one-half to two francs. 
 The inspiration for the institution of the workshops
 
 FRENCH EXPERIMENTS 97 
 
 was a noble one, since they were established out of 
 pity for the unemployed, but the high purpose of 
 their founders did not contribute to their success. 
 The number employed in the national workshops 
 soon arose to more than a hundred thousand and 
 strikes became frequent. 
 
 In 1850, a superannuation fund was founded by 
 the government and in 1851 free judicial aid was 
 provided for the French people. 
 
 Under Napoleon III, 1848-1870, certain articles 
 of the Napoleonic code interdicting coalitions were 
 stricken out. An act of Napoleon III also abrogated 
 a law of 1849, putting an end to a system which 
 forced tribunals to judge each year an average of 
 seventy-five trials resulting from strikes. The law 
 of 1849 against coalitions of working people simply 
 reproduced certain provisions of the Napoleonic 
 code. A new law recognized the right of the work- 
 ing men to concert for the purpose of obtaining an 
 increase in wages and to strike. It punished only 
 those offenses which brought about simultaneous 
 cessation of labor by means of violence, menace or 
 fraud. 
 
 After the restoration of the empire In 1862, with 
 Napoleon III as king, France took part In the Cri- 
 mean War in 1854- 1856, and In 1857 participated
 
 98 INDUSTRIAL ARBITRATION 
 
 with the English in an expedition against China. 
 In 1859, France engaged in a war with Austria. 
 These wars tended to divert the attention of the 
 people from industrial works, and the demands for 
 soldiers prevented the disasters which might have 
 resulted from an oversupply of labor. Then came 
 the Franco-Prussian War of 1870, which ended in 
 the defeat of the entire French army under Napo- 
 leon III, followed by the establishment of a third 
 republic with Thiers as the first president. During 
 the latter years of Napoleon Ill's reign and the 
 first years of the third republic, industry was para- 
 lyzed. 
 
 In 1883, commissioners and inspectors of child 
 labor were charged with the enforcement of a law 
 of 1 85 1 regulating the hours of work of adults. 
 In 1890 the government suppressed the obligation 
 of the working man to carry a certificate and pro- 
 vided for the appointment of delegates of miners 
 charged with securing safe conditions for labor. In 
 1893 a free medical aid system was founded and 
 in 1894 a superannuation fund for miners was 
 founded. A law of 1898 awarded an indemnity 
 to working men injured while performing any or- 
 dered task, even though the injury be due to the 
 workman's imprudence. The act gave an indemnity
 
 FRENCH EXPERIMENTS 99 
 
 to the wife or children in case of the worker's death. 
 In 1899, the indemnity act was extended to certain 
 agricultural laborers. 
 
 Until 1884, the French government was bitterly 
 antagonistic to labor unions. Since 1884, the gov- 
 ernment has maintained more or less benevolent re- 
 lations with the working people. Trade unions were 
 legalized in that year. Bourses du travail, it was 
 provided by an act of 1884, might be established 
 under the law in towns of five thousand inhabitants, 
 and here labor meetings might be held under sub- 
 sidy of the government. The bourses provided 
 meeting halls and offices for secretaries where tele- 
 phones, letter files and stationery were provided and 
 the franking privilege of the government enjoyed. 
 The Paris bourse in 1909 received twenty-three 
 thousand dollars as a subsidy. These bourses per- 
 form the functions of labor exchanges and as- 
 sist m.en in getting work, but the great national 
 trade unions do not enjoy the privileges of govern- 
 ment subsidies, and the membership of organiza- 
 tions having their meeting place in the bourses is 
 very uncertain. Few of the members pay dues or 
 assessments and the organizations have no benefit 
 funds. No regular meetings are held. Neither the 
 C. G. T. nor the Typographical Union had any-
 
 loo INDUSTRIAL ARBITRATION 
 
 thing to do with these bourses. There are, how- 
 ever, solid trade union organizations in France with 
 large funds, which carry on works similar to the 
 national unions of other countries. Among these 
 are the miners', the printers', the railroad employ- 
 ees' and the metal workers' unions. The member- 
 ship of labor unions numbers something over a mil- 
 lion. 
 
 The French Conseils des Prud' homines, the earli- 
 est tribunal in that country for the settlement of in- 
 dustrial disputes, assumed jurisdiction of individual 
 disputes only. It was not until the enactment of 
 the conciliation and arbitration law of 1892 that 
 legal machinery was created for the settlement of 
 collective disputes. 
 
 Under the act of 1892, the initiative may be taken 
 by the parties themselves, or, in the case of actual 
 strikes or lockouts, the Initiative may be taken by 
 a justice of the peace. Both parties may apply 
 jointly for conciliation, or. If only one applies, It 
 Is the duty of the justice of the peace to notify the 
 opposite party, who must reply within three days. 
 In the application for or acceptance of conciliation, 
 each party must name five persons to act as its rep- 
 resentatives In conciliation. If neither party applies 
 for conciliation, It is the duty of the justice of the
 
 FRENCH EXPERIMENTS loi 
 
 peace to request the parties to notify him of their 
 willingness or refusal to accept conciliation or arbi- 
 tration. 
 
 The justice of the peace is ex-officio chairman of 
 the conciliation committee. Conciliation failing, 
 the justice of the peace must endeavor to obtain 
 arbitration, each side to name an arbitrator or both 
 to agree on a common arbitrator. If arbitrators 
 can not agree, they may name an umpire and if 
 they are unable to agree upon an umpire, he is 
 named by the president of the local civil tribunal. 
 Decisions must be in writing and the expenses of 
 hearings are borne by the Communes. Every fea- 
 ture of the act is voluntary. Reports of concilia- 
 tion committees, arbitration boards and requests for 
 and refusal of conciliation or arbitration are to be 
 made public. 
 
 Between 1893 and 1903, ten years, there were 
 nearly six thousand strikes and lockouts in France. 
 In sixty-one cases, settlements were attempted be- 
 fore the strike or lockout and in one thousand three 
 hundred fifty-two cases settlement was attempted 
 after the strike or lockout had begun. Of the one 
 thousand four hundred thirteen efforts at settlement 
 there was a refusal or rejection of settlement in 
 thirty-eight per cent, of the cases. Of the one thou-
 
 102 INDUSTRIAL ARBITRATION 
 
 sand four hundred thirteen efforts at settlement, the 
 effort was initiated in five hundred fifty-six cases 
 by the justice of the peace; in seven hundred eighty- 
 two cases by the work people; in forty-two cases by 
 the employer, and in thirty-three cases by both par- 
 ties. 
 
 In other words, there were five thousand eight 
 hundred seventy-four strikes and lockouts in France 
 in ten years, 1893 -1903, and one thousand four 
 hundred thirteen efforts at settlement, in which five 
 hundred ninety-five were successful and eight hun- 
 dred eighteen failures. There were settlements in 
 forty-two per cent, of the efforts at settlement and 
 settlements in ten per cent, of the total strikes and 
 lockouts. 
 
 The table No. 6 on page 103 shows that there 
 were in France during the years from 1905 to 191 2 
 an average of considerably more than one thousand 
 strikes each year. The lowest number of strikers 
 in any one year was slightly less than one hundred 
 thousand in 1908, and the greatest number somewhat 
 less than a half million in 1905. The table shows 
 the number of establishments affected and the days 
 lost on account of strikes for each year. 
 
 The table No. 7 on page 104 shows the operation 
 of the French conciliation and arbitration act of
 
 FRENCH EXPERIMENTS 
 
 103 
 
 TABLE NO. 6 
 
 SHOWING NUMBER OF STRIKES FOR EACH YEAR, 1905-1912, IN 
 FRANCE, WITH NUMBER OF STRIKERS, NUMBER OF ESTAB- 
 LISHMENTS AFFECTED AND TIME LOST BY STRIKERS* 
 
 Year 
 
 Strikes 
 
 Strikers 
 
 Establish- 
 ments 
 
 Dajs Lost 
 
 1905 
 
 1906 
 
 1907 
 
 1908 
 
 1909 
 
 1910 
 
 1911 
 
 1912 
 
 830 
 1,309 
 1,275 
 1,073 
 1,025 
 1,502 
 1,471 
 1,116 
 
 177,666 
 438,466 
 197,961 
 99,042 
 167,492 
 281,425 
 230,646 
 267,627 
 
 5,302 
 
 19,637 
 
 8,365 
 
 4,641 
 
 5,672 
 
 14,175 
 
 16,148 
 
 6,656 
 
 2,746,684 
 9,438,594 
 3,562,220 
 1,720,743 
 3,559,880 
 4,830,044 
 4.096,393 
 2,318,459 
 
 •Compiled from Annual Reports of Ministcre du Travail et de la 
 Prcvoyance Sociale: Statistique des Graves et des Recours a la Concilia- 
 tion et di I' Arbitrage. 
 
 1892 for the eleven years from 1902 to 1912. In 
 that period there were fourteen hundred fifty-five 
 boards of conciliation formed in sixty-one per cent, 
 of the cases in which there were appeals for con- 
 ciliation or arbitration. The number of disputes 
 ended by boards of conciliation and arbitration was 
 sixty and eight-tenths per cent, of the total number 
 of boards formed. In five hundred three cases 
 strikes were declared after disagreement of the 
 boards of conciliation. The table shows that there 
 were very few instances of appeal to arbitration as 
 compared to the number of appeals for conciliation. 
 Table No. 8, page 105, not only shows the num- 
 ber of strikes for the period from 1902 to 191 1, but
 
 104 INDUSTRIAL ARBITRATION 
 TABLE NO. 7 
 
 OPERATION OF FRENCH CONCILIATION AND ARBITRATION ACT OF 
 1892 FOR THE ELEVEN YEARS, 1902-1912* 
 
 Number of boards of conciliation 1,455 
 
 Proportion of boards in comparison to the number 
 
 of appeals 61% 
 
 Number of boards having ended the disputes — 
 
 By conciliation 831 
 
 By arbitration 55 
 
 Total 886 
 
 Proportion of disputes ended in comparison to the 
 
 number of boards 60.8% 
 
 Number of refusals of recourse to arbitration — 
 
 By masters 94 
 
 By workers 40 
 
 By both parties 90 
 
 Total 224 
 
 Number of strikes ended indirectly by the boards of 
 conciliation after the meetings of the boards 65 
 
 Number of strikes declared or continued after dis- 
 agreement of the boards of conciliation 503 
 
 *Statistique des Greves et des Recours a la Conciliation et A I'Arbi- 
 trage Survenus pendant I'Annce 1912, p. xv. 
 
 the number of appeals made upon the initiative of 
 masters, workers, both parties and the justice of the 
 peace under the act of 1892. There were appeals 
 for boards of conciliation or arbitration in twenty 
 and three-tenths per cent, of the strikes, but in eight 
 hundred thirty-six cases one or both parties rejected 
 efforts at conciliation. Other features of the opera- 
 tion of the act are also shown by the table.
 
 FRENCH EXPERIMENTS 105 
 TABLE NO. 8 
 
 RESULTS OF EFFORTS AT CONCILIATION AND ARBITRATION UNDER 
 FRENCH LAWS, 1902-1911* 
 
 Number of strikes 11,706 
 
 Number of appeals before strike 172 
 
 Number of appeals made upon the initiative — 
 
 Of masters 51 
 
 Of workers 1,016 
 
 Of both parties 100 
 
 Of justice of peace 1,213 
 
 Total 2,380 
 
 Proportion of appeals in comparison to the number 
 
 of strikes 20.3% 
 
 Number of strikes ended in the course of the pro- 
 cedure before the formation of a board 86 
 
 Number of rejections of attempted conciliation — 
 
 By the masters 696 
 
 By the workers 42 
 
 By both parties 98 
 
 Total 836 
 
 Number of disputes abandoned by the workers or 
 
 settled immediately after a refusal of conciliation 101 
 Number of strikes declared or continued after the 
 
 refusal of conciliation 736 
 
 *Statistique des Graves et des Recoiirs a la Conciliation et a ['Arbi- 
 trage Survenus pendant I'Annce 1912, p. xiv. 
 
 Table No. 9 on page 107 shows which party pre- 
 vailed in the settlement of strikes from 1902 to 19 12 
 by application of the French act and where efforts 
 to apply the act failed. Strikers seem to have been 
 more successful under the act than in fighting out- 
 side the act Where the law was resorted to strikes
 
 io6 INDUSTRIAL ARBITRATION 
 
 were successful in seventeen and two-tenths per cent, 
 of the cases and where the application failed, strikes 
 were successful in only seven and nine-tenths per 
 cent, of the cases. More than half of the cases 
 where the act was resorted to were compromised 
 and nearly half of the strikes where the act was 
 not resorted to were compromised. 
 
 The table No. lo on page 107 shows the percentage 
 of successful, compromised and unsuccessful strikes 
 and strikers for 1902-1911 and the year 1912. 
 While twenty-one and two-hundredths per cent, of 
 the strikes from 1902 to 191 1 were successful, only 
 twelve and seventeen-hundredths per cent, of the 
 •strikers succeeded. About forty-one per cent, of 
 the strikes and thirty per cent, of the strikers failed 
 between 1902 and 191 1. The statistics for 1912 are 
 not especially significant. 
 
 The act of 1892, says Harris Weinstock, "has 
 remained practically a dead letter, as neither side 
 has, as a rule, availed itself of this medium for the 
 peaceful settlement of their difference." 
 
 The gravest peril in French industry at the pres- 
 ent time is the influence of syndicalism. The policy 
 of syndicalism was first adopted at a congress of 
 trade unions held at Nantes in 1894 and at Limoges 
 in 1895. Representatives of the trade unions, which
 
 FRENCH EXPERIMENTS 107 
 
 TABLE NO. 9 
 
 SHOWING MANNER IN WHICH STRIKES WERE ENDED, BY APPLICA- 
 TION OF THE FRENCH ACT OF 1892 ; ALSO WHERE THE 
 APPLICATION OF THE ACT FAILED* 
 
 Disputes ended by application under the law 1,141 
 
 Results — 
 
 Successful 196, or 17.2% 
 
 Compromised 794, or 69.6% 
 
 Failed 151, or 13.2% 
 
 Disputes in which the application of the law failed. ..... 1,239 
 
 Results — 
 
 Successful 98,or 7.9% 
 
 Compromised 587, or 47.4% 
 
 Failed 554, or 44.7% 
 
 *Statistiq%ie dcs Grtvcs et des Recours d la Conciliation et d, I'Arbi- 
 trage Survenus pendant V Annie 1912. 
 
 TABLE NO. 10 
 
 RESULT OF STRIKES FOR TEN YEARS, 1902-1911, ALSO RESULT OF 
 STRIKES FOR YEAR 1912* 
 
 
 Str 
 
 kes 
 
 Strikers 
 
 Results 
 
 Average for 
 
 Ten Years 
 
 19021911 
 
 In 1912 
 
 Average for 
 
 Ten Years 
 
 1902-1911 
 
 In 1912 
 
 Successful 
 
 Compromised 
 
 Failed 
 
 21.02 
 
 38.02 
 40.96 
 
 17.29 
 34.23 
 48.48 
 
 12.17 
 57.62 
 30.21 
 
 6.78 
 26.68 
 66.54 
 
 *Statistique dcs Grives et des Recours & la Conciliation et d I'Arbi- 
 trage Survenus pendant I'Annce 1912, p. vii. 
 
 had adopted syndicalism in 1894 at Nantes, formed 
 the Confederation Generate dii Travail. In 1902, 
 the C. G. T. formed an alliance with the labor ex- 
 changes. Trade unions, affiliated with the C. G.
 
 io8 INDUSTRIAL ARBITRATION 
 
 T., receive four thousand six hundred pounds a year 
 for the ostensible object of finding employment for 
 laborers, but it is now pretty well assured that the 
 fund has been used for political propaganda. 
 
 Syndicalism aims at the destruction by force of 
 existing organization and the transfer of industrial 
 capital from the present possessors to syndicates or 
 revolutionaiy trade unions. This it seeks to accom- 
 plish by the "general strike." As early as 1868 the 
 International Labor Congress at Brussels declared 
 "that if production were arrested for a certain time, 
 society could not exist, and that it was only neces- 
 sary for producers to cease to produce in order to 
 make government impossible." Five years later, 
 the Belgian section of the Internationalists invited 
 other sections to prepare for a general strike. But 
 it was the anarchist Tortelier, a Parisian carpenter, 
 who, in 1888, first suggested the general strike as a 
 definite policy. 
 
 It was Waldeck-Rousseau who put through the 
 fundamental law in 1884 allowing labor unions to 
 become syndicates, that is, to exercise legal collective 
 action in defense of the individual interests of their 
 members. Various municipalities, having estab- 
 lished Bourses du Travail in 1886, a law was soon 
 passed limiting the occupation of these bourses to
 
 FRENCH EXPERIMENTS 109 
 
 the syndicates. Millerand secured for employees 
 of the state the privilege of joining unions and 
 forming federations and Rouvier secured the right 
 to school-teachers and postmen to form themselves 
 into syndicates. 
 
 Two thousand three hundred ninety-nine unions, 
 having a membership of two hundred thousand, are 
 said to have belonged to the Confederation in 1906. 
 These unions are now known as red syndicates, the 
 others as yellow. In the general strike of trade 
 unionism in France in 1907, the total number of 
 trade unions was estimated at 4,857, of which 2,399 
 were in the Confederation. The number of work- 
 men belonging to trade unions was estimated at 
 836,134, including 203,273 who belonged to the 
 Confederation. In 1908, the C. G. T. was joined 
 by the Miners' Association, with 25,000 members, 
 and was strengthened by additions from govern- 
 ment workers. In actual count, the C. G. T. num- 
 bered only 300,000 in 191 1 out of 900,000 union 
 members, out of, in turn, 9,000,000 French work- 
 men. 
 
 The greatest leader of the syndicalist movement 
 in France has been Georges Sorel, a bitter opponent 
 of parliamentary socialism. The syndicalist outline 
 declares for the emancipation of the workers by the
 
 no INDUSTRIAL ARBITRATION 
 
 workers themselves and the creation by them of 
 their own organs. Unions are to be used as units 
 of production and distribution, to meet after the 
 triumph of a general strike and to decide what pro- 
 duction is necessary to meet the community's needs ; 
 to make an equitable distribution of the work to be 
 done, taking into account the strength and capacity 
 of each workman and leaving him free to produce 
 in accordance with the amount of energy he can 
 summon. Syndicalism does not propose the nation- 
 alization of society but seeks to dissolve all bureau- 
 cratic centralization and to syndicate all public serv- 
 ices ; to establish a new economic unit belonging to 
 organized body of syndicalists, the telephone lines 
 to the linemen and operators, the railway to the 
 railway workers, the theater to the actors. Syndi- 
 calism espouses direct action and believes in that 
 only. It appeals exclusively to the proletariat, has a 
 constructive program and thus differs from anarch- 
 ism. Its chief weapon is the strike, during which 
 children of the strikers are to be shipped to cities 
 distant from the seat of the strike so that they may 
 not hinder the men. Strikers are to be fed in com- 
 munists' kitchens while the war goes forward. 
 
 The C. G. T. is now a factor of considerable im- 
 portance in French industrial disputes. It was the
 
 FRENCH EXPERIMENTS in 
 
 C. G. T. which supported the postal strikes in March 
 and May of 1909, which all but demoralized French 
 business. Had the C. G. T. been joined by the rail- 
 way employees at this time the very foundations 
 of the republic would have tottered. The strike of 
 the stable hands at Auteuil in the following June 
 was a complete failure. Violence and sabotage ac- 
 companied this strike. Following the agitation of 
 1909, a measure proposing the prohibition of strikes 
 by public servants was discussed but nothing was 
 done, and in the latter part of the year a federation 
 of one hundred eighty-one thousand civil servants 
 was formed. It represented a large number of as- 
 sociations of state employees. 
 
 The government was successful in putting down 
 the seamen's strike in March, 1910, which, in its 
 latter stages, was supported by the C. G. T. Pro- 
 ceedings were instituted against the president and 
 secretary of the federation and against five hundred 
 strikers. 
 
 A strike of ten thousand railway men, under the 
 auspices of the C. G. T., took place in May, 1910. 
 The first strike subsided somewhat and then grad- 
 ually spread to the north and west and on October 
 twelfth resulted in a general strike officially called 
 by the National Federation of Railway Servants.
 
 112 INDUSTRIAL ARBITRATION 
 
 The train service was badly disorganized. Violence 
 was common. Prompt and effective interference by 
 the government was successful in restoring order 
 and work was resumed on all lines October eight- 
 eenth. Prime Minister M. Briand, who ten years 
 before had addressed a popular meeting as a dev- 
 otee of syndicalism, was finally forced to resign 
 and some, at least, of the dismissed strikers were 
 restored to their places. 
 
 By an act of July 22, 1909, a permanent arbi- 
 tration council was created by the French govern- 
 ment with a view to investigating disputes between 
 shipping companies and their crews. The council 
 has headquarters in Paris. 
 
 The council consists of three members appointed 
 for three years by decree drawn up on the proposal 
 of the keeper of seals, minister of justice, and se- 
 lected from among the ordinary state councilors, 
 also from the councilors of the Court of Cassation; 
 also arbitrators selected for three years by the em- 
 ployers, who shall be present to the number of five 
 at each arbitration ; also arbitrators elected for three 
 years by the employees, who shall be present to the 
 number of five at each arbitration. 
 
 The three members from the State Council and 
 Court of Cassation elect a president and vice-pres-
 
 FRENCH EXPERIMENTS 113 
 
 Ident and constitute the central section of the Per- 
 manent Arbitration Council. 
 
 In each maritime district, the ship owners elect 
 five regular and five deputy arbitrators. Each of 
 four specified classes of employees in each maritime 
 district elects five regular and five deputy arbitra- 
 tors. In detail the act sets out how the council is 
 made up for the settlement of a collective dispute. 
 The central section is always present. Detailed pro- 
 visions are also set out for the election of arbitrators 
 and deputy arbitrators every three years. 
 
 When a collective dispute arises, the parties may 
 submit their controversy to the Director of the Sea- 
 men's Register, or he may take the initiative in an 
 endeavor to conciliate the parties. Upon the failure 
 of conciliation, there Is a roundabout process by 
 which the services of the arbitration council are 
 offered the parties. If they refuse arbitration, a 
 certificate to that effect Is entered by the central 
 section of the council. If the parties agree to arbi- 
 tration, the court is convened. It has full power of 
 investigation, hearing and of giving judgment, al- 
 though It does not appear that either party is bound 
 by the judgment. The judgment is published. The 
 public Is not admitted to the council meetings. 
 
 On the face of it, this act seems too cumbersome
 
 114 INDUSTRIAL ARBITRATION 
 
 — the processes are too indirect — to be of very much 
 practical advantage in settling disputes. 
 
 Public opinion in France is just as uncertain ap- 
 plied to an industrial problem as it is to a political 
 dispute. Lately, public opinion has been arrayed 
 on the side of the government and has enabled it 
 to deal summarily with unjustifiable outbreaks of 
 the working people. The government has earnestly 
 opposed the doctrine that the state employees oc- 
 cupy the same position in society as the employees 
 of private enterprise. The minister of labor said 
 to Samuel Gompers in 1909 that "the work of post- 
 men and government telegraphers, for example, 
 must go on uninterruptedly if the country is to 
 maintain order, peace, communication from place 
 to place, publicity of current events and those con- 
 ditions of commerce in which above all other classes 
 the masses of the working men have a vital inter- 
 est." 
 
 But public opinion in France sometimes follows 
 exftreme paths. It may veer from pole to pole, 
 avoiding middle courses and disregarding prudence 
 and self-control. It may be with the government 
 to-day and opposed to it to-morrow. 
 
 "The French," says Sir Arthur Clay, "are notori- 
 ously a thrifty and provident nation, and although
 
 FRENCH EXPERIMENTS 115 
 
 no doubt a considerable number of the population 
 in the great cities are possessed with a spirit of un- 
 rest, and are only too ready to welcome revolution- 
 ary agitation, yet when the imminence of a social 
 cataclysm in which all property would be lost, and 
 innumerable homes destroyed, was brought home to 
 their minds, the national characteristics asserted 
 themselves, and the determination of the public to 
 give full support to the representatives of law and 
 order in taking the measures necessary to protect 
 them from so awful a catastrophe, was manifested 
 in the clearest way/ 
 
 "The repeated failure of the C. G. T. to secure 
 the obedience of any considerable number of work- 
 men to its commands when it has declared a 'general 
 strike,' " he continues, "has done much to reassure 
 the public, and to destroy their belief in its power 
 as an enemy of society. It has raised the cry of 
 'wolf so often that the bourgeoisie are no longer 
 much alarmed by its repetition." 
 
 Perhaps no better summary of the present con- 
 dition of French industry and the working classes 
 can be found than is contained in a paragraph from 
 an article by Alfred Rambaud, professor in the Uni- 
 versity of Paris, in an article In The Historian's His- 
 tory of the Worlds 
 
 "The working man of to-day is better fed, better 
 clad, better housed, more generously provided in 
 
 ^ No more striking evidence of the truth of this statement 
 could be cited than the unity that has characterized the French 
 resistance to German military oppression. 
 
 ' Vol. .23, p. 215.
 
 116 INDUSTRIAL ARBITRATION 
 
 every way with worldly goods than was the working 
 man of thirty years ago. He profits by all the in- 
 ventions of a philanthropic legislature, enjoys for 
 himself and his children free medical service and 
 judicial aid, but can it truly be said that he is hap- 
 pier than his congener of fifty or sixty years ago? 
 And if it is true, will he admit it? It is ingrained 
 in the nature of man to let his sufferings for the lack 
 of certain things outweigh his happiness in the pos- 
 session of others. French working men are not in- 
 clined to seek comparisons in bygone times, they re- 
 fuse to take into account any period but the present, 
 to see anything but the existing difference between 
 their own and their employer's condition. They 
 display a greater animosity to-day toward the bour- 
 geois class, that has made for them many sacrifices, 
 than was ever cherished by their forerunners against 
 the egotistical employers of 1830. Many among 
 them would think it quite right to work only eight 
 hours a day for high wages, and to have funds es- 
 tablished for them to which they themselves would 
 not have to contribute. Others also, who are depos- 
 itors in savings banks and mutual aid societies, and 
 in receipt of the income assured them by these in- 
 stitutions, give themselves airs of 'proletarians' after 
 the fashion of the working man of 1830, whose only 
 capital was a pair of shrunken arms. If they vote 
 it is very often in favor of some extremist candi- 
 date, as though they had a horror of public tran- 
 quillity, and were not themselves the first to suffer 
 from any disturbance of the peace. Furthermore 
 they are beset by solicitations to join one or more 
 of the many socialistic organizations — the Blan- 
 quists or the Allemanists — whose avowed mission 
 it is to foment hatred between the classes, to pre-
 
 FRENCH EXPERIMENTS 117" 
 
 pare the way for a 'universal strike,' and whose 
 favourite counsel to the working man is to 'study 
 the chemistry of revolution.' " 
 
 France's activity In behalf of social peace has 
 been largely of an inhibitive character. Very few 
 constructive processes have been attempted. A no- 
 table exception is an old-age pension plan framed 
 on a contributory basis and inaugurated in 1905. 
 Pensions of from five to twenty francs a week were 
 paid to persons at least sixty-five years of age and 
 persons permanently infirm, incapacitated or incur- 
 able. The expenses of the system, originally shared 
 by the state, the departments and the communes, 
 amounted to nineteen million dollars in 1909 when 
 there were a half million beneficiaries. In 191 2 the 
 old age pension system was revised somewhat. 
 Workers and employers now contribute to the fund 
 until the worker is sixty years old. The state con- 
 tributes one hundred francs. About nine and one- 
 half million were contributing to the fund in 191 2.
 
 CHAPTER V 
 
 A COUNTRY WITHOUT STRIKES 
 
 f g ^HE Dominion of New Zealand, accredited 
 M as the origin of compulsory industrial arbi- 
 tration, presents an array of social, political and 
 industrial phenomena of very great and increasing 
 interest to the student of industrial problems. Col- 
 onized by English-speaking peoj^le of rare zeal and 
 determination in the last years of the first half of 
 the nineteenth century, the country has enjoyed a 
 history peculiar to the rugged pioneers who settled 
 on the land. 
 
 New Zealand has an area somewhat less than 
 Great Britain and Ireland but its climate is far 
 more favorable and the soil, it is believed, would 
 support a population of near ten million people. 
 After the first steps in the colonization of the island 
 New Zealand found itself face to face with a land 
 problem which seriously hampered the future 
 growth and prosperity of the country. Foreign 
 syndicates had bought up the land, and determined 
 
 Ii8
 
 A COUNTRY WITHOUT STRIKES 119 
 
 to hold it for speculative rises in value, prevented 
 the settlement by home seekers, who might be ex- 
 pected to improve and develop it. This was the 
 first great problem which confronted those men who 
 had at heart the healthy development of the country 
 and it is fair to say that they settled the problem 
 promptly and wisely. 
 
 The system of compulsory arbitration in vogue 
 in New Zealand, as a matter of fact, is compulsory 
 only under certain conditions but it is the nearest 
 approach to a mandatory system anywhere in use 
 and therefore the subject of wide interest by stu- 
 dents of industrial problems. Whether such a sys- 
 tem of conciliation and arbitration as New Zealand 
 has found adequate will operate with the same or 
 approximate degree of success in a country like the 
 United States may be determined by an examina- 
 tion of social, political and industrial conditions in 
 the two countries. While conclusions can not be 
 exact from the very nature of the question, they 
 can not be very far wrong if we take into considera- 
 tion all the factors bearing on the subject. 
 
 New Zealand is not a country without strikes, 
 as some proponents of the New Zealand system 
 would maintain, but the mere fact that during the 
 first nineteen years after the enactment of the law
 
 120 INDUSTRIAL ARBITRATION 
 
 there were but forty-two strikes in the Dominion 
 and half of these were without the scope of the law, 
 is a splendid testimonial to the wisdom of its fra- 
 mers. Whether they found a universal system or not, 
 they are to be accredited with having found a sys- 
 tem that works well in the country for which it was 
 specifically designed. 
 
 Although New Zealand has an area less than any 
 one of seven of the largest American common- 
 wealths, its population, now about one million, is 
 only one-half as great as that of Wisconsin and less 
 than the population of any one of thirty-one Ameri- 
 can states. 
 
 New York City has a population of more than 
 four times that of New Zealand. Chicago is twice 
 as large and Philadelphia is larger by one-half. 
 The United States has forty-seven other cities each 
 with a population of more than one hundred thou- 
 sand, while New Zealand has only one, Auckland, 
 In this class. Three other New Zealand cities have 
 a population of more than sixty thousand, but aside 
 from these four, there are only seven cities with a 
 population of more than eight thousand. The four 
 principal cities of New Zealand together have a 
 population less than Baltimore, Boston, Buffalo, Cin'
 
 A COUNTRY WITHOUT STRIKES 121 
 
 cinnati, Cleveland, Detroit, Los Angeles, Milwau- 
 kee, Minneapolis, New Orleans, Newark, N. J., 
 Pittsburgh or St. Louis, yet more than thirty per 
 cent, of the people of New Zealand live in the prin- 
 cipal cities. 
 
 Mere bigness docs not prove wholly that the 
 United States is not adapted to the success of an 
 institution which works well in smaller states. It 
 does, however, raise a strong presumption of doubt 
 and particularly when the character or fabric of 
 that bigness is a factor of serious consequence. This, 
 it will appear, is the case. 
 
 It is obvious that New Zealand has no great and 
 complex problems of city government, no social 
 problem of congested population with tenements and 
 disease, no industrial problem of overcrowded trades 
 and unemployment such as a country just emerged 
 from an epoch of industrial over-developm.ent is 
 likely to have on its hands. New Zealand has no 
 highly specialized industries, no finely spun division 
 of labor, and therefore, no glaring instances of eco- 
 nomic dependence of the worker upon machines. 
 Industrial development in New Zealand is far be- 
 hind that in the United States. 
 
 It is noteworthy that New Zealand has no great
 
 122 INDUSTRIAL ARBITRATION 
 
 race problem like that of the United States. | The 
 Dominion immigration laws have been very strict 
 for many years. In 1909 a rigid educational test 
 was enacted. This act prohibits the landing of 
 idiots, persons suffering from a dangerous or loath- 
 some disease, certain convicted criminals and any 
 person other than of British birth who fails to write 
 out and sign in any European language a prescribed 
 form of application. The country has been par- 
 ticularly strict in its regulation of Chinese immi- 
 gration. The Chinese population numbered only 
 2,630 in 191 1, more than 1,000 less than lived in 
 the Dominion in 1896, when a law was passed lay- 
 ing a poll tax of $486.60 on each Chinaman who 
 came to the island. The character of the immigra- 
 tion is indicated somewhat by the naturalizations 
 during the last twenty-seven years. In that period, 
 about 7,500 persons were naturalized, of whom over 
 4,500 were from Germany, Sweden, Norway, Den- 
 mark and the Netherlands, 367 from Russia, 181 
 from France, 47 from Belgium, 236 from Switzer- 
 land, 126 from the United States, 292 from Italy 
 and Sicily, 'j'^ from Portugal, more than 1,000 from 
 Austria-Hungary, "]"] from Greece and 418 from 
 China. Two hundred and thirty-seven were from
 
 A COUNTRY WITHOUT STRIKES 123 
 
 other countries. Those races which, for the past 
 quarter century, have flocked to the American 
 shores, are represented by inconsiderable numbers 
 in the New Zealand immigration. 
 
 In 1910, not only were there living in the United 
 States nearly nineteen million people born of for- 
 eign parents, but over six and one-half million were 
 foreign born. In addition to the foreign born and 
 those born of foreign parents, there were about ten 
 million negroes in the United States. This vast 
 foreign-born population, recruited from every coun- 
 try in the globe and lately from countries with a low 
 standard of living, has thrust upon the United States 
 such an industrial problem as New Zealand has 
 never known and probably never will know. There, 
 a large majority of the workers are English or of 
 English descent, and a common standard of living 
 prevails. What is flesh for one is also flesh for 
 another. There, the wage question is not complex 
 because it is possible to determine very nearly what 
 is a living wage for all the people. No hordes of a 
 million a year are flocking to the ports of New Zea- 
 land and there are no cities there like Gary, Indiana, 
 for instance, where more than forty languages are 
 spoken by the working people. Diversity of races
 
 124 INDUSTRIAL ARBITRATION 
 
 and the competition of one race with another makes 
 the wage question and the question of working con- 
 ditions an intricate problem in the United States. 
 
 It is significant that industry is much vaster in 
 the United States than in New Zealand. New Zea- 
 land has less than seventy-five thousand persons en- 
 gaged in the operation of factories, while the United 
 States has nearly eight million. Less than four 
 thousand persons are employed in the New Zealand 
 coal mines, while the United States reported in 1909 
 over a million workers engaged in that industry. 
 As compared to a little over two million tons of 
 coal mined in New Zealand In 19 10, the United 
 States mined nearly five hundred million tons in 
 1908. 
 
 But the character of industry in this country is 
 also different and it is indicated by the value of 
 leading products for a single year. Agriculture 
 dominates the industrial life of New Zealand, where 
 in 191 1 the value of agricultural produce amounted 
 to $1 13,000,000, the value of mine products to $18,- 
 000,000 and the value of manufactured products to 
 $35,000,000. In a single year the agricultural prod- 
 ucts amounted to more than twice the mining and 
 manufactured products.
 
 A COUNTRY WITHOUT STRIKES 125 
 
 In the United States for 1909, the agricultural 
 crops amounted to $5,487,000,000, mining products 
 to $1,238,410,322 and manufactured products to 
 $20,672,052,000. Manufactured products, there- 
 fore, amounted to more than three times the total 
 value of agricultural crops and mining products. 
 From the fact that industrial problems are most 
 acute in the factory and the mine, it is apparent that 
 industrial peace will be far more difficult to attain 
 in this country. 
 
 One important reason why compulsory arbitration 
 should succeed in New Zealand and fail elsewhere 
 is the strong organization of New Zealand working 
 people. These organizations have a high standing 
 because of wise and honorable leadership and be- 
 cause they have flourished without particular oppo- 
 sition from industrial leaders. Not only are the 
 workers organized but the employers also. In 1910, 
 118 unions of employers, with a membership of 
 4,262, and 308 unions of workers with a member- 
 ship of 57,000 were registered under the arbitra- 
 tion act. This was an increase of 75 employers' 
 unions and a membership of 3,246 employers and 
 an Increase of 117 workers' unions and a member- 
 ship of 39,102 workers over 1900. There were
 
 126 INDUSTRIAL ARBITRATION 
 
 about 60,000 members of workers' unions registered 
 under the act In 191 3 and about 10,000 members of 
 workers' unions not so registered. 
 
 The membership of the workers' unions by trade 
 groups in 1910 was as follows: agriculture, 4,142; 
 building, 6,857; clothing and textile, 4,717; engi- 
 neering and ship building, 3,383 ; food supply, 
 7,357; mining, 4,689; printing, 1,163; transporta- 
 tion, 17,104; other trades, 7,679. In the United 
 States, the 19 10 census showed approximately 38,- 
 000,000 people employed In various pursuits. Ag- 
 riculture claimed about 13,000,000, trade and trans- 
 portation nearly 6,000,000, manufacturing and 
 mechanical pursuits about 10,000,000, domestic and 
 personal service 5,500,000 and professional service 
 1,750,000. 
 
 From the fact that trade unionism was an estab- 
 lished fact In New Zealand when the conciliation 
 and arbitration laws were first passed and that these 
 laws were prefaced on the theory that the workers 
 and the employers were fully organized, New Zea- 
 land no longer has to determine such a question as 
 whether a union shall or shall not be recognized. 
 This question, the cause of approximately one-fifth 
 the industrial disputes In the United States, was 
 settled In New Zealand long before compulsory ar-
 
 A COUNTRY WITHOUT STRIKES 127 
 
 bitration became a fact. The Dominion of New Zea- 
 land has been foremost in the enactment of social 
 legislation in behalf of the working people. Before 
 the present arbitration laws were passed, New Zea- 
 land practically had eliminated its sweated indus- 
 tries. The government has been paternalistic from 
 the first, and very probably the early necessity of 
 solving a perplexing land problem crystallized the 
 tendency in this direction. The comfort and well 
 being of its workers have always been uppermost 
 among the fixed policies of the country. 
 
 Government ownership and operation of rail- 
 roads, telephones, telegraphs, coal mines, life, fire 
 and accident insurance, and post-office savings banks 
 are among the best known instances of the socializ- 
 ing tendency of the New Zealand government. 
 
 New Zealand's railway department employs about 
 10,000 hands and the postal department about 5,000. 
 The deposits in the post-office savings bank of New 
 Zealand more than doubled from 1900 to 19 10. 
 These banks had 380,585 open accounts at the close 
 of 1910 as compared with 212,436 at the close of 
 1900. The average amount standing to the credit 
 of each open account in the post-office savings bank 
 in 1910 was thirty-seven pounds, one shilling, three 
 pence, as compared to twenty-nine pounds, seven-
 
 128 INDUSTRIAL ARBITRATION 
 
 teen shillings, ten pence In 1900. Deposits in pri- 
 vate banks and in building and investment societies 
 also have greatly increased during late years. 
 
 There is an imposing body of laws, strictly en- 
 forced in New Zealand, regulating the hours of 
 labor of adults and young persons, wages, sanitary 
 and hygienic conditions, and these laws have set- 
 tled permanently in New Zealand problems with 
 which boards of arbitration still have to contend 
 in this country and which remain as the greatest 
 obstacles to a satisfactory understanding between 
 employers and work people. 
 
 Among these laws are the old age pensions act 
 of 1899, the factories act, the shops and offices act 
 and the workmen's compensation act of 1908, the 
 workers' dwelling act of 1910 and the shipping act 
 of 1909. 
 
 The old age pensions act was passed subsequent 
 to New Zealand's effort to regulate wages by state 
 agency. Just as soon as wages were increased and 
 hours shortened, it was necessary to make provision 
 for inferior workmen and to relieve employers of 
 having to pay maximum wages for inferior service. 
 Old age pensions were provided to relieve the em- 
 ployer of this burden and the aged workman of dis- 
 tress during his years of reduced efficiency.
 
 A COUNTRY WITHOUT STRIKES 129 
 
 Since the old age pensions act went into effect 
 in 1899, New Zealand has paid out approximately 
 fifteen million dollars in pensions. There were over 
 fifteen thousand pensioners in 191 1 who received 
 from the state nearly two million dollars. The max- 
 imum pension is now one hundred twenty-six dollars 
 and ninety-six cents a year. 
 
 The New Zealand factories act of 1908 was a 
 consolidation of former legislation. It was amended 
 In 1910. The eight-and-one-quarter-hour day and 
 the forty-five-hour week with restrictive overtime 
 which must be paid for is required for women and 
 boys, except In woolen mills, where forty-eight 
 hours a week are allowed. If men are employed 
 over eight and three-quarters hours a day or forty- 
 eight hours a week, overtime rates must be paid and 
 the amount of overtime Is limited. Hours for men 
 are subject to awards of the arbitration court. 
 Wages of young persons, statutory holidays, regu- 
 lated hours of overtime, sanitation and hygiene of 
 factories, provision for fire-escapes and drinking 
 water are carefully set out in this act. Saturday 
 Is a statutory holiday. Restrictions as to working 
 hours In laundries, by an amendment of 19 10, were 
 extended to proprietors as well as employees. In 
 order to prevent unfair competition from the Chi-
 
 130 INDUSTRIAL ARBITRATION 
 
 nese. All factories are subject to rigid inspection. 
 In the United States, the eight-hour day is far from 
 universal, and prevails only in highly organized 
 trades and in work done for the federal government 
 and the several states. 
 
 The shops and offices act of 1 908 is a consolida- 
 tion of legislation, the first of which was enacted 
 in 1892. The consolidated act regulates the hours 
 of assistants in shops, which must not exceed fifty- 
 two hours a week or more than nine hours a day, 
 with the exception of eleven hours on one day and 
 overtime under the warrant from an inspector. 
 Overtime must be paid for and the shop must be 
 kept clean and well ventilated. A weekly half hol- 
 iday is compulsoiy. Minimum wages for young per- 
 sons of five shillings a week with an annual increase 
 of three shillings a week until one pound is reached 
 are provided in the act. An amendment of 1910 
 puts all the assistants employed in hotels and res- 
 taurants under special provisions as to hours and 
 working conditions. 
 
 A workmen's compensation act was passed in 
 1908 and a government insurance act of the same 
 year provides for insuring employers against risk. 
 The compensation act allows compensation up to 
 $2,430 in case of death and in case of total or par-
 
 A COUNTRY WITHOUT STRIKES 131 
 
 tial incapacity, the compensation payable in half 
 wages with a limit of $2,430 or six years' payment. 
 
 In 1908, several statutes were consolidated into 
 the wages protection and contractors' liens act. It 
 insures the regular payment of wages; permits at- 
 tachments of moneys in the hands of employers 
 when wages are in arrears; prohibits attachment of 
 workers' wages, except in the case of any surplus 
 exceeding nine dollars and seventy-two cents a 
 week; prohibits payment for wages being made in 
 anything except money or by approved check; en- 
 titles a contractor or worker to a lien on the lands 
 or chattels of his employer and permits no deduc- 
 tion from the workers' wages for purposes of in- 
 surance against compensation for accident. 
 
 Proper sleeping and dining accommodations, ven- 
 tilation and sanitation must be provided for wan- 
 dering workmen utilized as wool shearers and for 
 farm assistants employed the year round. Machin- 
 ery is subject to rigid inspection, as well as scaffolds 
 and gears used in the erection or repair of buildings. 
 
 Under the workers' dwelling act of 1910, Crown 
 land was set apart and buildings erected for work- 
 ers may be purchased by a deposit of forty-eight 
 dollars and sixty cents and the payment of the bal- 
 ance in instalments ranging over twenty-five and
 
 132 INDUSTRIAL ARBITRATION 
 
 one-half years. On March 31, 191 1, one hundred 
 twenty-six workers' dwellings had been erected un- 
 der the act. The Superintendent of the State Guar- 
 anteed Advances office may lend money for the pur- 
 pose of purchasing or erecting a dwelling to any 
 person employed In manual or clerical work not in 
 receipt of an income of more than nine hundred 
 seventy-two dollars j^er annum. Advances amount- 
 ing to seven and one-half million dollars had been 
 made under the system on March 31, 191 1, four 
 years after its institution. 
 
 Shipping is under strict regulation and seamen 
 are guaranteed adequate protection under acts of 
 1908 and 1909. 
 
 Wages and the cost of living are important fac- 
 tors in the welfare of working people. Wages do 
 not seem so high in New Zealand as in the United 
 States, but working conditions are far more whole- 
 some and employment is steady. From 1895 to 
 1907, there was an increase of nineteen and seven- 
 tenths per cent, in wages in industrial occupations 
 and for the same period an increase of twenty-nine 
 and three-tenths per cent, in wages paid to agricul- 
 tural laborers. The attorney general, however, is 
 responsible for a statement made in 1908 that the 
 cost of living for the preceding twelve years had in-
 
 A COUNTRY WITHOUT STRIKES 133 
 
 creased seven-hundredths per cent, faster than 
 wages. 
 
 For nearly a decade, the United States has heard 
 the hue and cry raised against the high cost of liv- 
 ing. It has been shown repeatedly that wages, al- 
 though on the rise, have not kept pace with the cost 
 of living. The difference of seven-hundredths per 
 cent, in New Zealand is not a considerable hardship 
 as compared to the most conservative estimates of 
 the widening chasm between wages and living in 
 this country. 
 
 The city of Auckland and vicinity may be taken 
 as typical of wages paid in New Zealand, although 
 they do vary somewhat throughout the Dominion. 
 
 For 1 9 10 farm laborers are rated at from $4.86 
 to $8.50 per week with board, harvesters receiving 
 the highest wage or from $6.08 to $8.50. Without 
 board farm laborers received from $1.70 to $2.43 
 per day and harvest hands $.24 3-10 per hour. 
 Among the artisans, masons were paid $2.92 per 
 day without board, plasterers and bricklayers as 
 high as $3.40 and as low as $2.92. Cabinet makers, 
 carpenters, boilermakers, blacksmiths, tinsmiths, 
 wheelwrights, shipwrights, plumbers, painters, sad- 
 dlers, shoemakers, coopers and watchmakers re- 
 ceived from $2.02, a minimum in the case of watch-
 
 134 INDUSTRIAL ARBITRATION 
 
 makers, to $2.75, a maximum in the case of plumb- 
 ers. General laborers received from $1.94 to $2.43 
 per day without board. Tailors received $2.02 to 
 $2.19. Compositors were paid from $11.66 to 
 $15.80 per week in Auckland but the maximum ran 
 as high as $19.44 a week in Hawke's Bay. Saw- 
 mill hands received all the way from a minimum 
 of $10.21 at Auckland to a maximum of $17.50 per 
 week in Westland. Married couples without fam- 
 ilies received as servants all the way from $340.62 
 to $486.60 per year throughout the Dominion. This 
 included board. Cooks were paid as low as $9.13 
 per week and as high as $12.15; laundresses, with 
 board, by the week from $3.65 to $7.29; house serv- 
 ants from $2.43 to $4.86 per week. House maids 
 were paid slightly higher. Needlewomen were paid 
 from $3.03 to $7.29 per week without board. 
 
 Drunkenness and drinking can not be overlooked 
 as an important cause of discontent among work- 
 ing people. The factory saloon especially may be 
 looked upon as one of their greatest curses. Not 
 only does excessive drinking breed discontent but 
 expenditures for liquor impoverish the home of the 
 working man and cause great domestic distress. 
 
 The year 1910 may be taken as typical of the
 
 A COUNTRY WITHOUT STRIKES 135 
 
 amount of drinking in the Dominion of New Zea- 
 land and the United States. In that year, New 
 Zealand, exclusive of Maoris, consumed an average 
 of 10.632 gallons of spirits, wine and malt liquor, 
 per capita. In the same year, the people of the 
 United States consumed more than twice as much, 
 or 22.7 gallons per capita. While the people of 
 this country drank 20.66 gallons of beer per capita 
 in 1910 the people of New Zealand drank only 9.741 
 gallons. But Americans also drank more distilled 
 spirits in 1 9 10, that consumed here being 1. 46 gal- 
 lons and that consumed in New Zealand being about 
 half as much, or .737 gallons. New Zealand con- 
 sumed less than one-fourth as much wine per cap- 
 ita, the figures being .154 gallons for that country 
 and .6^] gallons per capita for the United States. j 
 
 Per capita consumption of liquor has increased 
 alarmingly in this country. Between i860 and 1910, 
 it increased from six gallons per capita to twenty- 
 two gallons. The consumption of all liquors, how- 
 ever, is slightly on the increase in New Zealand. 
 It rose thirty-three-hundredths gallons per capita 
 between 1900 and 19 10. 
 
 The people of the United States consume nearly 
 twice as much tobacco per capita as the people of
 
 136 INDUSTRIAL ARBITRATION 
 
 New Zealand. The per capita consumption here is 
 four and forty-hundredths pounds and two and six- 
 ty-nine-hundredths jijounds in New Zealand. 
 
 Careful precaution against pauperism, unemploy- 
 ment and want by safeguarding the personal wel- 
 fare of working men and women has made the 
 people of New Zealand the most contented of any 
 people on earth. This contentment, partially, per- 
 haps, due to the wholesome climate, is reflected in 
 the death rate of the country, given as 9.22 for 
 each 1,000 population in 1908. In the same year, 
 the death rate of other countries was as follows : 
 England and Wales, 14.7; Scotland, 16.1; Ireland, 
 17.6; Denmark, 14.5; Norway, 14.3; Sweden, 14.9; 
 Austria, 22.3; Hungary, 24.8; Switzerland, 16.2; 
 German Empire, 18. i; Netherlands, 15.0; France, 
 19.0, and Italy, 22.6. The death rate for all classes 
 and all ages, according to the census of 1900 in the 
 United States was 17 for each 1,000 population, 
 nearly twice that of New Zealand. 
 
 The expectation of life is greater in New Zealand 
 than anywhere on the globe. At ten years of age, 
 the average duration of life in New Zealand is 
 53.094 years while it is only 48.72 years in this 
 country, according to the American Experience Ta- 
 ble of Mortality. At twenty, the expectancy of life
 
 A COUNTRY WITHOUT STRIKES 137 
 
 is 44.551 years in New Zealand and 42.20 in the 
 United States. At thirty-five, it is 32.829 in New 
 Zealand and 31.78 in the United States. At fifty, 
 it is 21.636 in New Zealand and 20.91 in the United 
 States. At seventy-five, It is 7.16 in New Zealand 
 and 6.2^ in the United States. 
 
 When we consider the great length to which New 
 Zealand has gone in preparing the way for a happy 
 and contented body of work people, we do not much 
 wonder that compulsory arbitration has proved suc- 
 cessful there. We do not wonder that the public, 
 acting through the regularly constituted instru- 
 ments of government, and after having proceeded 
 to extreme lengths in making working conditions 
 wholesome. Is able to maintain the superiority of 
 the public interest In more or less trivial contro- 
 versies between employer and employee. We do 
 not wonder that strikes and lockouts can be pre- 
 vented in that country. We have no cause to mar- 
 vel that compulsory industrial conciliation and arbi- 
 tration is successful. We should be surprised were 
 it not successful. 
 
 From the earliest times. New Zealand depended 
 almost altogether upon water transportation for 
 communication between various parts of the two 
 islands. In 1892, there occurred the organized
 
 138 INDUSTRIAL ARBITRATION 
 
 strikes of the workers in Australian colonies, in 
 which the Seamen's Union took a leading part. 
 Sympathy for the Australian cause practically re- 
 sulted in a general strike of the New Zealand Sea- 
 men's Union, and trade was badly disorganized. As 
 a result of this strike, the New Zealand arbitration 
 law was passed in 1893 and became effective in 
 1894. 
 
 The minister of labor was designated to admin- 
 ister the act. It provided for local boards of con- 
 ciliation in "industrial disputes" and a general court 
 of arbitration. District boards were composed of 
 three or five members, the chairman being chosen 
 by the representative members from the working 
 and employing classes who elected their members. 
 They were appointed by the governor from nomina- 
 tions made by registered trade unions and registered 
 employers' associations. The president of the court 
 was chosen directly by the governor from the judges 
 of the Supreme Court. Either party before a hear- 
 ing had begun might require a dispute to be re- 
 ferred from the district boards of conciliation to the 
 court of arbitration. Once a case was referred for 
 conciliation, it was unlawful to call a strike or lock- 
 out. Agreements might be made between the par- 
 ties, but their enforcement was compulsory, the
 
 A COUNTRY WITHOUT STRIKES 139" 
 
 same as an award by the arbitration court. Full 
 power to compel the presence and testimony of wit- 
 nesses was given the district boards of conciliation 
 and the arbitration court. Every industrial dispute 
 except indictable offenses came under the operation 
 of the law, and since the act was based upon a free 
 recognition of trade unionism, conciliation boards 
 and the court were required to give preference to 
 the members of trade unions. 
 
 While this act was regarded as a compulsory ar- 
 bitration statute, there was no penalty for failing 
 to register, and unregistered organizations did not 
 come under the act. Awards were automatically 
 extended to whole industries by the act of 1900, 
 the amendments of 1901 and 1903 and an interpre- 
 tation of the court in 1904. 
 
 Between 1896 and 1903, two hundred thirteen 
 employers were charged with violating awards and 
 one hundred seventy-one were convicted. During 
 the same period, four employees were charged with 
 similar offenses and three convictions were obtained. 
 
 The industrial conciliation and arbitration acts 
 were consolidated in 1908 and amendments were 
 added in 1908 and 1910. The New Zealand Official 
 Y ear-Book for 191 1 gives a summary of thq main 
 provisions,
 
 I40 INDUSTRIAL ARBITRATION 
 
 Under the act the Dominion of New Zealand is 
 divided into eight industrial districts. Any society 
 consisting of not less than three persons in the case 
 of employers or fifteen in the case of workers in 
 any specified industry or industries in an industrial 
 district may be registered as an industrial union. 
 Any incorporated company may be registered as 
 an industrial union of employers. Any two or more 
 industrial unions of employers or employees may 
 form an industrial association and register under 
 the act. Industrial associations are formed usually 
 for the whole or greater part of New Zealand, com- 
 prising unions registered in the various industries. 
 Registration enables any union or association to en- 
 ter into and file an industrial agreement setting out 
 the conditions of employment. Although this agree- 
 ment is limited to a period of three years, it remains 
 in force until superseded by another agreement or 
 an award of the court of arbitration, except where 
 the registration of the union of workers concerned 
 is canceled. In the event of a failure to reach an 
 industrial agreement, registration permits the par- 
 ties to bring an industrial dispute before the council 
 of conciliation and, if necessary, before the court of 
 arbitration. 
 
 A council of conciliation has no compulsory pow-
 
 A COUNTRY WITHOUT STRIKES 141 
 
 ers but merely makes an endeavor to bring about 
 a settlement which, if made, is filed as an industrial 
 agreement. If no settlement is reached, the council 
 of conciliation is required to refer the dispute to 
 the board of arbitration, which, after hearing the 
 parties, may make an award. Such awards, like 
 industrial agreements, are binding on all parties 
 concerned. Unless otherwise provided, the award 
 applies to the industrial district in which it is made. 
 Awards are limited to a period of three years but 
 remain in force until superseded by another award 
 or by a subsequent agreement, except where regis- 
 tration of the union of workers has been canceled. 
 
 It is now impossible to refer a dispute directly 
 to the court of arbitration without waiting for a 
 hearing by the board of conciliation. 
 
 Four conciliation commissioners, holding office 
 for three years, may be appointed and three were 
 appointed in 191 1, and each of the eight industrial 
 districts was placed under the jurisdiction of the 
 commissioner. 
 
 When a dispute arises, the commissioner is noti- 
 fied and recommendations are received for one, two 
 or three assessors to act as representatives on the 
 council of conciliation. Councils of conciliation are 
 set up after notice to the other party by the com-
 
 142 INDUSTRIAL ARBITRATION 
 
 missioner and recommendations by them of an equal 
 number of assessors. 
 
 The court of arbitration is appointed for all New 
 Zealand and consists of three members, one of 
 whom, the permanent judge of the court, possesses 
 the same powers and privileges as a judge of the 
 Supreme Court, The other judges are nominated, 
 one by the various unions of employers and one 
 by the unions of workers and their appointments 
 determined by a majority of the unions on each 
 side respectively. They hold office for three years 
 and are eligible to reappointment. The judge and 
 one member constitute a quorum. There is no ap- 
 peal from the decision of the court, except in cases 
 beyond the scope of the act. 
 
 Strikes and lockouts are Illegal only if parties 
 concerned are bound by an award or agreement. 
 Workers are subject to a penalty of forty-eight dol- 
 lars and sixty cents and employers to a penalty of 
 two thousand four hundred thirty dollars for strikes 
 and lockouts. Gifts of money are deemed to be aid- 
 ing or abetting a strike or lockout and these are 
 punishable by a fine. In certain Industries affecting 
 the supply of water, milk, meat, coal, gas or elec- 
 tricity, -or the operation of a ferry, tramway or rail- 
 way, fourteen days* notice must be given within one
 
 A COUNTRY WITHOUT STRIKES 143 
 
 month of an intended strike or lockout, whether sub- 
 ject to an award or agreement, or not. Strikes and 
 lockouts are forbidden during the hearing of a dis- 
 pute by the council or court of arbitration. 
 
 Breaches of awards and industrial agreements are 
 punishable by fines of four hundred eighty-six dol- 
 lars against a union, association or employer, and 
 twenty-four dollars and thirty cents against a 
 worker. 
 
 Since the passage of the New Zealand act in 1893 
 to the thirty-first of March, 191 1, there was a total 
 of forty-two strikes, of which twelve were of the 
 slaughtermen. These twelve strikes occurred in 
 1907. Of the twelve slaughtermen strikes, six were 
 within the scope of the act and six outside it. Of 
 the forty-two strikes from 1894 to 191 1, twenty were 
 within the scope of the act and twenty-two outside 
 the scope of the act. In 1909, there were four strikes 
 In New Zealand, in 1910, eleven, and in 191 1, up to 
 March 31, two strikes. 
 
 The New Zealand Y ear-Book for 191 1 is author- 
 ity for the statement that the capital value of land 
 almost trebled from 1878 to 191 1. The year-book 
 for 1908 shows that the hands employed for the 
 period between 1901 and 1905 increased nearly one- 
 fourth, and that the output increased about one-
 
 144 INDUSTRIAL ARBITRATIOxN 
 
 third. Bank deposits increased from nineteen and 
 ninety -two-hundredths pounds per head in 1890 to 
 twenty-live and fifty-nine-hundredths pounds in 
 1907. Imports of boots and shoes more than doub- 
 led from 1895 to 1 9 10. Woolen imports almost 
 doubled from 1895 to 1905 and imported machinery 
 more than doubled from 1895 ^o 1910. 
 
 Between 1895 and 1905, manufactures of boots 
 and shoes increased thirty-nine per cent. ; woolens, 
 thirty-one per cent. ; machinery and implements, 
 ninety-five per cent. But imports continue to show 
 a notable increase over domestic manufactures. 
 
 Harris Weinstock repudiates criticisms of the ap- 
 parently abnormal increase in the debt of New Zea- 
 land since the passage of the compulsory arbitration 
 act of 1894.^ These critics, he says, call attention 
 to the fact that in 1894 the Dominion debt was £38,- 
 000,000, or a per capita debt of $278.57, whereas 
 in 1908 the debt of the Dominion had grown to £66,- 
 000,000, or a per capita debt of $320.00. 
 
 "I took pains," he says, "to have these statements 
 analyzed, with the following results : I found that 
 in 1894, out of the debt of £38,000,000, there was 
 invested in productive works £17,162,000, leaving a 
 non-productive debt of £21,838,896 ($105,914,300) 
 on which the people had to pay interest, whereas 
 
 ^ Special Labor Report on Strikes and Lockouts, Harris 
 Weinstock, p. 139.
 
 A COUNTRY WITHOUT STRIKES 145 
 
 in 1908 investment in productive works aggre- 
 gated £47,416,743, leaving a non-productive debt 
 of £19,047,154 ($92,378,697), so that as a matter 
 of fact, the debt on which the people had to pay 
 interest had, in the intervening years, diminished 
 by $I3>535,603. The productive investments yield 
 the Dominion an income of from 3 to 7^ per cent., 
 and go a good way toward lightening the tax bur- 
 dens in other directions." 
 
 Perhaps nothing so completely demonstrates the 
 strength of the New Zealand system of arbitration 
 and its underlying basis of social justice as the 
 Dominion's experiences with syndicalism and the ef- 
 fort of the syndicalists to carry out a general strike 
 during the latter part of 191 1, 191 2 and 191 3. The 
 effort was a complete failure, and although more 
 than fifty strikes were called during the period, all 
 of them were lost; direct action was thoroughly 
 discredited; the arbitration system and the govern- 
 ment which stood sponsor for it emerged from the 
 contest with added glory. 
 
 In December, 191 3, a labor disputes investigation 
 act, similar to the Canadian statute, was made to 
 apply to workers' unions not registered under the 
 arbitration act.
 
 CHAPTER VI 
 
 AUSTRALIAN EXPERIMENTS 
 
 THE commonwealth of Australia has been 
 somewhat more conservative in its paternal- 
 istic consideration of the working man's welfare 
 than New Zealand, yet the six states of the common- 
 wealth and the commonwealth government have 
 proceeded much further in this direction than any 
 other country except New Zealand. Australia has 
 experimented with many different forms of concil- 
 iation and arbitration. 
 
 Victoria, having unsuccessfully tried out a system, 
 beginning in 1896, modeled after the English coun- 
 cils of conciliation act of 1867, introduced a system 
 of wages boards in 1896. This system still prevails. 
 New South Wales, having failed to accomplish any- 
 thing under a voluntary trades dispute conciliation 
 and arbitration act of 1891, in 1899 conferred cer- 
 tain jurisdiction on the minister of public instruc- 
 tion, labor and industry, after the plan of the Eng- 
 lish act of 1896. This act, also unsuccessful, was 
 
 146
 
 AUSTRALIAN EXPERIMENTS 147 
 
 superseded by a compulsory arbitration law in 1901, 
 following the outlines of the New Zealand law but 
 minus any plan of conciliation. This act gave way 
 to the industrial disputes act of 1908 with an indus- 
 trial court and wages boards for each industry com- 
 ing under the statute. A new law was passed in 
 1912, superseding that of 1908. South Australia 
 set up a comjDlex system in 1894 but adopted the 
 wages board system in 1908. Queensland has the 
 wages board system. Western Australia has an act 
 In force, modeled after the New Zealand plan. The 
 commonwealth act applying to interstate disputes 
 was passed in 1904, 
 
 Originally, the wages boards created for and by 
 the Australian states were set up for the specific 
 purpose of regulating wages and establishing a min- 
 imum rate in each industry. From time to time 
 the powers of these boards were extended to in- 
 dustrial disputes involving other questions besides 
 that of wages. Australia, as well as New Zealand, 
 practically has eliminated all industries which pay 
 less than a fair living wage. The theory obtains 
 generally throughout Australia that no such indus- 
 tries have a right to exist. 
 
 The six Australian states of New South Wales, 
 Victoria, Queensland, South Australia, Western
 
 148 INDUSTRIAL ARBITRATION 
 
 Australia and Tasmania have a population of about 
 half that of New York State and less than that of 
 Illinois or Pennsylvania, yet Illinois with a greater 
 population than the six Australian states has an area 
 of only one-fiftieth that of the commonwealth. The 
 population of Australia is an average of only one 
 and five-tenths persons to the square mile. 
 
 New South Wales, Victoria, Queensland, South 
 Australia, Western Australia and Tasmania still 
 have enormous areas of Crown land open to settle- 
 ment and available to homesteaders on the most 
 favorable terms. The government savings banks of 
 New South Wales lend money to settlers and South 
 Australia permits settlers to take up over twenty- 
 four thousand dollars' worth of ordinary lands, or, 
 if suitable for cultivation, sufficient for from five 
 to ten thousand sheep. Payments may be made in 
 sixty semi-annual instalments. Homestead blocks 
 worth four hundred eighty-six dollars may be taken 
 on perpetual lease or covenant to purchase and ad- 
 vances up to two hundred forty-three dollars may 
 be made by the government to assist homesteaders 
 in erecting buildings, dams or fences, or for clearing 
 the land. Tasmania permits the purchase of two 
 hundred acres of land at four dollars and eighty- 
 six cents an acre on eighteen years' credit. Victoria,
 
 AUSTRALIAN EXPERIMENTS 149 
 
 under the closer settlements act, may advance two 
 thousand four hundred thirty dollars to each settler 
 from government funds for the Improvement of the 
 land. Advances up to three thousand four hundred 
 three dollars are made for the improvement of lands 
 settled in Western Australia. 
 
 With its millions of acres of unsettled land avail- 
 able to newcomers, it is not surprising that labor is 
 scarce in Australia. Nor is it to be expected that 
 labor conditions will become very much aggravated 
 as long as the laboring man may become a pro- 
 prietor of the soil and avoid unwholesome working 
 conditions. In a country like the United States, 
 where the public land is gone and where agricul- 
 tural development has reached an advanced state, 
 the factory worker has no alternative to which he 
 may turn if wages fall, hours are long, or conditions 
 of employment intolerable. 
 
 Manufacturing is on the Increase In Australia. 
 In 1910 there were fourteen thousand factories in 
 the commonwealth, employing nearly two hundred 
 and ninety thousand hands. These factories paid 
 out in wages one hundred sixteen million dollars 
 and had an annual output valued at about six hun- 
 dred million dollars. 
 
 The mineral production in 19 10 amounted ap-
 
 I50 INDUSTRIAL ARBITRATION 
 
 proximately to one hundred million dollars, of 
 which about one-half was gold. Coal, silver-lead 
 and zinc were the leading products of the New 
 South Wales mines. Copper and tin were the lead- 
 ing productions in Tasmania, gold and copper in 
 Queensland and South Australia and gold and coal 
 in Victoria and Western Australia. 
 
 In 1910-11, the six Australian states harvested 
 ninety-five million bushels of wheat, over fifteen 
 million bushels of oats and two million bushels of 
 barley, thirteen million bushels of corn, and pro- 
 duced nearly six million gallons of wine. 
 
 The six states also produced nearly two hundred 
 million pounds of butter in 19 10 and the total dairy 
 exports in 191 1 amounted to about twenty million 
 dollars. The wool production In Australia in 1910 
 amounted to a little less than one hundred fifty mil- 
 lion dollars. Australia exported chilled beef 
 amounting to about five million dollars; chilled mut- 
 ton amounting to twice as much and flour to the 
 amount of over five million dollars. 
 
 In a general way, these products represent the 
 principal occupations of the Australian people. 
 While industry is somewhat more complex and 
 vaster in Australia than it Is in New Zealand, It is 
 far less so than in the United States. Mining and
 
 AUSTRALIAN EXPERIMENTS 151 
 
 manufacturing, as might be expected, are the sources 
 of most industrial troubles in the Australian com- 
 monwealth. The Australian Y ear-Book for 191 2 
 lists the several persons, male and female, engaged 
 in the principal occupations as follows : profes- 
 sional, 111,190; domestic service, 111,456; primary 
 producers, chiefly agricultural workers, 531,389; 
 commercial, including transportation, 310,034; in- 
 dustrial workers, 441,951; pensioners, 26,458, and 
 dependents, including children, 2,123,097. 
 
 The six principal cities of Australia are the cap- 
 itals of the six states : Sydney, Brisbane, Ade- 
 laide, Hobart, Melbourne and Perth. Sydney and 
 Melbourne are the largest cities. The population 
 for the ten-mile radius was given as follows : Syd- 
 ney, 649,503; Brisbane, 139,480; Adelaide, 189,- 
 646; Hobart, 39,937; Melbourne, 588,971; Perth, 
 106,792. The population of the cities proper, how- 
 ever, was much less than these figures indicate. 
 
 Australia has always encouraged the immigration 
 of desirable classes of people. From 1851 to 19 10.. 
 it is estimated that over six hundred thousand im- 
 migrants had been assisted in a financial way by 
 the several Australian states. Notwithstanding that 
 fact, the population remains largely British. In 
 1910 less than four per cent, of the population had
 
 152 INDUSTRIAL ARBITRATION 
 
 been born outside the British dominion and more 
 than three million out of a population of less than 
 four million five hundred thousand had been born 
 in the Australian commonwealth. There is a 
 marked prejudice in Australia against Japanese 
 Immigration. The Labor party is opposed to Ger- 
 man immigration. 
 
 Australia has a system of old age and invalid 
 pensions under which nearly eighty-three thousand 
 persons received financial assistance in 1910. The 
 average fortnightly old age pension is nineteen shil- 
 lings and the average fortnightly invalid pension 
 is nineteen shillings six pence. The six Australian 
 states paid out on account of old age and invalid 
 pensions in 1910 ten million dollars, or an average 
 of two dollars and twenty cents for each head of 
 po23ulation. 
 
 All the Australian states have a land and income 
 tax similar to that of West Australia, where from 
 one-half to one pence on each one pound of the un- 
 improved value of the land is collected. There is 
 an income tax of four pence on each one pound of 
 income with an exemption of two hundred pounds 
 (nine hundred seventy-two dollars) in Western 
 Australia. 
 
 Education is compulsory throughout the common-
 
 AUSTRALIAN EXPERIMENTS 153 
 
 wealth of Australia and public instruction Is free 
 in the primary schools of New South Wales, Vic- 
 toria, Queensland, South Australia, Tasmania and 
 West Australia. In 19 10 there were nearly eight 
 thousand state schools, with a total enrolment of 
 three-quarters of a million, and seventeen thousand 
 teachers in the six states. In the commonwealth, 
 four and five-tenths per cent, of the population over 
 fifteen years of age were unable to read in 1901, 
 This was approximately the same proportion which 
 obtained in 1896. It is somewhat lower than the 
 average illiteracy in the United States. 
 
 Taking Into consideration the character of the 
 Australian population — the relatively small percent- 
 age of foreign-born residents ; the high educational 
 standards for children and the low rate of illiteracy ; 
 the large surplus of land and the liberal state aid 
 to colonists ; the emphasis on agriculture as a vo- 
 cation; the scarcity of labor generally and the state 
 assistance given to the invalids and the aged — Aus- 
 tralia has a much simpler problem than the United 
 States or any of the European countries. As Aus- 
 tralia becomes more and more a manufacturing 
 state — when the land is exhausted — disputes be- 
 tween employers and employees, no doubt, will mul- 
 tiply. They are certain to do so unless Australia
 
 154 INDUSTRIAL ARBITRATION 
 
 is able to maintain a thoroughly enlightened and 
 happy proletariat, working under favorable condi- 
 tions. 
 
 Victoria and New South Wales were the first 
 Australian states to undertake conciliation and ar- 
 bitration by state agency, their first laws having 
 been passed in 1891. South Australia passed the 
 first arbitration statute in 1894 and West Australia 
 followed in 1900. The commonwealth act was 
 passed in 1904. 
 
 By the act of 1891, Victoria provided for the 
 voluntary arbitration of collective disputes some- 
 what after the system of the English councils of 
 conciliation act of 1867, except that the latter ap- 
 plied only to individual disputes and enforced ar- 
 bitration. Under the Victorian act, any number of 
 employers and employees of a locality might agree 
 to form a council of conciliation and jointly petition 
 the governor in council for a license to be issued 
 at his discretion. Every licensed council was to- 
 be composed of an equal number of employees and 
 employers, not less than two nor more than ten. 
 Members of the council were elected. A chairman 
 who might take part in the deliberations but who 
 had no vote was chosen from outside the members 
 of the council. Either or both parties, under the
 
 AUSTRALIAN EXPERIMENTS 155 
 
 act, might bring a matter before the council on 
 complaint to the chairman. The matter was first 
 referred to a committee of conciliation consisting of 
 one employer and one employee. If this failed, 
 the matter was laid before the council. This act 
 always remained a dead letter. 
 
 In 1896, wages boards were introduced in Vic- 
 toria. The original act made provision only for the 
 regulation of wages for the women and children 
 but was afterward extended to apply to adult oper- 
 ators of both sexes. Originally, it applied only to 
 the clothing, furniture, breadmaking and butchery 
 trades, but by an amendment of 1900 it was ex- 
 tended to all trades connected with factories, and by 
 an amendment of 1907 it was extended to certain 
 trades not connected with factories — carters, drivers, 
 building, quarrying, distribution of wood, coke or 
 coal. Wages boards consisted of from four to ten 
 members and employers and employees were equally 
 represented. If one-fifth of the employers or em- 
 ployees objected to a representative nominated for 
 them, they might elect one. An independent chair- 
 man was appointed by the executive. The board 
 held office for three years. Wages boards might be 
 appointed on application of either party. A court 
 of appeal, consisting of a supreme judge, had power
 
 156 INDUSTRIAL ARBITRATION 
 
 under the act to review the determination of boards, 
 and assessors might be appointed to assist the judge. 
 The act fixed an absolute minimum wage. While 
 it was originally designed to guarantee a minimum 
 wage, it has gradually grown to be used more for 
 the purpose of conciliation. 
 
 Wages boards have power to determine the low- 
 est wages in an industry and may fix a special wage 
 for old, slow or infirm workers. Hours of labor 
 are fixed by the boards and the wages of children. 
 An average of thirty-eight convictions a year for 
 violating determinations of wages boards was re- 
 ported for the seven years, 1 901 -07. 
 
 If men do not accept the decisions of the wages 
 boards and go out on a strike, the government, 
 through the labor minister, may suspend the award 
 in whole or in part not to exceed twelve months 
 and leave the employers free to employ whomever 
 they will and pay whatever they wish. Harris 
 Weinstock, in his survey of Victorian labor condi- 
 tions, says the wages boards have "more than made 
 good." He declares they have eliminated sweat- 
 ing and aided the advent of industrial peace. 
 
 Victoria had an eight-hour day in the building 
 industry as long ago as 1856, a standard not reached 
 by the United States until 1903. Employers are
 
 AUSTRALIAN EXPERIMENTS 157 
 
 well organized. The trade unions are in good re- 
 pute but the union and non-union workers gener- 
 ally labor side by side. In a period of twelve years, 
 there were only eight or nine strikes and only one 
 instance of a strike against a legal award, which, 
 by the way, the strikers eventually won. Lately, 
 labor has manifested some discontent with the con- 
 ciliation and arbitration laws, because gains in 
 wages have been small in recent years compared 
 to gains during the earlier years of the operation 
 of the act. One serious objection that may be raised 
 against a fixed wage is the fact that the cost of 
 living fluctuates and a fixed wage is not responsive 
 to this fluctuation. In 191 1, one hundred sixty-two 
 trades were registered under the wages board act 
 of Victoria. Fifty-nine of these trades and eighty- 
 eight per cent, of the employees were subject to the 
 jurisdiction of the wages board. 
 
 New South Wales passed its trade dispute con- 
 ciliation and arbitration act after the great strike 
 of 1 89 1. It provided for a voluntary court of con- 
 ciliation made up of sixteen members, an equal num- 
 ber appointed from the employers and employees, 
 and a council of arbitration appointed by the gov- 
 ernor. The third member of the council of arbi- 
 tration was required to be an "impartial person."
 
 158 INDUSTRIAL ARBITRATION 
 
 The act was passed to continue four years but it 
 was a complete failure, only two of the sixteen cases 
 referred having been settled during the first year 
 of the operation of the act. An appropriation to 
 continue the boards was refused in 1894. The em- 
 ployers were hostile from the beginning. 
 
 The conciliation and arbitration act of 1899 con- 
 ferred upon the minister of public instruction, labor 
 and industry the power to direct a public inquiry 
 on application of either party; to appoint one or 
 more conciliators, and on the application of both 
 parties, to appoint an arbitrator after the plan of 
 the English act of 1896. This act was a total fail- 
 ure, largely because of the unfriendliness of the em- 
 ployers toward the statute. 
 
 A compulsory arbitration law, following some- 
 what the outlines of the New Zealand act but which 
 did not provide for conciliation, was passed in 1901. 
 
 "The New South Wales system of compulsory ar- 
 bitration has been in full operation, with the con- 
 tinued growth of the court's business," said Leonard 
 W. Hatch in 1905, but "the act seemingly did not 
 work as its authors had hoped." The law was su- 
 perseded by the industrial disputes act of 1908, 
 much against the wishes of the Labor party. The 
 act of 1908 included a schedule of some eighty In-
 
 AUSTRALIAN EXPERIMENTS 159 
 
 dustries and provided for the appointment of a 
 wages board in each industry on recommendation 
 of an industrial court. Each board consisted of a 
 chairman and not less than two nor more than four 
 members, half employers and half employees. Ap- 
 pointment of members was made by the governor on 
 recommendation of the industrial court but they 
 were usually nominated by the respective parties. 
 The chairman might be agreed upon or nominated 
 by the industrial court. Boards had power to decide 
 industrial disputes, and to regulate and control 
 wages and working conditions. The industrial court 
 took the place of the arbitration court under the act 
 of 1908. Appeal from the wages board to the in- 
 dustrial court was allowed. A heavy penalty was 
 fixed for causing strikes and lockouts. Two con- 
 victions under this clause resulted during the first 
 year the act was in force. 
 
 The act of 1908 was superseded by the industrial 
 arbitration act of 191 2. This act created a court of 
 industrial arbitration consisting of a Supreme Court 
 judge and district court judge or barrister of five 
 years' standing, appointed by the governor, also an 
 additional judge and a deputy judge. Boards un- 
 der the old act were dissolved. Twenty-seven indus- 
 tries were scheduled for which industrial boards
 
 i6o INDUSTRIAL ARBITRATION 
 
 were appointed on recommendation of the court by 
 the minister of the Crown. The schedule may be 
 varied by the minister. Chairmen of the boards 
 are appointed by the minister on recommendation 
 of the court. He has no vote. From two to four 
 other members of the board, half employers and 
 half employees, recommended by the court, are ap- 
 pointed by the minister. Special boards may be 
 created for jurisdictional disputes between trade un- 
 ions. Industrial boards are created for a second 
 schedule of industries. The jurisdiction of the 
 boards includes all power exercised under the act 
 of 1908. Their awards are binding for three years 
 but on application to the court, the awards may 
 be amended, varied, rescinded, or a new award 
 substituted. Proceedings are commenced by refer- 
 ence to boards by the court or minister on applica- 
 tion of employer or employee, when not less than 
 twenty employees are affected. Boards have con- 
 ciliatory powers. Special committees for concilia- 
 tion are provided for metal and coal miners when 
 more than five hundred are involved and a special 
 commissioner, appointed by the minister of the 
 Crown, is charged with wide powers to bring about 
 settlements in cases not covered by the act. Lock- 
 outs and strikes are punishable by heavy penalties,
 
 AUSTRALIAN EXPERIMENTS i6i 
 
 and heavy penalties are also prescribed for breaches 
 of awards and other offenses. 
 
 Boards have power to declare "that preference 
 of employment shall be given to any industrial un- 
 ion of employees over other persons offering their 
 labor at the same time, other things being equal." 
 Declarations of preference may be suspended if em- 
 ployees engage in strikes. 
 
 About seventy-five trades registered under the 
 1908 act. Twenty-four trades, including sixty-two 
 per cent, of the employees, had come under the jur- 
 isdiction of the wages boards by 191 1. In 1912, 
 the court of arbitration had made awards in one 
 hundred thirty cases, each affecting many other dis- 
 putes. New South Wales provided for the legal 
 incorporation of trade unions, under prescribed con- 
 ditions, and Imposed legal responsibilities for the 
 care of trade union funds In 1912. 
 
 South Australia provided for the registration of 
 trade unions and employers' associations, Industrial 
 agreements and boards of conciliation, both public 
 and private, in the act of 1894. Awards under 
 the act were compulsory and it was an offense for a 
 registered organization to engage In a strike or 
 lockout. It was not necessary for employers or em- 
 ployees to come under the act, and as late as 1905
 
 i62 INDUSTRIAL ARBITRATION 
 
 It was pronounced a complete failure for the reason 
 that neither employers nor work people chose to 
 accept what it offered them. South Australia 
 adopted a wages board system in 1908 and one 
 hundred thirty-nine boards had been created by the 
 middle of 1910. They had decided ninety cases. 
 Queensland has the wages board system. 
 
 Western Australia passed an act modeled after 
 the New Zealand law in 1900 but this act was re- 
 placed by another in 1902. The original law was 
 different from the New Zealand law in that it sought 
 to prohibit strikes and lockouts altogether instead 
 of simply prohibiting them after a reference to a 
 board or court. The court had made awards in 
 seventy-one cases in 191 2, each affecting many other 
 disputes. 
 
 In 1904, the Australian Parliament passed the 
 commonwealth conciliation and arbitration act, 
 which provided a system of compulsory arbitration 
 similar to that in New Zealand for all interstate 
 labor disputes. The commonwealth court was given 
 power to employ the usual methods of conciliation, 
 and failing in that, to make an equitable award 
 binding on all parties. Strikes and lockouts were 
 subjected to a penalty of four thousand eight hun- 
 dred sixty dollars. Breaches of the court's award
 
 AUSTRALIAN EXPERIMENTS 163 
 
 were subject to a penalty of four thousand eight 
 hundred sixty dollars In case of the employer and 
 forty-eight dollars and sixty cents in case of an in- 
 dividual employee. The power to fix a minimum 
 wage was lodged in the commonwealth court, also 
 the right to deprive those falling to observe an 
 award of all rights and privileges under the act. 
 
 One case arose under the act of 1904 during the 
 first five years of Its existence involving four thou- 
 sand men In a New South Wales mine. It resulted 
 in a victory for the men. The decision, however, 
 was severely criticized by the employers and not 
 wholly satisfactory to the men. 
 
 This act was amended In 1909, 19 10 and 191 1. 
 The amendments of 1909 prevented employers from 
 discharging employees about to be registered under 
 the act. The definition of employee was extended 
 to additional Industries under the amendment of 
 1 910, and the president of the commonwealth con- 
 ciliation and arbitration court was authorized to 
 compel the attendance of employers and workers 
 when a labor dispute Is threatened, under penalty 
 of five hundred pounds. The definitions of "Indus- 
 try" and "Industrial dispute" were extended by the 
 amendment of 191 1, amounting to an extension of 
 the powers of the conciliation and arbitration court.
 
 i64 INDUSTRIAL ARBITRATION 
 
 Government employees were permitted to come un- 
 der the act by another amendment of 191 1 and 
 provision was made for their registration in group 
 organizations. 
 
 On April 26, 191 1, Australia by referendum vote 
 decided overwhelmingly against giving to the fed- 
 eral government control of all trade and commerce 
 instead of only interstate and foreign commerce. 
 On the same date, the electors of Australia voted 
 overwhelmingly against taking from the states the 
 power to deal with wages disputes, even where state 
 employees were concerned, and lodging that power 
 in the commonwealth government. Opponents of 
 the proposal pointed out that an elaborate system 
 of wages boards already existed in the states and 
 that it would be an enormous expense. 
 
 In 191 1, the Labor party succeeded in ousting 
 the Liberal ministry of Western Australia. The 
 Liberal party held its own in Victoria and badly 
 defeated the Labor party in South Australia but 
 in New South Wales the two parties emerged from 
 the elections about equally divided. The Laborites 
 had a bare majority of one. In the commonwealth, 
 however, the Labor party was successful in passing 
 the commonwealth defense act after the plan laid 
 down by Lord Kitchener when he visited the coun-
 
 AUSTRALIAN EXPERIMENTS 165 
 
 try in 1908. The act Is aimed at defense against 
 the "Japanese peril." All boys from the age of 
 twelve to the age of twenty-six are liable to mil- 
 itary training and after the age of twenty-six they 
 are considered as reserves for the army. The So- 
 cialists resisted the passage of the act but they are 
 not strong in Australia. 
 
 The Australian Socialists are opposed to legal 
 arbitration. Both wings of the Industrial Workers 
 of the World — the Chicago faction espousing direct 
 action and the Detroit faction espousing parliamen- 
 tary action — are represented in Australia. There 
 are five locals of the I. W. W. in Australia and 
 two in New Zealand. Needless to say the I. W. 
 W. opposes the Labor party even more vigorously 
 than it opposes the so-called Capitalistic class. 
 
 Whether Australian progress is due to the elab- 
 orate system of industrial legislation of the country 
 or is a fact in spite of it, progress nevertheless is a 
 fact. The population increased twenty-one per cent, 
 from 1900 to 191 1. In 1909, there were twenty- 
 seven miles of railway for each ten thousand in- 
 habitants in the United States while In 1911 there 
 were thirty-nine and three-fourths miles to each 
 ten thousand inhabitants of Australia. Savings- 
 banks deposits are increasing yearly and deposits
 
 i66 INDUSTRIAL ARBITRATION 
 
 in Australian banks are likewise increasing. The 
 total number of depositors is more significant than 
 the volume of deposits. In 191 1 they numbered 
 1,483,573 or one out of every three of the entire 
 population. Manufactures, agriculture and mining 
 are in healthful condition and foreign commerce is 
 growing. A mistake might be made in accounting 
 for Australia's prosperity but no mistake can be 
 made In maintaining that It is a fact.
 
 CHAPTER VII 
 
 OFFICIAL INVESTIGATIONS 
 
 THE Canadian industrial disputes investiga- 
 tion act of 1907, with the amendments of 
 1 910, was a notable departure from legislation 
 theretofore enacted inasmuch as it imdertook to pre- 
 vent strikes and lockouts in certain industries until 
 an official investigation of grievances could be made. 
 The act was founded on the theory that public 
 opinion will operate with wholesome effect to avert 
 an open breach between employer and employee if 
 public opinion has available for its guidance all the 
 facts in a controversy. It was contended by the 
 proponents of the measure that the publication of 
 a report made by impartial officials under sanction 
 of the government would supply the facts required 
 for the formation of an intelligent and active pub- 
 lic opinion. This contention was made to appear 
 the more plausible since the operation of the act 
 was limited to public utilities — transportation, com- 
 munication, mining, gas, light, water and power 
 
 167
 
 i68 INDUSTRIAL ARBITRATION 
 
 companies — enterprises in which all the people have 
 at all times a very intimate interest. 
 
 Although the act has not worked with universal 
 satisfaction It has reduced the number of strikes and 
 lockouts in Canada. For this reason and for the 
 further reason that there is considerable sentiment 
 favoring a trial of the statute In this country, an 
 examination of Industrial conditions in Canada, to- 
 gether with certain comparisons and contrasts with 
 industrial conditions In the United States, seems 
 warranted. Perhaps this examination will disclose 
 certain differences In Industrial conditions, upon 
 which depends the success or failure of the Canadian 
 act in the United States, Whether these differences 
 In Industrial conditions would affect the operation 
 of the Canadian act In the United States, they are 
 sufHcIently marked to be interesting in any survey 
 for legislation having as Its object industrial peace. 
 
 Both countries comprise enormous areas of land, 
 although Canada Is the larger by seven hundred 
 fifty thousand square miles. Canada has a popula- 
 tion about equal to that of the United States In 
 1810, or, while the population of the United States 
 was thirty and nine-tenths per square mile In 19 10 
 that of Canada was less than two per square mile. 
 This difference Is an Important one. Canada has
 
 OFFICIAL INVESTIGATIONS 169 
 
 over four hundred million acres of land available 
 for settlement in three provinces, Manitoba, Sas- 
 katchewan and Alberta, and every wage earner has 
 the alternative, if conditions prove unsatisfactory, 
 of becoming a proprietor on his own farm. That 
 wage earners are becoming proprietors and that they 
 possess a potent argument against conditions which 
 make for industrial unrest is evidenced by the fact 
 that in the year 1910 entries were made for 48,257 
 homesteads in Alberta, British Columbia, Manitoba 
 and Saskatchewan. In that year, new settlers ob- 
 tained over six and one-half million acres of Do- 
 minion land for a small investment. Opportunity to 
 settle on the "free" land of the government does not 
 insure the very best working conditions in industry 
 nor preclude strikes and lockouts, as we may remem- 
 ber that this country had its strikes before the public 
 land was all taken up. But It does serve as a power- 
 ful check against really bad conditions. 
 
 Any person who is sole head of a family, or any 
 male over eighteen years, who is a British subject 
 or declares his intention to become a British sub- 
 ject, or a widow with minor children of her own, 
 dependent on her for support, may upon payment of 
 ten dollars obtain entry to a quarter-section of Do- 
 minion lands in Manitoba, Saskatchewan or Alberta.
 
 I70 INDUSTRIAL ARBITRATION 
 
 The homesteader must erect a habitable house, live 
 upon the homestead six months and cultivate the 
 land In each of three years. Homesteads may be 
 purchased in certain sections at three dollars an acre. 
 
 Canada discloses the same tendency as the United 
 States with regard to the movement of population 
 — a tendency toward a congestion in large cities. 
 The rural population between 1901 and 191 1 in- 
 creased seventeen per cent, while the urban popula- 
 tion In the same period increased sixty -two per cent. 
 But Canada has only four cities with a population 
 of more than one hundred thousand, Vancouver, 
 Winnipeg, Toronto and Montreal. Otherwise there 
 are only two cities, Hamilton and Ottawa, with a 
 population of more than fifty thousand. The whole 
 population increased thirty-four and five-tenths per 
 cent, between 1901 and 191 1 while the increase in 
 this country was twenty-one and two-hundredths 
 per cent. 
 
 An alien labor act of 1906 required Asiatic im- 
 migrants to have two hundred dollars and a ticket 
 to their destination to be admitted to Canadian ports. 
 A five-hundred-dollar fee is charged Chinese im- 
 migrants. Fees ranging from twenty-five dollars 
 up to five hundred dollars were charged all Immi- 
 grants until 19 10, when, owing to the scarcity of
 
 OFFICIAL INVESTIGATIONS 171 
 
 railway laborers, the immigration acts were 
 amended to admit railway construction laborers 
 guaranteed employment by railway contractors, ir- 
 respective of the money qualifications. This change 
 in the immigration laws proved a scarcity of un- 
 ekilled labor and therefore the absence of a labor sur- 
 plus. The absence of a labor surplus has obvious 
 advantages for the wage earner, skilled or unskilled. 
 But lately the Canadian government, facing the 
 problem of wide-spread unemployment, has under- 
 taken to deport aliens unable to support themselves 
 ■ — an evidence that this country must abandon its 
 policy of artificially stimulating immigration. 
 Henceforth, an oversupply of labor is to be a 
 factor in the realization of industrial peace. 
 
 It does not appear that the Canadian population 
 is gaining much by reproduction, since the immigra- 
 tion between 1901 and 1912 was 2,069,562 and the 
 total increase in population between 1901 and 191 1 
 was only 1,834,049. In the United States, how- 
 ever, for the last decade, a larger per cent, of the 
 gain in population was from immigration than from 
 reproduction. 
 
 Of the Canadian immigration, from thirty-seven 
 to forty-eight per cent, is from the United Kingdom. 
 In 191 2, a typical year, the total immigration was
 
 172 (INDUSTRIAL ARBITRATION 
 
 354,237, of which 138,121 came from the British 
 dominion, 133,710 from the United States and 82,- 
 406 from other foreign countries. The British im- 
 migration amounted to thirty-nine per cent, of the 
 whole and the immigration from the United States 
 to thirty-seven per cent, of the whole, a total of 
 seventy-six per cent, from the United States and 
 Great Britain, leaving only twenty-four per cent, 
 from foreign countries. Of the twenty-four per 
 cent, coming from countries other than the United 
 States and Great Britain, about two-thirds came 
 from Austria, Ruthenia, Bulgaria, China, Italy, 
 Austria and Russia Poland, Russia and Finland. 
 The significance of the relatively small percentage 
 of immigration from other than English-speaking 
 countries is apparent. There is no great infusion 
 of deteriorated peoples and unwholesome standards. 
 Canada maintains immigration agents in all of 
 the principal cities of the United States and Great 
 Britain and in a few foreign countries. A large 
 majority of Canadian immigrants seek the agricul- 
 tural provinces of the west where they engage in 
 farming and therefore have no direct effect on the 
 industrial life of the Dominion, the supply of labor 
 for manufacturing and the standard of living among 
 factory workers,
 
 OFFICIAL INVESTIGATIONS 173 
 
 According to the census of 191 1, there are 19,218 
 industrial establishments in Canada having a cap- 
 ital of one and one-fourth billion dollars and em- 
 ploying a half million hands. Wages paid out in 
 a single year amounted to about two hundred mil- 
 lion dollars or an average of four hundred eighteen 
 dollars a year. Annual wages in fifteen leading 
 occupations obtained by dividing the total wages 
 paid by the number of employees, are herewith 
 given : 
 
 Food products, $275. 
 
 Textiles, $367. 
 
 Iron and steel products, $530. 
 
 Timber and lumber and re-manufactures, $358. 
 
 Leather and its finished products, $424. 
 
 Paper and printing, $475. 
 
 Liquors and beverages, $565. 
 
 Chemicals and allied products, $454. 
 
 Clay, glass and stone products, $438. 
 
 Metals and metal products other than steel, $559. 
 
 Tobacco and its manufactures, $379. 
 
 Vehicles for land transportation, $546. 
 
 Vehicles for water transportation, $528. 
 
 Miscellaneous industries, $480. 
 
 Hand trades, $464. 
 
 The value of manufactured products in a year, 
 now considerably over one and one-half billion dol- 
 lars, increased two hundred sixteen per cent, from
 
 174 INDUSTRIAL ARBITRATION 
 
 1890 to 1910. This volume of manufactured pro- 
 ducts, although small compared with the output of 
 the United States, suggests that Canada may one 
 day have an industrial problem almost as vast and 
 perhaps as complex as that of our own country. 
 
 Of the total wage earners in Canada, fifteen and 
 four-tenths per cent, are women, two and eight- 
 tenths per cent, are jDcrsons under sixteen and one 
 and seven-tenths per cent, are piece workers. The 
 annual earnings of men for all industrial occupa- 
 tions are about four hundred sixty dollars; of 
 women, two hundred sixty-one dollars ; of children 
 under sixteen, one hundred fifty-nine dollars, and 
 of piece workers, three hundred twenty-three dol- 
 lars. 
 
 Canada had about twenty-five thousand miles of 
 railways in 1910 while the United States had about 
 two hundred fifty thousand miles. The field crops 
 from about thirty-three million acres of land under 
 cultivation yielded a return of $565,71 1,600 in 191 1. 
 Canada has about two hundred million acres of mer- 
 chantable timber, the pulp industry yielding four 
 and a quarter million dollars in 191 1 and all man- 
 ufactured lumber products, one hundred eighty-five 
 million dollars in 1910. The mineral production 
 rose from seventeen million dollars in 1890 to one
 
 OFFICIAL INVESTIGATIONS 175 
 
 hundred three millions in 19 10. Silver, nickel, gold 
 and copper were the leading hard minerals. Coal 
 yielded over twenty-six million dollars in 191 1. 
 Structural materials, including cement, lime, gran- 
 ite, limestone, etc., added about twenty-three mil- 
 lions to the mineral production. 
 
 There are about twenty-three thousand public 
 schools in Canada with thirty-seven thousand teach- 
 ers and a million and a quarter pupils maintained 
 at an annual expenditure of about twenty-eight mil- 
 lion dollars. The provincial governments have con- 
 trol of education, the funds being supplied by gov- 
 ernment grants and local taxation. Education Is 
 free and more or less compulsory, but the laws are 
 not strictly enforced. Canada has three agricultural 
 colleges and one other college where a department 
 of agriculture Is maintained. There Is a government 
 experiment station In the province of Saskatchewan. 
 
 In 191 2, the total Canadian trade amounted to 
 jsomething over eight hundred million dollars. Of 
 I the total trade, a little less than one-third was with 
 the British dominion. Of the British trade, Ca- 
 nadian Imports amounted to $137,884,696 and 
 exports to $I70,I55>22I. Of the foreign trade, 
 Canadian imports amounted to $409,497,886 and 
 exports to $145,162,029.
 
 176 INDUSTRIAL ARBITRATION 
 
 The total public debt of Canada has grown from 
 $129,743,432 in 1873 to $508,338,591 in 1912. 
 
 These facts go to show the state of industry in 
 Canada and in some measure, at least, reveal the 
 contrast in the scope of industrial development in 
 Canada and the United States. As stated hereto- 
 fore in the chapters on Australia and New Zealand, 
 the mere bigness of the United States does not fore- 
 doom the operation here of a law that works else- 
 where but that bigness and other important related 
 factors, bearing on industrial conditions — a mixed 
 and congested population, want of surplus land, 
 monopolistic control of industry and involuntary un- 
 employment due to a variety of causes — are cer- 
 tainly not to be ignored. 
 
 But we must not forget that the Canadian act 
 applies only to public utilities. In the United States, 
 joint agreements in force between the railroad man- 
 agers and the powerful railroad unions and appeal 
 to the federal act have been quite as effective in 
 averting stoppage of work as the disputes investiga- 
 tion act in the Dominion. Some of our severest 
 strikes have occurred on street railways but the chief 
 cause has been recognition of the employees' union. 
 Coal mines, covered by the Canadian act, are an- 
 other source of much trouble here and it may be
 
 OFFICIAL INVESTIGATIONS 177 
 
 doubted whether any law would prevent a strike 
 like that of 191 3- 19 14 in the Colorado coal mines, 
 where men dared to oppose the state militia in open 
 battle. It seems the inevitable order of things that 
 a contest, such as this, where primary liberties are 
 withheld by industrial barons, must go on until one 
 side is worn out by the struggle. 
 
 Lately, there has been one notable strike of the 
 telegraph operators in the United States — that of 
 1907, involving fifteen thousand men — which might 
 have been averted by timely measures but there 
 have been few strikes involving gas, electric light, 
 water and power plants. No law is much needed 
 for these industries. Our troubles, at present, lie in 
 a different quarter. 
 
 The industrial disputes investigation act of Can- 
 ada was passed in 1907 following a coal strike which 
 threatened a fuel famine in Saskatchewan and Al- 
 berta. The law was passed in response to public 
 sentiment which demanded some form of relief. 
 
 Under the Canadian act it is unlawful for em- 
 ployees in industries covered by the act to lock out 
 their workmen or for employees to go on a strike 
 until the appointment of an arbitration board and 
 investigation of the causes of the controversy and 
 the filing of the report. This report is made to
 
 178 INDUSTRIAL ARBITRATION 
 
 the minister of labor, who is charged with the ad- 
 ministration of the act, and must set forth "the 
 various proceedings and steps taken by the board 
 for the purpose of fully and carefully ascertaining 
 all the facts and circumstances . . . including 
 the cause of the dispute and the board's recom- 
 mendation for the settlement of the dispute accord- 
 ing to the merits and substantial justice of the case." 
 
 After the investigation and report have been 
 made, either party may refuse to accept the findings 
 and institute a strike or lockout. 
 
 It is the duty of the board when a dispute has 
 been referred to it to endeavor to bring about a 
 settlement before recommendations are made. To 
 this end, it may do whatever it thinks right and 
 proper for inducing the parties to come to a fair 
 and amicable settlement, and may adjourn proceed- 
 ings to allow the parties to agree to terms of settle- 
 ment. 
 
 Any employer declaring or causing a lockout con- 
 trary to the act is liable to a fine of from one hun- 
 dred dollars to one thousand dollars for each day 
 that the lockout exists, and any employee who goes 
 on a strike contrary to the act is liable to a fine of 
 not less than ten dollars nor more than fifty dollars 
 for each day that he is on a strike. Inciting, en-
 
 OFFICIAL INVESTIGATIONS 179 
 
 couraging or aiding an employer to continue a lock- 
 out is also punishable by fine. 
 
 Parties may agree in advance to be bound by the 
 recommendations of the board, in which case rec- 
 ommendations are made the rule of a court, on ap- 
 plication of either party, and enforceable as such. 
 Parties outside the operation of the act may agree 
 to come under it. 
 
 Either party to a dispute may make application 
 to the minister of labor for the appointment of a 
 board of conciliation and investigation, but ten per- 
 sons must be involved. The act applies to com- 
 panies or corporations employing ten or more per- 
 sons engaged in mining, transportation by steam, 
 electric railroads or steamships, telegraph, tele- 
 phone, gas, electric light, water and power business. 
 Within fifteen days after application for the ap- 
 pointment of a board, three members are appointed 
 by the minister of labor, one each on recommenda- 
 tion of each party and one, the chairman, upon 
 recommendation of the other two. 
 
 Disputes coming under the act may Involve 
 wages, hours of employment, sex, age or qualifica- 
 tion of employees, the employment of children, ma- 
 terials, customs and usage, and interpretation of 
 agreements.
 
 l8o INDUSTRIAL ARBITRATION 
 
 Application for conciliation and investigation 
 must set forth the names of the parties to the dis- 
 pute, the nature and cause of the dispute, an esti- 
 mate of the number of persons affected, and any 
 efforts made by the parties themselves to adjust the 
 dispute. If the application is made by the employ- 
 ees, who are members of a trade union, it must 
 be signed by the officers duly authorized by a ma- 
 jority vote, except where a dispute involves employ- 
 ees in more than one province, it may be signed 
 by the chairman and secretary of the executive com- 
 mittee without a vote. Further, if made by the 
 employees, it must contain a statutory declaration 
 that, failing an adjustment of the dispute, it is the 
 belief of the declarant that a strike or lockout will 
 be called, and that the necessary authority to call 
 a strike has been obtained, which amounts to a ma- 
 jority vote of the membership. Where the dispute 
 affects employees in more than one province, the 
 chairman and secretary of the strike committee may 
 make a statutory declaration of their authority to 
 call a strike in the absence of a majority vote of the 
 membership. 
 
 Employers and employees are required to give 
 at least thirty days' notice to the adverse party of 
 intended changes affecting conditions of employ-
 
 OFFICIAL INVESTIGATIONS i8i 
 
 ment, with respect to wages and hours. If such 
 proposed change results In a dispute, neither of the 
 parties affected shall alter conditions of employment 
 until the dispute has been finally dealt with by a 
 board. 
 
 A majority of the board may make an award; its 
 proceedings are conducted in public, except by spe- 
 cial arrangement, and its recommendations are pub- 
 lished in the Labor Gazette. Members of the board 
 receive twenty dollars a day for each day's services, 
 and the two members first appointed receive five 
 dollars a day for not exceeding three days, during 
 the time they are engaged in selecting a third mem- 
 ber. 
 
 From March, 1907, to March, 1913, a total of 
 one hundred forty-five disputes were referred under 
 the act. In eighteen cases, the boards were unsuccess- 
 ful In averting or ending strikes. Of the one hun- 
 dred forty-five disputes referred, fifty-one occurred 
 In mines, eighty-five in transportation and communi- 
 cation industries, four among civic employees and 
 five In cases other than mines and public utilities.^ 
 
 The Grand Trunk railway strike of 1910 was 
 marked by violence and disorder, resulting in blood- 
 
 ^ Sixth Report of the Register of Boards of Conciliation and 
 Investigation, p. 15.
 
 i82 INDUSTRIAL ARBITRATION 
 
 shed, dynamiting and Incendiarism. Troops were 
 called out in some places. Through intervention of 
 the government, the strike ceased on August second, 
 having continued from July twelfth. An eighteen 
 per cent, advance in wages was obtained by the 
 strikers. 
 
 Nine thousand machinists employed by the Ca- 
 nadian Pacific railroad were on strike during the 
 summer and fall of 1908. Two reports were filed 
 by the official investigators of the government, an 
 instance of the weakness of the act. Experience 
 has shown there is little to be gained from public 
 opinion where there is a divided report of an in- 
 vestigating board. 
 
 The most important Canadian strike during 1909 
 was that of the Alberta coal miners. Three thou- 
 sand were out from April to August. 
 
 Twenty-two disputes were referred under the act 
 during the year ending March 31, 191 3. In four 
 cases, boards of conciliation and investigation were 
 unsuccessful in averting strikes. During this year 
 one dispute involved the workers in coal mines, three 
 those in metal mines, nine occurred on railways, five 
 on street railways, one in shipping, one among tele- 
 phone workers, one among civic employees and one 
 among other than mines and public utilities.
 
 OFFICIAL INVESTIGATIONS 183 
 
 The total number of employees affected by the 
 one hundred forty-five disputes from March 22, 
 1907, to March 31, 191 3, was approximately one 
 hundred eighty-six thousand. During the year 
 1912-13, a dispute between the Canadian Pacific 
 railway and its telegraphers, growing out of a de- 
 mand for fifteen per cent, increase in wages, in- 
 volved directly one thousand eight hundred employ- 
 ees and indirectly affected eight thousand others. 
 The board gave an increase of ten per cent, and 
 when a strike was threatened a compromise was 
 finally reached by which the men received an in- 
 crease of twelve per cent. The four disputes in 
 which boards of investigation and conciliation were 
 unsuccessful during 1912-13 involved ninety coal 
 handlers employed at Port Arthur, Ontario, where 
 violence occurred; a dispute between the employers 
 of a mining company in British Columbia and its 
 employees, involving three hundred men; a dispute 
 between several mining companies In Ontario and 
 their employees, numbering four hundred sixty-five, 
 and a dispute between the freight handlers, clerks, 
 checkers and other employees of the Canadian Paci- 
 fic railroad and the company. Of these four dis- 
 putes, two awards were repudiated by the employers 
 and two awards repudiated by the employees.
 
 i84 INDUSTRIAL ARBITRATION 
 
 Five years' experience under the Canadian act has 
 shown that public opinion is futile to avert a strike, 
 particularly in those cases In which there is a di- 
 vided report of an Investigating board. But the 
 act has proved reasonably successful in averting 
 strikes and lockouts, however great the hardships 
 may have been upon parties affected by It, Trade 
 economists uphold the law because It gives the em- 
 ployer time to fortify himself with strikebreakers 
 and escape penalty contract, pending Investigation.^ 
 Because boards are temporary and therefore inex- 
 perienced, honest errors have occurred in several 
 Instances.^ Further objection is made to the act 
 because it is incumbent upon the adverse party to 
 prosecute violations of the statute. The employers 
 want the government to assume the duty of bringing 
 prosecution.* The courts have held that a labor or- 
 ganization has no right to make a legal and enforce- 
 able contract and this decision has weakened the 
 law. Canadian trade unions had a membership of 
 about one hundred sixty thousand in 1912. 
 
 In a report on the Industrial disputes investiga- 
 tion act of 1907, Sir George Askwith, K. C. B., 
 chief Industrial commissioner of Great Britain, who 
 
 ^ Bulletin of the Bureau of Labor, No. 86, p. 18. 
 
 • Ibid., p. 19. 
 
 * Ibid., p. 19.
 
 OFFICIAL INVESTIGATIONS 185 
 
 visited Canada during the summer of 1912 to make 
 an official inquiry on behalf of the British govern- 
 ment, found the employers "generally favorable to 
 the act, certainly to its principle and policy." 
 
 Among the criticisms suggested by employers was 
 one that the recommendations of the boards should 
 be brought fully before the men for their considera- 
 tion. Other criticisms were that partisans should 
 not be appointed to the boards ; that penalties should 
 be enforced by the government; that unions should 
 be incorporated and be responsible for penalties or 
 damages, and that there should be a method of in- 
 terpretation of recommendations and settlements. 
 
 For the five years, 1907-12, one hundred seven- 
 teen industrial disputes were reported as having 
 come under the operation of the Canadian act. In 
 the same years, there was a total of one thousand 
 .fifty-four strikes in the United Kingdom, an aver- 
 age of more than two hundred a year. 
 
 "To bring more than two hundred disputes under 
 the operation of such an act in this country," said 
 the report, "would mean a very extended govern- 
 ment department with a large supply of conciliators 
 available to act as members of the boards. 
 
 "It will have been gathered from the preceding 
 explanation of the working of the act," the report 
 went on to say, "where it was frankly accepted as 
 a means of preventing disputes, it has worked ex-
 
 !i86 INDUSTRIAL ARBITRATION 
 
 tremely well, but where, for reasons, some apparent 
 and others which can only be guessed at, its intro- 
 duction has been resented, it has not succeeded to 
 the same extent. In such latter cases where, by the 
 imposition of penalties, efforts have been made to 
 enforce the act, the results have not been satisfac- 
 tory. 
 
 "I consider that the forwarding of the spirit and 
 intent of conciliation is the more valuable portion 
 of the Canadian act, and that an act on these lines, 
 even If the restrictive features which aim at delay- 
 ing stoppage until after inquiry were omitted, would 
 be suitable and practicable in this country," Sir 
 George Askwith said In concluding his report. 
 "Such an act need not necessarily be applied in all 
 cases, but neither ought it be confined to services of 
 public utility. It might be generally valuable in 
 cases where the public were likely to be seriously 
 affected. Without the restrictive features it would 
 give the right, not only to conciliate, but fully to 
 investigate the matters In dispute, with similar pow- 
 ers in regard to witnesses, production of documents 
 and inspection, as are vested in a court of record 
 in civil cases, with a view, if conciliation fails, to 
 recommendations being made as to what are be- 
 lieved to be fair terms. 
 
 "Such an act, while not insuring complete absence 
 of strikes and lockouts, would be valuable, in my 
 opinion, alike to the country and to employers and 
 employed." 
 
 While the American Federation of Labor Is not 
 on record against the compulsory investigation of 
 strikes and lockouts, the Denver convention of 1908
 
 OFFICIAL INVESTIGATIONS 187 
 
 'did condemn the Townsend bill which the resolution 
 asserted "purports to be a measure in the direction 
 of compulsory investigation of strikes, but which 
 is really, in effect, the forerunner of compulsory 
 arbitration, with all its evils. . . ."^ 
 
 As late as 191 2, the American Federation of La- 
 bor had not declared its position on the Canadian 
 industrial disputes investigation act. In the Roches- 
 ter convention of 1912, however. Fraternal Delegate 
 Tolin W. Bruce, representing the Canadian Trades 
 and Labor Congress, spoke of the law, in an ad- 
 dress to the convention. 
 
 "When the act was first proposed," Bruce said, 
 "the Trades and Labor Congress favored it, al- 
 though there were some who realized the serious- 
 ness of the proposition and wanted them to go easy 
 in indorsing it. Now we find that after a few years 
 of operation, the act has not worked out to the sat- 
 isfaction of the wage workers. When an appeal is 
 made to government for an investigation under the 
 act, the law will apply, if you have a strong organ- 
 ization behind you ; but if you have a weak organi- 
 zation and are not in a position to enforce your 
 demands, you will find the board is refused. There 
 have been instances where wage workers have been 
 able to get boards under the act, but the employer 
 has not been willing to live up to the award. Even 
 when we find a weak organization of the Canadian 
 element appealing for a board, it is not granted. 
 
 'Proceedings of A. F. L., 1907, p. 177,
 
 i88 INDUSTRIAL ARBITRATION. 
 
 After an exhaustive hearing of those most directly 
 concerned in the operation of this act, the Congress 
 by a very large vote determined to seek the repeal 
 of the act, or seek a better administration of it. We 
 stated that we were not opposed to arbitration and 
 conciliation, if it were conducted with the intention 
 of arbitrating and conciliating the disputes regard- 
 less of the organizations."^ 
 
 The 1909 convention of the Western Federation 
 of Labor and the United Mine Workers both con- 
 demned the Canadian law. The U. M. of A. de- 
 nounced it as an "interference with our right to quit 
 work." The constitution of the Western Federation 
 of Labor forbids all forms of agreements with em- 
 ployers except a wage scale. This organization is 
 strongly Socialistic and the Socialist party is op- 
 posed to bolstering up the wage system by "facil- 
 itating agreements and preventing strikes." 
 
 So far. South Africa presents the only other In- 
 stance of an attempt to prevent strikes and lockouts 
 before an official investigation and reports on the 
 merits of the controversy. Several thousand gov- 
 ernment railway employees were on a strike from the 
 middle of April to the middle of May, 1909, In Na- 
 tal, South Africa. The strikers refused an offer of 
 the government to inquire Into their grievances. 
 
 'A, F. L. Proceedings, 1912, p. 217.
 
 OFFICIAL INVESTIGATIONS 189 
 
 Outside workers were successful in breaking the 
 strike. In the same year the Transvaal Parliament 
 passed an act modeled closely after the Canadian 
 industrial disputes investigation act. A department 
 of labor was created in the colony to aid in the pre- 
 vention of strikes among employees or lockouts by 
 employers and the settlement of industrial disputes 
 by conciliation after investigation. 
 
 The act provides that "no alteration shall be made 
 by any employer in relation to wages, allowances, 
 or other remuneration of his employees or the price 
 to be paid to them in respect to their employment, 
 or to the hours of their work, unless one month's 
 notice at least of the proposed alteration be given 
 to all employees who would be affected thereby," 
 and "no demand shall be made upon any employer 
 by any of his employees to affect, within less than 
 one month, any such alteration." 
 
 Lockouts and strikes are illegal until investigated 
 by a board of conciliation and investigation and 
 until one month has elapsed after the report has 
 been made public. A fine of one hundred pounds 
 daily against the employer and, in default of fine, 
 imprisonment not exceeding twelve months, is pre- 
 scribed for a violation of the act. A fine of from 
 ten pounds to fifty pounds daily or imprisonment
 
 I90 INDUSTRIAL ARBITRATION 
 
 against employees Is prescribed for a violation of 
 the act. Inciting strikes or lockouts is punishable 
 by a fine of from fifty pounds to two hundred fifty 
 pounds or by imprisonment. Ten employees must be 
 aflfected to make the act operative and application 
 for conciliation and investigation may be made by 
 either party. The other party is bound to reply.
 
 CHAPTER VIII 
 
 INITIAL EXPERIMENTS AT HOME 
 
 STRIKES called by the journeyman bakers of 
 New York in 1741 and by the journeyman 
 shoemakers of Philadelphia in 1 796, 1 798 and 1 799 
 comprised the most serious industrial troubles in the 
 United States before the beginning of the last cen- 
 tury. As compared to the present-day strike, they 
 were unimportant. There was a strike of the New 
 York sailors in 1802 and another strike by the jour- 
 neyman shoemakers of Philadelphia in 1805. The 
 sailors gave an organized demonstration in the 
 streets which was broken up by constables. The 
 leader of the strike was arrested and punished, just 
 as strike leaders are arrested and sometimes pun- 
 ished to-day for no other offense than resisting the 
 wishes and will of an employer. 
 
 Minor strikes by shoemakers, tailors, hatters, 
 workmen in the building trades and unskilled labor- 
 ers occurred during the subsequent years up to 1835 
 when, according to a report of the Commissioner 
 
 191
 
 192 INDUSTRIAL ARBITRATION 
 
 of Labor (1901, p. 721), "strikes had become so 
 numerous as to call forth remonstrant comments 
 from the public press." Several strikes for the ten- 
 hour day occurred between 1830 and 1840. A 
 strike on the Massachusetts railways occurred in 
 1834 when there were riots which it required the 
 militia to put down. Rioting and destruction of 
 property occurred in the strike of the Philadelphia 
 brickmakers in 1843. 
 
 Prior to i860 there was no well established 
 method for the settlement of industrial disputes in 
 this country. Industrial controversies, however, 
 were frequent, and strikes had become common. 
 The first instance of arbitration in the United States 
 is recorded as having taken place early In the eight- 
 eenth century in the copper mines of Connecticut. 
 The first trade agreement ever signed in this coun- 
 try, February 3, 1865, was the result of action taken 
 by the Sons of Vulcan, a trade union newly organ- 
 ized in the iron industry. Another agreement was 
 signed July 23, 1867. Various departments of the 
 iron business were included in trade agreements 
 from time to time, and practically governed wages 
 in the rolling-mills west of the Allegheny Moun- 
 tains. 
 
 It was not until the close of the Civil War when
 
 INITIAL EXPERIMENTS AT HOME 193 
 
 improved machinery began to displace the old-fash- 
 ioned shoemaker's shop, and the old-fashioned shoe- 
 maker took a new quarter in his master's factory 
 that organization began in the boot and shoe indus- 
 try. The Knights of St. Crispin was the first of 
 these. 
 
 On July 21, 1870, a board of industrial arbitra- 
 tion was established at Lynn, Massachusetts, the cen- 
 ter of the shoe manufacturing industry in the United 
 States. The board consisted of five members ap- 
 pointed by the Knights of St. Crispin and five 
 members appointed by the manufacturers. A scale 
 of prices agreed upon within two days was ratified 
 by both parties. 
 
 This contract expired in 1872 and the manufac- 
 turers spurned all offers of another conference. The 
 employees went out on a strike but gradually re- 
 turned to work on the manufacturers' terms and the 
 Knights of St. Crispin temporarily passed out of 
 existence as a factor in this industry. The Shoe- 
 makers' League was then organized but it proved 
 ineffectual and the Knights of St. Crispin was re- 
 vived with a board of arbitration which really had 
 no more than conciliatory powers. It was successful, 
 however, in averting open breaches in several hun- 
 dred cases. In 1878 the manufacturers made a final
 
 194 INDUSTRIAL ARBITRATION 
 
 stand against the Knights of St. Crispin, and the 
 organization soon disintegrated. 
 
 Meantime had occurred the great strikes of 1877 
 on the Baltimore and Ohio, Pennsylvania and other 
 railroads which resulted in violence and made nec- 
 essary the calling of troops. There was a strike on 
 the Gould roads in 1885. 
 
 In 1885 a joint board of arbitration, consisting 
 of seven members from district assembly No. ^'j, 
 Knights of Labor, and seven members representing 
 the manufacturers, was established. Before the new 
 scale became operative the workmen, who had been 
 growing more and more dissatisfied because of the 
 striving for trade autonomy, protested against the 
 continuance of the board. As a consequence of the 
 workmen's threats to withdraw from the Knights of 
 Labor If their wishes were not realized the mem- 
 bers of the conference, representing the Knights of 
 Labor, were withdrawn and the wage board came to 
 an end. 
 
 The Knights of Labor, now almost extinct, was an 
 Industrial organization of which the district assem- 
 bly was a unit. It did not recognize the principle of 
 trade autonomy but sought to join the workers of 
 all trades together without respect to their particular 
 crafts. It declined rapidly after the organization of
 
 INITIAL EXPERIMENTS AT HOME 195 
 
 the American Federation of Labor, which was based 
 on the principle of trade autonomy and a loose fed- 
 eration pf national and international trade unions. 
 
 Before the rise of the American Federation of 
 Labor, the Knights of Labor was the most power- 
 ful labor organization in this country. It was 
 founded upon the principle of industrial unionism, 
 the fundamental idea of the Industrial Workers of 
 the World to-day, rather than trade unionism, which 
 the American Federation adopted and which ac- 
 counts for its rise and the decline of the Knights 
 of Labor. 
 
 But the Knights of Labor demanded "the enact- 
 ment of laws providing for arbitration betweerx 
 employers and employees and to enforce the deci- 
 sion of the arbitrators." 
 
 "It should be the law in every state," said T. V. 
 Powderly, Master Workman of the Knights of La- 
 bor, in commenting on the Homestead strike,^ "that 
 in disputed cases the employer should be obliged 
 to select two arbitrators and the employees two, 
 these four to select a fifth ; this arbitration commis- 
 sion to have access to all books, papers and facts 
 bearing on the question at issue from both sides. 
 
 "An established board of arbitration, appointed 
 by the governor or other authority," said Powderly, 
 "is simply no board of arbitration at all, for thfi 
 
 ^ North American Review, September, 1892.
 
 196 INDUSTRIAL ARBITRATION 
 
 reason that the workmen would have no voice in its 
 selection and the other side, having all the money 
 and influence, would be tempted to fix such a board 
 preparatory to engaging in a controversy with work- 
 ing men. For either side to refuse to appoint its 
 arbitrators should be held to be cause for their ap- 
 pointment by the governor of the state. 
 
 "No strike or lockout should be entered upon 
 before the decision of the board of arbitrators. 
 Provisions for appeal from the decision of the arbi- 
 trators should be made in order to prevent intimida- 
 tions or money from influencing the board." 
 
 A strike In the Brockton factories Involving nearly 
 six thousand operatives occurred In the early sixties, 
 about the time the Lynn joint board was estab- 
 lished. After some negotiations, a joint board con- 
 sisting of six members from each side was estab- 
 lished, and it was agreed that In case of a tie each 
 side should select a disinterested person and these 
 two a third — the decision of the three to be final. 
 This latter board reached an agreement after the 
 men had been idle for five weeks and they returned 
 to work. 
 
 Attempts at arbitration in the anthracite coal 
 fields of Pennsylvania occurred simultaneously with 
 the arbitration at Lynn and Brockton, Massachu- 
 setts. 
 
 The first law passed In the United States provid-
 
 INITIAL EXPERIMENTS AT HOME 197 
 
 ing for industrial arbitration was an act of the 
 Maryland legislature of April i, 1878. It provided 
 only for local arbitration. No permanent agency 
 was established to carry out the provisions of the 
 statute. 
 
 A New Jersey law of 1880" permitted a majority 
 of employees in any manufacturing establishment 
 to propose to submit any matters in controversy to 
 arbitration. At the option of the employer a second 
 arbitrator might be named by the employer, the 
 two to select a third. A board so constituted had 
 power to hear and examine the case and make a 
 written decision "binding upon both parties." 
 
 A later act of 1886^ provided that a controversy 
 between employers and employees, by mutual con- 
 sent, might be submitted to a board of five arbi- 
 trators, two named by the employees and two by 
 the employer, the four to select a fifth. The decision 
 of such a board was made "binding and conclusive 
 between the parties." 
 
 Pennsylvania in 1883 provided for "voluntary 
 trade tribunals." Texas provided for similar boards 
 of five persons by an act of 1895.* 
 
 Thirty-two states of the union have enacted leg- 
 
 ' Public Laws of 1880, Ch. 138. 
 
 'Laws of 1886, p. 315. 
 
 ' Laws of 1894-189.5, Ch. 379.
 
 198 INDUSTRIAL ARBITRATION 
 
 islatlon in some form providing for the conciliation 
 and arbitration of industrial disputes. Sixteen of 
 the forty-eight states have done nothing to provide 
 for industrial arbitration. It is noteworthy that 
 eight of the sixteen states are in the South — Vir- 
 ginia, Kentucky, Tennessee, Arkansas, Florida, 
 North Carolina, South Carolina and Mississippi. 
 Oregon, a state that otherwise has been foremost 
 in progressive legislation, is one of the sixteen. The 
 other seven are Delaware, West Virginia, Rhode 
 Island, Arizona, New Mexico, South Dakota and 
 Wyoming. 
 
 Four of the thirty-two states. New Jersey, Mich- 
 igan, Indiana and North Dakota, have repealed^ 
 their laws on industrial conciliation and arbitration, 
 and no one of these states at present has any law 
 in operation worthy the name of an industrial arbi- 
 tration statute. Although the constitution of Wyo- 
 ming, adopted in 1890 when that state entered the 
 Union, gave the state legislature power to establish 
 courts of arbitration from which appeals to the Su- 
 preme Court were provided, no action has been 
 taken under the clause. 
 
 Legislation for industrial arbitration has taken 
 
 * Indiana repealed its original act in 1911, but a new act 
 was passed in 1915. It is discussed on page 258 et seq.
 
 INITIAL EXPERIMENTS AT HOME 199 
 
 two distinct forms in this country. One is the per- 
 manent state board of arbitration that continues 
 from year to year. The other form is voluntary 
 arbitration by local boards constituted for each dis- 
 pute as it arises. In some states, labor commission- 
 ers are vested with powers similar to those exercised 
 by state boards, yet otherwise are limited by restric- 
 tions imposed by laws providing for local arbitra- 
 tion. 
 
 The seventeen states having permanent boards 
 and the dates of their creation by statute are as 
 follows: Massachusetts and New York, 1886; Mis- 
 souri, 1889; California, 1891; Ohio, 1893; Louisi- 
 ana, 1894; Illinois, Connecticut, Minnesota and 
 Montana, 1895; Utah, 1896; Oklahoma, 1907; 
 Maine, 1909; Alabama, 191 1; Vermont, 191 2; Ne- 
 braska and New Hampshire, 191 3. 
 
 Pennsylvania, Nevada, Colorado, Idaho, Iowa, 
 Maryland, Texas, Washington and Kansas — nine 
 states — provide for local boards. 
 
 Nine of the seventeen states having permanent 
 state boards of arbitration also provide for local and 
 voluntary boards. The nine states are California, 
 Maine, Massachusetts, Alabama, Minnesota, Mon- 
 tana, Nebraska, New York and Ohio. 
 
 New York had a detached and independent state
 
 200 INDUSTRIAL ARBITRATION 
 
 board of arbitration similar to the boards of other 
 states until 1901, when a bureau of mediation and 
 arbitration was created in the department of labor. 
 The state board of mediation and arbitration con- 
 sists of a chief mediator and two other officers of 
 the department of labor from time to time desig- 
 nated by the commissioner. 
 
 The Wisconsin Industrial Commission, created by 
 an act of 191 1, Is charged with the duty of pro- 
 moting voluntary arbitration and to do so may ap- 
 point temporary boards, prescribe rules of proce- 
 dure, conduct investigations and hearings. A deputy 
 of the commission is known as chief mediator. 
 
 New Jersey, the second state In the union to leg- 
 islate upon this subject, created a state board of 
 arbitration In 1892 and made provision for local 
 boards under license of the county judge. Appeals 
 from local boards to the state board were allowable 
 and the latter was given the power of mediation but 
 not investigation. An amendment of 1895 named 
 three persons to serve on the state board, fixed their 
 salaries and terms of office. 
 
 The act of 1892 and Its amendments were re- 
 pealed In 1908. The present commissioner of labor® 
 
 Lewis T. Bryant, New Jersey Commissioner of Labor.
 
 INITIAL EXPERIMENTS AT HOME 201 
 
 is authority for the statement that the board "per- 
 formed little or no service during the entire time it 
 was in existence." 
 
 Michigan first provided for industrial arbitration 
 by a state board in 1889. The board had powers 
 of mediation and investigation at its option but no 
 provision was made for the immediate publication 
 of its findings. In 1903 an amendment made it the 
 duty of the mayor of any city, the supervisor of any 
 township or the president of any village to furnish 
 promptly to the state board information of threat- 
 ened or actual strikes or lockouts. An amendment 
 of 1909 fixed the salaries of the arbitrators. No 
 appointments were made under the act until 1897 
 and the statute was repealed by the legislative ses- 
 sion of 191 1. It is said that the board did not meet 
 with favor for the reason that its powers were used 
 for political purposes and for that reason was abol- 
 ished. 
 
 At the first session of the North Dakota legisla- 
 ture, after the adoption of its constitution, in an 
 act prescribing the duties of the commissioner of 
 agriculture and labor, It was made his duty to 
 mediate between employers and employees when re- 
 quested to do so by fifteen employees or the em-
 
 202 INDUSTRIAL ARBITRATION 
 
 ployer in a difference threatening a strike or lock- 
 out involving twenty-five or more workmen.^ 
 
 Until the enactment of the statute of 191 5, un- 
 certainty marked the status of the Indiana law with 
 reference to Industrial arbitration. The labor com- 
 mission act was passed in 1897. It provided for the 
 appointment by the governor of two electors, not of 
 the same political party, one representing the em- 
 ployees and one the employers, not less than forty 
 years of age. 
 
 It was the duty of this commission upon receiving 
 information "of the existence of any strike, lockout, 
 boycott or other labor complication" in the state In- 
 volving at least fifty persons, to go to the scene of 
 the complication and offer their services as media- 
 tors. Mediation failing, they were required to "en- 
 deavor to Induce the parties to submit their differ- 
 ences to arbitration," either under the provisions of 
 the act or as they might elect. 
 
 The commission and the judge of the circuit court 
 where the controversy arose were constituted the 
 board of arbitration under the act, but two persons, 
 
 'This act is not included in the text of state laws pub- 
 lished by the Bureau of Labor in 1913, and it does not seem 
 to have been included in the compilation of the North Dakota 
 laws in 1895, 1899 and 1905. However, a careful examination 
 of the North Dakota statutes did not show that it has ever 
 been repealed,
 
 INITIAL EXPERIMENTS AT HOME 203 
 
 one representing the employers, and one represent- 
 ing the employees, might be added. This board had 
 power to issue subpoenas for witnesses and to hold 
 public or private hearings. A majority of the board 
 might make an award. 
 
 Either party violating the award might be pun- 
 ished for contempt, but only in case of "willful and 
 contumacious disobedience" did the punishment ex- 
 tend to imprisonment. 
 
 Provision was made under the act, upon applica- 
 tion of any employer and twenty-five employees be- 
 fore an open rupture had occurred, for arbitration 
 of their differences by the circuit judge and labor 
 commissioners. 
 
 Investigation of facts attending any disagreement 
 was compulsory upon the labor commission in the 
 event mediation failed and the parties could not 
 agree to arbitration. In such investigation, the com- 
 mission was entitled to the assistance of the attorney 
 general and had full power to issue subpoenas for 
 the attendance of witnesses. Failure of witnesses 
 to attend and testify was punishable by the circuit 
 judge as contempt of court. 
 
 Upon the completion of the investigation and re- 
 port to the governor, the commissioner was required, 
 "ynless he shall perceive a good reason to the con-
 
 204 INDUSTRIAL ARBITRATION 
 
 trary," to authorize such rejDort to be given out for 
 publication. No arbitrator could be paid for more 
 than fifteen days' service under the act. They re- 
 ceived ten dollars a day for each day of actual service. 
 
 The legislature of 1899 repealed the act of 1897 
 altogether and passed a new act containing all the 
 provisions of the act of 1897, except that the clause 
 requiring that fifty men be affected as a condition 
 precedent to mediation was stricken out. The mem- 
 bers of the commission were given an annual salary 
 under the new act instead of a per diem of ten 
 dollars. 
 
 In 191 1, the general assembly created the bureau 
 of inspection. Section three of that act attempted 
 to confer the powers held by the old labor commis- 
 sion on the deputy inspector of buildings, factories 
 and workshops, and the deputy inspector of mines 
 and mining. The status of the act was considered 
 too indefinite to permit the arbitration of the Indi- 
 anapolis street railway strike in 191 3 by the two 
 deputy inspectors and the circuit judge of Marion 
 County and this controversy was settled after per- 
 sonal intervention by the governor and formal hear- 
 ings before the public service commission of Indiana. 
 
 A Georgia act, passed in 191 1, can hardly be con- 
 sidered within the scope of legislation for industrial
 
 INITIAL EXPERIMENTS AT HOME 205 
 
 arbitration. The act merely gives the commissioner 
 of labor power to inquire into the causes of strikes 
 and "whenever practicable offer his good offices to 
 the contending parties with a view of bringing about 
 friendly and satisfactory adjustments thereof." 
 
 Before 1900, the American Federation of Eabor 
 had taken a more or less active stand in political 
 matters having to do with the welfare of its mem- 
 bership. It had, however, before that time success- 
 fully resisted the efforts of certain members to com- 
 mit it to the cause of any particular party. 
 
 The seamen's rights bill, approved December 31, 
 1898, abolished in certain ports "imprisonment for 
 desertion from the vessels," and guaranteed to a 
 seaman "a right to quit work at any time and for 
 any reason sufficient to himself, in any port of the 
 United States." This bill was indorsed by Pres- 
 ident Gompers and the legislative committee of the 
 American Federation of Labor.^ 
 
 The policy of the American Federation of Labor 
 with regard to compulsory arbitration was formu- 
 lated by a special committee, of which Edgar A. 
 Perkins, of Indiana,^ was chairman, at the Louis- 
 
 ° Report of President Gompers, 1901, p. 13 of the proceed- 
 ings. 
 * Formerly president Indiana State Federation of Labor.
 
 2o6 INDUSTRIAL ARBITRATION 
 
 ville convention in 1900. That policy prevails to- 
 day. 
 
 The New Zealand law, the Indiana labor com- 
 mission act of 1898, the Illinois state arbitration 
 law and the Erdman act were severely criticized in 
 the report.^** "The kernel of this species of legis- 
 lation," it said, "is a desire to prevent strikes by 
 punishing the striker." Industrial courts of France 
 were put in the same class as the compulsory arbi- 
 tration boards of New Zealand.^^ A bill introduced 
 in the German Reichstag about this time was said 
 to have "the same underlying motive."^" A law 
 adopted by the Hungarian Diet, providing "that 
 agricultural workers must make agreements for spe- 
 cific terms of service" and that "any violation of the 
 agreement shall subject the offending party to Im- 
 prisonment,"^^ was denounced as one designed "to 
 prevent strikes by punishing the striker." The 
 Swedish law "extending the master and servant 
 laws of Sweden to the Industrial workers of that 
 country" was "fiercely combated by the lovers of 
 liberty," said the report/* Objections were made to 
 the Illinois law and the Indiana law then In force, 
 
 'Proceedings of the A. F. L. Conventioti, 1900, p. 143. 
 ' Ibid. 
 ' Ibid. 
 ' Ibid. 
 ' Ibid.
 
 INITIAL EXPERIMENTS AT HOME 207 
 
 because they permitted the judge for the violation 
 of an award, to punish the offender for contempt of 
 court. "The thought underlying these laws," said 
 the report, "is that the individual may alienate his 
 right to liberty, and it is, therefore, destructive of 
 the fundamental principle of the Republic of the 
 United States."^^ Trade unionists point to the Eng- 
 lish "statute of laborers" as the forerunner of com- 
 pulsory arbitration, and this statute was pronounced, 
 by the special committee of the American Federation 
 of Labor, "every bit as fair as the New Zealand, In- 
 diana or Illinois laws." 
 
 Taking up the constitutional prohibition of invol- 
 untary servitude, the committee was not disposed to 
 consider this prohibition applicable to the "involun- 
 tary servitude," resultant from the "so-called volun- 
 tary arbitration laws," in view of the decision of the 
 United States Supreme Court in Robertson et al. vs. 
 Harry Baldwin, decided January 25, 1897, and 
 from which Justice Harlan dissented. The holding 
 of the court was quoted thus: 
 
 "An individual may, for a valuable consideration, 
 contract for the surrender of his personal liberty 
 for a definite time and for a recognized purpose, and 
 subordinate his going and coming to the will of an- 
 other, during the continuancy of the contract; not 
 
 » Ibid.
 
 2o8 INDUSTRIAL ARBITRATION 
 
 that all such contracts would be lawful, but that a 
 servitude which was knowingly and willingly en- 
 teied into could not be termed involuntary. 
 
 "Commissions, with power to examine and re- 
 port," the statement concludes, "would seem to be 
 more in line with what is actually desired, but we 
 would call attention to the fact that even these have 
 in them a feature dangerous to liberty, because from 
 them may come — and sometimes do come — reports 
 which have a tendency to warp public opinion and 
 prepare it for measures which without such prepara- 
 tion the public would unhesitatingly reject. 
 
 ". . . we are utterly opposed to any law en- 
 acted by the state which will in any way^*' by consent 
 or otherwise, deprive the worker of his right to quit 
 work at any time and for any reason sufficient to 
 himself." 
 
 Max S. Hayes, the well-known Socialist repre- 
 senting the Cleveland Central Labor Union, was sec- 
 retary of this committee. 
 
 The Industrial Workers of the World are opposed 
 to arbitration In every form. The preamble of their 
 declaration of principles recites that "the working 
 class and the employing class have nothing in com- 
 mon" and their platform demands the "abolition of 
 the wage system." 
 
 The Socialist party Is regarded as unfavorable to 
 arbitration of any kind, since It interferes with the 
 sympathetic strike. It was the Socialist Influence In 
 
 'Proceedings of the A. F. L. Convention, 1900, pp. 145-146.
 
 INITIAL EXPERIMENTS AT HOME 2og 
 
 the Western Federation of Miners which forbade 
 that organization to agree with their employers upon 
 anything more than a wage scale. 
 
 Employers' organizations, as a rule, are not kindly 
 disposed to arbitration, and certainly not favorable 
 to compulsory arbitration. Generally, their conten- 
 tion is that they have a right to employ whom they 
 will, when they will, under whatever conditions they 
 desire, and pay what the supply and demand of la- 
 bor compels them to pay. 
 
 In its declaration of labor principles, however, the 
 National Association of Manufacturers asserts that 
 it is "not opposed to organizations of labor as such," 
 and that "no person should be refused employment 
 or in any way discriminated against on account of 
 membership or non-membership in any labor organi- 
 zation, and there should be no discrimination against 
 or interference with any employee who is not a mem- 
 ber of a labor organization by the members of such 
 organizations. 
 
 "With due regard to contractors," the declaration 
 asserts, "it is the right of the employee to leave his 
 employment when he sees fit, and it is the right of 
 the employer to discharge any employee when he 
 sees fit. 
 
 "The National Association of Manufacturers dis- 
 approves absolutely of strikes and lockouts, and fa-
 
 2IO INDUSTRIAL ARBITRATION 
 
 vors an equitable adjustment of all differences be- 
 tween employers and employees by any amicable 
 method that will preserve the rights of both parties. 
 "Employees have the right to contract for their 
 services in a collective capacity, but any contract that 
 contains a stipulation that employment should be de- 
 nied to men not parties to the contract is an invasion 
 of the constitutional rights of the American working 
 man, is against the public policy, and is in violation 
 of the conspiracy laws. This Association declares 
 its unalterable antagonism to the closed shop, and in- 
 sists that the doors of no industry be closed against 
 American workmen because of their membership or 
 non-membership in any labor organization," 
 
 The National Civic Federation, an organization 
 which was formed as the result of several confer- 
 ences on arbitration and conciliation under the aus- 
 pices of the Chicago Civic Federation, has promoted 
 by various means, the movement for industrial peace. 
 This organization has an executive committee of fif- 
 teen members each from Labor, Capital and the gen- 
 eral public. It has a department of conciliation and 
 arbitration and a membership extending to every in- 
 dustrial center, composed of representatives of the 
 capitalists, wage earners and general public in equal 
 numbers. 
 
 "The National Civic Federation aims to bring Into 
 cooperation the sane and patriotic leaders of the 
 forces of employers and employed and of the inter-
 
 INITIAL EXPERIMENTS AT HOME 211 
 
 ested but too often forgotten and forgetting third 
 party, the general public ; its purpose is constructive, 
 not destructive. It would develop, through agencies 
 here described, the best elements in the organizations 
 of capital and labor, and it would keep awake a 
 wholesome public concern in the profit of one, the 
 welfare of the other and the prosperity of all, 
 through the advent of an intelligent understanding 
 of economic laws. It would show that organized la- 
 bor can not be destroyed without the debasement of 
 the masses. It would show that organized labor 
 can be led to correct its errors. It would show that 
 capital can be taught the practicability of securing 
 industrial peace in accordance with business meth- 
 ods. It would show that the twin foes of industrial 
 peace are the anti-union employers and the Social- 
 ists, and that the former are unconsciously promot- 
 ing that class hatred which the latter boldly advo- 
 cate. It would present a hopeful picture of future 
 harmony between capital and labor, based upon the 
 establishment of their rightful relations, instead of 
 the pessimistic prophecy of the degradation of labor 
 because of its exceptional and inexcusable errors or 
 crimes, or of a social revolution provoked by capital 
 when organized for oppression. "^^ 
 
 In 1903, because some members of the National 
 Association of Manufacturers were unwilling to al- 
 low the major portion of its attention to be devoted 
 to fighting organized labor, the Citizens' Industrial 
 Association was organized.^^ This is a national or- 
 
 " Bliss, The Encyclopedia of Social Reform, p. 807. 
 " Carlton, The History and Problems of Organised Labor, 
 p. 89.
 
 212 INDUSTRIAL ARBITRATION 
 
 ganization, made up of district and local associa- 
 tions. There are about five hundred of the latter 
 in most of the states and territories. A few years 
 ago, the British Citizens' Industrial Association, 
 modeled after the American institution, was or- 
 ganized. 
 
 The Citizens' Industrial Association of the United 
 States is bitterly hostile to organized labor, although 
 the contention Is sometimes made that it is not. 
 James A. Emery, one of the moving spirits in the 
 National Association of Manufacturers, is a leader 
 in the Citizens' Industrial Association. The late 
 James W. Van Cleave was also prominent in both. 
 They have been numbered among the best known 
 foes of organized labor in this country. The late C. 
 W. Post also was a moving spirit in the Citizens' In- 
 dustrial Association. A monthly magazine. The 
 Square Deal, publishes this platform of principles : 
 
 "No closed shop; no restriction as to the use of 
 tools, machinery, or material, except such as are un- 
 safe; no limitation of output; no restriction as to the 
 number of apprentices and helpers, when of proper 
 age; no boycott; no sympathetic strike; no sacrifice 
 of independent workmen to the labor union ; no com- 
 pulsory use of union label." 
 
 Although this organization does not set forth Its
 
 INITIAL EXPERIMENTS AT HOME 213 
 
 attitude regarding conciliation and arbitration, it 
 can hardly be expected to be favorable to any in- 
 dustrial scheme which involves collective bargain- 
 ing. It stands for an industrial autocracy and there- 
 fore savors of medievalism. While it recognizes the 
 right of Capital to organize, with the greatest non- 
 chalance it denies the same right to Labor. 
 
 The platform declarations of political parties on 
 industrial arbitration have not been more explicit 
 than platform declarations usually are. The Social- 
 ist party is opposed to compulsory arbitration, in 
 fact arbitration of almost any kind, if not by offi- 
 cial declarations against it, then assuredly by its 
 constructive program of industrialism as opposed to 
 capitalism. The Prohibition party, as far back as 
 1888, declared that "arbitration is the Christian, 
 wise and economic method of settling national dif- 
 ferences and the same method should by judicious 
 legislation, be applied to the settlement of disputes 
 between large bodies of employers and their em- 
 ployees."^" 
 
 This is typical of later planks on the subject. No 
 party has outlined any particular form of arbitra- 
 tion. No party has said much about what kind of 
 arbitration it favored, at least in national platforms. 
 
 " Pro. Nat. Plat., 1888.
 
 214 INDUSTRIAL ARBITRATION 
 
 Both the Republican and Democratic parties, in their 
 platform of 1896, declared in favor of arbitration to 
 adjust the differences between employer and em- 
 ployee engaged in interstate commerce. The 
 Democratic party had a plank in 1 900 favoring 
 "arbitration as a means of settling disputes between 
 corporations and their employees" and the Republi- 
 can party in 19 12 favored the "speedy enactment of 
 laws to provide that seamen shall not be compelled to 
 endure involuntary servitude." In 1908 and in 
 1 9 10, the Indiana Democratic state platform con- 
 tained declarations favoring compulsory arbitration.
 
 CHAPTER IX 
 
 LEGISLATION IN UNITED STATES 
 
 IN ALL of the seventeen states having permanent 
 state boards of conciliation and arbitration, ex- 
 cept Louisiana and Oklahoma, there are three mem- 
 bers. Louisiana has five members and Oklahoma 
 six. New York's board is made up from officials of 
 the department of labor. Generally, board mem- 
 bers are appointed by the governor, though in Okla- 
 homa three members are recommended by the state 
 commission of labor, and in most states at least one 
 member must be a representative employer and one 
 member a representative employee. Illinois also re- 
 quires one member to be taken from each of the two 
 leading political parties. 
 
 The third member of a permanent state board of 
 arbitration, generally speaking, is required to be a 
 disinterested citizen. Minnesota, Missouri, Califor- 
 nia and Utah require that the third member shall be 
 neither an employer nor an employee. In some 
 states the member representing the employees must 
 be recommended by a labor organization. 
 
 215
 
 2i6 INDUSTRIAL ARBITRATION 
 
 Members hold their office for four years in one 
 state, three years in seven states, two years in six 
 states, one year in one state and indefinitely in two 
 states, Louisiana and New York. Salaries vary from 
 three dollars a day in Montana to eight dollars a day 
 in New Hampshire and one thousand five hundred 
 dollars and two thousand five hundred dollars a year 
 in Illinois and Massachusetts, respectively. 
 
 Of the nine states having state boards of arbitra- 
 tion but providing also for local and voluntary 
 boards, California has made it possible when the 
 parties to any controversy or difference do not de- 
 sire to submit their difference to a state board "they 
 may by agreement each choose one person, and the 
 two shall choose a third, who shall be chairman and 
 umpire, and the three shall constitute a board of ar- 
 bitration and conciliation for the special controversy 
 submitted to It and for that purpose shall have the 
 same powers as the state board." They may be 
 sworn and shall adopt such rules of procedure as 
 they may see fit. Local boards are constituted In 
 Maine the same as In California. They are paid by 
 the state. 
 
 Massachusetts makes the effect of the decision of 
 the local board dependent upon the terms fixed in 
 the submission. The arbitrators receive three dol-
 
 LEGISLATION IN UNITED STATES 217 
 
 lars a day from the treasury of the city or town 
 where the controversy arose. A copy of their find- 
 ings is filed with the state board. Otherwise, a local 
 board is constituted, as in California and Maine. 
 
 The Alabama act is practically the same as those 
 of California, Maine and Massachusetts. Local 
 boards are constituted "by agreement of the par- 
 ties" in Minnesota. They have all the powers of the 
 state board. Montana makes it possible for local 
 boards either to be "mutually agreed upon" or to 
 be selected one by each party and the third by the 
 first two. The jurisdiction of the board is exclusive 
 but it may ask and receive the assistance of the state 
 board. Arbitrators are paid by the county. The 
 time allowed for hearings must not exceed ten days. 
 
 In Nebraska, the deputy commissioner of labor is 
 ex-officio secretary of local boards. They have the 
 same powers in particular controversies as the state 
 boards. The New York law is very much the same 
 as the Nebraska act as to local boards, except that 
 one of the members acts as secretary and the law 
 makes no provision for their compensation. Ohio's 
 provision for local boards Is identical with that of 
 Minnesota. 
 
 Of the nine states where temporary arbitration 
 boards are provided by state law, the labor commis-
 
 2i8 INDUSTRIAL ARBITRATION 
 
 sioners are mediators in Idaho and the labor com- 
 missioner is mediator in Colorado and Washington. 
 The chief of the bureau of industrial statistics is 
 mediator in Maryland, the commissioner of the bu- 
 reau of labor in Iowa and the governor in Nevada. 
 Pennsylvania has a chief of the bureau of mediation, 
 an official of the department of labor, under an act 
 of 191 3. Texas and Kansas do not provide for 
 mediation by state agency. 
 
 Failing in conciliation, the governor of Nevada 
 is empowered to appoint temporary arbitration 
 boards. The two labor commissioners and the judge 
 of the district court where the dispute arises consti- 
 tute the board of arbitration in Idaho. They are re- 
 quired to obtain consent to arbitration in writing. 
 Local boards are chosen, one member by each party, 
 and the third by the two members already chosen, in 
 Colorado, Washington and Maryland. Upon the 
 failure of the two to agree, a third member is ap- 
 pointed by the deputy state labor commissioner in 
 Colorado. If mediation or an effort to obtain arbi- 
 tration fails In Washington, the state labor commis- 
 sioner must request reasons for refusal. These rea- 
 sons must be made public. The chief of the bureau 
 of industrial statistics in Maryland, failing to con- 
 ciliate the parties or to obtain arbitration, must make
 
 LEGISLATION IN UNITED STATES 219 
 
 a complete investigation, ascertain which party is 
 mainly responsible or blameworthy, and publish a 
 report In some daily newspaper over his signature. 
 
 Aside from the Maryland law of 1878 and the 
 provisions for local boards appointed at the sugges- 
 tion of the chief of the bureau of Industrial statistics, 
 industrial disputes may be settled in Maryland by 
 the voluntary agreement of both parties to abide the 
 determination of a judge or justice of the peace, or 
 the determination of two arbitrators satisfactory to 
 the employers, two satisfactory to the employees, 
 appointed by the judge, and the judge. Such deter- 
 minations are given as a judgment of the court. 
 
 Five persons employed as workmen or two or 
 more separate firms, corporations or individuals em- 
 ploying labor within the county may petition the 
 district court of each county in Kansas to issue a li- 
 cense for the establishment of a tribunal for volun- 
 tary arbitration. It Is the duty of the court to grant 
 the license and name four persons to compose the 
 tribunal, two workmen and two employers, also fix 
 a time and place for their first meeting. Such tri- 
 bunal shall continue for one year and "may take jur- 
 isdiction of any dispute" submitted to it for decision. 
 Disputes occurring In one county may be referred 
 to a tribunal already created in an adjoining county.
 
 220 INDUSTRIAL ARBITRATION 
 
 An umpire shall be appointed "to act after disagree- 
 ment is manifested in the tribunal by failure to 
 agree during three meetings held and full discus- 
 sion had." His award is final. A majority of the 
 tribunal may provdde for the examination and in- 
 vestigation of books. The proper court upon mo- 
 tion of any one interested may enter judgment on 
 the award. 
 
 The trade union of which the employees are mem- 
 bers or a majority of the employees and the em- 
 ployer, each names two arbitrators and the fifth is 
 chosen by the other four or the district judge in 
 Texas. Upon petition from a legally constituted 
 board, the judge must issue an order approving the 
 board. During arbitration the status existing prior 
 to the disagreement must be maintained. The award 
 of a court of arbitration may be enforced in equity. 
 Judgment is entered on the award within ten days 
 after being filed in the district clerk's office, unless 
 exceptions are made. Appeal is allowed to the court 
 of civil appeals having jurisdiction thereof. The 
 decision of this court is final. 
 
 Either or both parties to a dispute, the mayor of 
 the city, the chairman of the board of supervisors of 
 the county, twenty-five citizens joined in a petition
 
 LEGISLATION IN UNITED STATES 221 
 
 or a commissioner of the bureau of labor, after in- 
 vestigation, may make written application to the 
 governor for the appointment of a board of arbitra- 
 tion and conciliation in Iowa, when at least ten per- 
 sons are affected. 
 
 Upon notice, It is the duty of the governor of Iowa 
 to notify the parties of the application and make re- 
 quest that each within three days recommend five 
 persons "who have no direct interest in such dispute 
 and are willing and ready to act as members of the 
 board, and the governor shall appoint from each 
 list submitted one of such persons recommended." If 
 either party fails or neglects to make a recommenda- 
 tion within the legal period, the governor "shall ap- 
 point a fit person who shall be deemed to be ap- 
 pointed on the recommendation of either of said 
 parties." The members so appointed are required, 
 within five days of their appointment, to name one 
 person who is willing and ready to act as a third 
 member of their board. Upon their failure or neg- 
 lect to do so, the governor shall appoint a third mem- 
 ber. If both parties join in an application and agree 
 to be bound by the decision, it shall be binding for 
 one year. The board elects one member chairman 
 and one secretary. It may employ clerks and stenog-
 
 222 INDUSTRIAL ARBITRATION 
 
 raphers. The members receive five dollars a day. 
 Expenses of arbitration under the act are payable 
 out of the state treasury. 
 
 Iowa boards of arbitration and conciliation have 
 full power to subpoena witnesses and examine them 
 under oath. They are required to visit the scene 
 of the controversy and make a personal investiga- 
 tion. Within five days after the completion of the 
 investigation, unless the time is extended for good 
 cause by the governor, boards are required to make 
 a written decision. Provision is made by the act for 
 printing the decision in two newspapers of general 
 circulation in the county where the controversy ex- 
 isted. 
 
 State boards of arbitration all have practically 
 the same provisions governing the process of inter- 
 vention and proceedings subsequent to intervention. 
 
 The Massachusetts act may be taken as typical of 
 a group. This state makes it the duty of the mayor 
 of a city, the selectman of a town, the employer or 
 employees actually concerned in a threatened strike 
 or lockout to notify the state board. Maine, Ohio, 
 Oklahoma, Louisiana and Utah have essentially the 
 same requirement except that notice must proceed 
 from different local officials. The chief executive 
 officer of every labor organization affected by a
 
 LEGISLATION IN UNITED STATES 223 
 
 strike or lockout in Oklahoma is required to inform 
 the board of "such information as he may possess 
 touching the differences or controversy and the num- 
 ber of employees involved." Experience supports 
 this provision inasmuch as state boards may accom- 
 plish more toward conciliation if conditions are not 
 permitted to become acute, as they often do from 
 delay. Unless such notice is required, it frequently 
 happens that the board hears nothing of a strike or 
 lockout until some overt act of violence gets into the 
 newspapers. Then it may be too late to bring the 
 hostile parties together. 
 
 Says President Hadley of Yale University:^ 
 
 "The history of boards of arbitration shows how 
 little can be accomplished by the exercise of political 
 authority after the fight has once begun." 
 
 In its annual report for 1904, the New Jersey 
 state board of arbitration urged that the state law be 
 amended to require the chief executive of the local 
 government to furnish the board with Information 
 of strikes and lockouts. This Is typical of the ex- 
 perience of all state boards where no one was 
 charged with the duty of giving Information 
 promptly. The Indiana Labor Commission in its 
 
 ^ Report of Industrial Commission, Vol. 17, p. 692. 
 
 I
 
 224 INDUSTRIAL ARBITRATION 
 
 report for 1907-08 and the Ohio board in its report 
 for 1906 asked to have local authorities made re- 
 sponsible for giving notice of strikes and lockouts. 
 
 It is the board's duty in Massachusetts to obtain 
 an amicable settlement, if possible, or endeavor to 
 persuade the employer and employees to submit their 
 controversy either to a local board of arbitration or 
 to the state board. 
 
 If the employer or a majority of the employees or 
 both parties in any controversy involving not less 
 than ten employees apply formally for arbitration, 
 agreeing to continue at work or in business without 
 any strike or lockout until the decision of the board 
 is made, if made within three weeks from the date 
 of the application, it is the duty of the board to pro- 
 ceed at once to a hearing. 
 
 The Alabama act is similar to that of Massachu- 
 setts regarding the process preliminaiy to arbitra- 
 tion. Application for conciliation and arbitration 
 may be signed by either or both parties, if twenty 
 men are Involved, in Louisiana. The application not 
 only must contain a concise statement of grievances 
 but an agreement to continue at work or in business 
 until the decision of the board is published, if made 
 within ten days from the date of application. 
 
 Twenty-five men must be involved in Illinois to
 
 LEGISLATION IN UNITED STATES 225 
 
 warrant Intervention by the state board which is 
 by application of either or both parties. It is the 
 board's duty when a strike or lockout is threatened 
 to "put itself in communication as soon as may be 
 with such employer or employees, and endeavor by 
 mediation to effect an amicable settlement between 
 them, or to endeavor to persuade them to submit the 
 matters in dispute to the state board." 
 
 The Connecticut act provides for mediation by the 
 board on its own motion. Employers and employees 
 may jointly submit their differences to the state 
 board whereupon an investigation is made and a de- 
 cision rendered. 
 
 California's provisions for arbitration by the state 
 board are identical with those of Massachusetts. If 
 the petitioners fail to keep the promise made to 
 continue at work or in business, the board shall pro- 
 ceed no further in the investigation without the writ- 
 ten consent of the adverse i:»arty, and the party vio- 
 lating the contract must pay the extra cost. 
 
 Application for arbitration to the state board may 
 be made by either party in Minnesota. Notice to 
 the adverse party is necessary unless notice Is 
 waived. 
 
 Missouri makes it the duty of the employer and 
 the employee to submit for Investigation grievances
 
 226 INDUSTRIAL ARBITRATION 
 
 or disputes to the state board. This duty is defined 
 in the following clause: 
 
 "In all cases when any grievances or dispute shall 
 arise between any employer and his employees, said 
 dispute involving ten or more employees, it shall be 
 the duty of the parties to said controversy to submit 
 the same to said board for investigation." 
 
 Parties are bound to continue at work or in busi- 
 ness in Montana, if the decision of the board is made 
 within four weeks after the date of application. Mon- 
 tana has a provision similar to that of California 
 governing violations of the contract contained in the 
 application for arbitration. 
 
 Only by mutual agreement may a grievance or 
 dispute between an employer and employee be sub- 
 mitted to the state board in Nebraska. 
 
 The commissioner of labor is mediator In New 
 Hampshire. If he fails to obtain an adjustment of 
 differences, it is his duty to endeavor to have the 
 contending parties submit their differences to the 
 state board of arbitration. As a part of his prelim- 
 inary investigation, he is required to make a deci- 
 sion as to what ought to be conceded by either or 
 both parties. 
 
 The New York board is authorized to make find- 
 ings after application has been made to it, pre-
 
 LEGISLATION IN UNITED STATES 227 
 
 sumably from the act, by both parties. The second 
 deputy commissioner of labor is chief mediator. 
 Grievances or disputes may be submitted to the board 
 on agreement in writing to abide by its determina- 
 tion. Voluntary boards may be created for indi- 
 vidual cases when each side selects one arbitrator 
 and the two select a third. 
 
 Twenty-five employees must be affected as a con- 
 dition precedent to mediation in Ohio. 
 
 Each party may submit a separate list of griev- 
 ances or they may join in a statement of facts, un- 
 der the Utah act. Application for arbitration must 
 precede a strike or lockout, or an agreement to re- 
 sume work or business must be signed if a strike or 
 lockout is under way. 
 
 The phraseology of the Vermont statute is almost 
 identical with that of the Massachusetts act, but Ver- 
 mont has no provision for local boards. 
 
 Seven states — Iowa, Idaho, Colorado, Massachu- 
 setts, Missouri, Ohio and Vermont — require an in- 
 vestigation by state authority of conditions surround- 
 ing actual or threatened strikes and lockouts, even 
 though neither party asks for it. This process is 
 known as compulsory investigation and has many 
 features to commend it to the approval of the prac- 
 tical man seeking a practical remedy. This process
 
 228 INDUSTRIAL ARBITRATION 
 
 is founded on the idea that public opinion, when ap- 
 prised of the true state of affairs in a troubled dis- 
 trict, will operate for a speedy adjudication by the 
 party most blameworthy. This is the merit of con- 
 gressional investigations in strikes of national im- 
 portance and the merit of all investigations, official 
 or unofficial. Investigations are likely to fail when 
 the public has little confidence in the fairness of offi- 
 cials charged with the duty of sifting out the facts. 
 In 191 2 the Massachusetts state board of concilia- 
 tion and arbitration was called upon to investigate 
 and report conditions after the company had refused 
 to arbitrate the Boston Elevated strike. Evidence 
 brought out by the board showed that the public 
 had been deceived by the company, which first had 
 claimed that there were less than one thousand men 
 on the strike. The company later conceded 
 there were one thousand six hundred and finally ad- 
 mitted that there were two thousand five hundred. 
 The books of the secretary of the street railway men's 
 union showed that three thousand three hundred 
 seventy-two members had received strike benefits. 
 The books also showed that the company was im- 
 porting strikebreakers contrary to its claim and the 
 findings of the state board showed that officials of 
 the company had induced vicious characters to come
 
 LEGISLATION IN UNITED STATES 229 
 
 to the city. The demand of the mayor and the gov- 
 ernor that the strike be settled forced the company 
 to consent to arbitration and all demands of the 
 union were conceded by the board. 
 
 In Iowa, the decision following investigation must 
 be published. Idaho requires an official investiga- 
 tion if, after five days, mediation has failed. The 
 deputy labor commissioner of Colorado must make 
 an Investigation of facts If mediation fails and it Is 
 a misdemeanor not to furnish sworn statements as 
 to why arbitration Is refused. Massachusetts re- 
 quires the board to ascertain which party is mainly 
 responsible and publish a report of its findings. In 
 formal hearings under the Massachusetts act, all 
 persons interested must be heard or examined by 
 the board and it is its duty to advise the respective 
 parties what ought to be done or submitted to by 
 either or both parties to adjust the controversy. Mis- 
 souri makes investigation compulsory, if conciliation 
 fails, and also fixes the duty of the parties to submit 
 a controversy to arbitration. Ohio requires an In- 
 vestigation if conciliation fails, advice from the 
 board as to what both parties should do, and pub- 
 lication of findings. 
 
 "When a controversy or difference, not Involving 
 a question which may be the subject of an action or
 
 230 INDUSTRIAL ARBITRATION 
 
 proceeding in a court," exists between an employer 
 and his employees, it is the duty of the Ohio board 
 to "visit the locality of the dispute, make careful in- 
 vestigation into the causes thereof, hear all parties 
 interested therein who come or are subpoenaed be- 
 fore It, and advise the respective parties what, if 
 anything, ought to be done or submitted to by either 
 or both such parties to adjust the dispute." A de- 
 cision must be made public by the board "if it fails 
 to bring about an adjustment of such differences." 
 
 Vermont requires the decision to set forth which 
 party is mainly responsible. 
 
 Illinois and Oklahoma make an investigation 
 without application from either party optional with 
 the board. When the general public is likely to suf- 
 fer inconvenience "with respect to food, fuel or 
 light, or the means of communication or transporta- 
 tion, or in any other respect," even though neither 
 party consents to submit the case to arbitration, it is 
 the duty of the Illinois board to proceed on Its own 
 motion to an investigation and make a finding "with 
 such recommendations to the parties involved as in 
 Its judgment will contribute to a fair and equitable 
 settlement of the differences which constitute the 
 cause of the strike or lockout."
 
 LEGISLATION IN UNITED STATES 231 
 
 Even though neither party will consent to arbi- 
 tration in Oklahoma, the board of its own motion 
 may "make an investigation of all facts bearing upon 
 such strike or lockout and make public its findings, 
 with such recommendations to the parties involved 
 as, in its judgment, will contribute to a fair and 
 equitable settlement of the differences." 
 
 Under similar conditions the New Hampshire la- 
 bor commissioner may investigate all the facts sur- 
 rounding a strike or lockout, fix the responsibility 
 and publish findings. 
 
 Of the states not having state boards, Colorado 
 makes it the duty of the deputy state labor com- 
 missioner, upon learning of an industrial dispute, to 
 make a careful inquiry and advise the respective par- 
 ties "what, if anything, ought to be done or sub- 
 mitted to by both, to adjust said disputes." 
 
 Investigation is optional with the board of arbi- 
 tration in Connecticut and Minnesota. In Minne- 
 sota, the board may "fix the responsibility" for the 
 continuance of a strike and publish the facts. Inves- 
 tigation is optional with the governor in Alabama 
 and Nebraska and optional with the commissioner 
 of labor in New York. 
 
 The board of arbitration may make an investiga-
 
 232 INDUSTRIAL ARBITRATION 
 
 tion at its option on application of either disputant 
 in California, Maine and Montana. Montana re- 
 quires the board to make public its decision if an in- 
 vestigation is made. Maine makes it necessary, fol- 
 lowing an investigation, to advise each party what 
 ought to be done. Louisiana makes an investiga- 
 tion mandatory, if either party applies for arbitra- 
 tion, and the publication of the report as to which 
 party is mainly responsible. 
 
 There can be no investigation without a submis- 
 sion of the cause to arbitration under the laws of 
 Kansas, Pennsylvania, Nevada and Texas. These 
 states, it will be remembered, provide for local 
 boards only. 
 
 When the state is a stockholder or creditor of any 
 concern threatened or affected by a strike or lockout, 
 the board of works has power at its discretion in 
 Maryland to make an investigation of facts and sub- 
 mit a report to the next general assembly. Investi- 
 gation is incidental to mediation in Utah. It is the 
 duty of the Washington labor commissioner, when 
 arbitration fails, to request a sworn statement of 
 facts from each party and reasons for not submitting 
 the cause to arbitration. 
 
 Section 14 of the Massachusetts act provides for
 
 LEGISLATION IN UNITED STATES 233 
 
 expert assistance to the state board of conciliation 
 and arbitration. The section is as follows : 
 
 "In all controversies between an employer and his 
 employees in which application is made under the 
 provisions of the preceding section, each party may, 
 in writing, nominate fit persons to act in the case as 
 expert assistants to the board and the board may ap- 
 point one from among the persons so nominated by 
 each party. Said experts shall be skilled in and 
 conversant with the business or trade concerning 
 which the controversy exists, they shall be sworn by 
 a member of the board to the faithful performance 
 of their official duties and a record of their appoint- 
 ment shall be made in the case. Said experts shall, if 
 required, attend the sessions of the board, and shall, 
 under the direction of the board, obtain and report 
 information concerning the wages paid and the meth- 
 ods and grades of work prevailing in establishments 
 within the Commonwealth similar to that in which the 
 controversy exists, and they may submit to the board 
 at any time before a final decision any facts, advice, 
 arguments or suggestions which they may consider 
 applicable to the case. No decision of said board 
 shall be announced in a case in which said experts 
 have acted without notice to them of a time and 
 place for a final conference on the matters included 
 in the proposed decision. Such experts shall receive 
 from the Commonwealth seven dollars each for every 
 day of actual service and their necessary traveling 
 expenses. The board may appoint such other addi- 
 tional experts as it considers necessary, who shall be 
 qualified in like manner and, under the direction of
 
 234 industrial; arbitration 
 
 the board, shall perform like duties and be paid the 
 same fees as the experts who are nominated by the 
 parties," 
 
 Montana also has a provision for expert assist- 
 ance. The law provides that after notice of hearing 
 has been given, each party may nominate in writing 
 one person and the board may appoint two persons 
 to act "as expert assistants to the board." The two 
 persons so appointed "shall be skilled in and con- 
 versant with the business or trade concerning which 
 the dispute has arisen." It Is their duty, under the 
 direction of the board, "to obtain and report to the 
 board, information concerning the wages paid, the 
 hours of labor and the methods and grades of work 
 prevailing in manufacturing establishments, or other 
 industries or occupations." Other experts may be 
 appointed by the board. 
 
 Vermont provides for expert assistance to the 
 board and the section Is the same as the Massachu- 
 setts act, except that the compensation of assistants 
 is fixed by the board. 
 
 The significance of such a clause Is obvious. 
 Rarely are permanent boards of arbitration chosen 
 for their Interest In or acquaintance with work- 
 ing conditions. Generally, they are politicians who 
 know no more ab"out scientific methods of attacking
 
 LEGISLATION IN UNITED STATES 235 
 
 an industrial dispute than they know about attack- 
 ing scientifically any other economic or social prob- 
 lem. Expert assistants may avoid their natural 
 difficulties on account of ignorance of and want of 
 sympathy with the problem they have in hand. 
 
 When application for arbitration is mutual, the 
 award is binding upon both parties in Massachu- 
 setts, Minnesota, Missouri, Montana, New Hamp- 
 shire and New York. The decision of the board 
 of arbitrators is enforceable in the courts of Ohio, 
 where a joint application "may contain a stipula- 
 tion that a decision of the board under it shall be 
 binding upon the parties to the extent stipulated." 
 
 Eight states having state boards of arbitration — 
 Massachusetts, California, Illinois, Maine, Minne- 
 sota, Montana, New Hampshire and Vermont — make 
 the decision of the board of arbitration binding 
 on parties who join in the application for six 
 months, or until either party has given the other 
 written notice of his intentions not to be further 
 bound after the expiration of sixty days. California 
 permits the parties to agree upon the period in which 
 the award shall be binding. To enforce the deci- 
 sion In Illinois, a copy is filed with the clerk of 
 the circuit court where the offending party resides 
 and the judge is required to grant a rule against
 
 236 INDUSTRIAL ARBITRATION 
 
 the party to show cause in ten days why the de- 
 cision has not been complied with. The judge may 
 punish the offending party for contempt. 
 
 Five states having state boards of arbitration — 
 Alabama, Connecticut, Louisiana, Nebraska and 
 Oklahoma — do not have any provision for a bind- 
 ing and enforceable award. In Alabama, the rec- 
 ommendati6n of the board and its decision must 
 be filed with the governor. 
 
 Three states having local boards or provision for 
 the same — Colorado, Washington and Wisconsin — 
 make no provision for a binding and enforceable 
 award. 
 
 An agreement for arbitration has the effect of 
 an agreement to abide by and perform the award 
 in Idaho. The agreement, however, is voluntary. 
 The parties must agree to abide by the determina- 
 tion of the board in Pennsylvania, and Ohio per- 
 mits joint applications to contain a stipulation that 
 the decision of the board under it shall be binding 
 upon the parties to the extent so stipulated, in which 
 case it may be enforced in the court of common pleas 
 as a statutory award. Utah permits applications to 
 contain a promise to abide by the decision of the 
 board. 
 
 Decisions made by boards of arbitration date
 
 LEGISLATION IN UNITED STATES 237 
 
 from the appointment of the board and are binding 
 upon the parties who join in an application for one 
 year, in Iowa. 
 
 Decisions are final and binding in Missouri when 
 application for arbitration is mutual and final and 
 binding where either party refuses to agree to arbi- 
 trate, unless exceptions are filed with the clerk of 
 the board within five days after the decision is ren- 
 dered. Missouri punishes violations of the board's 
 decision by a fine of not less than fifty dollars nor 
 more than one hundred dollars, or by imprisonment 
 In jail not exceeding six months, or by both fine 
 and imprisonment. Agreements to arbitrate in 
 Texas must stipulate that the award is final and 
 binding unless set aside for error of law. Employ- 
 ees dissatisfied with an award must agree not to 
 quit service until after thirty days' notice. The 
 award is effective one year. It must be filed in the 
 district clerk's office and is operative ten days from 
 filing unless exceptions for matter of law are made, 
 when it is effective after these exceptions are dis- 
 posed of. Judgment is entered on the award at 
 that time unless appeal is taken to a court of civil 
 appeals, the determination of which is final. Ne- 
 vada has essentially the same provision as Texas, 
 except that no notice from employees is required.
 
 238 INDUSTRIAL ARBITRATION 
 
 Awards made by judges or justices of the peace 
 in Maryland are enforceable as a judgment of the 
 court. 
 
 The power of boards of arbitration to compel the 
 attendance of witnesses, once uncertain, has been 
 established by numerous decisions of the lower and 
 higher courts.
 
 CHAPTER X 
 
 SOME DEVICES IN OPERATION 
 
 DURING the quarter century from 1881 to 
 1905, there were in the United States nearly 
 thirty-seven thousand strikes, according to the 
 Twenty-first Annual Report of the Bureau of La- 
 bor,'^ involving one hundred eighty-one thousand 
 establishments, six and three-quarters million stri- 
 kers and eight and three-quarters million employees 
 thrown out of work. The table on page 248 shows 
 the number of strikes in each state of the union 
 during the quarter-century period. 
 
 The report shows eight states each as having had 
 more than one thousand strikes during the period. 
 New York had the largest number, a total of 10, 199 ; 
 Pennsylvania was second with 4,159; Illinois third 
 with 3,624; Massachusetts fourth with 2,774; Ohio 
 fifth with 2,570; New Jersey sixth with 1,507; In- 
 diana seventh with 1,126, and Missouri eighth with 
 1,004. The prevalence of strikes in the various 
 
 'Pp. 18-19. 
 
 239
 
 240 INDUSTRIAL ARBITRATION 
 
 states of the union has not changed materially since 
 1905 and these figures may be accepted as fairly in- 
 dicative of the seat of the greatest industrial unrest 
 at the present time. 
 
 Of the eight states reporting more than one thou- 
 sand strikes, six states — New York, Illinois, Massa- 
 chusetts, Ohio, New Jersey and Missouri maintained 
 state boards of conciliation and arbitration during 
 the greater part of this period. The New York and 
 Massachusetts boards were created in 1886, the Mis- 
 souri board in 1889, the New Jersey board in 1892, 
 the Ohio board in 1893 and the Illinois board in 
 1895. During this entire period Pennsylvania had 
 provision for local arbitration by temporary boards 
 only. Indiana had no legislation until 1897, when 
 a labor commission act was passed. 
 
 Some comparisons based on the latest figures ob- 
 tainable show that the United States has more 
 strikes for a given number of industrial workers 
 than Great Britain, France or Germany. In 1905 
 there was one strike in the United States for every 
 5,705 industrial workers (census of 1910). In 
 1907 there was one strike in Germany for each 
 6,502 industrial workers. In 1906 there was one 
 strike in France to every 6,990 industrial workers 
 and in 191 1 there was in Great Britain one strike
 
 SOME DEVICES IN OPERATION 241 
 
 for every 14,608 industrial workers. By industrial 
 workers are meant all persons engaged in trade and 
 transportation, manufacturing, mining and quarry- 
 ing, mechanical and commercial pursuits. 
 
 Six states of this country maintaining state boards 
 of conciliation and arbitration during the greater 
 part of the quarter century have been and are con- 
 spicuously industrial states. Reports from all state 
 boards show the boards in these six states to have 
 been most active during the period and subsequently. 
 Figures taken from annual reports of state boards 
 in five states indicate the success of conciliation and 
 arbitration by state boards for stated periods : 
 
 TABLE NO. 11 
 
 Inter- Succes- Unsuc- 
 
 State Period Strikes vened ful cessful 
 
 Massachusetts ... 1886-1911 4,024 1,893 1,157 462 
 
 New York 1886-1911 8,265 756 255 501 
 
 Ohio 1893-1906 784 191 72 81* 
 
 ( 1896-1899 ) 
 
 Illinois ] 1902-1904^ 121 94 43 36* 
 
 ( 1905-1910 ) 
 
 a/t: • S 1901-1904 ) .. .q ^, ^c 
 
 Missoun •? i907_i908 \ "^ ^° ^^ ^^ 
 
 Total 13,255 2,992 1,550 1,115 
 
 •Preliminary action only in remainder. 
 
 This table shows a total of more than thirteen 
 thousand strikes in the five states during the stated 
 periods, but there were interventions by state boards
 
 242 INDUSTRIAL ARBITRATION 
 
 in less than three thousand strikes or twenty-two 
 per cent, of the total. Of these interventions only 
 one thousand five hundred fifty or fifty-one per 
 cent, were successful in ending strikes. 
 
 TABLE NO. 12 
 
 SUMMARY OF INTERVENTIONS BY NEW YORK BOARD* 
 
 Interventions and Settlements Compared with Total Strikes 
 and Lockouts 
 
 
 Total 
 
 Strikes and 
 
 Lockouts 
 
 Reported 
 
 lnter\ 
 
 .rentions 
 
 Settle 
 
 ments 
 
 Period 
 
 
 Per 100 
 
 
 Per 100 
 
 
 Number 
 
 Strikes and 
 Lockouts 
 
 Number 
 
 Strikes and 
 Lockouts 
 
 1886.... 
 
 350 
 
 7 
 
 2.0 
 
 7 
 
 2.0 
 
 1887.... 
 
 520 
 
 14 
 
 2.7 
 
 4 
 
 .8 
 
 1888.... 
 
 283 
 
 17 
 
 6.0 
 
 8 
 
 2.8 
 
 1889.... 
 
 437 
 
 16 
 
 3.7 
 
 5 
 
 1.1 
 
 1890. . . . 
 
 822 
 
 17 
 
 2.1 
 
 7 
 
 .9 
 
 1891.... 
 
 769 
 
 7 
 
 .9 
 
 1 
 
 .1 
 
 1892.... 
 
 465 
 
 11 
 
 2.4 
 
 4 
 
 .9 
 
 1893.... 
 
 387 
 
 10 
 
 2.6 
 
 4 
 
 1.0 
 
 1894.... 
 
 424 
 
 18 
 
 4.2 
 
 12 
 
 2.8 
 
 1895.... 
 
 362 
 
 27 
 
 7.5 
 
 7 
 
 1.0 
 
 1896. . . . 
 
 216 
 
 17 
 
 7.9 
 
 4 
 
 1.9 
 
 1897.... 
 
 248 
 
 30 
 
 12.1 
 
 16 
 
 6.5 
 
 1898.... 
 
 280 
 
 19 
 
 6.8 
 
 11 
 
 3.9 
 
 1899.... 
 
 299 
 
 31 
 
 10.4 
 
 17 
 
 5.7 
 
 1900.... 
 
 327 
 
 33 
 
 10.1 
 
 12 
 
 3.7 
 
 1901 .... 
 
 126 
 
 17 
 
 13.5 
 
 6 
 
 4.8 
 
 1902.... 
 
 142 
 
 32 
 
 22.5 
 
 12 
 
 8.5 
 
 1903.... 
 
 202 
 
 28 
 
 13.9 
 
 8 
 
 4.0 
 
 1904.... 
 
 124 
 
 8 
 
 6.5 
 
 3 
 
 2.4 
 
 1905.... 
 
 154 
 
 10 
 
 6.5 
 
 6 
 
 3.9 
 
 1906.... 
 
 245 
 
 20 
 
 8.2 
 
 6 
 
 2.4 
 
 1907.... 
 
 282 
 
 54 
 
 19.1 
 
 17 
 
 6.0 
 
 1908.... 
 
 160 
 
 68 
 
 42.5 
 
 16 
 
 10.0 
 
 1909. . . . 
 
 176 
 
 77 
 
 43.8 
 
 19 
 
 10.8 
 
 1910.... 
 
 250 
 
 92 
 
 36.8 
 
 22 
 
 8.8 
 
 1911.... 
 
 215 
 
 76 
 
 35.3 
 
 21 
 
 9.8 
 
 * Annual Report of New York Bureau of Mediation and Arbitration, 
 1911, p. 461.
 
 SOME DEVICES IN OPERATION 243 
 
 More than anything else, these figures show that, 
 viewed in the most favorable light, conciliation and 
 arbitration by state boards has not been satisfactory. 
 Less than five per cent, of the strikes and lockouts 
 from 1 88 1 to 1905 were settled by arbitration. Con- 
 ciliation and arbitration by state boards has proved 
 most effective in those states where a great many 
 strikes occur every year and where a state board of 
 conciliation and arbitration is moved by continual 
 unrest to familiarize itself with every phase of the 
 labor question. There is no doubt that the contin- 
 ual activity of a state board has a wholesome in- 
 fluence on both parties to an industrial controversy 
 and tends to create a compromising attitude among 
 employers as well as among wage earners. 
 
 For instance, the Massachusetts board, in sum- 
 ming up its work for a quarter of a century said 
 In its report for the year ending December 31, 1910: 
 
 "The first years of the board passed in unremit- 
 ting endeavor to stem a flood of trouble with a sys- 
 tem of moral suasion. The counsels of peace gained 
 a respectful hearing and substantial improvements 
 were obtained as experience accumulated. In de- 
 fault of a joint submission to a disinterested tri- 
 bunal, the parties were persuaded to confer in the 
 presence of the board. Negotiations became the 
 habit which produced a friendly frame of mind. The 
 educative eflfect upon the rising generation of work-
 
 H4 
 
 INDUSTRIAL ARBITRATION 
 
 men can not be overestimated. Strikes were settled ; 
 controversies determined and adversaries reconciled ; 
 and the agreements thus composing the difficulties 
 suggested the prevention of those that would arise 
 in the future. It was in that way that the trade 
 agreement developed. Friendly inclinations of em- 
 ployer and employee which find expression in such 
 an instrument of good will have been fostered by 
 the board from the beginning." 
 
 The report of the Massachusetts Bureau of Sta- 
 tistics of Labor for 191 2 shows that a larger num- 
 ber of workmen were involved in strikes than in 
 any other year since 1881, when statistics were first 
 compiled. The strikers numbered over forty-eight 
 thousand, as compared with forty-four thousand in 
 1894, the next highest year. The total number of 
 
 TABLE NO. 13 
 
 WORK OF MASSACHUSETTS STATE BOARD OF CONCILIATION AND 
 ARBITRATION FOR SEVEN YEARS, 1905-1911* 
 
 Year 
 
 Number 
 of Strikes 
 
 and 
 Lockouts 
 
 Number of 
 
 Employees 
 
 Involved 
 
 Inter- 
 ventions 
 
 Settled 
 by Arbi- 
 tration 
 
 Settled 
 Mutu- 
 ally or 
 Other- 
 wise 
 
 Pend- 
 ing at 
 Closeof 
 Year 
 
 1905.... 
 1906. . . . 
 1907.... 
 1908.... 
 1909.... 
 1910.... 
 1911.... 
 
 201 
 
 213 
 236 
 98 
 183 
 243 
 222 
 
 15,865 
 
 26,738 
 27,665 
 22,546 
 21,563 
 27,176 
 
 72 
 93 
 139 
 155 
 104 
 208 
 179 
 
 53 
 
 80 
 
 15 
 
 122 
 
 84 
 
 181 
 
 162 
 
 16 
 12 
 
 7 
 13 
 
 5 
 
 23 
 13 
 
 3 
 1 
 
 15 
 
 20 
 
 15 
 
 4 
 
 * Compiled from reports of state board and bureau of statistics.
 
 SOME DEVICES IN OPERATION 245 
 
 people thrown out of work as the result of strikes 
 was ninety-five thousand. 
 
 The five great strikes were, that of the Lawrence 
 textile workers, against a reduction of wages when 
 the fifty-four-hour law went into effect in January, 
 1912, and which cost five million dollars; that of 
 the Lowell cotton-mill operatives, for an advance 
 in wages above that determined upon by the mill ; 
 that of the New Bedford weavers, for abolition of 
 the grading system; that of the Boston longshore- 
 men, for an increase In wages and that of the Boston 
 street railway employees, for the right to organize. 
 
 One of these strikes, the Boston street railway 
 strike, was settled by the state board but largely 
 through the Influence of the governor and mayor. 
 The board was powerless to deal with the textile 
 workers' strike just as state boards almost always 
 are when conditions are permitted to become acute. 
 Furthermore, public opinion is far more active when 
 the operation of a public utility Is concerned. The 
 people of Boston were Intimately concerned with 
 the operation of the street railways because, when 
 cars ceased running In Boston, every citizen was di- 
 rectly affected. Not so with the cotton-mills. The 
 public was only remotely affected, or not at all. 
 
 In 1907, there were four serious strikes In New
 
 246 INDUSTRIAL ARBITRATION 
 
 York in which the state board failed to accomplish 
 anything of consequence. The strike of the long- 
 shoremen of Manhattan and Brooklyn lasted more 
 than a month and was lost by the strikers. Six 
 thousand union painters were on a strike for two 
 and one-half months. Nine hundred drivers of the 
 New York City street cleaning department were on 
 a strike during the last week of June, 1907, but 
 returned to work upon the agreement of Mayor 
 Gaynor to make an investigation. The Yonkers 
 street railway strike was settled by a committee of 
 ministers. 
 
 In 1908, there was a bothersome strike of the New 
 York City taxicab drivers and in 1909 a strike of 
 the bakers. The cloak makers' and expressmen's 
 strikes occurred in 1910 as well as the strike at the 
 sugar refineries at Williamsburg. 
 
 Although state boards of conciliation and arbitra- 
 tion are generally incapable of dealing with strikes 
 of large proportions — involving thousands of work- 
 ers scattered over a vast territory — the report of the 
 Missouri board for 1908 expressed an optimistic 
 view : 
 
 "Never since its creation has a greater labor trou- 
 ble occurring in any part of the state, threatening 
 either life or property or both, been brought to the
 
 SOME DEVICES IN OPERATION 247 
 
 attention of this board, in which a peaceful settle- 
 ment has not been effected." 
 
 The first Connecticut state board of arbitration, 
 created in 1895, was a pronounced failure, partially 
 because the board construed its power to be limited 
 to intervention only after joint application by em- 
 ployer and employee. Yet Connecticut had more 
 strikes from 1881 to 1905 than any other state ex- 
 cept the eight already named. The total number 
 was nine hundred thirty. The board was revived in 
 1903 and in eight typical years" out of forty-six 
 strikes, only four were settled by the state board. 
 Ten were settled independently of the board. 
 
 In its 1906 report the board remarked: 
 
 "Reviewing the labor situation in the light of 
 three and one-half years' exjDerience of the board 
 as at present constituted, it must be stated that there 
 is not apparent any increased disposition on the part 
 of either employer or employees to submit their dif- 
 ferences for adjudication to any outside tribunal 
 whatever. Nor does there appear to be any dis- 
 position on the part of either party to call in the 
 aid of representatives of the general public, official 
 or otherwise, in their earlier stages of trouble, when 
 it might be possible to correct misapprehension, al- 
 lay discontent and so forestall and prevent such 
 violent measures as Interruption of work, with con- 
 sequent injurious result to all concerned. In gen- 
 
 ' 1903, 1904, 1905, 1906, 1907, 1908, 1909 and 1910.
 
 248 
 
 INDUSTRIAL ARBITRATION 
 
 eral, it is only when one or the other of the parties 
 to a labor dispute feels that it is in danger of losing 
 all for which it is contending that it turns with 
 favoring thought to the resource afforded by media- 
 tion or arbitration, in the hope that thereby some- 
 thing may be saved for it, either a material advan- 
 tage or strategic position," 
 
 TABLE NO. 14 
 
 STRIKES, ESTABLISHMENTS INVOLVED, STRIKERS, AND EMPLOYEES 
 THROWN OUT OF WORK, BY STATES AND GEOGRAPH- 
 ICAL DIVISIONS, 1881 TO 1905 
 
 
 Strikes 
 
 Establish- 
 ments 
 
 Strikers 
 
 Employees 
 Thrown Out Of 
 
 Work 
 
 State and Geo- 
 graphical Division 
 
 Number 
 
 
 Number 
 
 
 Number 
 
 > 1- 
 
 Alabama 
 
 Arizona 
 
 Arkansas 
 
 California 
 
 Colorado 
 
 Connecticut .. . 
 
 Delaware 
 
 Dist. of Coluin. 
 
 Florida 
 
 Georgia 
 
 Idaho 
 
 Illinois 
 
 Indiana 
 
 Indian Terr. . . 
 Iowa 
 
 296 
 
 15 
 
 69 
 
 638 
 
 378 
 
 930 
 
 T] 
 
 121 
 
 415 
 
 263 
 
 21 
 
 3,624 
 
 1,126 
 
 13 
 
 446 
 
 175 
 
 405 
 
 209 
 
 238 
 
 384 
 
 2,774 
 
 1Z1 
 
 28 
 
 175 
 
 3,357 
 
 3,663 
 
 2,111 
 
 279 
 
 785 
 
 1,360 
 
 715 
 
 27 
 
 29,176 
 
 3,533 
 
 1,706 
 477 
 
 1,345 
 
 2.098 
 431 
 
 1,565 
 10,099 
 
 2,409 
 
 2.5 
 1.9 
 2.5 
 5.3 
 9.7 
 2.3 
 3.6 
 6.5 
 Z.Z 
 2.7 
 1.3 
 8.1 
 3.1 
 4.8 
 3.8 
 2.7 
 Z.Z 
 1.0 
 1.8 
 4.1 
 
 z.e 
 
 3.8 
 
 63,038 
 
 3,118 
 10,529 
 84,747 
 85,382 
 60,468 
 
 6,632 
 10,525 
 87,905 
 29,976 
 
 3,555 
 895,593 
 160,847 
 
 6,625 
 70,241 
 28,914 
 
 82,008 
 24,132 
 64,563 
 353,436 
 98,067 
 
 213 
 208 
 153 
 133 
 226 
 65 
 86 
 87 
 212 
 114 
 169 
 247 
 143 
 510 
 157 
 165 
 157 
 392 
 101 
 168 
 127 
 154 
 
 80,151 
 
 4,324 
 
 11,323 
 
 102,880 
 
 93,435 
 
 96,310 
 
 9,832 
 11,437 
 98,673 
 36,840 
 
 4,085 
 
 1,207,000 
 
 222,496 
 
 7,603 
 79,515 
 36,991 
 69,934 
 87,901 
 42,407 
 75,962 
 520,827 
 135,784 
 
 271 
 288 
 164 
 161 
 247 
 104 
 128 
 95 
 238 
 140 
 195 
 iiZ 
 198 
 585 
 178 
 
 Kansas 
 
 Kentucky 
 
 Louisiana 
 
 Maine 
 
 Maryland 
 
 Massachusetts . 
 Michigan 
 
 211 
 173 
 421 
 178 
 198 
 188 
 213
 
 SOME DEVICES IN OPERATION 249 
 
 
 
 Establish- 
 
 Strikers 
 
 Employees 
 Thrown Out Of 
 
 
 Strikes 
 
 ments 
 
 
 Work 
 
 State and Geo- 
 
 
 ^^ *" 
 
 
 - ^ 
 
 
 <u 
 
 graphical Division 
 
 
 
 
 
 
 
 
 
 Number 
 
 
 Number 
 
 
 Number 
 
 <f2 
 
 Minnesota 
 
 535 
 
 2,435 
 
 4.6 
 
 74,441 
 
 139 
 
 89,105 
 
 167 
 
 Mississippi . . . 
 
 32 
 
 87 
 
 2.7 
 
 2,517 
 
 79 
 
 2,904 
 
 93 
 
 Missouri 
 
 1,004 
 
 6,496 
 
 6.5 
 
 152,413 
 
 152 
 
 177,062 
 
 176 
 
 Montana 
 
 132 
 
 230 
 
 1.7 
 
 14,183 
 
 107 
 
 *19,158 
 
 *146 
 
 Nebraska 
 
 109 
 
 498 
 
 4.6 
 
 19,128 
 
 175 
 
 28,933 
 
 265 
 
 Nevada 
 
 4 
 
 5 
 
 1.3 
 
 240 
 
 60 
 
 242 
 
 61 
 
 New H'm'sh're 
 
 188 
 
 283 
 
 1.5 
 
 13,675 
 
 73 
 
 31,334 
 
 167 
 
 New Jersey... 
 
 1,507 
 
 6,722 
 
 4.5 
 
 182,924 
 
 121 
 
 257,840 
 
 171 
 
 New Mexico.. 
 
 29 
 
 45 
 
 1.6 
 
 4,154 
 
 143 
 
 4,764 
 
 164 
 
 Nev/ York 
 
 10,199 
 
 51,597 
 
 5.1 
 
 1,422,778 
 
 140 
 
 11,674,290 
 
 tl64 
 
 N. Carolina... 
 
 28 
 
 49 
 
 1.8 
 
 4,219 
 
 151 
 
 5,277 
 
 188 
 
 North Dakota. 
 
 26 
 
 34 
 
 1.3 
 
 2,074 
 
 80 
 
 2,084 
 
 80 
 
 Ohio 
 
 2,570 
 
 10,207 
 
 4.0 
 
 427,720 
 
 166 
 
 583,931 
 
 227 
 
 Oklahoma 
 
 13 
 
 34 
 
 2.6 
 
 782 
 
 60 
 
 846 
 
 65 
 
 Oregon 
 
 77 
 
 678 
 
 8.8 
 
 14,685 
 
 191 
 
 19,025 
 
 247 
 
 Pennsylvania . 
 
 4,159 
 
 24,985 
 
 6.0 
 
 1,690,414 
 
 406 
 
 2,242,934 
 
 539 
 
 Rhode Island.. 
 
 369 
 
 1,376 
 
 3.7 
 
 34,762 
 
 94 
 
 65,186 
 
 177 
 
 S. Carolina... 
 
 38 
 
 101 
 
 2.7 
 
 1 3,833 
 
 101 
 
 4,173 
 
 110 
 
 South Dakota. 
 
 22 
 
 40 
 
 1.8 
 
 1,372 
 
 62 
 
 1,429 
 
 65 
 
 Tennessee .... 
 
 449 
 
 1,239 
 
 2.8 
 
 61,025 
 
 136 
 
 72,403 
 
 161 
 
 Texas 
 
 322 
 
 1,343 
 
 4.2 
 
 31,557 
 
 98 
 
 34,967 
 
 109 
 
 Utah 
 
 63 
 
 248 
 
 3.9 
 
 5,071 
 
 80 
 
 6,630 
 
 105 
 
 Vermont 
 
 68 
 
 490 
 
 7.2 
 
 10,790 
 
 159 
 
 12,056 
 
 177 
 
 Virginia 
 
 214 
 
 667 
 
 3.1 
 
 32,213 
 
 151 
 
 45,898 
 
 214 
 
 VV^ashington . . 
 
 214 
 
 879 
 
 4.1 
 
 21,410 
 
 100 
 
 24,808 
 
 116 
 
 West Virginia 
 
 292 
 
 1,128 
 
 3.9 
 
 100,879 
 
 345 
 
 126,457 
 
 433 
 
 Wisconsin 
 
 799 
 
 3,402 
 
 4.3 
 
 99,224 
 
 124 
 
 126,400 
 
 158 
 
 Wyoming 
 
 41 
 
 60 
 
 1.5 
 4.9 
 
 5,527 
 
 135 
 
 7,898 
 
 193 
 
 Total 
 
 36,7S7 
 
 181,407 
 
 6,728,048 
 
 183 
 
 $8,703,824 
 
 $237 
 
 North Atlantic 
 
 20,432 
 
 98,004 
 
 4.8 
 
 3,793,379 
 
 186 
 
 t4,943,184 
 
 t242 
 
 South Atlantic 
 
 1,832 
 
 6,649 
 
 3.6 
 
 340,745 
 
 186 
 
 414,549 
 
 226 
 
 North Central. 
 
 11,073 
 
 60,413 
 
 5.5 
 
 2,030,034 
 
 183 
 
 2,690,730 
 
 243 
 
 South Central. 
 
 1,808 
 
 7,121 
 
 3.9 
 
 321,818 
 
 178 
 
 368,112 
 
 204 
 
 Western 
 
 1,612 
 
 9,220 
 
 5.7 
 
 242,072 
 
 150 
 
 *287,249 
 
 *178 
 
 *Not including 1 strike involving 12 establishments not reported. 
 tNot including 1 strike involving 21 establishments not reported. 
 JNot including 2 strikes involving 33 establishments not reported.
 
 250 
 
 INDUSTRIAL ARBITRATION 
 
 TABLE NO. 15 
 
 LOCKOUTS, ESTABLISHMENTS INVOLVED, EMPLOYEES LOCKED OUT, 
 
 AND EMPLOYEES THROWN OUT OF WORK, BY STATES AND 
 
 GEOGRAPHICAL DIVISIONS, 1881 TO 1905 
 
 State and Geograph- 
 ical Division 
 
 Alabama 
 
 Arizona 
 
 Arkansas 
 
 California 
 
 Colorado 
 
 Connecticut 
 
 Delaware 
 
 Dist. of Columbia 
 
 Florida 
 
 Georgia 
 
 Idaho 
 
 Illinois 
 
 Indiana 
 
 Indian Territory.. 
 
 Iowa 
 
 Kansas 
 
 Kentucky 
 
 Louisiana 
 
 Maine 
 
 Maryland 
 
 Massachusetts . . . 
 
 Michigan 
 
 Minnesota 
 
 Missouri 
 
 Montana 
 
 Nebraska 
 
 New Hampshire.. 
 
 New Jersey 
 
 New Mexico 
 
 New York 
 
 North Carolina. . . 
 
 North Dakota 
 
 Oliio 
 
 Oklahoma 
 
 5 
 41 
 23 
 68 
 
 1 
 
 3 
 16 
 14 
 
 1 
 
 141 
 
 53 
 
 1 
 23 
 
 5 
 20 
 
 5 
 11 
 17 
 128 
 44 
 33 
 40 
 
 7 
 
 7 
 
 7 
 55 
 
 1 
 326 
 
 3 
 
 3 
 110 
 
 2 
 
 Establish- 
 ments 
 
 11 
 1 
 
 14 
 
 241 
 
 63 
 
 207 
 
 1 
 
 41 
 
 88 
 
 109 
 
 6 
 
 4,555 
 
 233 
 
 39 
 
 131 
 
 9 
 
 31 
 
 29 
 
 86 
 
 62 
 
 825 
 
 241 
 
 155 
 
 103 
 
 24 
 
 90 
 
 45 
 
 946 
 
 1 
 
 6,422 
 
 21 
 
 3 
 
 386 
 
 27 
 
 <H-1 
 
 1.6 
 1.0 
 2.8 
 5.9 
 2.7 
 3.0 
 1.0 
 
 13.7 
 5.5 
 7.8 
 6.0 
 
 32.3 
 4.4 
 
 39.0 
 5.7 
 1 
 
 1.6 
 5.8 
 7.8 
 3.6 
 6.4 
 5.5 
 4.7 
 2.6 
 3.4 
 
 12.9 
 6.4 
 
 17.2 
 1.0 
 
 19.7 
 7.0 
 1.0 
 3.5 
 
 13.5 
 
 Employees 
 Locked Out 
 
 885 
 
 15 
 
 102 
 
 7,763 
 
 3,870 
 
 25,382 
 
 188 
 
 252 
 
 9,958 
 
 10,192 
 
 3,000 
 
 188,849 
 
 4,373 
 
 732 
 
 2,788 
 
 2.516 
 
 1,612 
 
 1,286 
 
 6,951 
 
 2,061 
 
 40,113 
 
 7,047 
 
 2,276 
 
 5,508 
 
 1,164 
 
 2,821 
 
 1.504 
 
 20,397 
 
 200 
 
 222,853 
 
 1,252 
 
 15 
 
 23,876 
 
 409 
 
 I. 3 
 4) O 
 
 <h-l 
 
 126 
 
 15 
 
 20 
 189 
 168 
 373 
 188 
 
 84 
 
 622 
 
 728 
 
 3,000 
 
 1,339 
 
 83 
 732 
 121 
 503 
 
 81 
 257 
 632 
 121 
 313 
 160 
 
 69 
 138 
 166 
 403 
 215 
 371 
 200 
 684 
 417 
 5 
 217 
 205 
 
 Employees 
 
 Thrown Out 
 
 of Work 
 
 887 
 
 15 
 
 102 
 
 8,039 
 
 4,064 
 
 26,156 
 
 188 
 
 382 
 
 11,865 
 
 10,199 
 
 3,000 
 
 218,285 
 
 4,630 
 
 732 
 
 3,328 
 
 5,103 
 
 2,046 
 
 1,596 
 
 6,968 
 
 2,606 
 
 42,298 
 
 8,543 
 
 3,682 
 
 5,544 
 
 1,695 
 
 2,921 
 
 2,121 
 
 21,741 
 
 200 
 
 269,415 
 
 1,402 
 
 15 
 
 25,922 
 
 409 
 
 <i-i 
 
 127 
 
 15 
 
 20 
 
 196 
 
 177 
 
 385 
 
 188 
 
 127 
 
 742 
 
 729 
 
 3,000 
 
 1,548 
 
 87 
 
 732 
 
 145 
 
 1,021 
 
 102 
 
 319 
 
 633 
 
 153 
 
 330 
 
 194 
 
 112 
 
 139 
 
 242 
 
 417 
 
 303 
 
 395 
 
 200 
 
 826 
 
 467 
 
 5 
 
 236 
 
 205
 
 SOME DEVICES IN OPERATION 251 
 
 
 
 Establish- 
 
 Employees 
 
 Employees 
 
 
 
 ments 
 
 Locked Out 
 
 of Work 
 
 State and Geograph- 
 
 
 
 
 
 
 
 ical Division 
 
 3 
 
 
 I- 3 
 
 
 1- 3 
 
 Ut 
 
 >- 3 
 
 
 
 
 .0 
 
 Q 
 
 XI 
 
 <u 
 
 
 
 
 
 .^ 
 
 a 
 
 D.^ 
 
 a 
 
 Ovid 
 
 a 
 
 o-M ■ 
 
 
 
 
 3 
 
 > 
 
 3 
 
 > 
 
 3 
 
 ■> 
 
 
 h-1 
 
 ^5 
 
 <a 
 
 z 
 
 <>A 
 
 z 
 
 <h1 
 
 Oregon 
 
 4 
 
 81 
 
 20.3 
 
 1,020 
 
 255 
 
 1,020 
 
 255 
 
 Pennsylvania .... 
 
 164 
 
 2,276 
 
 13.9 
 
 70,543 
 
 430 
 
 84,374 
 
 514 
 
 Rhode Island 
 
 8 
 
 66 
 
 8.3 
 
 13,377 
 
 1,672 
 
 13,377 
 
 1,672 
 
 South Carolina. . . 
 
 3 
 
 18 
 
 6.0 
 
 837 
 
 279 
 
 837 
 
 279 
 
 South Dakota 
 
 2 
 
 2 
 
 1.0 
 
 73 
 
 37 
 
 73 
 
 37 
 
 Tennessee 
 
 28 
 
 37 
 
 1.3 
 
 2,096 
 
 75 
 
 2,138 
 
 76 
 
 Texas 
 
 19 
 
 132 
 
 69 
 
 1,821 
 
 96 
 
 2,026 
 
 107 
 
 Utah 
 
 3 
 
 12 
 
 4.0 
 
 329 
 
 110 
 
 345 
 
 115 
 
 Vermont 
 
 5 
 
 394 
 
 78.8 
 
 8,058 
 
 1,612 
 
 8,073 
 
 1,615 
 
 Virginia 
 
 23 
 
 51 
 
 2.2 
 
 4,322 
 
 188 
 
 4,408 
 
 192 
 
 Washington 
 
 16 
 
 112 
 
 7.0 
 
 1,770 
 
 111 
 
 1,785 
 
 112 
 
 West Virginia 
 
 12 
 
 19 
 
 1.6 
 
 4,125 
 
 344 
 
 4,910 
 
 409 
 
 Wisconsin 
 
 35 
 
 99 
 
 2.8 
 
 5,319 
 
 152 
 
 5,814 
 
 166 
 
 Wyoming 
 
 2 
 1,546 
 
 2 
 
 1.0 
 12.0 
 
 331 
 
 166 
 463 
 
 331 
 
 166 
 
 Total 
 
 18,547 
 
 716,231 
 
 825.610 
 
 534 
 
 North Atlantic... 
 
 772 
 
 11,267 
 
 14.6 
 
 409,178 
 
 530 
 
 474,523 
 
 615 
 
 South Atlantic 
 
 92 
 
 410 
 
 4.5 
 
 33,187 
 
 361 
 
 36,797 
 
 400 
 
 North Central 
 
 496 
 
 6,007 
 
 12.1 
 
 245.461 
 
 495 
 
 283,860 
 
 572 
 
 South Central 
 
 87 
 
 320 
 
 3.7 
 
 8,943 
 
 103 
 
 9,936 
 
 114 
 
 Western 
 
 99 
 
 543 
 
 5.5 
 
 19,462 
 
 197 
 
 20,494 
 
 207 
 
 The statute establishing a state board of arbitra- 
 tion in California in 1891 was not indorsed by the 
 California labor organizations.^ It was passed by 
 the efforts of the state labor commissioners and un- 
 dertook to "create a new Institution rather than to 
 embody or regulate what already existed as the nat- 
 ural outgrowth of actual experiences, and, as is 
 
 ^ Eaves, A History of California Labor Legislation, 1910, 
 p. 379.
 
 ?52 INDUSTRIAL ARBITRATION 
 
 often the case with such theoretical legislation, it 
 has failed to meet the actual social need for which 
 it was designed." 
 
 The Federated Trade Councils of San Francisco 
 opposed a bill similar to the New York statute on 
 the grounds that the political obligations Incurred 
 by the governor would prevent him from appointing 
 arbitrators entirely unbiased with regard to labor 
 disputes ; labor commissioners with balance of power 
 might be susceptible to corrupt influence; no way 
 was open to enforce the decisions of the board ; and 
 the provision requiring both parties to wait three 
 weeks for a decision of the board would result dis- 
 astrously to working men, as it would enable the 
 employer to arm himself for a strike If one were 
 called/ 
 
 As passed, the law provided for a board of three 
 members, the third being a disinterested person. 
 Only two trivial controversies were settled the first 
 year and In Its first annual report the board an- 
 nounced that "arbitration as a means of settling dif- 
 ferences between employers and employees, and pre- 
 venting, to some extent, strikes and lockouts, is 
 almost Impossible under the provisions of the pres- 
 
 * Jbid,
 
 SOME DEVICES IN OPERATION 253 
 
 ent laws." The board had no power of conciliation 
 and no power to examine witnesses under oath. 
 Amendments to the act were urged. 
 
 In the second and last report of the board, pub- 
 lished in 1894, the board said that although there 
 had been difficulties in which their mediation might 
 have been beneficial, they had not been called upon 
 to settle any controversies and had nothing to re- 
 port. There were six hundred thirty-eight strikes 
 and forty-one lockouts in California from 1 881 to 
 1905. 
 
 Following the San Francisco teamsters' strike in 
 1901, agitation for a more effective law was revived 
 and Governor Gage, in his second biennial mes- 
 sage, urged the passage of a law adding the gov- 
 ernor and labor commissioners to the board. He 
 believed public opinion would force disputants to 
 refer disputes to the board, whose decision should 
 be binding. 
 
 The arbitration law is still in effect but no use is 
 being made of It. A bill for a new act was Intro- 
 duced in 1907, but was vigorously opposed by or- 
 ganized labor and failed to make any progress. 
 
 There is a group of four states, Louisiana, Min- 
 nesota, Montana and Utah, where practically nothing
 
 254 INDUSTRIAL ARBITRATION 
 
 has been accomplished by state boards of concilia- 
 tion and arbitration although the boards were cre- 
 ated many years ago. 
 
 The Louisiana board was created in 1894, the 
 Minnesota board in 1895, the Montana board in 
 1887 and the Utah board in 1896. 
 
 Generally speaking, the boards have failed to ac- 
 complish anything in these states partially because, 
 with one exception, Minnesota, industrial disturb- 
 ances have been rare and there has been no oppor- 
 tunity to build up a permanent machinery for 
 adjudicating strikes and lockouts. There was 
 an average of about six strikes and lockouts a year 
 each in Louisiana, Montana and Utah for the pe- 
 riod from 1 88 1 to 1905. Minnesota had five hun- 
 dred thirty-five strikes and thirty-three lockouts for 
 the twenty-five-year period, but after one decision 
 by the Minnesota board, created in 1895, and un- 
 satisfactory to both parties, no appointments were 
 made under the act until 1901. The switchmen's 
 strike of 1910 was submitted to the Minnesota board 
 but it accomplished nothing toward a settlement. 
 Governor Johnson intervened in the strike of the 
 dockmen, employed on Lake Superior, in 1907 and 
 brought about a settlement, as well as a settlement 
 in the strike of ten thousand mine workers the same
 
 SOME DEVICES IN OPERATION 255 
 
 year. The Montana act has always been a dead 
 letter and the Utah board, established in 1896, never 
 made a report. In the last half dozen years, it has 
 been called together but once and then its services 
 were refused by the contending parties. The Lou- 
 isiana board disbanded shortly after its creation and 
 nothing has ever been accomplished under the act. 
 There is another group of four states where con- 
 ciliation and arbitration laws, once in force, have 
 been repealed: Michigan, New Jersey, North Da- 
 kota and Indiana. Although Michigan created a 
 state board in 1899, no appointments were made 
 under the act until 1897 and this statute was re- 
 pealed in 191 1, because the board became an instru- 
 ment for the convenience of partisan politicians 
 rather than an agency for industrial peace. State 
 boards of arbitration have failed frequently because 
 they are made up of partisan politicians who have 
 in mind the attainment of some political advantage 
 to the party they represent rather than an unselfish 
 spirit of fairness and a desire to do the specific 
 thing they are charged with doing — devise a plan 
 of settlement that will be acceptable to both parties. 
 
 *'We all know that, as at present constituted, they 
 have proven far from satisfactory as a means of 
 dealing effectively with labor disputes," said a trade
 
 256 INDUSTRIAL ARBITRATION 
 
 union leader several years ago.^ "Almost invaria- 
 bly, they savor more or less, in their complexion, 
 of partisan politics, and do not possess the complete 
 confidence of either one or the other factor in in- 
 dustry. As a result, they are very rarely appealed 
 to by the two parties interested in a dispute." 
 
 In his Methods of Industry^ Gillman expresses 
 the opinion that if state boards "were better paid, 
 made up of abler men, and entirely free from pol- 
 itics, they might do much more, but on the whole 
 they are not taken seriously by the public or by the 
 disputors. Where they have accomplished the most 
 their accomplishments seem slight by the side of 
 what is desirable in the way of preventing labor 
 troubles." 
 
 The New Jersey acts of 1880 and 1886 still re- 
 main but they provide only for local arbitration 
 through private agencies and have been altogether 
 futile. The New Jersey act of 1892, by which a 
 state board of arbitration was created, with its 
 amendments of 1895, was repealed in 1908, largely 
 for the reason that in the latter years the board did 
 not accomplish anything. In 1904, the board of- 
 
 " Martin Fox, president of the Iron Moulders* Union, before 
 Industrial Conciliation Conference of National Civic Federa- 
 tion. 
 
 ' P. 345.
 
 SOME DEVICES IN OPERATION 257 
 
 fered Its services In "more than 150 disputes,"^ but 
 none of the labor disagreements of that year was 
 arbitrated by It. 
 
 According to the report of 1905, "in a number 
 of Instances where strikes or lockouts were threat- 
 ened In New Jersey, the services of the state board 
 of arbitration were proffered. . . . but the good 
 offices of the board were declined, as has been the 
 case of late years."® 
 
 Nothing was accomplished under the North Da- 
 kota act of 1890, which made it the duty of the com- 
 missioner of agriculture and labor to mediate in 
 Industrial disputes when requested to do so by the 
 parties to the controversy, but North Dakota is and 
 has always been an agricultural state where there 
 are very few Industrial controversies. In twenty- 
 five years from 1881 to 1905 there were only twen- 
 ty-six strikes and but three lockouts in the state. 
 
 The Indiana Labor Commission, in existence from 
 1897 to 191 1, enjoyed considerable success in the 
 adjudication of Industrial disputes. In six typical 
 years, ^ there were one hundred seven strikes and 
 lockouts In which the board intervened. It was suc- 
 
 '' Annual Report of the State Board of Arbitration, p. 5. 
 ^Report of the State Board of Arbitration, 1905, p. 5. 
 • 1897, 1898, 1899, 1900, 1907 and 1-908.
 
 258 INDUSTRIAL ARBITRATION 
 
 cessful in the settlement of seventy-two and failed 
 in twenty-four cases. Eleven strikes were settled 
 independently of the commission. 
 
 "The most formidable obstacles to settlements 
 have not generally come from either the employer 
 or employee, but more frequently from intermed- 
 dling third persons," the commission said in its first 
 biennial report.^'' "Of these, the first are demagog- 
 ical politicians, who either pose as the 'friend' of 
 'oppressed labor' and proffer sympathy and advice 
 in the hope of being able to secure support in their 
 political aspirations; or seek to gain for their polit- 
 ical party some temporary advantage by espousing 
 one or the other side of a labor trouble. Mostly 
 their proneness is to appeal to baser sentiments and 
 by playing on the irascibility of excited strikers gain 
 a temporary prominence which they hope to turn to 
 selfish gain, 
 
 "The second are the superserviceable labor agi- 
 tators, whose zealous and often honest efforts are 
 excited in trying to promote legitimate ends by un- 
 wise counsels. Usually their sympathy is genuine 
 and their motives commendable but they are at no 
 pains to inform themselves of the facts which are 
 essential to an accurate knowledge and mature judg- 
 ments.^^ 
 
 "The importation of working men (otherwise 
 strikebreakers) in large numbers to take the place 
 of home workmen," is noted by the commission. 
 "The imported men were of the lowest grade intel- 
 lectually and morally and were armed to the teeth 
 
 " Report of 1897-98, pp. 7-8. 
 , . " Report of 1897-98, p. 10.
 
 SOME DEVICES IN OPERx\TION 259 
 
 by the company importing them," says the report/^ 
 "It may well be doubted," the report continues, "if 
 this importation can be justified under any circum- 
 stances, and the evil results which might grow out 
 of such an act greatly overbalance any possible good 
 which could be realized. Prohibitive legislation on 
 this subject seems imperative." 
 
 The report for the years 1909-10 was the last 
 ever made since the labor commission was abolished 
 by the so-called bureau of inspection act of 191 1. 
 The repeal of the act was effected largely through 
 the influence of the Indiana State Federation of 
 Labor, which, at its Lafayette convention in 1910,^^ 
 declared in favor of the consolidation of several 
 minor state departments, including that of the bu- 
 reau of statistics, factory inspection, and the labor 
 commission, into a department of labor. The result- 
 ing act of 191 1, however, was but a partial realiza- 
 tion of the expressed demand of the State Federation 
 of Labor. Conciliation and arbitration were over- 
 looked almost altogether in the new act. 
 
 In 1915, Indiana passed a new law providing for 
 the appointment of temporary boards by the gov- 
 ernor. Since it can not be supposed that arbitrators 
 so named will use much above the standard of hack 
 
 " Ibid., p. 11. 
 
 " Official Proceedings of the 26th Annual Convention of the 
 Indiana State Federation of Labor, p. 34,
 
 26o INDUSTRIAL ARBITRATION 
 
 politicians, the law is valueless. Temporary boards 
 should be constituted by the parties themselves, since 
 either side is able to repudiate an arbitration board 
 appointed by political authority, and will, if dis- 
 pleased with its personnel. The theory of the In- 
 diana law, if any theory was thought of by its 
 f ramers, is untenable. 
 
 Finally, of the states where conciliation and arbi- 
 tration by state boards has been tried there are six 
 states in the union where boards have been created 
 recently and where little data Is available to indicate 
 the success or failure of the scheme. These states 
 are Oklahoma, New Hampshire, Alabama, Maine, 
 Nebraska and Vermont. 
 
 The Oklahoma act of 1907 was pronounced "per- 
 fectly satisfactory" by the commissioner of labor. 
 "The department has been successful," he says, "in 
 adjusting all labor disputes without the necessity 
 of the board," and "about the only trouble we find 
 in the operation of the act is that we never are ad- 
 vised of any trouble until after the men are out on 
 strike." The act, however, makes it mandatory on 
 different parties interested and the justice of the 
 peace to notify the board of Impending trouble. 
 
 Under the New Hampshire act of 191 1 the com- 
 missioner of labor Is mediator in industrial disputes.
 
 SOME DEVICES IN OPERATION 261 
 
 From the passage of the act to April i, 191 4, the 
 commissioner of labor was called upon fourteen 
 times to use his offices. Twelve cases were settled 
 peacefully and one case was pending on April i, 
 19 14. The state board of arbitration was called 
 upon in one case to fix the price for piece work in a 
 certain operation in a shoe factory. 
 
 The Alabama act was passed in 191 1, three years 
 after a disastrous strike in the coal mines of that 
 state in which several persons were killed. The 
 Vermont act was passed in 19 12, three years after 
 a strike of five thousand granite workers at Barre. 
 No meeting of the Nebraska board, created in 191 3, 
 had been held up to April i, 19 14. There was a 
 strike of the Omaha street railway employees in 
 1909. 
 
 Very little has ever been accomplished under the 
 conciliation and arbitration laws of those states pro- 
 viding for local arbitration through temporary- 
 boards. These states are Maryland, Pennsylvania, 
 Texas, Washington, Colorado, Iowa, Kansas, Ne- 
 vada and Idaho. 
 
 The most glaring objection to this system, per- 
 haps, is the lack of any one officially charged with 
 the duty of bringing employer and employee to- 
 gether for conciliation or arbitration. Also, in the
 
 262 INDUSTRIAL ARBITRATION 
 
 absence of an official mediator at the outset of a 
 controversy, the time for conciliation or arbitration 
 passes quickly because hostility increases as the 
 strike or lockout is prolonged. 
 
 Pennsylvania is the one state, where local arbi- 
 tration has prevailed, that had more than five hun- 
 dred strikes and lockouts during the period from 
 1 88 1 to 1905. Labor conditions in Pennsylvania 
 are perhaps the most complex of any state in the 
 union due to the medley of foreign-born workers en- 
 gaged in the iron and steel mills and coal mines. 
 
 Very little was ever accomplished under the vol- 
 untary trade tribunals act of Pennsylvania of 1883, 
 nor a subsequent act passed in 1893, according to 
 the Pennsylvania commissioner of labor. A chief 
 of the Pennsylvania Bureau of Industrial Statistics 
 had "no knowledge of any effort to make use of the 
 act of 1893" in that state. Two serious strikes oc- 
 curred in Pennsylvania in 1 909, that of seven thou- 
 sand shirt-waist workers in Philadelphia and of five 
 thousand unskilled employees of the Pressed Steel 
 Car Company at McKeesport. The latter was one 
 of the most dramatic strikes of the year. A major- 
 ity of the strikers were foreigners and many could 
 not speak English. They were without the leader- 
 ship of a trade union. The strike lasted eight weeks.
 
 SOME DEVICES IN OPERATION 263 
 
 An investigation by the Department of Commerce 
 and Labor revealed a startling condition of intimi- 
 dation by company officials. The strikers obtained 
 important concessions, including a material advance 
 in wages. The Philadelphia street railway strike 
 began at election time and continued until the fol- 
 lowing year. The Philadelphia Central Labor Un- 
 ion ordered a general strike and about sixty thou- 
 sand men responded to the call. The strike was 
 lost. A strike of the Westmoreland County coal 
 miners, which began in March, 1910, and which in- 
 volved seventeen thousand men, lasted until July, 
 1911. 
 
 The mediation bureau of the Pennsylvania De- 
 partment of Labor, created in 191 3, within a few 
 months was instrumental in settling a great many 
 strikes directly and indirectly, bringing the parties 
 together for settlement, as well as preventing a num- 
 ber of strikes through mediation which might 
 otherwise have materialized, according to the Penn- 
 sylvania commissioner of labor in 19 14. The 
 department has been instrumental in saving many 
 thousands of dollars in the adjustment of labor trou- 
 bles since it was organized. But the department has 
 been organized less than three years and that is too 
 soon to record much of a showing; still, the media-
 
 264 INDUSTRIAL ARBITRATION 
 
 tion bureau has been of incalculable service, saving 
 to the state many times its cost of maintenance. 
 
 While there were numerous strikes in Maryland, 
 Texas, Colorado and Iowa during the period the 
 number does not compare with that in those states 
 where state boards were active from 1 88 1 to 1905. 
 Washington had on an average of less than ten a 
 year, Kansas seven, Idaho less than one and Ne- 
 vada only four for the entire period. 
 
 The Maryland act of 1878, according to the chief 
 of the Maryland Bureau of Industrial Statistics, has 
 "never been availed of." 
 
 Five years after the Texas law of 1895 was 
 passed, neither the commissioner of agriculture nor 
 the attorney general had any knowledge that the 
 law was in force.^* A Texas commissioner of labor 
 statistics was "not aware of any case where the act 
 of 1895 providing for boards of arbitration has ever 
 been invoked in any controversy between the em- 
 ployers and the employees in that state." 
 
 "We have no knowledge of any law being passed 
 in this state regarding industrial arbitration," a 
 Washington commissioner of labor said in response 
 to an inquiry as to the success of the Washington 
 act of 1903. 
 
 " Bulletin of The Bureau of Labor No. 60, in House Docu- 
 ments, Vol. 31, p. 607.
 
 SOME DEVICES IN OPERATION 265 
 
 Colorado first provided for industrial arbitration 
 in 1887. This act was superseded by the act of 
 1897, creating a state board of arbitration, which 
 was repealed in 1909, "because of its proving in- 
 effective," according to a deputy state labor com- 
 missioner. A new act of 1909 created the office of 
 deputy labor commissioner with powers of media- 
 tion and the formation of local boards on consent 
 of both parties. The new law has not proved ef- 
 fective. The deputy labor commissioner is "a firm 
 believer In compulsory arbitration." The Colorado 
 coal strike of 1913-1914 was the most disastrous to 
 life and property ever known in that state, and prob- 
 ably attracted wider attention than any other in the 
 entire history of this country. 
 
 Only one attempt at adjustment has been made 
 under the Iowa act to 191 3, that being the case of 
 the Oskaloosa Light and Traction Company against 
 the Amalgamated Association of Street and Electric 
 Railway Employees. Two judges and a business 
 ■man were the arbitrators and decided all points in 
 favor of the men, with the exception of that of 
 wages, which was to be submitted to further arbitra- 
 tion. "The company has thus far refused to carry 
 out the decision," according to the Iowa commis- 
 gioner of labor,
 
 266 INDUSTRIAL ARBITRATION 
 
 The Kansas commissioner of labor is authority 
 for the statement that the act of 1886 has "never 
 been made use of in any dispute which has arisen 
 since its enactment." Nevada's conciliation and ar- 
 bitration act was passed subsequent to the 1907 
 strike at Goldfield, when federal troops were called 
 out and after the legislature had been called into 
 special session. 
 
 Idaho copied the Massachusetts act in 1897 and 
 in 1 901 substituted the Indiana act of 1897, with 
 minor changes. 
 
 Wisconsin's state board of arbitration, created in 
 1895, was superseded by the industrial commission 
 in 191 1. In a dispute between the Milwaukee Elec- 
 tric Railway and Light Company and the Amalga- 
 mated Association of Street and Electric Railway 
 Employees, the commission defined its powers under 
 the act of 191 1 to include that of conducting inves- 
 tigations and hearings and publishing reports of 
 their findings in threatened or existing strikes and 
 lockouts. The company objected to the examina- 
 tion of its pay-rolls for the purpose of a public find- 
 ing, but was forced to accede to the demands of 
 the commission when informed that it was the inten- 
 tion of the commission to use the pay-rolls for the 
 express purpose indicated. Finally, after a thor-
 
 SOME DEVICES IN OPERATION 267 
 
 ough investigation, the recommendations of the 
 commission were published, but not until the wages 
 of the trainmen had been substantially advanced. 
 
 Only the pay-rolls and the records of the company 
 relating to trainmen were examined by the indus- 
 trial commission. The company refused to submit 
 other records. Discussing the attitude of the com- 
 pany, the commission says it is "of the opinion that 
 It has full authority to make Investigation and by 
 subpcEna compel the submission of the books of the 
 company to the commission for such purpose, as to 
 all of Its employees." At some future time con- 
 venient to the commission, it proposed to complete 
 the investigation so as to cover all employees of the 
 company. 
 
 Between 1895 and 1904, while Wisconsin had a 
 state board of arbitration, there were one hundred 
 ninety-five strikes in that state, of which number 
 ninety-five were acted upon by the board. Of the 
 ninety-five cases acted upon, there was preliminary 
 work done In twelve cases. The board was success- 
 ful In the settlement of forty disputes and failed 
 in the settlement of forty-three. In other words. 
 It settled forty-two per cent, of the cases where It 
 intervened and failed In fifty-eight per cent, of these 
 cases.
 
 CHAPTER XI 
 
 INTERSTATE STRIKES 
 
 CONSTITUTIONAL limitations have pre- 
 vented the federal government from legally 
 doing more than "regulating" the instrumentalities 
 and agents of interstate commerce in the matter of 
 industrial arbitration. Federal legislation on the 
 subject is confined practically to three congressional 
 acts providing for arbitration between interstate 
 carriers and their employees. These acts were 
 passed in 1888, 1898 and 1913. 
 
 There was a congressional committee which in- 
 vestigated the Homestead strike at Homestead, 
 Pennsylvania, in 1892, and a commission, author- 
 ized under the act of 1888, which reported to the 
 president on the Pullman strike at Chicago, No- 
 vember 14, 1894, but the latter investigation did 
 not begin until the strike was ended. ^ Likewise, 
 there was the Anthracite Coal Strike Commission 
 of 1902, appointed by President Roosevelt, but this 
 
 ^ Bulletin of Bureau of Labor No. 60, in House Documents, 
 Vol. 81, p. 573. 
 
 263
 
 INTERSTATE STRIKES 269 
 
 commission gave an award that, altHougH it was 
 accepted by both sides, was not legally binding. 
 
 The Industrial Commission of 1901 made a thor- 
 ough investigation of strikes and lockouts and of 
 arbitration as a means of averting controversies be- 
 tween employees and employers. In 191 2, Con- 
 gress created the Industrial Relations Commission, 
 charged with broad powers among which are those 
 of inquiring into the "general condition of labor in 
 the principal industries of the United States;" into 
 the "existing relations between employers and em- 
 ployees; into the effect of industrial conditions on 
 the public welfare and into the rights and powers 
 of the community to deal therewith ;" also of in- 
 quiring "into the growth of associations of employ- 
 ers and wage earners and the effect of such associa- 
 tions upon the relations between employers and 
 employees ; into the extent and results of methods 
 of collective bargaining; into any methods which 
 have been tried in any state or in foreign countries 
 for maintaining mutually satisfactory relations be- 
 tween employees and employers ; into methods for 
 avoiding or adjusting labor disputes through peace- 
 ful and conciliatory mediation and negotiations." 
 During the summer of 1914, the commission held 
 a series of hearings on conciliation and arbitration.
 
 270 INDUSTRIAL ARBITRATION 
 
 The work of this commission has been spectacular 
 in the extreme but none the less effective. Because 
 its chairman is a man not only of invincible courage 
 but of almost uncanny understanding of industrial 
 and economic principles and conditions, the Indus- 
 trial Relations Commission has turned out to be the 
 most irrepressible agency for publicity ever devised 
 in this country. The most spectacular thing it has 
 done was to lay bare the shams of the Rockefeller 
 Foundation, a gigantic creation of the elder Rock- 
 efeller which had the impudence to begin a nation- 
 wide investigation of industrial conditions as a 
 masque for inhuman conditions in the Rockefeller 
 coal mines of Colorado. 
 
 In a special message to Congress dated April 
 22, 1886, President Cleveland urged that "some- 
 thing must be done under Federal authority to pre- 
 vent the disturbances which so often arise from dis- 
 putes between employers and the employed, and 
 which at times seriously threaten the business in- 
 terests of the country."' 
 
 "In my opinion," said President Cleveland, "the 
 proper theory upon which to proceed is that of vol- 
 untary arbitration as a means of settling these diffi- 
 culties."^ 
 
 ' Message, April 22, 1886. 
 "Ibid.
 
 INTERSTATE STRIKES 271 
 
 "I suggest," said the president, "that instead of 
 arbitrators chosen in the heat of conflicting claims 
 and after each dispute shall arise for the purpose 
 of determining the same, there be created a Com- 
 mission of Labor consisting of three members who 
 shall be regular officers of the government, charged 
 among other duties with the consideration and set- 
 tlement, when possible, of all controversies between 
 labor and capital. 
 
 "A commission thus organized would have the 
 advantage of being a stable body, and its members 
 as they gained experience would constantly Improve 
 In their ability to deal intelligently and usefully 
 with the questions which might be submitted to 
 them. If arbitrators are chosen for temporary serv^ 
 Ice as each case or dispute arises, experience and 
 familiarity with much that is involved in the ques- 
 tion will be lacking, extreme partisanship and bias 
 will be the qualifications sought on either side and 
 frequent complaints of unfairness and partiality will 
 be inevitable. The imposition upon a Federal Court 
 of a duty so foreign to the judicial function as the 
 selection of an arbitrator In such cases, Is at least 
 doubtful propriety."* 
 
 In speaking of the probable consequences of the 
 failure of an arbitration board to enforce its de- 
 cisions through lack of power. President Cleveland 
 thought much encouragement was derived from the 
 "conceded good" accomplished by state railroad 
 
 *Ibid.
 
 272 INDUSTRIAL ARBITRATION 
 
 commissions, having "little more than advisory 
 powers."^ 
 
 A bureau of labor had been created in July 1S84 
 and President Cleveland believed a commission 
 could "be engrafted upon the Bureau thus already 
 organized by the addition of two more commission- 
 ers and by supplementing the duties now imposed 
 upon by such powers and functions, as would per- 
 mit the commissioners to act as arbitrators, when 
 necessary between Labor and Capital, under such 
 limitations and upon such occasions as should be 
 deemed proper and useful."® 
 
 "Power," he said, "should also be distinctly con- 
 ferred upon this Bureau to investigate the causes 
 of all disputes as they occur, whether submitted for 
 arbitration or not, so that information may always 
 be at hand to aid legislation on the subject when 
 necessary and desirable."^ 
 
 One bill providing for the arbitration of disputes 
 between interstate carriers and their employees was 
 Introduced In the Senate and three in the House 
 in the first session of the Forty-ninth Congress. The 
 House Committee on Labor also presented a bill 
 as a substitute for that introduced by Representative 
 
 " Ibid. 
 Mbid. 
 ' Ibid.
 
 INTERSTATE STRIKES 273 
 
 O'Neill, of Missouri.^ This bill passed the House 
 and was debated in the Senate. In the second ses- 
 sion of the Forty-ninth Congress the same bill 
 passed tlie Senate but it reached the president on 
 March I, 1887, only a few days before adjournment. 
 It did not meet the wishes of President Cleveland 
 and did not receive his signature.® The president 
 desired a measure that would permit the government 
 to take the initiative in conciliation and arbitra- 
 tion.^"' 
 
 Senator John Sherman, in the debate on this bill, 
 February 28, 1887, argued in favor of a commission 
 of two senators, three representatives and seven 
 members from civil life appointed by the president 
 with power to make a broad and liberal examina- 
 tion "similar to those which have been authorized 
 by the British Parliament."^^ An amendment to 
 this effect, however, was withdrawn in order not to 
 defeat the bill already pending for passage. 
 
 One bill was introduced in the Senate during the 
 first session of the Fiftieth Congress. Representa- 
 tive O'Neill, of Missouri, presented another bill also, 
 similar to the one he had previously presented. It 
 
 *49th Congress, 1st session (see index), 
 *49th Congress, 2nd session (see index). 
 " Bulletin of Bureau of Labor No. 60, in House Documents, 
 Vol. 81, p. 571. 
 " Congressional Record, Senate, Feb. 28, 1887.
 
 274 INDUSTRIAL ARBITRATION 
 
 provided that In case of a dispute between an inter- 
 state carrier and employees a board of arbitration 
 might be appointed on application of one party to 
 the other, if the second party agreed to a board, 
 the two arbitrators to choose a third. The board 
 had power under the bill to subpoena witnesses, to 
 compel their attendance and make a finding of facts. 
 There was no provision to make the decision or 
 award binding.^" 
 
 Another provision of the bill gave the president 
 power to appoint two disinterested citizens, one of 
 whom was required to be a resident of the state 
 where the controversy arose, who, together with the 
 commissioner of labor, should constitute a commis- 
 sion to make a full investigation and report on dis- 
 putes involving an interstate carrier and its em- 
 ployees. The services of this commission might be 
 tendered the parties upon application of either or 
 by the president on his own motion. There were 
 no provisions for formal hearings. This bill passed 
 both houses of Congress and was signed by Presi- 
 dent Cleveland October I, 1888. The only opposi- 
 tion It encountered was from a few members of both 
 bodies who were inclined to favor a "compulsory" 
 
 '^ Congressional Record, House and Senate 50th Congress, 
 1st session (see index).
 
 INTERSTATE STRIKES 275 
 
 clause making arbitration necessary and awards 
 binding/^ 
 
 Four years after the passage of the arbitration 
 law of 1888, the famous strike of the steel workers 
 at Homestead, Pennsylvania, occurred, and a con- 
 gressional investigation committee made an exam- 
 ination of the causes surrounding the strike and the 
 condition of employment in the Carnegie mills at 
 that place. There was a demand for federal legis- 
 lation, looking toward the settlement of such contro- 
 versies. 
 
 In a magazine article,^* discussing the Homestead 
 strike, and arbitration generally, Representative 
 William C. Oates, chairman of the Congressional 
 Investigation Committee, said: 
 
 "Congress, therefore, has no power to interfere 
 by legislation in the labor troubles at Homestead 
 nor in any similar ones which may subsequently 
 occur there or elsewhere. A voluntary arbitration 
 law was passed by Congress applicable to railroad 
 strikes and there is one in Pennsylvania applicable 
 to her own affairs but neither of them is of practical 
 utility. Parties will not have recourse to that 
 method of settlement and there is no way to en- 
 force the award when rendered. Nor is a compul- 
 sory arbitration law practicable. Such a law could 
 only be enacted by the State and compulsory arbi- 
 
 "50th Congress, 1st session (see index). 
 ^* North American Review, September, 1892.
 
 276 INDUSTRIAL ARBITRATION 
 
 tratlon would be no arbitration at all since It would 
 at once be the exercise of judicial power. Courts 
 can afford remedies for violated contracts but in a 
 case like that at Homestead where the parties failed 
 to agree — where they failed to make a contract — 
 if the State could invest a tribunal with authority 
 to step in and say that the proposition of the Car- 
 negie Company was reasonable and that the striking 
 workmen should accept and go to work thus making 
 for them a contract which they refused to make and 
 the workmen did not choose to obey the award, how 
 could it be enforced? 
 
 "No legislative authority can deprive any man 
 of the right to contract in respect to his own private 
 property or labor and without his consent confer 
 that power upon another person or tribunal. His 
 discretion and personal right can not be thus taken 
 from him for that would at once destroy his free- 
 dom. 
 
 "The rights of property and personal liberty are 
 secured by fundamental laws of the State and Na- 
 tion just as they were by the English Common Law 
 and Magna Charta which the old barons, sword in 
 hand, wrested from King John at Runnymede." 
 
 Two years after the Homestead strike occurred 
 the disastrous strike at Pullman, Illinois, sometimes 
 known as the American Railway Union strike. It 
 was called In sympathy with the workers at Pull- 
 man, and began June twenty-sixth and ended July 
 thirteenth.^^ On July twenty-sixth. President 
 
 " Bulletin of Bureau of Labor No. 60, in House Documents, 
 Vol. 81, p. 573.
 
 INTERSTATE STRIKES 277 
 
 Cleveland appointed three commissioners^® to ex- 
 amine the "causes of the controversy, the conditions 
 accompanying, and the best means for adjusting it." 
 Sessions were held principally at Chicago. 
 
 The states were urged to adopt some system of 
 conciliation and arbitration like that employed by 
 the Massachusetts state board and to make illegal 
 all contracts requiring employees, as a condition of 
 employment, to agree to leave or not to join labor 
 organizations.^^ 
 
 Employers were urged to recognize labor organ- 
 izations and the reciprocal relations of employer 
 and employed and voluntarily to consider the inter- 
 ests of Labor as well as those of Capital. ^^ 
 
 It was further recommended by the commission 
 that there should be a permanent tribunal always 
 ready to deal with railroad disputes; that such a 
 tribunal should have power to intervene on its own 
 motion as well as upon request of parties to the 
 dispute; that it should aim first at conciliation, but 
 where that failed should investigate and fix respon- 
 
 " Carroll D. Wright, U. S. Commissioner of Labor ; John 
 D. Kernan, of New York, and Nicholas E. Worthington, of 
 Illinois. 
 
 " Bulletin of Bureau of Labor No. 60, in House Documents, 
 Vol. 81, p. 573. 
 
 " Ibid.
 
 278 INDUSTRIAL ARBITRATION 
 
 sibility for the dispute in a published report for the 
 guidance of public sentiment. 
 
 This commission recommended also that during 
 the pendency of a proceeding before the permanent 
 tribunal, a strike or lockout should be unlawful and 
 for six months after a decision had been rendered 
 it should be unlawful for the railroad to discharge 
 workmen In whose places others were to be em- 
 ployed, except for inefficiency, violation of law, or 
 neglect of duty, and for said employees to quit the 
 service without thirty days* notice or for a union 
 to order or counsel otherwise.^'* 
 
 Amendments to existing statutes to require that 
 national trade unions should provide in their ar- 
 ticles of incorporation, and in their constitutions, 
 rules and by-laws that a member should forfeit all 
 his rights and privileges as such for participating 
 in or instigating force or violence against persons 
 or property during strikes or lockouts, or from seek- 
 ing to prevent others from working by violence, 
 threats or intimidation were recommended by the 
 Pullman Investigating Commission.^" 
 
 Bills were before Congress at every session after 
 this report was filed until 1898 when a new act was 
 
 " Ibid., p. 574. 
 *> Ibid.
 
 INTERSTATE STRIKES 279 
 
 passed superseding that of 1888. The new law pro- 
 vided only for arbitration and conciliation and not 
 investigation and publicity as under the act of 1888. 
 
 The act of 1898 provided that the chairman of 
 the Interstate Commerce Commission and the com- 
 missioner of labor should, upon request of either 
 party to a dispute involving steam railroads, at- 
 tempt mediation and conciliation and if unsuccessful 
 to attempt to obtain arbitration. This act made it 
 possible to submit such a controversy to an arbitra- 
 tion board consisting of one member selected by the 
 commissioner, one selected by the employees and 
 one selected by the other two. If the two were un- 
 able to agree, the act made it the duty of the chair- 
 man of the Interstate Commerce Commission and 
 the commissioner of labor together to name a third 
 arbitrator. 
 
 The board so chosen was required to begin a hear- 
 ing within ten days after the appointment of a third 
 arbitrator and to make a finding and award within 
 thirty days after the appointment of the third arbi- 
 trator. The status prior to the beginning of the con- 
 troversy had to be maintained but no employee 
 could be compelled to render personal service with- 
 out his consent. A majority of the board could 
 make a valid and binding award which had the
 
 28o INDUSTRIAL ARBITRATION 
 
 effect of a bill of exceptions and was required to 
 be filed with the clerk of the United States Circuit 
 Court in the district where the controversy arose. 
 It was final and conclusive unless set aside for ap- 
 parent error. Judgment on the award was entered 
 in ten days in the absence of any appeal. Judg- 
 ment was entered otherwise when the exceptions 
 were disposed of or when the appeal to the United 
 States Circuit Court of Appeals was disposed of. 
 The Injunction or other legal process could be issued 
 to compel the performance of personal labor by any 
 laborer but no employee could quit the service of 
 his employer, if dissatisfied with the award, with- 
 out giving thirty days' notice, and no employer 
 could dismiss any employee without giving thirty 
 days' notice. The award was effective for one year. 
 It was not binding upon individual employees, not 
 members of the labor organization agreeing to arbi- 
 tration. 
 
 The act provided for forfeiture of membership in 
 a corporation for engaging in violence during a boy- 
 cott, strike or lockout and made it a misdemeanor 
 with a penalty of a fine of from one hundred dol- 
 lars to one thousand dollars to discriminate against 
 the members of a labor union or organize a boycott. 
 
 In no instance did employers or employees ever
 
 INTERSTATE STRIKES 281 
 
 attempt to make use of the act of 1888 but the act of 
 1898 was more successful. 
 
 During- the first eight and one-half years of its 
 operation only one attempt was made to utilize the 
 provisions of the Erdman"^ act. This attempt, made 
 within a year after its passage, involved an efifort of 
 conductors and brakemen in switching service at 
 Pittsburgh to secure an increase in wages, change in 
 working conditions and a reduction of hours. Eight 
 roads were Involved. The companies refused to ar- 
 bitrate under the Erdman act but granted an in- 
 crease in v/ages after the men had voted to strike.^^ 
 
 The second case under the act was a dispute be- 
 tween the Southern Pacific Railway and locomotive 
 firemen on the line between El Paso and New Or- 
 leans In 1906. This case was settled by arbitra- 
 tion.'^ 
 
 From 1906 to 191 1 the act was Invoked in about 
 fifty controversies and about one hundred sixty thou- 
 sand employees and five hundred thousand miles of 
 road were involved.'* One appeal to the courts, al- 
 lowed by the act of 1898, was taken, but the litiga- 
 
 " So called from its author, Rep. Erdman, of Pennsylvania, 
 although he was not a member of the Congress which passed 
 the 3.ct 
 
 " Bulletin of Bureau of Labor No. 98, Vol. 24, pp. 29-42. 
 
 *• Ibid., pp. 42-43. 
 
 ** Ibid., pp. 1-2.
 
 282 INDUSTRIAL ARBITRATION 
 
 tion was dragged along until an agreement finally 
 was reached by direct negotiations. Mediation 
 proved far more successful under the Erdman act 
 than arbitration, the latter having been invoked di- 
 rectly but four times during the entire period the 
 statute was in force.^^ 
 
 In three cases only was mediation refused under 
 the Erdman act. In all disputes where mediation 
 was accepted, except one, there was an amicable set- 
 tlement. This strike was ordered before mediators 
 were called in. 
 
 In 191 1, nearly thirty-three thousand locomotive 
 engineers threatened to strike but the difficulty was 
 adjusted through the intercession of Commissioner 
 Neill, under the Erdman act. Wages were advanced 
 a little more than ten per cent, and four million dol- 
 lars were added to the annual pay-roll of the rail- 
 roads. Differences with the railroad trainmen and 
 the railway conductors were settled with a ten per 
 cent, advance in wages for seventy-five thousand 
 conductors and trainmen on fifty-one western roads. 
 
 The engineers on fifty-two eastern roads voted to 
 strike in January, 1912, but Commissioners Neill 
 and Knapp Intervened and obtained an agreement 
 to arbitrate under the Erdman act. The award, 
 
 "^ Ibid., p. Z%
 
 INTERSTATE STRIKES 283 
 
 which was given in November, granted an increase 
 in pay but not what was asked. It urged the com- 
 pulsory adjustment of disputes on public utilities by 
 states or a national wage commission. The repre- 
 sentative of the engineers on the board refused to 
 sign the award because of this recommendation. 
 
 Conclusions of the Industrial Commission of 1901 
 which made an exhaustive study of strikes and lock- 
 outs are interesting. Arbitration and conciliation 
 laws were found "effective for purpose of concilia- 
 tion," but according to the commission, "the strict 
 arbitration machinery rarely functions well." 
 
 "The arbitration laws now existing, particularly 
 the national act of 1898, should be made clear," 
 said the Industrial Commission, "so that the parties 
 to the arbitration, whether employer or employee, 
 should appear as lawfully constituted associations or 
 corporations, or otherwise as individuals with proper 
 machinery for representation by their leaders ; and 
 the Commission believe that whoever inaugurates 
 a lockout or strike without first petitioning for arbi- 
 tration, or assenting to it when offered, should be 
 subjected to an appropriate penalty. The object of 
 the first recommendation Is to get responsible parties 
 to the record, and to make sure that the individuals 
 concerned in the difficulty are lawfully represented 
 in the proceedings; and the object of the second rec- 
 ommendation is to encourage peaceable adjustments 
 of differences and to discourage the resort to strikes 
 or lockouts until legal methods have been tried. The
 
 284 INDUSTRIAL ARBITRATION 
 
 statute should not confine arbitration to a public 
 board, but should permit the parties to choose arbi- 
 trators if they prefer. There should be no provision 
 to compel either side to abide by the decision. It is 
 believed that a full and fair investigation of the 
 facts will, in most cases, bring the parties into sub- 
 stantial agreement, while in other cases the result 
 may be safely left to public opinion." 
 
 On October i6, 1902, President Roosevelt ap- 
 pointed the Anthracite Coal Strike Commission after 
 the strike had lasted from May 12, 1902, and had 
 cost fifty million dollars. Mine owners and miners 
 agreed in advance to abide by its decision. The 
 miners went back to work and a thorough investiga- 
 tion was made. The report was filed March 18, 
 1903. A ten per cent. Increase In wages was granted. 
 Various other matters, Including employment of 
 check weighmen and distribution of mine cars, were 
 settled, and a method of conciliation provided to de- 
 termine questions on the interpretation of the award. 
 Strikes and lockouts were forbidden during the 
 term of the award. The right to discharge employees 
 without reference to the board of conciliation re- 
 mained with the employer. The right to discharge 
 without sufficient cause was very unfavorable to the 
 miners. An open shop was granted but no person 
 could be discriminated against because of member-
 
 INTERSTATE STRIKES 2S5 
 
 ship in a labor union. The award was effective for 
 a period of three years. The report urged that the 
 president be given authority to appoint a commission 
 for compulsory investigation whenever a labor con- 
 troversy arose to threaten interstate commerce — 
 amounting to a revival of a section of the act of 1888, 
 but not included in the act of 1898. 
 
 The anthracite conciliation board brought about 
 three successive agreements of three years each, the 
 last expiring April i, 191 2. During the first three 
 years, the board dealt with one hundred forty-five 
 grievances and from 1906 to 1912 with forty-eight 
 grievances. Altogether twenty-five cases were re- 
 ferred to an umpire, who was a federal judge, from 
 1902 to 1912. 
 
 Early in 191 2, the anthracite miners demanded 
 a twenty per cent, increase in wages. There was 
 some rioting before a settlement was effected when a 
 ten per cent, increase in wages and a grievance com- 
 mittee were allowed. Because the sliding scale was 
 abolished the increase amounted to a net gain of 
 five and one-half per cent. An immediate increase 
 of twenty-five cents a ton in the price of coal netted 
 the operators about five million dollars above the 
 increase in wages the first year. 
 
 In 191 3, a new arbitration act was passed super-
 
 286 INDUSTRIAL ARBITRATION 
 
 seding the act of 1898. It likewise exempted street 
 railways. It provides for a board of mediation and 
 conciliation consisting of a commissioner of media- 
 tion and conciliation appointed by the president for 
 a seven-year term and two other officials of the gov- 
 ernment, who have been appointed by the president. 
 The commissioner of mediation and conciliation re- 
 ceives a salary of seven thousand five hundred dol- 
 lars a year. He has an assistant, appointed by the 
 president, with a salary of five thousand dollars a 
 year. Either party to a controversy involving the 
 transit of interstate commodities may apply to this 
 board for an amicable settlement of difficulties. 
 Where an interruption of traffic is imminent the 
 board may offer its services to the respective parties. 
 If a board of three members is agreed upon, each 
 party selects one and the two select a third or in 
 their failure to agree, the third member is designated 
 by the commissioner of mediation and conciliation. 
 If six members are agreed upon, each party selects 
 two and the four select the other two by a majority 
 vote. In their failure to agree the remaining mem- 
 ber or members may be designated by the commis- 
 sioner of mediation and conciliation. The agree- 
 ment to arbitrate shall stipulate that a majority of 
 the board shall be competent to make a valid and
 
 INTERSTATE STRIKES 287 
 
 binding award. The parties may ask the reconven- 
 ing of the board in the event disputes arise after the 
 award which are not settled by it. 
 
 Lately, Congress has made investigations of the 
 Lawrence textile workers' strike, the West Virginia 
 and Colorado coal miners' strikes and the Calumet 
 copper mine strike. The evidence adduced in each 
 case disclosed unspeakable conditions of labor but 
 aside from creating a hostile public sentiment against 
 the owners and operators of these enterprises, noth- 
 ing resulted from the legally-unwarranted interfer- 
 ence of Congress. No legal power to intervene in 
 such strikes is vested in Congress.
 
 CHAPTER XII 
 
 THE COLORADO COAL STRIKE 
 
 THE Colorado coal strike of 191 3 and 1914 
 was merely another effort on the part of the 
 miners to obtain for themselves a consideration of 
 grievances, long standing in the history of the coal- 
 mining industry. Strikes have taken place in the 
 Colorado field, roughly speaking in ten-year pe- 
 riods, ever since 1876. The miners lost the strike 
 of 1876 and obtained a satisfactoiy adjustment in 
 1884. Ten years later an adjustment was obtained 
 with at least one company, but there was a failure 
 in the case of the Colorado Fuel and Iron Company. 
 The 1903 strike was abandoned after eleven 
 months and after a failure to obtain recognition of 
 practically the same grievances advanced after the 
 191 2 organizing campaign of the United Mine 
 Workers in the Colorado field. The 1913 strike 
 was called by the Trinidad convention to take place 
 in the event the operators declined to accept a con- 
 ference. As a matter of fact, it was perfectly well 
 
 288
 
 THE COLORADO COAL STRIKE 289 
 
 known that the operators would not accept a con- 
 ference, so the date for the strike was fixed by the 
 Trinidad convention. 
 
 Specifically, the miners made the following de- 
 mands : 
 
 1. Recognition of the United Mine Workers' 
 Union. 
 
 2. An increase of wages. 
 
 3. Eight-hour day. 
 
 4. Checkweighmen. 
 
 5. The right to trade at other than company 
 stores. 
 
 6. Enforcement of various state laws. 
 
 7. Abolition of the guard system. 
 
 There were other grievances, among which were 
 persecution of union organizers and men, discrim- 
 ination against union men, political domination by 
 the operators, employment of foreigners, failure of 
 accident prevention and want of compensation for 
 accidents, which were considered only in the after- 
 math of the strike. As a matter of fact, there was one 
 principal grievance to which all others were sec- 
 ondary. This grievance was the failure of the 
 miners to obtain from the operators consideration of 
 grievances generally through committees of the 
 United Mine Workers of America. 
 
 Merely because the Colorado strike may be re-
 
 290 INDUSTRIAL ARBITRATION 
 
 garded as typical of strikes generally, or at least of 
 those strikes where industrial warfare is accompa- 
 nied by violence, it is discussed somewhat at length. 
 The investigations of the Industrial Relations Com- 
 mission have established certain facts which might 
 otherwise continue to be subjects of controversy. 
 The testimony before the commission has removed 
 certain important phases of the strike beyond the 
 realm of controversy. 
 
 Negotiations for a settlement of the differences 
 between mine owners and mine workers never got 
 beyond the question of recognizing the mine work- 
 ers' organization because the operators refused to 
 meet representatives of the United Mine Workers, 
 formally or informally, although repeatedly re- 
 quested to do so. The operators were obdurate de- 
 spite the fact that officials of the United Mine 
 Workers agreed at one stage to yield recognition 
 altogether if the operators would only meet them 
 informally In the governor's office. Of course, rep- 
 resentatives of the miners hoped ultimately for rec- 
 ognition. 
 
 Here, then, was the basic difference In the Colo- 
 rado strike. The operators knew well enough that 
 to meet representatives of the United Mine Workers, 
 under whatever agreement or understanding, would
 
 THE COLORx^DO COAL STRIKE 291 
 
 be tantamount to recognition. If the coal operators 
 were justified at all In refusing recognition, they 
 undoubtedly were justified in refusing to take any 
 preliminary steps in that direction. It may be said 
 without any reservation of the Colorado strike that 
 the refusal of the mine owners to meet the repre- 
 sentatives of the strikers prevented a settlement, 
 just as it has prevented settlements in the past and 
 as it will prevent settlements in the future. Strikes 
 that encounter this difficulty must go on until one 
 side is exhausted. Had the country been face to 
 face with a fuel famine, public sentiment might have 
 forced the operators to treat with any group of men 
 capable of ordering a resumption of work. Again 
 and again, public sentiment has forced transporta- 
 tion companies to resume operations when their 
 only means of resumption was to accept the griev- 
 ance committee of a national union. This com- 
 pelling factor was lacking in the Colorado strike. 
 
 During the period of the strike when various 
 agencies, official and unofficial, were seeking a basis 
 of settlement, the operators sought to emphasize the 
 lawless character of the United Mine Workers. 
 Very probably this organization Is no worse than 
 the men who make up the great body of coal miners 
 in the United States. If the organization Is law-
 
 292 INDUSTRIAL ARBITRATION 
 
 less, it is because the coal miners as a class of people 
 are lawless. Yet with how much justice can the op- 
 erators be heard to complain of this fact? One of 
 the grievances of the 1903 strike was that the oper- 
 ators were importing foreigners from southern Eu- 
 rope and displacing the English-speaking miners. 
 The military commission assigned to report on the 
 Ludlow massacre laid the remote cause of the battle 
 to the "coal operators, who established in an Ameri- 
 can industrial community a numerous class of igno- 
 rant, lawless and savage South-European peasants." 
 In another place, it said : "The tent colony is al- 
 most wholly foreign and without conception of our 
 government. A large percentage are unassimilable 
 aliens, to whom liberty means license. . . ." 
 Senator Patterson testified before the commission 
 that It had been the deliberate policy of the com- 
 pany to fill up mines with foreigners of different 
 nationalities; to get men employed who would be 
 quite content to go to work in the morning, work 
 during the length of time the law permits, go to 
 their homes, go to bed, get up and go to work again, 
 without giving any serious thought to the advance- 
 ment either of their own individual comfort or the 
 advancement of their class. 
 
 If the mine owners pursued this policy, about
 
 THE COLORADO COAL STRIKE 293 
 
 which there can be no question, they can not well 
 complain if organization turns these men into sav- 
 ages and brutes who resort to violence to resist fur- 
 ther aggressions. The mine workers' organization, 
 the rank and file, consisted principally of those men 
 the companies had brought into the mine district. 
 It is idle to say they were misled by outside agi- 
 tators. Their leaders were not all residents of the 
 state, but neither were the men who owned the 
 mines. 
 
 It is difficult to fix the responsibility for the be- 
 ginnings of violence in the Colorado strike. Before 
 the militia was called out the civil authorities of 
 Huerfano County had commissioned several hun- 
 dred men as deputy sheriffs, some of whom were 
 employed by the coal companies and none of whom 
 was subjected to any examination as to character or 
 fitness for service. The sheriff, who was acting in 
 conjunction with the operators, appointed whomso- 
 ever they wished. Most of the deputies were paid 
 by the coal companies and were subservient to their 
 wishes. The sheriff of Huerfano County was the 
 political tool of the mine owners and, the proprietor 
 of at least two saloons in the strike district, can 
 scarcely be said to have been a fit man for the office 
 in which he served. The testimony before the In-
 
 294 INDUSTRIAL ARBITRATION 
 
 dustrial Relations Commission recited many in- 
 stances of lawlessness on the part of these "depu- 
 ties." 
 
 After the state militia was called out things rap- 
 idly grew worse. Of the personnel of the Colorado 
 National Guard, especially its officers, there can be 
 no question. The National Guard was commanded 
 by a man wholly unfit for any responsible service, 
 ■much less the peculiarly high order of service re- 
 quired in a delicate situation. As one witness testi- 
 fied, "The leaders of the militia considered it neces- 
 sary to have an enemy and they chose the strikers," 
 probably because they were prejudiced against or- 
 ganized labor. A few of the officers of the militia 
 were brutes. Men and women were arrested in the 
 strike zone without the shadow of a pretext, searched 
 and detained in prison at the will of the military 
 authority. Officers of the United Mine Workers 
 and strike sympathizers suffered like indignities. 
 Private homes, the homes of persons who had no 
 part In the strike, were entered and searched and 
 robberies by militiamen became so common that 
 several culprits were court-martialed and found 
 guilty. Young women were outraged. After the 
 battle of Ludlow, soldiers and mine guards looted 
 the tents of the strikers and burned and destroyed
 
 THE COLORADO COAL STRIKE 295 
 
 what they were not able to carry off — clothes, bed- 
 ding, jewelry, bicycles, tools and utensils. 
 
 Can there be any wonder that organized labor is 
 unfriendly to the military arm of the government, 
 especially when it is remembered that the military 
 is used not for police duty, as it ought to be, but as 
 the auxiliary of Capital to break strikes and assist 
 the employer to resist the organization of his em- 
 ployees? With a free labor market it would be next 
 to impossible to win an ordinary strike without either 
 intimidation or violence, both of which are illegal. 
 In the Colorado strike, as in most strikes, the first law 
 breaker was the employer, A Colorado statute 
 makes it illegal to use any form of coercion in pre- 
 venting workers from joining a permanent organ- 
 ization of working men, yet the law was outraged 
 by the mine owners in a system of espionage main- 
 tained by their regularly employed mine guards 
 whose duty it was to spy on the men and report to 
 the officials. It is difficult to see wherein the em- 
 ployer's claim to injury lies when strikers by violat- 
 ing other laws are able by force or a show of force 
 to prevent work at his property. 
 
 Judge Ben B. Lindsay testified before the Indus- 
 trial Relations Commission that in four years In 
 three or four counties of Colorado nearly seven hun-
 
 296 INDUSTRIAL ARBITRATION 
 
 dred little children were made orphans, or father- 
 less and dependents, because of explosions in coal 
 mines, the greater number of which could have been 
 avoided had ordinary safety appliances been em- 
 ployed. The presiding judge of the third judicial 
 district, including Las Animas County, testified un- 
 der oath that not a single personal injury case had 
 been brought before him during the entire eleven 
 years he sat on the bench. Most lawyers, it was 
 said, have been afraid to take personal injury cases 
 because of the fear that "the company will blacklist 
 them and be against them politically and every 
 other way." 
 
 There can be no serious doubt that the coal com- 
 panies have been derelict in precautions to prevent 
 accidents. The percentage of persons killed in the 
 Colorado mines is about twice that for the United 
 States as a whole. Operators contend that the haz- 
 ard is greater in Colorado than in other coal-mining 
 regions because of the peculiar formation of the coal 
 veins, but the testimony of experts does not support 
 the contention. The testimony, however, does show 
 that the larger companies have suffered fewer acci- 
 dents than the smaller companies and that they have 
 made a more consistent effort to comply with the 
 accident prevention laws. It is a rare instance when
 
 THE COLORADO COAL STRIKE 297 
 
 the operating company pays anything to the injured 
 miner or his family. Through control of judicial 
 processes and various means of intimidation, the 
 mine owners are able to escape payment of damages 
 in practically every case. The operators themselves 
 have had control of agencies organized for promot- 
 ing sentiment in behalf of industrial compensation 
 and have thus blocked all progress in this direction. 
 Under non-union conditions miners have refrained 
 from complaints against the perils of the industry 
 because to complain has meant summary dismissal. 
 Locally, the mine owners have enjoyed a degree 
 of political control which would have done credit 
 to the land barons of medieval ages. At the head 
 of the local machine in Las Animas County, for in- 
 stance, is the sheriff. But the domination of the 
 mine owners applies more or less to the state as a 
 whole. It applies quite as forcibly and effectively 
 to the courts and to the state legislature. Worst of 
 all, this control has enmeshed the educational sys- 
 tem of the state and since the Industrial Relations 
 Commission adjourned its hearings on the Colorado 
 strike, Professor J. H. Brewster, who gave damaging 
 testimony against the operators, has been dropped 
 from the faculty of the University of Colorado in 
 much the same high-handed manner as Professor
 
 298 INDUSTRIAL ARBITRATION 
 
 Scott Nearing was dropped from the faculty of the 
 University of Pennsylvania. 
 
 National party emblems have meant nothing in 
 Las Animas and Huerfano Counties. Political 
 campaigns raise no issues between the Republican 
 and Democratic parties as such. This difference is 
 secondary. The only politics of the mine zone is the 
 politics that preserves or defeats the control of 
 the mine owners. A newspaper publisher in the 
 mine zone, a lawyer and former judge who, it 
 seems, was not in the employ of the coal companies 
 in 191 2, bitterly attacked them in a political speech 
 at Lamar. When he testified before the Industrial 
 Relations Commission two years later, having in the 
 meantime been employed by the companies, he 
 stated that the political domination of which he 
 complained in 1912 existed "for some time prior to 
 1 91 2," the Inference being that the conditions of 
 which he formerly complained disappeared about 
 the time he accepted employment from the compa- 
 nies. 
 
 As Judge Lindsay said of the Colorado strike, It 
 Is a "symptom of national wrong. It Is the symp- 
 tom of national wrong which has broken out In 
 Colorado at one time; in Michigan, West Virginia 
 and Pennsylvania at other times; will continue to
 
 THE COLORADO COAL STRIKE 299 
 
 break out until you go deeply into fundamental ques- 
 tions concerning rights of property and the rights 
 of humanity." 
 
 The Chicago street railway strike of 191 5 was 
 adjusted quickly because the strikers were well or- 
 ganized and capable of acting as a unit. But the 
 Chicago strike was settled promptly for another rea- 
 son, A city ordinance passed after the strike began 
 forbade the company to employ inexperienced work- 
 men. Strikebreakers were out of the question. One 
 year of violence in the Colorado strike zone shows 
 conclusively the consequences of lending the mili- 
 tary arm of the state to employers for the purpose 
 of breaking strikes. The state owes no duty to em- 
 ployers which requires protection for their armed 
 thugs. Rather it is the duty of the state to keep a 
 strike zone clear of men who are imported as strike- 
 breakers merely, men who are in no sense bona fide 
 workmen.
 
 CHAPTER XIII 
 
 TRADE AGREEMENTS 
 
 IN his testimony before the United States Indus- 
 trial Commission in 1901/ Samuel Gompers, 
 president of the American Federation of Labor, 
 made this statement : 
 
 "As one who has been Intimately and closely con- 
 nected with the labor movement for more than thirty 
 years — from boyhood — I say to you that I have yet 
 to receive a copy of the constitution of any general 
 organization or local organization of labor which 
 has not the provision that before any strike shall be 
 undertaken, conciliation or arbitration shall be tried ; 
 and with nearly twelve thousand local trade unions 
 in the United States, I think this goes far to show 
 that the organizations of labor are desirous of en- 
 couraging amicable arrangements of such schedules 
 and conditions of labor as shall tend to peace." 
 
 The American Federation of Labor has made 
 phenomenal growth since 190 1 and instead of twelve 
 thousand local unions now consists of twenty-seven 
 thbusand. Also, there are one hundred thirteen na- 
 
 ^ Report of the Commission, Vol. 17, p. 695-6, 
 300
 
 TRADE AGREEMENTS 301 
 
 tlonal and international unions which are affiliated 
 in this federation. The statement made by Presi- 
 dent Gompers in 1901 very probably is just as true 
 of the twenty-seven thousand local trade unions now 
 as it was of the twelve thousand in that year. 
 
 The typographical union is the oldest American 
 national trade union. ^ It was one of the first labor 
 organizations to undertake collective bargaining. As 
 early as the decade from 1830 to 1840 several asso- 
 ciations of journeymen printers were formed with 
 the design of maintaining scales of prices. 
 
 In 1 90 1, the first arbitration agreement was signed 
 between the International Typographical Union and 
 the Newspaper Publishers' Association. This agree- 
 ment was renewed in 1902, again in 1907, and still 
 again in 1912. Since the first agreement was drawn 
 up, several amendments have been made to the orig- 
 inal draft. 
 
 The present agreement, effective May i, 1912, 
 and expiring April 30, 191 7, includes an individual 
 arbitration contract and a code of procedure which 
 express and imply certain guaranties to each party. 
 Members of the American Newspaper Publishers' 
 Association holding individual arbitration contracts 
 
 * Hollander & Barnett, Studies in American Trade Union- 
 ism, p. 15.
 
 302 INDUSTRIAL ARBITRATION 
 
 are protected against walkouts, strikes or boycotts by 
 members of the union and against any other forms of 
 concerted interference. In the event of a difference 
 between a publisher and a local union, all work must 
 continue without interruption pending proceedings 
 looking to conciliation or arbitration, either local or 
 international, and wages, hours and working condi- 
 tions prevailing at the time the difference arises 
 shall be preserved unchanged until a final decision 
 of the matter in dispute. Differences that can not be 
 settled by conciliation shall be settled by arbitra- 
 tion. 
 
 Differences that arise under a written contract 
 that can not be settled by conciliation shall be re- 
 ferred to local arbitration, If so provided In the con- 
 tract, and If not so provided, to the chairman of the 
 Special Standing Committee of the American News- 
 paper Publishers' Association and the president of 
 the International Typographical Union. If they are 
 unable to agree, the dispute must be submitted to the 
 International board of arbitration, which consists of 
 three members of the executive council of the Inter- 
 national Typographical Union and three members 
 of the Special Standing Committee of the American 
 Newspaper Publishers' Association. These six men
 
 TRADE AGREEMENTS 303 
 
 may call In a seventh and disinterested member of 
 the board. An award of a majority of this board is 
 final. 
 
 Differences involving a new scale of wages, hours 
 of labor, renewing or extending a scale, or in re- 
 spect to a contract, not settled by conciliation, may 
 be referred to a local board of arbitration, consist- 
 ing of two members to be named by each side, one 
 of whom named by each party shall be free from 
 personal connection with any newspaper or labor 
 union. The chairman, the fifth member of the board 
 who is chosen by the other four, must likewise be a 
 disinterested person. Provision is made in the inter- 
 national agreement for appeal from a local board to 
 the international board. 
 
 Aside from the agreement between the Interna- 
 tional Typographical Union and the American 
 Newspaper Publishers' Association, local branches 
 of the former have in force many contracts in the 
 book and job printing business, all of which provide 
 for arbitration of disputes. Moreover, an agree- 
 ment is now being negotiated between the Interna- 
 tional Typographical Union and the United Typoth- 
 etae of America, an employers' organization in the 
 book and job branch of the printing business, which.
 
 304 INDUSTRIAL ARBITRATION 
 
 if successful, will extend the scope of arbitration in 
 the printing business by another notable Interna- 
 tional agreement. 
 
 Some of the early trade agreements In this coun- 
 try already have been referred to in this volume, 
 namely, that of the Sons of Vulcan, in the iron in- 
 dustry and that of the Knights of St. Crispin in the 
 boot and shoe industry. But the first trade board 
 organized with powers similar to the powers of the 
 present trade board was organized in a New York 
 City cigar factory. 
 
 The next trade agreement of importance was that 
 of the Builders' Association of New York City and 
 the Bricklayers' Union and Amalgamated German 
 Unions. A board of delegates in all the building 
 trades, except the bricklayers', was provided. There 
 was a division in 1894 and an amalgamation of the 
 two factions in 1902 Into the United Board of Build- 
 ing Trades. Through the Intercession of the Na- 
 tional Civic Federation in 1903 a general arbitration 
 board, composed of representatives from the United 
 Board of Building Trades and the Building Trades 
 Employers' Association, was organized. It con- 
 sisted of two representatives from each affiliated em- 
 ployers' association and two representatives from 
 each union. There was an executive committee,
 
 TRADE AGREEMENTS 305 
 
 composed of six employers and six employees elected 
 from the general arbitration board, to which dis- 
 putes were first referred by the secretary of the ar- 
 bitration board, after he had failed in conciliation. 
 Decisions of the executive committee were final un- 
 less disapproved by the general arbitration board. 
 Special arbitration boards of four members might 
 be organized and these special boards might appoint 
 an umpire. 
 
 Between 1903 and 1909, a total of 2,653 griev- 
 ances were submitted to the secretary of the general 
 arbitration board, 2,379 by labor unions, 274 by 
 employers' associations. The general secretary ad- 
 justed 1,050 of these disputes by conciliatory meth- 
 ods; 1,184 went to arbitration, and of these 226 
 were abandoned and 50 referred to the trade boards 
 for adjudication.^ The remainder were disposed of 
 in other ways. 
 
 This plan of arbitration expired in 1910, since 
 which time individual trade boards have arbitrated 
 all disputed matters. Under the present method 
 of handling disputes, or since 1 9 10, the aggrieved 
 union presents its complaint to the proper authority 
 as originally provided under the arbitration plan, 
 
 'Report of the New York Bureau of Mediation and Arbi- 
 tration, 1908, pp. 290-297.
 
 3o6 INDUSTRIAL ARBITRATION 
 
 except that there is now no higher court of appeal. 
 Disputed matters are formally presented and a 
 decision rendered or settlement reached in accord- 
 ance with standards established or In strict compli- 
 ance with the jurisdictional code formulated by the 
 now extinct arbitration board. It is to be under- 
 stood, however, that the arrangement of individual 
 employers' associations and the unions of each craft 
 signing conciliation and arbitration agreements still 
 continues.* 
 
 The first trade agreement in the iron moulders' 
 industry was signed in 1874 at Cincinnati, fifteen 
 years after the International Iron Moulders' Union 
 was organized. The National Stove Manufacturers' 
 Association was formed in 1872 and out of this grew 
 the Stove Founders' National Defense Association 
 in 1885, launched expressly to fight the moulders' 
 union. A plan for conciliation between the two or- 
 ganizations was agreed upon at a joint conference 
 held at Chicago in 1891 following a disastrous strike 
 at St. Louis a few years previously. This plan pro- 
 vided for a conciliation board of three representa- 
 tives from the employers and three from the em- 
 ployees. Seven years later the National Founders' 
 
 * Bureau of Labor Statistics, Conciliation and Arbitration in 
 the .Building^ Trades of Greater New York, 1913, p. 9.
 
 TRADE AGREEMENTS 307 
 
 Association entered into a plan for conciliation with 
 the International Moulders' Union under a pact 
 known as the "New York agreement." 
 
 During the spring of 1904, the executive com- 
 mittee of the National Founders' Association agreed, 
 at a meeting held in Cincinnati, not to recognize the 
 New York agreement after that date. A little later, 
 the association formally abrogated the agreement 
 despite the protest of the International Moulders' 
 Union, which insisted that since the agreement was 
 duly entered into by the two organizations, it could 
 be abrogated only by joint action. The National 
 Founders' Association, however, adhered to the ab- 
 rogation of 1904 and the New York agreement has 
 not since been effective. 
 
 In July, 19 10, a strike of the New York cloak 
 makers began. The strikers demanded a new trade 
 agreement with complete recognition of the cloak 
 and shirt-makers' and International Garment- 
 Makers' Unions. The strikers numbered about sev- 
 enty-five thousand. Under the agreement, effected 
 at the close of the strike in September, recognition 
 of the union and preference for its members were 
 provided, though the "closed" shop is not main- 
 tained. The agreement provided for an arbitration 
 board of three members, board of sanitary control
 
 3o8 INDUSTRIAL ARBITRATION 
 
 of seven members and grievance committee of four 
 members. The fifty-four-hour week, nine-hour 
 day, double pay for overtime and a minimum 
 wage scale for time workers were obtained. The 
 cloak and suit industry includes two thousand 
 establishments and represents a capital invested of 
 forty million dollars with a two hundred fifty mil- 
 lion dollar output annually. 
 
 The bituminous coal miners have worked under a 
 joint conference agreement with the mine operators 
 since 1898. There is an agreement covering prac- 
 tically all the mines in Illinois, Indiana, Ohio and 
 western Pennsylvania and local agreements are in 
 effect in other states. These agreements have not 
 always proved adequate to prevent strikes but there 
 is no doubt they have done very much in that di- 
 rection. 
 
 Since the great coal strike of 1902, the anthracite 
 coal operators have dealt with their employees un- 
 der the terms of an agreement drafted at that time 
 and since renewed. The National Lithographic As- 
 sociation, the theatrical managers, the brewers, the 
 hatters and the cigar makers have trade agreements 
 with their employees. During the first years of the 
 last decade, the United States Steel Corporation and
 
 TRADE AGREEMENTS 309 
 
 the Republic Iron and Steel Company also operated 
 under trade agreements with their employees. 
 
 There are five national unions .not affiliated with 
 the American Federation of Labor which require 
 efforts at conciliation before a strike may be called. 
 Four of these are railroad organizations — the Broth- 
 erhood of Locomotive Firemen and Enginemen, the 
 Brotherhood of Locomotive Engineers, the Brother- 
 hood of Railway Trainmen and the Order of Rail- 
 way Conductors. There Is a scheme known as "sys- 
 tem federation" by which these organizations act in 
 concert when controversies arise between the car- 
 riers and the employees. The provisions of one of 
 these, the Brotherhood of Locomotive Firemen and 
 Enginemen, is typical of the procedure necessary 
 before a strike may be called. 
 
 District protective boards consisting of the mem- 
 bers of the executive committee of each joint pro- 
 tective board concerned in an Industrial controversy 
 may not poll their members for a strike vote until 
 authorized to do so by the district board with the 
 approval of the International president. District 
 boards, when convened with the assistance of the 
 international president, must arrange for a confer- 
 ence between the general managers of railways in-
 
 3IO INDUSTRIAL ARBITRATION 
 
 terested and have authority to make and enter into a 
 settlement. Failing to reach a settlement, the dis- 
 trict boards, with the approval of the president, have 
 authority to sanction a strike upon all lines inter- 
 ested, if two-thirds of the members in referendum 
 vote have declared for a strike. 
 
 The Bricklayers, Masons and Plasterers' Interna- 
 tional Union of America is the fifth organization not 
 affiliated with the American Federation of Labor. 
 The constitution of this organization recognizes five 
 causes as essential to a strike : to maintain the stand- 
 ard hours of labor, to decrease the hours of labor, to 
 increase the rate of wages, to resist a threatened re- 
 duction of wages and to resist the introduction of 
 non-union conditions. 
 
 Where two or more unions in the same trade ex- 
 ist, a joint meeting must be held and a resolution 
 adopted by a two-thirds vote, ordering the transmis- 
 sion to the executive board of a bill of complaint. A 
 subordinate union must transmit to the executive 
 board a "clear, concise and comprehensive statement 
 in writing of all the facts and circumstances con- 
 nected with the pending trouble or cause of dissat- 
 isfaction. This bill of complaint shall, in addition, 
 set forth the efforts made to arbitrate the differences, 
 I if any such were attempted,"
 
 TRADE AGREEMENTS 311 
 
 Upon receipt of a bill of complaint, the executive 
 board, consisting of the president, first vice-presi- 
 dent and secretary of the union, must send a special 
 deputy to the scene to investigate fully the alleged 
 matters of complaint. Upon the receipt of a report 
 from the special deputy, the executive board may 
 authorize him to call a strike. Or, the executive 
 board may disapprove the special deputy's recom- 
 mendations, and if so, it must go to the scene of 
 trouble and personally investigate the complaint, and 
 either sanction or refuse a strike. The decision of 
 the executive board is final. 
 
 "We must search for a method of settling indus- 
 trial disputes upon a basis which will substitute pri- 
 mary agreements for conflict and thus anticipate and 
 render unnecessary the operation of palliative meth- 
 ods," said a representative of the National Associa- 
 tion of Builders before the industrial commission in 
 1901.^ "Arbitration means the settlement of some- 
 thing in controversy. This is not what we are seek- 
 ing . . . Mutual agreement before the parties 
 have come to the point of conciliation is the solu- 
 tion of the problem." 
 
 A joint agreement between the coal operators 
 and the miners In the Indiana district was referred 
 to in the labor commission's report for 1907-08 as 
 
 ' Wm. H. Sayward, secretary, Industrial Commission Re- 
 port, Vol. 17, p. 691.
 
 312 INDUSTRIAL ARBITRATION 
 
 "perhaps the most perfect basis upon which the em- 
 ployer and employee meet to-day," and the Massa- 
 chusetts board in speaking of the Boot and Shoe 
 Workers' Union, the largest trade organization in 
 Massachusetts, in 1905, remarked: "During the 
 period of seven years since the general organization 
 inaugurated the arbitration contract, factories where 
 such agreements were made have not been seriously 
 disturbed by cessation of work due to any dispute." 
 Perhaps the greatest difficulty which lies in the 
 way of a speedy and satisfactory settlement of in- 
 dustrial controversies in this country is the unwill- 
 ingness of employers and employers' organizations 
 to recognize trade unions and deal with their em- 
 ployees through the representatives of trade unions. 
 Questions of wages and working conditions are un- 
 important matters as compared to this, notwithstand- 
 ing reports of the Bureau of Labor show more strikes 
 involved the question of wages than any other one 
 subject. The history of strikes and lockouts in the 
 United States is replete with instances of the em- 
 ployer's willingness to concede every contention of 
 his employees but that of hearing them through their 
 regularly chosen representatives in a trade union. 
 When employees have asked for arbitration and this 
 matter was in contention, the almost uniform reply
 
 TRADE AGREEMENTS 313 
 
 of the employer has been, "We have nothing to ar- 
 bitrate." 
 
 "The working men have long since learned,"* 
 said the New York Board of Mediation and Arbi- 
 tration, "that when employers refuse to deal with 
 them save as individuals there is really only one side 
 to the case. The best solution of the problem lies in 
 the medium of industrial agreements by which all 
 disputes shall be referred to boards of conciliation 
 and arbitration, made up in part of employers and 
 in part of employees." 
 
 The Ohio Board of Arbitration, upon the same 
 occasion," declared that early in a street railway 
 strike in that state "but a single thing prevented the 
 settlement of the dispute by arbitration, namely, the 
 recognition of the union. Neither side could be in- 
 duced to yield on this question, although both were 
 willing to yield every other." 
 
 In its report for 1906, the Ohio board remarked 
 that, "We have frequently come in contact with em- 
 ployers who refuse to recognize or deal with com- 
 mittees or other representatives of their employees, 
 because of their membership in a labor organiza- 
 tion. 
 
 "We have failed to see any good results from such 
 a course, but on the contrary, have observed harmful 
 consequences in a number of cases." 
 
 ' Report of the Industrial Commission, p. 693. 
 ' Ibid., p. 701.
 
 314 INDUSTRIAL ARBITRATION 
 
 "A difference affecting wages or hours," said the 
 Illinois state board in 1906, "may result without 
 difficulty in compromise, oftentimes by each side 
 granting some contention, but the matter of the pol- 
 icy of the open shop, as contended for by the em- 
 ployer, or closed shop, as oftentimes demanded by 
 the employees, is a matter of fixed principle and pre- 
 cludes at the veiy outset any grounds of compromise. 
 It is the policy of the open or closed shop that has 
 attended nearly all the differences in the labor prob- 
 lem which have confronted the board of arbitration 
 in Illinois for the past eighteen months. 
 
 "The services of the board are tendered no matter 
 what the cause may be. When the open or closed 
 shop is an issue, the services are usually promptly 
 declined by both parties." 
 
 In practically every report since 1905, the Massa- 
 chusetts State Board of Conciliation and Arbitration 
 has commended the trade agreement as an effective 
 means of avoiding disturbances in the industrial 
 world. As early as 1905, there were one hundred 
 seventy trade agreements in force in the boot and 
 shoe industry of Massachusetts and no dispute caus- 
 ing stoppage of work had occurred during the seven 
 preceding years or since the general arbitration con- 
 tract had been inaugurated. 
 
 "Energies once enlisted for strategy and collision 
 sought to establish harmonious relations by means of 
 private adjustments, and when these failed, the trade 
 agreement and public opinion secured the submission
 
 TRADE AGREEMEiNTS 315 
 
 of controversies to the judgment of disinterested 
 minds," the board said in 1908.^ 
 
 The Lawrence strike is the only instance of late 
 years in Massachusetts of rioting and bloodshed. The 
 board was unsuccessful in averting or ending the 
 clash largely because the non-resident mill owners 
 refused to take the initiative and resident managers 
 denied responsibility. Each side laid down in- 
 flexible terms of settlement and it was not until a 
 congressional investigation had exposed the horrors 
 of life among the textile workers that anything could 
 be accomplished. And, as the board says,^ the time 
 required to appease anger, hatred and ill will, was 
 shattered by a rapid succession of startling events, 
 freighted by worse alarms. 
 
 Neither the employer nor the employee has been 
 much impressed by the more or less organized ef- 
 fort made to discredit the trade agreement in Massa- 
 chusetts. It remains to-day as the most practicable 
 method of measuring justice to the respective par- 
 ties in industry. Capital and Labor; not exact jus- 
 tice, surely, but a measure of justice that fairly well 
 fulfills the ideals of an age when exact justice, if not 
 unattainable, nevertheless Is unattalned. 
 
 'Annual Report 1908. p. 1. 
 'Annual Report 1911, pp. 9-10,
 
 3i6 INDUSTRIAL ARBITRATION 
 
 Of the total number of strikes In the United States 
 from 1 88 1 to 1905, sixty-nine per cent, were or- 
 dered by labor organizations and thirty-one per 
 cent, were not so ordered. The Indiana Labor Com- 
 mission in its first biennial report in speaking of 
 the "strongly organized trades" remarked that 
 "one-third of the differences which arise in the cit- 
 ies of industry where perfect organization exists are 
 conciliated in a manner that avoids strikes and with- 
 out incurring public notice or expense." But the 
 same commission six years later observed that "it 
 is not apparent that fewer controversies arise with 
 organized workmen than with unorganized, but 
 where organization exists, less difficulty is experi- 
 enced in adjusting the difference without rupture 
 than with unorganized workmen, for the reason that 
 the former are usually governed by strict anti-strike 
 rules, which are part of the laws of the organization, 
 and which require that effort at settlement be made 
 without a strike. It is also true, as a rule, that where 
 employers and workmen are both organized, the 
 difficulty in the way of adjustments without a strike 
 is still further minimized." 
 
 Of the strikes ordered by labor organizations be- 
 tween 1 88 1 and 1905, fifty per cent, were successful, 
 sixteen per cent, were partly successful, and thirty-
 
 TRADE AGREEMENTS 317 
 
 four per cent, failed. Of those not so ordered, 
 thirty-four per cent, succeeded, ten per cent, suc- 
 ceeded partly and fifty-six per cent, failed alto- 
 g^ether. 
 
 Statistics gathered for twenty-five years show 
 that thirty-two per cent, of the strikes were caused 
 by demand for increased wages and nineteen per 
 cent, caused by a demand for recognition of a un- 
 ion or by union rules. Eleven per cent, of the strikes 
 were against reduction in wages. Frequently, how- 
 ever, demands have been made for additional wages 
 because wages represent a tangible grievance, 
 whereas wages was only a minor consideration.^" 
 
 The table on page 319 shows the methods by 
 which industrial disputes in Great Britain from 
 1903 to 1 91 2 were settled. While the number of 
 disputes settled by arbitration has increased as well 
 as the number settled by conciliation or mediation, 
 direct negotiations between the employer and em- 
 ployee have proved far the most popular method 
 of adjudicating any controversy. Between 1903 and 
 1 91 2, sixty-eight per cent, of all disputes where 
 a settlement was effected were settled by direct ar- 
 rangement or negotiation between the parties or 
 
 " Statistics of strikes and lockouts in this chapter, except 
 where otherwise noted, are taken from the 21st Annual Report 
 of the Commissioner of Labor in House Documents, Vol. 110.
 
 3i8 INDUSTRIAL ARBITRATION 
 
 their representatives. Only three and six-tenths per 
 cent, were settled by arbitration and only six and 
 six-tenths per cent, by conciliation or mediation. 
 In nine and eight-tenths per cent, of the disputes 
 the employees returned to work on the employers' 
 terms without negotiations and in ten and five-tenths 
 per cent, of the disputes the workers were displaced. 
 The table also shows the number of work people 
 involved in the cases settled by different methods. 
 
 An exhaustive study of industrial agreements was 
 made by the Industrial Council of Great Britain 
 and a report made in 191 3. The council expressed 
 its approval of collective bargaining based upon 
 mutual consent. It opposed legislation of a com- 
 pulsory nature affecting either party to an indus- 
 trial agreement. Monetary penalties to be assessed 
 against individuals or associations violating indus- 
 trial agreements were found undesirable. Moral 
 influence, the council believed, will generally be 
 adequate for the strict carrying out of agreements. 
 It contended, however, that associations should ex- 
 ercise full disciplinary powers which it thought pub- 
 lic opinion would assist. Agreements entered into 
 between associations of employers and of workmen 
 representing a substantial body of those In the trade 
 or district should, on the application of the parties
 
 TRADE AGREEMENTS 
 
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 320 INDUSTRIAL ARBITRATION 
 
 to the agreement, be made applicable to the whole 
 of the trade or district concerned, the council like- 
 wise found. A specimen draft scheme for an in- 
 dustrial agreement is included in the report. The 
 council contended that an industrial agreement 
 should provide that notice of a certain number of 
 days should be given by either party of an intended 
 change affecting conditions as to wages or hours, 
 and that there should be no stoppage of work or 
 alteration of the conditions of employment until an 
 investigation by some agreed tribunal had been 
 made and a pronouncement issued.
 
 CHAPTER XIV 
 
 CONCLUDING OBSERVATIONS 
 
 NO student of industrial problems can have 
 surveyed the vast field of agencies with 
 which civilized nations have experimented in their 
 quest of industrial peace without reaching the con- 
 clusion that the effort to attain industrial peace has 
 failed somewhat because it has not recognized the 
 necessity of founding that effort on a greater meas- 
 ure of industrial justice. 
 
 For a quarter of a century we have been trying 
 to build an ideal superstructure of industrial har- 
 mony on the backs of men and women who toiled 
 long hours in unventilated and unsanitary factories. 
 We have sought harmony between Labor and Cap- 
 ital in an era when Labor had very little to lose and 
 everything to gain by extreme measures. 
 
 We have set up this scheme and that scheme of 
 industrial conciliation and arbitration in the United 
 States and Europe, but we find all schemes more 
 or less futile. We resort to an artificial process 
 
 321,
 
 322 INDUSTRIAL ARBITRATION 
 
 of respiration but we do not expect the patient to 
 live forever on a few forced draughts of oxygen. 
 We resort to an artificial process in industry and 
 we have, what we might expect, an uncertain and 
 variable result. If we ever succeed in making con- 
 ciliation and arbitration a successful device we are 
 not going to need the device because it can never 
 be successful as long as men cry out against in- 
 human conditions in industry, and it will not be 
 much needed when they cease to cry out. 
 
 Generally, we have preached the doctrine of 
 "peace at any price" ; a doctrine which, interpreted, 
 means that things shall remain as they are. It is the 
 doctrine, the fundamental idea, of ultraconserva- 
 tives in every country; the hope of the standpatters; 
 the machine gun which sweeps the hillside guarding 
 the mine and factory of intrenched monopolists 
 wherever they may be found. 
 
 It is too much to expect longer that Labor shall 
 appear at the shrine of Capital as a supplicant for 
 favors — shorter hours, pure air and a comfortable 
 wage. Yet, until Labor has fully realized its latent 
 strength, just that sort of relationship must obtain. 
 It is illogical. It is unjust. It is almost wholly 
 wrong. Yet with Labor organized, largely, rests 
 "the responsibility of a change. Organized Capital
 
 CONCLUDING OBSERVATIONS 323] 
 
 will contribute little to a readjustment because Or- 
 ganized Capital means organized selfishness and the 
 watchword of selfishness is to hold on to what it 
 already has. Organized Labor also means organ- 
 ized selfishness, but it so happens that the selfishness 
 of Organized Labor has enjoyed little opportunity 
 for self-gratification. 
 
 Industrial barons in this country still maintain 
 a stoic attitude of indifference, if not contempt, for 
 the missionaries of industrial peace; even when civil 
 war wages fiercely around their Colorado coal 
 mines, and scores are killed. It is these industrial 
 barons, unconsciously no doubt, who are contribut- 
 ing most to the overthrow of the system they would 
 defend. 
 
 During the last four centuries. Labor has been 
 the aggressor in the world-wide movement for in- 
 dustrial independence, not only to hold what it had 
 but to gain what its adversary was unwilling to 
 yield and able to resist, unless driven oftentimes by 
 force. Progress, however, has been in one direction 
 only, however slow; little by little has the working 
 man approached the goal of economic independence. 
 Child labor laws, limitation of night work, shorter 
 hours, sanitary and health legislation, monetary 
 compensation for industrial accidents, minimum
 
 324 INDUSTRIAL' ARBITRATION 
 
 wage laws in the sweated industries and collective 
 bargaining, roughly speaking, have marked the 
 stages of progress. 
 
 At every stage. Capital has appeared on the scene 
 to contest possession of ground it already occupied 
 and to bewail the assault of demagogues on the 
 sacred rights of property. Now and then a man 
 like Robert Owen, William C. Redfield or Henry 
 Ford has arisen from the ranks of the employers 
 to bestow upon his employees concessions they nei- 
 ther asked nor expected. The exceptions, indeed, 
 are rare. Almost invariably, either force or a dem- 
 onstration of force has been required by Labor to 
 win primary justice. 
 
 In this country, we have tended unconsciously to 
 a theory of society that has its roots in the Norman 
 invasion of England. The invaders, having seized 
 the wealth of the country, consisting principally of 
 land, considered it fitting that the people dispos- 
 sessed of their property should be nourished by the 
 state and the alms received should be accepted in 
 full payment of the debt due and the wrong done 
 them. The Elizabethan poor tax was an example 
 of state indemnity for land, wealth and positions 
 seized by the Norman noblemen. 
 
 Having tolerated monopolistic control of produc-
 
 CONCLUDING OBSERVATIONS 325 
 
 tion and distribution in the United States, we have 
 the spectacle now of rich and powerful monopolists 
 maintaining at private expense special bureaus in 
 the government departments at Washington ; richly 
 endowed foundations for social research ; hospitals, 
 libraries, alms houses and universities. In other 
 words, we have the spectacle of certain functions 
 of government being exercised In a large measure 
 by private personages and masking under the name 
 of philanthropy. 
 
 In one sense, the movement for so-called social 
 justice is merely an effort of the government to 
 take hold of functions It has permitted individuals 
 to exercise, heretofore with a free hand. It pur- 
 poses to establish a social justice not compensatory 
 for wrongs done but fundamental to citizenship ; 
 a social justice that will attack evils at their incep- 
 tion and not at their outlet, as philanthropic enter- 
 prise is wont to do; a social justice, which, having 
 given the wage earner a fair start, still leaves him 
 independent and free to follow the bent of his own 
 inclinations. 
 
 Perhaps the era of an industrial democracy is 
 still afar off. No prophecy Is advanced on that 
 point. One thing, however. Is certain : we are not 
 going to realize Industrial peace by any device for
 
 326 INDUSTRIAL ARBITRATION 
 
 conciliation and arbitration, voluntary or compul- 
 sor}r^ until we have given more attention to prepar- 
 ing the ground for this very desirable state of af- 
 fairs. We are not to expect a "country without 
 strikes" suddenly to be wished upon one hundred 
 million people by the effulgent declamations of vain- 
 glorious idealism or by the medieval memorials 
 of anti-labor-union millionaires. Assuredly, indus- 
 trial peace is not to be attained by either process. 
 
 Given a fairer measure of industrial equality, con- 
 ciliation and arbitration by state agency will no 
 longer be very necessary because the two dominant 
 factors in industry — Capital and Labor — will then 
 have only minor matters for adjudication and these 
 will be settled mutually, without the interference 
 of the state. Conciliation and arbitration, as under- 
 stood to-day, presuppose a state of war between 
 Capital and Labor. Remove the cause of the con- 
 flict and industrial peace is sure to follow. It will 
 follow, too, in certain ratio to progress in removing 
 basic causes of the conflict. Conciliation and arbi- 
 tration offer no permanent relief. They do not pre- 
 sume to deal with industrial problems at their source. 
 They merely temper the harshness of contending 
 forces at its outlet. They are palliatives at best and 
 frequently impotent palliatives.
 
 CONCLUDING OBSERVATIONS 327 
 
 There is no difference between the functions of 
 conciliation and arbitration. But where the former 
 is effective, it is a reliable sign that the parties have 
 involved no really vital differences. 
 
 For the present, the trade agreement is substan- 
 tially the nearest approach to a satisfactory method 
 of avoiding strikes and lockouts. But the trade 
 agreement presupposes a powerful and well-dis- 
 ciplined body of employees joined together in a 
 permanent organization and acting in concert 
 through regularly chosen officers and committees. 
 Organization, then, is one step toward industrial 
 peace. True, organizations of working men may 
 be misled by rascals entrusted with responsible po- 
 sitions. That, indeed, is unfortunate. But the ras- 
 cality of labor leaders probably is no greater than 
 the rascality of any other class of leaders, indus- 
 trial, commercial and political included. Also, the 
 leaders of several strong trade unions — the railroad 
 organizations, the Typographical Union, the Brick- 
 layers, Masons and Plasterers' International Union, 
 the Carpenters', and the United Mine Workers, for 
 instance — will compare favorably in intelligence, 
 self-control and fairness with the most fair-minded 
 of our captains of industry. 
 
 While organization goes forward, the state can
 
 328 INDUSTRIAL ARBITRATION 
 
 do something toward mitigating the harshness of 
 industrial warfare. The federal government may 
 exercise a stricter control over the flood of immi- 
 gration with which we are annually submerged. 
 Just as a man's first duty is to his family, so is the 
 nation's first duty to the legions of working men 
 who are already domiciled in this country. Hours 
 of labor must be shortened and labor's product must 
 be protected from the encroachments of baronial 
 employers. While not ignoring the tensely prac- 
 tical relation of wages and living, the program by 
 which progress toward industrial peace is to be 
 made a fact should emphasize the permanence of 
 employment as a factor in human happiness. There 
 are two chief causes of unemployment which appear 
 to be antithetical but which in fact are not. They 
 are the lack of vocational training and the present- 
 day intense specialization in industry. The man 
 who can do nothing well is your day-laborer and 
 depends for his subsistence upon the chance wage 
 paid to workers where supply and demand are the 
 determining factors. Here is always found the sur- 
 plus and if that surplus amounts to an oversupply, 
 It is difficult to find work at a bare living wage. 
 Intense specialization of industry, the dependence 
 of the man upon the machine. Is the secorid great
 
 CONCLUDING OBSERVATIONS 329 
 
 cause of unemployment. Certain minor factors in- 
 fluence the permanence and prosperity of particular 
 industries, a third cause. In the Westinghouse plant 
 at Pittsburgh, nineteen thousand men were em- 
 ployed in 1907. In 191 1, only ten thousand were 
 employed but the output was the same. The intro- 
 duction of labor-saving machines was responsible. 
 Vocational guidance will determine somewhat in ad- 
 vance the opportunities in particular vocations, and 
 industry must apply itself more seriously to a scien- 
 tific scheme of vocational guidance if it would avoid 
 the distress occasioned by the substitution of ma- 
 chines for hand labor, a surplus labor market and 
 unemployment. 
 
 We do not need to trouble ourselves with such ab- 
 stract propositions as whether society owes man the 
 right to labor and the right to subsist on his labor. 
 We may content ourselves with the fact that gov- 
 ernment has safeguarded the possession of property 
 and subsidized business. Its duty to labor, at least, 
 is equal to its past service to property and business. 
 
 Markets must be made free to all the people. Fic- 
 titious arrangements to control prices either must 
 be regulated or prohibited. Housing and sanitary 
 work shops must receive more attention from the 
 state and municipal governments. Social insurance
 
 330 INDUSTRIAL ARBITRATION 
 
 must be established as a precaution against pauper- 
 ism, illiteracy and crime. Women and children 
 must be kept out of the factory almost altogether. 
 
 Since the time of Jefferson, millions of acres have 
 been added to the national domain, yet about all 
 the public land is now occupied. A network of rail- 
 roads, canals and rivers furnish quick transporta- 
 tion over and through the land; factories have ap- 
 peared at every waterfall, and the bowels of the 
 earth are probed to find coal for the legion of fac- 
 tories grouped in the cities. Our forests have been 
 denuded by the ruthless hand of private enterprise. 
 A long time, we have been a factor in the world's 
 markets. Millions have come to our shores to pro- 
 mote our industrial development, yet beat down our 
 level of wages and standard of living. Great cities 
 have been builded over night, besmirching the 
 wholesome air of the prairie with the filth from 
 squalid tenements. We have taken under our shift- 
 less wings ten million negroes and let them drift 
 with little educational or vocational guidance. We 
 have built civilization — we call it that — on the pre- 
 historic principle that the fittest shall survive. Ex- 
 cept for women, we possess the universal franchise 
 of a politically independent people but we have 
 been careless with our political rights and too often
 
 CONCLUDING OBSERVATIONS 331 
 
 have permitted corruptionists to rule over us. Our 
 natural wealth has been appropriated by our "fit- 
 test" examples of greed under cover of corruption 
 and they have become our Industrial barons, who 
 now defy the government which permitted them to 
 rob us. 
 
 Is It unnatural that the sacred rights of property 
 are being assailed ? Is it marvelous that men cry 
 out against a system of peonage maintained by our 
 industrial barons to appease an insatiable greed? 
 Is it strange that echoes from our Tower of Babel 
 fill our hearts with dread of worse things yet to 
 come? Shall we expect — shall we hope that out of 
 this is to come industrial peace? 
 
 Lawrence, Calumet and Ludlow are only the 
 beginnings of our industrial warfare. Heretofore, 
 men have fought blindly without common ideals, 
 with no fixed purpose. Such organizations as the 
 I. W. W. have given the workers, misguided as 
 they may be, a philosophy. They have a tangible 
 program now. Their struggle Is a struggle for a 
 "cause." It has aspects of a pristine religion. It 
 is more than a religion because It Is the religion of 
 empty bellies that cry out for food. 
 
 The impression created on the country by one 
 section of a political platform drafted by the com-
 
 332 INDUSTRIAL ARBITRATION 
 
 vention of a new party in the summer of 191 2 was 
 no less profound than the impression created on the 
 nameless followers of the man, who, with a few in- 
 timate friends, had written the platform. 
 
 That platform, presenting an elaborate scheme 
 for the amelioration of industrial conditions — a 
 scheme with which the sympathies of a great mul- 
 titude grew as the campaign progressed — is des- 
 tined to fulfill a great mission. It is destined to 
 lift the veil from the eyes of countless thousands 
 who, theretofore, had no acquaintance with or un- 
 derstanding of the mechanism of a complex indus- 
 trial state. It was an educational measure espoused 
 by propagandists who knew how to conduct an edu- 
 cational campaign. There was nothing really new 
 in that section of the platform devoted to "Social 
 and Industrial Justice." It merely reiterated many 
 "demands" contained for many years in the legisla- 
 tive program of the American Federation of Labor 
 and the political demands of the Socialist party. 
 
 "Social and Industrial Justice," so called, Is a 
 compromise between the resistance which plutocracy 
 musters to innovations affecting the domination of 
 government In the Interests of business and the rad- 
 ical tenets of Socialism — an Intermediate step be- 
 tween Individualism and collectivism. It purposes
 
 CONCLUDING OBSERVATIONS 333 
 
 to temper individualism without accepting the antip- 
 odal social structure propagated by the collectivists. 
 It does not abandon the present economic system, 
 even though it purposes to go much farther than 
 government has yet gone in modifying it. It pre- 
 supposes an organic state of society. It recognizes 
 the substance of the ideals of Socialism without ac- 
 cepting its methods. Its inherent argument is that 
 the realization of its program will eliminate any 
 immediate need of a socialized state. The program 
 of the new party and the collectivist program of 
 the Socialist party proceed from a common start- 
 ing-point — the admission that our social and indus- 
 trial structure is out of plumb. 
 
 We must not look very much to artificial devices 
 for relief. If we would avoid strikes, we must not 
 expect they are to be avoided by a patchwork pro- 
 gram which ignores fundamental causes. We must 
 have a larger measure of "social and industrial jus- 
 tice." We must look carefully to the welfare of 
 the worker — hours, conditions of work and wages. 
 We must assist him in every way possible to become 
 an economically independent unit of society. 
 
 Present tendencies are not lacking in inspiration 
 to those persons who demand that our government 
 take hold of public functions, functions which here-
 
 334 INDUSTRIAL ARBITRATION 
 
 tofore have been exercised largely by private and 
 voluntary associations. We may well believe that 
 these present tendencies foreshadow the advent of 
 a period when the harshness of the industrial con- 
 flict will have greatly subsided. 
 
 Perhaps the increase in wages has not quite kept 
 pace with the increase in cost of living but the tend- 
 ency of wages and living has been upward in both 
 cases and the diff"erence may not be especially Im- 
 portant. Fourteen out of fifteen of the principal 
 articles of food in the last month of 191 3 showed 
 an average increase of seventy-nine and five-tenths 
 per cent. In retail prices as compared with the prices 
 prevailing during the ten-year period from 1890 to 
 1900. One article of food, sugar, showed a decrease 
 of five and nine-tenths per cent. 
 
 Wholesale prices of cloths and clothing have been 
 tending upward for many years. Prices in 1909 
 were twelve per cent, in advance of prices in 1900. 
 Fuel and lighting show an advance of six and nine- 
 tenths per cent, and house furnishing goods an in- 
 crease of five and three-tenths per cent, for the 
 same period. 
 
 Rents, generally, have shown a substantial ad- 
 vance in the last ten or fifteen years but the in- 
 crease has not been so great, except in a few cities,
 
 CONCLUDING OBSERVATIONS 335 
 
 as the increase in other items of living. The Mas- 
 sachusetts Commission on the Cost of Living, which 
 made a report in 1910, found that rents respond 
 more slowly to changed conditions than do many 
 of the commodities of life. Increased rents in Mas- 
 sachusetts, according to the commission, were due 
 to the increased cost of building materials, the in- 
 creased cost of labor, higher standards of construc- 
 tion fixed by the building laws and a general de- 
 mand for conveniences which a few years ago were 
 luxuries. The commission estimated the advance 
 in rents for the fifteen years preceding 1 9 10 for 
 working people's dwellings and tenements at twelve 
 per cent. In all probability, this would be pretty 
 near the average increase for the whole country. 
 Certain industrial towns like Birmingham, Pitts- 
 burgh and Cleveland might show a higher rate of 
 increase, due to the late abnormal industrial devel- 
 opment and the shortage of houses for the working 
 people. 
 
 Combining the ten principal occupations in lum- 
 ber mill work and the furniture industry, wages 
 were twenty-nine per cent, higher in 1912 than in 
 1890. Wages paid in the principal occupations in 
 the cotton, woolen and silk industries, not including 
 finishing, were sixty-one and five-tenths per cent.
 
 336 INDUSTRIAL ARBITRATION 
 
 higher In 191 2 than In 1890. Wages were thirty- 
 four and eight-tenths per cent, higher per hour In 
 1 91 2 than In 1890 In the principal occupations In 
 the boot and shoe Industry. There was an Increase 
 of thirty-six and one-tenth per cent. In the wages 
 per hour In the principal occupations of the hosiery 
 and knit goods manufactories In 191 2 as compared 
 to 1890. Wages per hour of eleven principal occu- 
 pations In the car building industry Increased nine 
 and seventy-five-hundredths per cent, from 1907 to 
 1912. Cigar making and the clothing Industries 
 show a considerable increase in wages during the 
 last few years. 
 
 In the meantime, hours of labor per week have 
 shown a steady decline amounting to three and 
 eight-tenths per cent. In lumber work and furniture 
 in 191 2 as compared to 1890; eight and one-tenth 
 per cent, for the cotton, woolen and silk Industries ; 
 six and four-tenths per cent, for the boot and shoe 
 industry and seven and nine-tenths per cent, for 
 hosiery and knit goods. 
 
 The average price of all food products, weighted 
 according to the average consumption, of various 
 articles In working men's families was twenty-nine 
 and eight-tenths per cent, higher In 191 3 than in 
 1907, while the union scale of wages In the prin-
 
 CONCLUDING OBSERVATIONS 337 
 
 cipal occupations in the bakery, building, granite 
 and stone mill workers and printing trades was an 
 average of only ten and seven-tenths per cent, 
 higher in 1913 than in 1907. Hours of labor were 
 an average of four and five-tenths per cent, less per 
 week in these trades in 1 91 3 than in 1907. 
 
 Unemployment appears to be increasing. Ac- 
 cording to the census of 1890, fifteen and one-tenth 
 per cent, of all persons having gainful occupations 
 were not employed at such occupations at some time 
 during the year. In 1900, the percentage was 
 twenty-two and three-tenths. In 1902, an average 
 of fourteen and seven-tenths per cent, of the organ- 
 ized working men of New York City were reported 
 idle at the end of each month. In 191 1 the per- 
 centage was twenty-one and five-tenths. There is 
 a hopeful sign in the attention which several states 
 are giving to this subject. A report of the New 
 York Department of Labor made in 1908 showed 
 that thirty-three per cent, of the membership of 
 trade unions were out of work in January of that 
 year as compared to eighteen per cent, the average 
 for the five years preceding. The total number 
 of unemployed workmen, not including women and 
 children, in the United States for January, 1908, 
 was estimated at two hundred fifty thousand. These
 
 338 INDUSTRIAL ARBITRATION 
 
 figures are not meant to be typical but they do show 
 the effect of the business depression which began 
 in 1907. It is estimated that the average miner 
 is out of work one-third of the time in this country 
 and one-fifth of the time in other countries. Fif- 
 teen states had established free employment offices 
 in 1 91 3 and there were municipal employment bu- 
 reaus in eight large cities. Unemployment should 
 be reduced as a consequence of what the federal 
 
 TABLE NO. 17 
 
 NUMBER AND PERCENTAGE OF MEMBERS OF LABOR UNIONS IDLE, 
 
 1897-1912* 
 
 Throughout first At the end of 
 
 quarter March 
 
 Year Number Percentage Number Percentage 
 
 1897 35,381 24.8 43,654 30.6 
 
 1898 18,102 10.1 37,857 21.0 
 
 1899 22,658 13.1 31,751 18.3 
 
 1900 22,895 10.1 44,336 20.0 
 
 1901 26,841 11.3 42,244 18.5 
 
 1902 \(i:]16 62 36,710 13.6 
 
 1903 19,310 5.5 41,941 12.1 
 
 1904 55,710 14.6 103,995 27.2 
 
 1905 31,638 8.7 54,916 15.1 
 
 1906 24,746 6.5 37,2^7 9.9 
 
 1907 55,624 13.8 77,270 19.1 
 
 1908 101,466 26.3 138,131 35.7 
 
 1909 50,477 14.3 74,543 21.1 
 
 1910 28,411 7.3 62,851 16.1 
 
 1911 46,021 9.7 96,608 20.3 
 
 1912 42,395 9.2 89,718 19.6 
 
 • Bulletin of New York Department of Labor No. 51, p. 102.
 
 CONCLUDING OBSERVATIONS 339 
 TABLE NO. 18 
 
 PERCENTAGE OF IDLENESS DUE TO EACH CAUSE, FIRST QUARTER, 
 1906-1912* 
 
 1906 1907 1908 1909 1910 1911 1912 
 Lack of work. . 44.9 67. Z 89.6 81.3 66.8 82.7 80.0 
 Lack of stock. 
 
 Weather 
 
 Labor disputes 
 Disability .... 
 Other causes.. 
 Cause not state( 
 
 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 
 
 Z.7 
 
 2.4 
 
 0.4 
 
 1.1 
 
 4.2 
 
 0.6 
 
 0.5 
 
 28.7 
 
 20.0 
 
 5.8 
 
 10.6 
 
 11.7 
 
 8.8 
 
 9.8 
 
 12.9 
 
 5.2 
 
 1.1 
 
 2.0 
 
 10.9 
 
 3.4 
 
 4.7 
 
 8.1 
 
 4.6 
 
 2.8 
 
 4.6 
 
 6.1 
 
 3.9 
 
 4.6 
 
 1.5 
 
 0.4 
 
 6.2 
 
 0.2 
 
 0.1 
 
 0.4 
 
 0.2 
 
 0.2 
 
 0.1 
 
 0.1 
 
 0.2 
 
 0.2 
 
 0.2 
 
 0.2 
 
 • Bulletin of New York Department of Labor No. 51, p. 103. 
 
 government and the several states are doing to make 
 vocational education and vocational guidance uni- 
 versal and compulsory. It may be found necessary 
 to establish an insurance system against involuntary 
 unemployment. 
 
 The last few years have witnessed a rising flood 
 of legislation to control markets, housing, the san- 
 itation of work shops, and woman and child labor. 
 Five states passed minimum wage laws during the 
 legislative sessions of 191 3. California, Oregon and 
 Washington created industrial welfare commissions 
 with the power to establish a minimum wage for 
 women and minors, Colorado passed a minimum 
 wage law applying to women and minors, and Utah, 
 by statute, fixed an absolute minimum scale for fe-
 
 340 INDUSTRIAL ARBITRATION 
 
 male workers. Massachusetts has maintained a 
 commission that is working on the subject since 
 1912. A score of states have some provision for 
 pensioning dependent mothers. Social insurance 
 against invalidity and old age is growing in popu- 
 larity. Practically all the great railroads and sev- 
 eral industrial corporations now maintain old-age 
 and retirement pension funds in connection with 
 their welfare work, but employees look upon such 
 schemes with suspicion. Louis D. Brandeis has 
 called such schemes a "new form of peonage." It 
 were much better for the states to undertake this 
 work and leave the wage earner free from tacit 
 dependence upon the employer. State insurance 
 against industrial accidents is a part of the new 
 movement to secure independence of the workers 
 against public or private charity. 
 
 All such legislation reflects a hopeful sign in the 
 passing of illiteracy. In 1880 the whole number 
 of illiterates in the country was seventeen per cent, 
 of the population ten years of age and over. In 
 1890 the percentage had risen to twenty-six and 
 seventy-three-hundredths but since that time there 
 has been a gradual decline. In 1900, twenty-one 
 and two-tenths per cent, of the population ten years 
 of age and over was illiterate, while in 1910 the
 
 CONCLUDING OBSERVATIONS 341 
 
 percentage had decreased by more than one-half, it 
 being only seven and seven-tenths per cent, at the 
 last census. 
 
 It is a matter of interest that five and one-tenth 
 per cent, of the urban population, ten years of age 
 and over, is illiterate while the percentage of rural 
 population that is illiterate is ten and one-tenth per 
 cent. Universal compulsory and vocational educa- 
 tion will rid the country of this army "with their 
 banners of blackness and darkness inscribed with 
 the legends of illiteracy, ignorance, weakness, help- 
 lessness and hopelessness — too large for the safety 
 of our democratic institutions, for the highest good 
 of society and for the greatest degree of material 
 prosperity." 
 
 The new movement for special training for defi- 
 nite vocations is the complement of that wise system 
 by which every child In the land is required to ob- 
 tain a minimum of education for life and wholesome 
 living. 
 
 Pauperism has not Increased in proportion to the 
 population but the number of Inmates of benevolent 
 Institutions has increased more than three times as 
 fast as the population since 1890. The abnormal 
 increase In the Inmates of benevolent Institutions 
 may be attributed to increasing feeble-mindedness
 
 342 INDUSTRIAL ARBITRATION 
 
 and Insanity. Increased feeble-mlndedness and in- 
 sanity are due partially to lax marriage laws, some- 
 what to intemperance and otherwise to the over- 
 strenuous struggle for existence. The increase in 
 population of the whole country from 1890 to 19 10 
 was forty-seven and three-tenths per cent. Paupers 
 in almshouses increased fifteen and two-tenths per 
 cent, during the same period, while the inmates of 
 benevolent institutions increased one hundred forty- 
 one and two-tenths per cent. The increase of pris- 
 oners in institutions and juvenile delinquents was 
 slightly less than the increase in population during 
 the twenty-year jjeriod, being forty and four-tenths 
 per cent. 
 
 The English board of trade, which made an in- 
 quiry into working-class rents, housing, retail prices, 
 rates of wages in certain occupations in the principal 
 industrial towns of the United States in 1909, found 
 "much evidence of an activity of competition among 
 owners and builders and of a degree of material 
 prosperity. . . . tending very widely to raise 
 its standard." Unsatisfactory housing conditions 
 were found among the late immigrants to the United 
 States, particularly among Italian colonies in New 
 York, Chicago and Boston, the Greeks in Lowell, 
 and Poles, Lithuanians and other Slavonic people
 
 CONCLUDING OBSERVATIONS 343 
 
 in Pittsburgh and Chicago. But powerful influences 
 to improve the housing of working people were 
 found generally. The tendency toward improved 
 conditions was attributed to increasing facilities for 
 transit, the removal of physical barriers by the con- 
 struction of bridges and tunnels, and the higher 
 standard of demand that follows an increasing pros- 
 perity. 
 
 "The demand for improved housing itself is, in- 
 deed," the board of trade found, "a natural accom- 
 paniment to similar changes that are taking place 
 as regards, for instance, amusements, clothing and 
 food, in all of which a great variety appears to be 
 resulting from a vast and an increasingly effective 
 demand." 
 
 The passage of the New York tenement house 
 law in 1901 put an end to the building of the dumb- 
 bell type of tenement house in that city. The pas- 
 sage of this act really marked the beginning of the 
 present-day movement for better housing in the 
 United States. For more than a decade, voluntary 
 associations, civic leagues, chambers of commerce, 
 municipal and state commissions have collected and 
 disseminated broadcast valuable information to 
 show the need of better housing. The Federal Bu- 
 reau of Labor published a special report on The
 
 344 INDUSTRIAL ARBITRATION 
 
 Housing of the Work People as early as 1895. In 
 the same year a tenement-house committee of the 
 New York legislature made a report. But a survey 
 of certain tenement-house districts in Boston had 
 been made as early as 1889. The Wisconsin Bureau 
 of Labor and Industrial Statistics devoted much of 
 its 1906 report to the subject of housing*. The first 
 national conference on housing was held in 191 1, 
 in which year Massachusetts established a commis- 
 sion on homesteads for working people. This com- 
 mission was continued by the legislatures of 191 2 
 and 191 3. Pursuant to an investigation and report 
 by a commission appointed In 1903, New Jersey 
 passed a housing law applying to the whole state. 
 Connecticut passed a housing law In 1905 and Wis- 
 consin in 1907. The first Wisconsin act, having 
 been declared unconstitutional, was followed by two 
 acts in 1909. Chicago, Boston, Baltimore, San 
 Francisco, Los Angeles and Cleveland all had un- 
 dertaken to regulate the construction of tenement 
 houses before 19 10. The ordinances of these cities 
 sought to regulate encumbrances to fire-escapes, 
 stairways, hall and stair partitions, shafts, light and 
 ventilation, height of buildings, areas of yards, 
 courts, rooms and cellars, water supply and water- 
 closet accommodations, overcrowding and sanitation
 
 CONCLUDING OBSERVATIONS 345 
 
 generally. Indiana passed an important housing 
 act in 19 1 3. 
 
 This varied and nation-wide activity is a sign of 
 hope to those who believe the welfare of the work- 
 ing people comprehends other things besides wages, 
 hours and working conditions in the factory, proper. 
 May we not expect that this wide-spread interest 
 in the home life of people who work for wages 
 will promote at its source the solution of a problem 
 which industrial arbitration deals with but superfi- 
 cially ? 
 
 As far as industrial conciliation and arbitration 
 are concerned, it appears that they may accomplish 
 something of real merit where employers are far 
 sighted enough and human enough to deal with 
 their employees in a collective capacity. Otherwise, 
 arbitration of whatever kind is foredoomed to fail- 
 ure because the right to organize is one which no 
 arbitration board can well deny with the assurance 
 that Its findings will be respected and its award 
 carried out. 
 
 Nor does it seem at all possible in this country 
 to prohibit strikes with any measure of success. 
 Strikes seldom occur except under the most aggra- 
 vated conditions and then the law is little respected 
 by either party.
 
 346 INDUSTRIAL ARBITRATION 
 
 It is true that strikes and lockouts have been re- 
 duced to a minimum in the Australian colonies and 
 New Zealand, but the arbitration laws of those coun- 
 tries were prefaced on the theory that employees 
 and employers were fully organized. Furthermore, 
 there are no sweated industries in those countries, 
 due to the early enactment of minimum wage laws. 
 The theory has prevailed there that no industry is 
 entitled to exist which can not pay a living wage. 
 A wide diversity of nationalities engaged in indus- 
 try and consequently a varying standard of living 
 — problems we have in the United States — are un- 
 known in the Australian commonwealth and in New 
 Zealand. 
 
 The time is coming but it has not yet arrived, 
 when the interests of the third party in an industrial 
 controversy — the public — will be regarded as su- 
 perior to the present right of the employer to em- 
 ploy whom he will, when he will and pay what he 
 wants to pay ; and the right of the employee to work 
 when he will and strike when he does not receive 
 what he thinks he should have. The time has not 
 yet arrived, because the employee, deprived of the 
 right to strike, is at a very serious disadvantage in 
 the present regime of industrial inequality. 
 
 He can not afford to arbitrate the question of
 
 CONCLUDING OBSERVATIONS 347 
 
 whether he shall be permitted to belong to a trade 
 union and he should not be compelled to arbitrate 
 the questions of whether he shall purchase his food 
 and clothing in the company store of his employer 
 and whether he shall be compelled to give up a part 
 of his wages to maintain a hospital or insurance 
 fund. These propositions are so manifestly one- 
 sided and unjust as to be beyond the scope of arbi- 
 tration. They belong in the same category as the 
 question Mr. Roosevelt had in mind in discussing 
 international peace arbitration when he said the 
 United States should not agree to arbitrate a ques- 
 tion of national honor. No opinion, however, is 
 advanced on Mr. Roosevelt's contention. 
 
 It is unfortunate that elementary justice must be 
 won at the expense of a strike and therefore at se- 
 rious discomfort to the public; yet it were better 
 to win justice by a strike than to endure injustice. 
 Also, it may be doubted whether the public is not 
 estopped from pleading its own discomfort so long 
 as it permits aggravated conditions to continue. In 
 all fairness it may be said that a strike is often just 
 what the community, where it occurs, deserves. 
 
 Constitutional limitations matter little as far as 
 the ultimate solution of the problem is concerned. 
 These restrictions will pass a\vay, just as the restric-
 
 348 INDUSTRIAL ARBITRATION 
 
 tions against state laws limiting hours of labor, fix- 
 ing standards of sanitation and requiring safety de- 
 vices have passed away. Nor is the contention of 
 the employer tenable that a fundamental right is 
 attacked when he is compelled to abide the opinion 
 of an outside third party, a board of arbitration, 
 as to what he shall pay, how long and under what 
 conditions his employees will work. These rights 
 are not fundamental. They are law given, and by 
 the law they may be taken away. 
 
 From the fact that labor is bound to be the ag- 
 gressor in a majority of industrial disputes, since 
 its mission for the next generation is to raise work- 
 ing standards, it does not seem prudent at this time 
 to impose legal restrictions against the right to strike, 
 even though it were not contrary to the state and 
 federal charters to do so. An exception may be 
 made of transportation companies, upon which the 
 public is vitally dependent, but otherwise it Is ex- 
 tremely doubtful whether the Canadian scheme of 
 prohibiting strikes and lockouts before official in- 
 vestigation, Is adapted to present industrial and so- 
 cial conditions in this country. It is better not to 
 attempt to restrict the right to strike than to experi- 
 ence the collapse of a scheme, devised for a higher 
 industrial order than ours.
 
 CONCLUDING OBSERVATIONS 349 
 
 Recent years have seen a tremendous growth in 
 the public utilities of the country, water, light, gas, 
 power and street railway companies. Not only has 
 the exploitation of these enterprises, through stock- 
 jobbing schemes, seriously interfered with the public 
 service but wages have been held at a low level to 
 augment the surplus for dividends on watered stock. 
 Here, again, we must look to basic wrongs, if we 
 are to expect peace. 
 
 To sum up briefly the conclusions herein set forth : 
 
 1. Neither voluntary nor compulsory arbitration 
 will work with any conspicuous degree of success 
 in this country until the worker has been set free 
 economically; until he is given a compelling voice 
 against his employer as to his wages, hours and 
 working conditions. 
 
 2. The worker may be freed economically 
 through the Insistence of the state that he be dealt 
 with in a collective capacity, if he so desires ; also 
 by legislative measures protecting him against the 
 enormous power his employer wields in the new 
 state of industry; finally, by restrictive and con- 
 structive measures such as the minimum wage in 
 sweated Industries, stricter immigration standards^ 
 sanitary and health standards, social Insurance in- 
 cluding guaranties against unemployment, and vo-
 
 350 INDUSTRIAL ARBITRATION 
 
 cational education, including part-time and evening 
 schools. 
 
 3. When these steps have been taken the public 
 may well insist upon its right to prevent strikes and 
 lockouts altogether in those industries to which the 
 public looks for daily conveniences. Nor will the 
 public fail to prevent strikes and lockouts, where it 
 is interested in preventing them, if its obligation to 
 the workers of a particular industry has been cou- 
 rageously and completely fulfilled. It is the con- 
 sciousness of public irresponsibility for the wages 
 and conditions of wage earners that they are able 
 to stop the traffic of a street railway system, for 
 instance, and force concessions from the employer. 
 
 4. Compulsory arbitration will fail now because 
 progress toward primary justice for the worker must 
 be accomplished through constant pressure by the 
 working man and his allies. There should be no 
 abatement of proletarian pressure merely because 
 an arbitration board has fixed a term award. 
 
 5. Progress must be realized In a steady stream 
 of constructive, humanitarian measures so that the 
 employer may adjust the process of production and 
 distribution to the new and changing standards 
 which an alert social consciousness requires him to 
 maintain. Specifically, if the operation of a new
 
 CONCLUDING OBSERVATIONS 351 
 
 law is going to increase the cost of a manufactured 
 article, the employer must be permitted to shift the 
 increased cost to the consumer without sudden re- 
 vulsions in the channels of trade. 
 
 6. The Massachusetts or New York system of 
 conciliation and arbitration may accomplish very 
 much toward creating friendly relations between 
 employers and employees and promoting peace in 
 industry. The Wisconsin system may be more prac- 
 tical in states where industry is somewhat less de- 
 veloped. 
 
 7. Although we probably suffer more from 
 strikes and lockouts than any other country, we are 
 able to report progress toward basic remedies, in 
 recent years; also some success in making universal 
 the "American standard" of living rather than mak- 
 ing universal the lower standard prevailing abroad. 
 These are the sources of our hope, the explanations 
 of our continued faith in political liberty, not as an 
 end in itself, but as a means of gaining a greater 
 measure of economic independence for wage 
 earners. 
 
 THE END
 
 APPENDIX
 
 APPENDIX 
 
 INTERNATIONAL ARBITRATION AGREEMENT BETWEEN 
 THE AMERICAN NEWSPAPER PUBLISHERS' AS- 
 SOCIATION AND THE INTERNATIONAL 
 TYPOGRAPHICAL UNION 
 
 (Effective May I, 191 2) 
 
 IT is agreed between the American Newspaper 
 Publishers' Association, by H. N, Kellogg, 
 Charles H. Taylor, Jr., and George C. Hitt, consti- 
 tuting its Special Standing Committee, duly author- 
 ized to act in its behalf, and the International 
 Typographical Union, by James M. Lynch, Hugo 
 Miller and John W. Hays, constituting its Executive 
 Council, duly authorized to act in its behalf, as 
 follows : 
 
 Section i. On and after May i, 19 12, and until 
 May I, 191 7, any member of the American News- 
 paper Publishers' Association who is conducting a 
 union department under the jurisdiction of the In- 
 ternational Typographical Union shall have the 
 guaranties hereinafter set forth whenever the re- 
 
 iii
 
 iv APPENDIX 
 
 quirements of this arbitration agreement are ob- 
 served. This agreement sliall cover all contracts 
 with local unions, whether in writing or oral under- 
 standings. Oral understandings shall be under- 
 stood as applying to instances wherein union scales 
 are being paid, but where there are no written 
 agreements covering specified periods of time. Such 
 oral understandings which are not for a definite 
 period may be terminated by either side on thirty 
 days' notice in writing. This agreement shall em- 
 brace all contracts of either form which are in effect 
 on April 30, 191 2, and contracts of subsequent date 
 which have been approved by the president of the 
 International Typographical Union. 
 
 Sec. 2. To acquire the protection of the guaran- 
 ties embodied in this agreement an Individual Arbi- 
 tration Contract must be executed in quadruplicate 
 in the form prescribed in this agreement. The 
 holder of such Individual Arbitration Contract shall 
 be entitled to the protection guaranteed by the pro- 
 visions of this agreement and the terms of the Indi- 
 vidual Arbitration Contract in respect to any con- 
 tract such member may have with a local union of 
 the International Typographical Union. 
 
 Sec. 3. Any publisher who holds an Individual 
 Arbitration Contract under the prior agreement be-
 
 APPENDIX v 
 
 tween the parties hereto which terminates May I, 
 1912, shall be protected hereunder if before May I, 
 1912, he shall have secured an Individual Arbitra- 
 tion Contract in accordance with the provisions of 
 this agreement, as set forth in section I of the Code 
 of Procedure. 
 
 Sec. 4. Subject to the conditions hereinbefore 
 prescribed every member of the American News- 
 paper Publishers' Association holding an Individual 
 Arbitration Contract shall have the following guar- 
 anties : 
 
 (a) He shall be protected against walk-outs, 
 strikes or boycotts by the members of the union or 
 unions with which he has contractual relations un- 
 der this agreement and against any other form of 
 concerted interference by them with the usual and 
 regular operation of any of his departments of labor. 
 
 (b) In the event of a difference arising between 
 a publisher having an Individual Arbitration Con- 
 tract and any local union a party thereto, all work 
 shall continue without Interruption pending pro- 
 ceedings looking to conciliation or arbitration, either 
 local or International, and the wages, hours and 
 working conditions prevailing at the time the differ- 
 ence arises shall be preserved unchanged until a 
 final decision of the matter at issue shall be reached.
 
 vl APPENDIX 
 
 (c) All differences which can not be settled by 
 conciliation shall be referred to arbitration in the 
 manner stipulated in this agreement. 
 
 Sec. 5. All differences arising under an existing 
 written contract, or an oral understanding, which 
 involve the application of the International Arbitra- 
 tion Agreement, the Code of Procedure, or any 
 clause or clauses in contracts, or the interpretation 
 to be placed upon any part or parts, of any agree- 
 ments, which can not be settled by conciliation, shall 
 be referred to local arbitration if so required by the 
 local contract, but If not shall be submitted to the 
 chairman of the Special Standing Committee of the 
 American Newspaper Publishers' Association and 
 the president of the International Typographical 
 Union, together with the arguments and briefs of 
 both parties, and an agreed statement of facts In the 
 controversy, accompanied by a joint letter of trans- 
 mittal, certifying that each party is familiar with 
 the contents of all documents. In case these two 
 officials can not reach a decision upon the Issues in- 
 volved, their differences shall be submitted to the 
 International Board of Arbitration. 
 
 Sec. 6. All differences other than those specified 
 in section 5 of this agreement, including disagree- 
 ments arising in negotiations for a new scale of
 
 APPENDIX vii 
 
 wages, or for hours of labor, or In renewing or ex- 
 tending an existing scale, or in respect to a contract, 
 which can not be settled by conciliation, shall be 
 referred to a local board of arbitration in the man- 
 ner stipulated in the Code of Procedure as set forth 
 in Exhibit "B." 
 
 Sec. 7. The question whether a department shall 
 be union or non-union shall not be classed as a "dif- 
 ference" to be arbitrated. Union departments shall 
 be understood to mean such as are made up of union 
 employees and in which the union has been formally 
 recognized by the employer. 
 
 Sec. 8. If either party to a local arbitration shall 
 be dissatisfied with a decision by a local board ap- 
 peal may be taken to the International Board of 
 Arbitration to be constituted as hereinafter pro- 
 vided. Such appeal may also be taken to the Inter- 
 national Board by either party If for any cause a 
 decision shall not have been rendered by a local 
 board within ninety days after the questions to be 
 arbitrated have been duly determined under the 
 Code of Procedure. 
 
 Sec. 9. Local union laws not affecting wages, 
 hours and working conditions and the laws of the 
 International Typographical Union shall not be
 
 vlli APPENDIX 
 
 subject to the provisions of this arbitration agree- 
 ment : provided, that International or local laws 
 enacted subsequent to the execution of an individual 
 arbitration or local contract shall not affect either 
 contract during its life. 
 
 Sec. 10. The International Board of Arbitration 
 shall consist of the three members of the executive 
 council of the International Typographical Union 
 and the three members of the Special Standing 
 Committee of the American Newspaper Publishers' 
 Association, or their proxies. This board shall meet 
 at such time and place as may be determined by it. 
 Due notice of time and place of meeting of the In- 
 ternational Board shall be given all interested par- 
 ties. If the board as thus constituted Is unable after 
 considering a case at two meetings, to reach a deci- 
 sion, the membership of the board may be increased, 
 by unanimous vote, by the addition of a seventh and 
 disinterested member, who shall act only on the 
 matters that made his selection necessary, and who 
 shall have the same standing as the other members, 
 and shall act with them at the earliest possible date 
 after his appointment. 
 
 Sec. II. The award of the International Board 
 of Arbitration in all cases shall include a determina-
 
 APPENDIX ix 
 
 tlon of all the issues involved ; it shall cover the full 
 period between the raising of the issues and their 
 final settlement; any change in the wage scale may 
 be made effective from the date the issue first arose 
 at the discretion of the board. An award by a ma- 
 jority of the International Board shall be final, and 
 shall be accepted as such by the parties to the 
 dispute. 
 
 Sec. 12. At the request of either party to an 
 arbitration the International Board shall determine 
 whether evasion, collusion or fraud, has character- 
 ized either the local, or international proceedings, or 
 whether either party has failed to comply with, or 
 refuses to fulfill its obligations under a decision, 
 or has omitted to perform any duty prescribed 
 therein, or has secured any unfair or fraudulent ad- 
 vantage, or has evaded any provision of this agree- 
 ment or any rule of the Code of Procedure, or is not 
 acting in good faith. At the conclusion of such in- 
 quiry it shall be wholly within the power of the 
 International Board to reject all that has been pre- 
 viously done and order a rehearing before the Inter- 
 national Board or before a new local board ; or it 
 may find against the offending party or annul the 
 individual arbitration contract. In the event of
 
 X APPENDIX 
 
 either party to a dispute refusing to accept and 
 comply with a decision of a local board which is not 
 appealed, or with a decision of the International 
 Board, or with any of the provisions of this Interna- 
 tional Arbitration Agreement, as determined by a 
 decision of the International Board, all aid and sup- 
 port to the employer or the local union refusing ac- 
 ceptance and compliance shall be withdrawn by both 
 parties to this agreement. The acts of such recalci- 
 trant employer or union shall be publicly disavowed 
 and the aggrieved party shall be furnished by the 
 other with an official document to that effect. 
 
 Sec. 13. The form of Individual Arbitration 
 Contract set forth in Exhibit "A" and the Code of 
 Procedure set forth in Exhibit "B" are hereby made 
 a part of this agreement and shall be as binding on 
 the parties hereto as if the same were set forth at 
 length herein. 
 
 Sec. 14. This agreement shall remain in effect 
 from the 1st day of May, 191 2, to the 30th day of 
 April, 191 7, inclusive, but amendments may be pro- 
 posed at any meeting of the International Board of 
 Arbitration by either party hereto, and on accept- 
 ance by the other party to this agreement shall be- 
 come a part hereof.
 
 APPENDIX xl 
 
 In witness whereof, the undersigned have affixed 
 their respective signatures in quadruplicate this I ith 
 day of January, 1912. 
 
 H. N. Kellogg, 
 Charles H. Taylor, Jr., 
 George C. Hitt, 
 Special Standing Committee American News- 
 paper Publishers' Association. 
 
 James M. Lynch, 
 Hugo Miller, 
 John W. Hays, 
 Executive Council International Typographical 
 
 Union. 
 
 EXHIBIT a 
 
 Individual Arbitration Contract 
 
 It is agreed between proprietor of the 
 
 party of the first part and 
 
 Union No , of party of the second 
 
 part, by its president duly authorized to act in its 
 behalf as follows : 
 
 Section i. In the event of any difference arising 
 between the parties to this contract which can not be 
 adjusted by conciliation, such difference shall be 
 submitted to arbitration under the Code of Pro- 
 cedure provided by the International Arbitration 
 Agreement, effective May i, 191 2, between the
 
 xii APPENDIX 
 
 American Newspaper Publishers' Association and 
 the International Typographical Union. 
 
 Sec. 2. This contract shall cover any contract 
 between the parties of the first and second parts 
 whether the same is in writing or an oral under- 
 standing, subject to the conditions expressed in the 
 International Arbitration Agreement, effective May 
 I, 191 2, between the American Newspaper Publish- 
 ers' Association and the International Typographical 
 Union. 
 
 Sec. 3. It is expressly understood and agreed 
 that the International Arbitration Agreement and 
 the Code of Procedure, both hereunto attached, be- 
 tween the American Newspaper Publishers' Associa- 
 tion and the International Typographical Union, 
 shall be integral parts of this contract and shall have 
 the same force and effect as though set forth in the 
 contract itself. 
 
 Sec. 4. The parties hereto specifically authorize 
 the Executive Council of the International Typo- 
 graphical Union and the Special Standing Com- 
 mittee of the American Newspaper Publishers' 
 Association to give public disavowal to any failure 
 to comply with this contract as provided in section 
 12 of the International Arbitration Agreement. 
 
 This contract shall be in full force and effect on
 
 APPENDIX xHi 
 
 the day of , 19. . . ., and continue 
 
 until the 30th day of April, 191 7, inclusive. 
 
 In witness whereof the undersigned proprietor 
 of the said newspaper, and the president of the 
 
 Union No have hereunto affixed 
 
 their respective signatures this .... day of , 
 
 I9-. 
 
 ,,j. -r, . Proprietor. 
 
 Witness as to Proprietor: 
 
 President Union No. 
 
 Witness as to President : 
 
 Secretary Union No 
 
 The American Newspaper Publishers' Associa- 
 tion, by the chairman of its special standing com- 
 mittee, duly authorized to act in its behalf, hereby 
 underwrites the obligations assumed by the party of 
 the first part under this agreement, and guarantees 
 their fulfillment. 
 
 Chairman Special Standing Committee Ameri- 
 can Newspaper Publishers' Association. 
 Witness as to Chairman :
 
 xlv APPENDIX 
 
 The International Typographical Union by its 
 president, duly authorized to act in its behalf, hereby 
 underwrites the obligations assumed by the party of 
 the second part under this agreement, and guaran- 
 tees their fulfillment. 
 
 President International Typographical Union. 
 Witness as to President: 
 
 EXHIBIT B 
 
 , Code of Procedure 
 
 Section i. If a publisher holding an Individual 
 Arbitration Contract under the prior agreement be- 
 tween the parties hereto, which terminates May i, 
 191 2, desires to secure continuous protection, he shall 
 not later than March i, 191 2, notify the president of 
 the union operating in the department he wishes the 
 contract to cover of his desire to secure an Individ- 
 ual Arbitration Contract to be effective from May i, 
 1 9 1 2, to April 30, 1 9 1 7, inclusive. If the issuance of 
 an Individual Arbitration Contract as above is sat- 
 isfactory to the said union the parties shall execute 
 in quadruplicate an Individual Arbitration Contract, 
 as set forth in Exhibit "A," before May i, 1912.
 
 APPENDIX XV 
 
 Publishers of this class securing Individual Arbitra- 
 tion Contracts effective from May i, 1912, until 
 April 30, 191 7, inclusive, shall have continuous pro- 
 tection for the departments to which said Individual 
 Arbitration Contracts apply. 
 
 Sec. 2. If a publisher shall not have had an In- 
 dividual Arbitration Contract of date prior to May 
 I, 1912, but shall have secured a contract on that 
 or some date subsequent thereto, this Code of Pro- 
 cedure shall apply to all differences between such 
 publisher and the union covered by the Individual 
 Arbitration Contract, which arise after sixty (60) 
 days shall have elapsed from the date of signing the 
 said contract. No new issue shall be raised by either 
 party until at least sixty (60) days shall have 
 elapsed from the date of signing the said contract. 
 A publisher desiring an Individual Arbitration Con- 
 tract shall notify the president of the union operating 
 in the department he wishes the contract to cover, of 
 his desire to secure an Individual Arbitration Con- 
 tract to be effective until April 30, 191 7, Inclusive. 
 If the issuance of an Individual Arbitration Con- 
 tract as above set forth is satisfactory to said union, 
 the parties shall execute in quadruplicate an Indi- 
 vidual Arbitration Contract as set forth in Ex- 
 hibit "A."
 
 xvi APPENDIX 
 
 Sec. 3. If there are pending any issues (a new 
 scale of prices, a change of scale or contract, or dif- 
 ferences of any nature) between a publisher to whom 
 the conditions apply as set forth in section 2 of this 
 code, and the union with which he wishes to make an 
 Individual Arbitration Contract, of which issues no- 
 tice in writing has been given within sixty (60) 
 days of the date of the notice by the publisher of his 
 desire to obtain an Individual Arbitration Contract 
 as provided in section 2 of this code, all such issues 
 shall be exempt from arbitration. A certificate set- 
 ting forth the pending issues shall be executed in 
 quadruplicate, signed by the publisher and the pres- 
 ident of the union, and one copy of the certificate 
 shall be attached to each copy of the Individual 
 Arbitration Contract. 
 
 Sec. 4. An issue is raised at the time a written 
 request is made by either party presenting in detail 
 changes in conditions desired. 
 
 Local Arbitration 
 
 Sec. 5. The two parties in interest must have a 
 conference as soon as possible and not later than 
 sixty (60) days after an issue is raised, at which 
 conference (or continuation thereof) every effort to 
 agree shall be made. The party upon whom the
 
 APPENDIX xvll 
 
 original demand is made may present a counter 
 proposition, provided it be submitted in writing and 
 in detail, which counter proposition shall be sub- 
 mitted as soon as possible, and in any event within 
 the same period of sixty (60) days. 
 
 Sec. 6. Upon failure to agree, each party shall 
 prepare its statement, embracing the conditions that 
 it seeks to establish. Each statement must be com- 
 plete in itself, and copies thereof shall be forwarded 
 to the chairman of the Special Standing Committee 
 of the Am^erican Newspaper Publishers' Association 
 and the president of the International Typograph- 
 ical Union, accompanied by a letter of transmittal, 
 to be signed jointly by the parties in Interest, certi- 
 fying that they are acquainted with the contents of 
 both statements. The chairman and president shall 
 thereupon determine the questions or subjects which 
 can be properly submitted to arbitration, and shall 
 promptly notify by joint letters the interested parties 
 of their decision. In case the two officials can not 
 agree, their differences shall be submitted to the In- 
 ternational Board of Arbitration. 
 
 Sec. 7. After the questions to be arbitrated have 
 been determined a Local Board of Arbitration must 
 be formed composed of residents of the locality in 
 which the controversy arises, two members thereof
 
 xvlii APPENDIX 
 
 to be named by each side, one such representative of 
 each contending party to be free from personal con- 
 nection with or direct interest in any newspaper or 
 any labor union. The board as thus constituted shall 
 select a secretary from among its members. The 
 four members of the board shall then choose an ad- 
 ditional member, who shall be a disinterested party, 
 and shall act as chairman of the board. If the chair- 
 man of the local board shall not have been selected 
 within thirty (30) days after the questions to be 
 arbitrated have been determined, he shall be named 
 by the chairman of the Special Standing Committee 
 of the American Newspaper Publishers' Association 
 and the president of the International Typograph- 
 ical Union, or their proxies, upon the request of 
 either of the interested parties. The two officials 
 named, or their proxies, may for this purpose visit 
 the locality if they deem it necessary. Any expense 
 thus incurred shall be defrayed equally by the par- 
 ties to the controversy. The chairman of the local 
 board shall preside, put motions, etc., and shall be 
 entitled to vote on all propositions which may prop- 
 erly come before the board in open session. He 
 shall declare a motion carried only when at least 
 three of the arbitrators shall have voted affirmatively 
 thereon. At the conclusion of the hearing the chair-
 
 APPENDIX xix 
 
 man shall retire and the other members of the board 
 shall go into executive session and immediately take 
 up a consideration of the issues involved. If in ex- 
 ecutive session a tie vote occurs on any proposition, 
 or if there are any differences, questions or proposi- 
 tions which do not receive the votes of three of the 
 four original members of the board, the chairman 
 shall be called in to cast the deciding votes on all 
 unsettled questions or propositions. 
 
 Sec. 8. After the Local Board of Arbitration has 
 been organized it shall proceed forthwith to conduct 
 its hearings under the following rules : 
 
 1. It may demand duplicate typewritten 
 statements of grievances. 
 
 2. It may examine all parties involved in 
 any differences referred to it for adjudication. 
 
 3. It shall employ such stenographers, etc., 
 as may be necessary to facilitate business, and 
 to provide a record for use in the event of an 
 appeal, said record to be properly paged and 
 indexed. 
 
 4. It may require affidavits on all disputed 
 points. 
 
 5. It shall have free access to all books and 
 records bearing on points at issue.
 
 XX APPENDIX 
 
 6. Equal opportunity shall be allowed for 
 presentation of evidence and argument. 
 
 7. In event of either party to the dispute re- 
 fusing to appear or present its case after due 
 notice, it may be adjudged in default, and deci- 
 sion shall then be rendered against such party. 
 
 8. All evidence communicated to the board 
 in confidence shall be preserved inviolate and 
 no record of such evidence shall be kept, except 
 for use on appeal, in which case such inviola- 
 bility shall be preserved. 
 
 9. The party making the original demand 
 shall have the right to present its case and evi- 
 dence without interruption, excepting that when 
 oral evidence is introduced cross-examination 
 of witnesses shall be allowed. The opposing 
 party shall have the same right in turn. The 
 first party shall then have the right to present 
 evidence strictly in rebuttal and the opposing 
 party shall be allowed to present counter evi- 
 dence strictly in surrebuttal. When objection is 
 made by either party to the admission of any 
 evidence offered by the other party, the board 
 by vote shall decide as to the admissability of 
 the evidence in question.
 
 APPENDIX xxi 
 
 10. In case of the inability of either side to 
 present evidence at the moment, the order may 
 be varied to the extent of allowing such evi- 
 dence to be presented at such session as may be 
 agreed upon by the parties to the controversy, 
 or as may be ordered by the Local Board of 
 Arbitration. No evidence shall be received or 
 considered that was not presented at a regular 
 open session of the board, except that it shall 
 be allowable for the members of the board, in 
 any case, to visit any office to see the operation 
 of labor therein, or for any other necessary 
 purpose, to aid in arriving at a just decision. 
 
 11. Oral arguments may be limited to one 
 speech on each side, after all evidence has been 
 presented. Written pleadings, instead of oral 
 arguments, shall be allowed whenever agreed 
 upon by the parties to the controversy, or when- 
 ever ordered by the Local Board of Arbitration, 
 
 12. There shall be an agreement by at least 
 a majority of the members of the board as to 
 the exact time and place of hearing, of which 
 both parties shall be notified in season. The 
 session shall be continuous, except for necessary 
 intermissions, until the hearing is concluded. 
 
 Sec. 9. When a hearing is concluded the board
 
 xxii APPENDIX 
 
 shall, without unnecessary delay, and as set forth In 
 section 7 of this code, go into executive session, from 
 which all persons except the four original members 
 of the board shall be excluded, for the determination 
 of its award. In its deliberation the transcript of 
 the stenographic report shall be accepted as the best 
 evidence of what occurred at the hearing, unless it 
 be shown that gross errors exist in said transcript. 
 Should the four members be unable to decide upon 
 the award the chairman shall be called in, as pro- 
 vided in section 7 of this code. The award of the 
 board must be formulated and signed by all of the 
 members thereof at a regular executive session, after 
 there has been full opportunity for consideration and 
 discussion, the date and time of such session having 
 previously been determined at a full meeting of the 
 local board. If any member of the local board dis- 
 sents from the award, and wishes to file a dissenting 
 opinion, he shall give Immediate notice to that effect, 
 and shall, within forty-eight (48) hours after the 
 award has been decided upon, and before it has been 
 promulgated, formulate his reasons for dissenting, 
 and such opinion must be signed by him before final 
 adjournment at a regular executive session, arranged 
 for as above provided. Such dissenting opinion, 
 when thus signed, must be attached to the award.
 
 APPENDIX xxIII 
 
 Sec. 10. The local board shall not be compelled 
 to set forth its reasons for making the award, but 
 may do so in the written award only. In framing 
 its award the findings shall be expressed in detail, to 
 the end that no misunderstanding shall afterward 
 occur. An award of a local board shall be for at 
 least one year, but a local board may provide that its 
 award shall be effective for a longer period, not to 
 exceed three years; provided there is no local agree- 
 ment as to time. 
 
 Sec. II. All expenses of a Local Arbitration 
 Board shall be divided equally between the union 
 and the other interested party or parties. 
 
 National Arbitration 
 
 Sec. 12. When either party to a local arbitration 
 shall desire to appeal to the International Board 
 written notice to that effect must be given to the other 
 party within five (5) days after the local decision 
 has been rendered, and the appeal shall be filed with 
 the International Board within thirty (30) days 
 after such decision. When an appeal is under con- 
 sideration by the International Board of Arbitration 
 it shall not take evidence, but both parties to the 
 controversy may appear personally or may submit 
 the records and briefs of the local hearings and make
 
 xxiv APPENDIX 
 
 oral or written arguments in support of their several 
 contentions. They may submit an agreed statement 
 of facts, or a transcript of testimony, properly certi- 
 fied to before a notary public by the stenographer 
 taking the original evidence or depositions. 
 
 Sec. 13. The International Board of Arbitration 
 must act when its services are desired by either party 
 to an appeal as above and shall proceed with all pos- 
 sible dispatch in rendering such services. 
 
 Sec. 14. So far as applicable the rules of pro- 
 cedure governing Local Arbitration Boards shall 
 govern the International Board of Arbitration. 
 
 Sec. 15. Should either party to a local or Inter- 
 national arbitration desire to make an allegation 
 against the other as provided in section 12 of the 
 International Arbitration Agreement, the complaint 
 shall be prepared in writing and in quadruplicate. 
 A copy thereof shall be delivered by registered mail 
 to the chairman of the Special Standing Committee 
 of the American Newspaper Publishers' Association, 
 to the president of the International Typographical 
 Union, and to the party against whom the complaint 
 is made. 
 
 Sec. 16. All awards of the International Arbi- 
 tration Board, excepting those made under section 5 
 of the International Arbitration Agreement, shall be
 
 APPENDIX XXV 
 
 for at least one year, but the International Arbitra- 
 tion Board may provide that its awards shall be 
 effective for a longer period, not to exceed three 
 years; provided there is no local agreement as to 
 time. 
 
 Sec. 17. All expenses attendant upon the settle- 
 ment of any case before the International Board 
 shall be adjusted in each case in accordance with the 
 directions of the International Board of Arbitration. 
 
 Sec. 18. These rules and this code may be 
 amended at any meeting of the International Arbi- 
 tration Board in accordance with the method pre- 
 scribed in section 14 of the International Arbitration 
 Agreement.
 
 INDEX
 
 INDEX 
 
 Accidents in industry : 98 ; in Colorado coal mines, 296. 
 
 Adjustment to changed conditions, 350. 
 
 Agreements: trade commended, 311; mutual, 326. 
 
 Agriculture : in Australia, 150 ; in Canada, 174 ; in Germany, 
 28; in New Zealand, 124; New Zealand and United 
 States compared, 124, 125. 
 
 Alabama: award not binding, 236; duty of board before arbi- 
 tration, 224; law enacted, 261; local boards of arbitra- 
 tion, 217; recommendations of board filed, 236. 
 
 Alberta, coal strike in, 182. 
 
 Amalgamated German Unions, 304. 
 
 American Federation of Labor : attitude toward Canadian 
 act, 186 ; attitude toward compulsory arbitration, 205- 
 208 ; growth of, 300 ; in politics, 305 ; referred to, 309, 
 310. 
 
 Anthracite coal strike: investigation of, 268, 284; agreement 
 effected, 308 ; disturbances of 1912, 285 ; present ar- 
 rangement, 285. 
 
 Anthracite coal strike commission, work of, 285. 
 
 Anti-combination law of 1799, 28. 
 
 Appendix, iii. 
 
 Arbitration : awards of boards in United States, 235-238 ; 
 awards, when binding, 75 ; attempts at in United States 
 coal fields, 196; Australia, laws of, 154, 155, 157-164; 
 Australia, operation of laws, 146-166 ; Canada, 167-190 ; 
 French act of 1909, 112, 113; beginnings of in France, 
 87; French law of 1892, 100-107; results of in France, 
 101-107 ; Germany, agreements in, 81 ; appeal to in Ger- 
 many, Id ; applications for in Germany, 81 ; Berlin 
 court of, 75 ; principles of inaugurated, in Germany, 
 34; results of in Germany, 81; New Zealand, 118-145, 
 346; act of 1894 in New Zealand, 138, 139; compulsory 
 in New Zealand, 119, 125, 126, 137; consoHdated act 
 copied, 145 ; consolidated act of 1908 in New Zealand, 
 145; results of in New Zealand, 120, 143; United States, 
 191-214, 215-238, 239-267, 268-287; attempts at in 
 United States, 196; defects of system in United States, 
 261 ; compulsory in United States, 274 ; discussed, 345 ; 
 failure of in United States, 321, 326; first instances of 
 in United States, 192-194 ; first legislative acts in United
 
 XXX INDEX 
 
 Arbitration — Continued. 
 
 States, 196, 197; interstate act of 1888, 274; interstate 
 act of 1898, 281 ; success of, 281 ; interstate act of 1913, 
 285; Industrial Workers of the World, attitude of, 208; 
 Knights of Labor, attitude of, 195 ; political parties, 
 attitude of, 213, 214; Socialists, attitude of, 208; poli- 
 tics, effect of in United States, 255 ; public, interest of, 
 346; summary of legislation, 197; success of laws in 
 five states, 241-246; two forms of legislation, 198, 199. 
 
 Arbitration and conciliation (see Arbitration). 
 
 Artisans, associations of make appearance, 23. 
 
 Askwith, Sir George, quoted, 184-186. 
 
 Auckland, 120. 
 
 Australia: agriculture, 150; arbitration, 154, 155, 157-164; 
 cities, population of, 151; compulsory arbitration, 146; 
 commonwealth act, 147-162 ; education, 152, 153 ; home- 
 steads, 148; hours of labor, 156; Hatch, Leonard W., 
 quoted, 158; immigration, 151; industrial conditions, 
 153 ; Industrial Workers of the World, 165 ; living 
 wage, 147, 157 ; manufacturers, 149 ; minerals, 149, 150 ; 
 military training, 164; occupations, 151; old age pen- 
 sions, 151; population, 147, 151; railroads, 165; wages 
 boards of South Australia, 147 ; savings banks deposits, 
 165 ; Socialists, 165 ; strikes, 157, 160-162 ; taxation, 152 ; 
 trade unions, 157; United States and Australia com- 
 pared as to land problem, 148-149; workers' welfare, 
 146; wages boards, 155, 157, 159, 162, 164; Weinstock, 
 Harris, quoted, 156. 
 
 Austria, France joined in war with, 98. 
 
 Austria-Hungary, immigration from to New Zealand, 122. 
 
 Bakers, strike of in 1741, 191. 
 
 Baltimore, 120. 
 
 Bank deposits, in New Zealand, 144. 
 
 Belgium, immigration from to New Zealand, 122. 
 
 Birmingham, rents in, 335. 
 
 Bituminous coal miners, agreement of, 308. 
 
 Blanc, Louis, referred to, 94. 
 
 Board of Trade : disputes settled by in England, 41-43 ; re- 
 port on housing, 342 ; quoted, 343. 
 
 Boot and Shoe Workers, trade agreement of, 312, 314. 
 
 Boston: referred to, 120; elevated strike in, 228; longshore- 
 men, strike of, 245; street railway, strike on, 245. 
 
 Bourbons, and working classes in France, 89. 
 
 Bourses du travail, 99, 108. 
 
 Boycott, blacklist and picket, 19. 
 
 Brandeis, Louis, quoted, 340. 
 
 Brewers, agreement of, 308. 
 
 Brewster, Professor J. H., discussed, 297,
 
 INDEX xxxl 
 
 Briand, M., resigned during railway strike, 112. 
 
 Bricklayers, Masons and Plasterers: conditions of strike, 310; 
 
 referred to, 327. 
 Bricklayers' Union, 304. 
 Brickmakers, strike of in 1843, 192. 
 British Citizens' Industrial Association, 212. 
 Brotherhood of Locomotive Firemen and Enginemen : 309; 
 
 of Locomotive Engineers, 309; of Railway Trainmen, 
 
 309. 
 Bruce, Tolin W., quoted, 187, 188. 
 Buffalo, referred to, 120. 
 
 Builders' Association of New York City, 304. 
 Bureau of Labor : report cited, 239 ; created, 272 ; tables, 248. 
 Byron, Lord, denounces act of Parliament, 26. 
 
 Cabot, referred to, 94. 
 
 California : award of arbitration board, 235 ; board quoted, 
 252; investigations of board, 232; creation of board, 
 251 ; minimum wage law, 339 ; provisions for arbitration, 
 225. 
 
 Calumet copper strike, referred to, 287, 331. 
 
 Canada : area compared to United States, 168 ; agriculture, 
 174; industrial disputes act, text of, 177-181; copied in 
 New Zealand, 145; discussion, 167, 176; not adapted to 
 conditions in United States, 348; results of operation, 
 168, 181-184 ; criticisms of, 184 ; education, 175 ; immi- 
 gration, 170-172; land question, 169; lumber industry, 
 174; manufacturers, 173; minerals, 174; occupations, 
 174; population, compared to United States, 168; public 
 debt, 176; railways, 174; strikes, 181-183; trade, 175; 
 wages, 173. 
 
 Canadian Pacific, strike of, 182. 
 
 Capital, combinations of, 13. 
 
 Carpenters, union of referred to, 327. 
 
 Chicago: population of, 120; street railway strike in, 299. 
 
 Child labor : in France, 93, 98 ; in England, 29, 30. 
 
 China, expedition against, 97. 
 
 Chinese, in New Zealand, 122. 
 
 Cincinnati, referred to, 120. 
 
 Cities : of New Zealand, 120, 121 ; government of, 121 ; of 
 Australia, 151; growth of generally, 330. 
 
 Citizens' Industrial Association, 211, 212. 
 
 Clay, Sir Arthur, quoted, 114. 
 
 Cleveland : referred to, 121 ; rents in, 335 ; President of 
 United States, message quoted, 270-272; approved act 
 of 1888, 274. 
 
 Cloakmakers, strike of, 246, 307, 308. 
 
 Coalitions, in France, 97.
 
 xxxli INDEX 
 
 Coal mining, workmen employed in New Zealand, 124. 
 
 Coal strikes, in Germany, 85. 
 
 Collective bargaining: 14, 349; principle of recognized in 
 Germany, 7i. 
 
 Colorado: awards of arbitration boards, 236; investigations 
 of disputes, 227, 229, 231 ; legislation ineffective, 265 ; 
 local boards, 218; minimum wage law, 339; provisions 
 for mediation, 225. 
 
 Colorado coal strike: absence of law and order, 293; acci- 
 dents in mines, no remedy, 296 ; Colorado Fuel and Iron 
 Company, referred to, 288; Industrial Relations Com- 
 mission, investigations of, 290; Lindsay, testimony of 
 Judge Ben. B., 295; quoted, 298; Ludlow, battle of, 
 294; mine guards, 294; Nearing, Professor Scott, re- 
 ferred to, 298 ; National Guard, character of, 294 ; po- 
 litical conditions, 297; Trinidad convention, 288, 289; 
 United Mine Workers, campaign of, 288; recognition 
 demanded, 290 ; denied, 291 ; character of, 291 ; strikers 
 imported, 292 ; violence, 294. 
 
 Commons, John R., quoted, 26. 
 
 Commonwealth act, on Australia, 147, 162. 
 
 Compulsory arbitration : in New South Wales, 146, 147 ; not 
 now expedient, 348-350. 
 
 Conciliation and arbitration: outlined, 20; also see Arbitra- 
 tion. 
 
 Confederation Gencrale du Travail, 107, 109, 110. 
 
 Connecticut : failure of state board, 247 ; housing law, 344 ; 
 investigations by arbitration board, 231 ; no provisions 
 for binding award, 236; provisions for mediation, 225; 
 report of board quoted, 247. 
 
 Constitution, limitations of, 347. 
 
 Constitution of 1793, in France. 
 
 Continuation schools, German, 63. 
 
 Cooperation, in France, 95. 
 
 "Council of Conciliation act," British, 36. 
 
 Craft guilds, 23, 87. 
 
 Crimean war, 97. 
 
 Debt, increase in New Zealand explained, 144. 
 
 Democratic party, opposition on industrial arbitration, 214. 
 
 Denmark, immigration from to New Zealand, 122. 
 
 Detroit, 121. 
 
 Devices in operation, 239-267. 
 
 Director of seamen's register, 113. 
 
 Drunkenness, in New Zealand, 134, 135. 
 
 Eaves, quoted, 251.
 
 INDEX xxxiil 
 
 Education : compulsory in France, 94 ; the German system, 
 63, 64; immigration test in New Zealand, 122; in Aus- 
 tralia, 152, 153; in Canada, 175; vocational, 328, 339. 
 
 Electorate, increase of, 94. 
 
 Elements of problem, 1-21. 
 
 Emery, J. A., referred to, 212. 
 
 Enfantin, 94. 
 
 England, industrial revolution in, 83. 
 
 English, experiments with conciliation, 22. 
 
 Erdman act, 279-283. 
 
 Expert assistance, used by state boards, 232-235. 
 
 Expressmen, strike of, 246. 
 
 Factories, 330. 
 
 Factories act of New Zealand, 128-130. 
 
 Federated trade councils of San Francisco, 252. 
 
 Fielding, inaugurates ten-hour day, 33. 
 
 Ford, Henry, referred to, 324. 
 
 Forests, disappearance of, 330. 
 
 Forty-ninth Congress, referred to, 272. 
 
 Fox, Martin, quoted, 255. 
 
 France: accidents in industry, 98; arbitration and concilia- 
 tion, 87-92, 100-107; act of 1909, 112, 113; beginnings 
 of arbitration and conciliation, 87 ; counseils des 
 Prud'hommes, 87, 88, 100; Bourbons, and working 
 classes, 89; bourses du travail, 99, 108; Briand, M., 
 resigns during strike, 112; Confederation Generale du 
 Travail, 107, 109, 110; Crimean war, 97; French society, 
 character of, 88, 89 ; child labor, 93 ; cooperation, 95 ; 
 coalitions, 97; director of seamen's register, 113; edu- 
 cation, compulsory, 94 ; electorate, increase of, 94 ; fed- 
 eration of civil servants. 111 ; Franco-Prussian War, 98; 
 general strike, 108, 111; Gompers, referred to, 114; 
 immigration from to New Zealand, 122 ; intellectual 
 revolution in, 83 ; indemnity act, extended to agricul- 
 ture, 99 ; industry, 89-98 ; associations and meetings, 
 law against, 93; international labor congress, 108; ju- 
 dicial aid, free, 97; Limoges, congress of trade union- 
 ists at, 106 ; Lyons and silk industry, 87 ; labor unions, 
 99, 100, 109 ; medical aid, free, 98 ; miners, superannua- 
 tion fund of, 98 ; Millerand, state employees and labor 
 unions, 109; Napoleon I, 87; national workshops, 96, 
 97; Napoleon III, 97; Nantes, congress of trade union- 
 ists at, 106; national federation of railway servants, 
 111; pensions, old age, 117; population, 92; postmen's 
 syndicate, 109; public opinion, 114; press, freedom of, 
 94; Proudhon, 94; Rambaud, Alfred, quoted, 115; Revo-
 
 xxxlv INDEX 
 
 France — Continued. 
 
 lution of 1830, 91; Revolution of 1848, 91; Rouvier, 
 father of syndicates, 109; school teachers, syndicate of, 
 109; Sorel, George, adherent of syndicalism, 109; Social 
 consciousness, growth of, 91 ; Sociahsm, experiments in, 
 96; St. Simon, 94; stable hands, strike of. 111; strikes, 
 101, 102, 111; prohibition of advocated, 111; syndical- 
 ism, 106-108; syndicates, "red" and "yellow," 109; 
 Thiers, president of Third Republic, 98 ; trade guilds, 
 87 ; trade unions, 109 ; Tortelier, and general strike, 
 108; Turgot and trade guilds, 87; Waldeck-Rousseau, 
 father of collective action, 108; war and labor supply, 
 98; Weinstock, quoted, 106. 
 
 Franco-Prussian War : effect of on industry, 84 ; also see 98. 
 
 French society, character of, 88, 89. 
 
 Gage, governor of California, on industrial arbitration, 253. 
 
 Gary, Indiana, character of population, 123. 
 
 Gaynor, mayor of New York City, referred to, 246. 
 
 General strike, in France, 108, 111. 
 
 Georgia, act of 1911, 204. 
 
 Germany : arbitration and conciliation, 74-81 ; aristocratic 
 preference among workers, 86; coal strikes, 85; imi- 
 tator of England, 62; immigration from New Zealand, 
 122 ; individual disputes, 78-81 ; industrial courts, 75-77 ; 
 industrial insurance, 66; living among working people, 
 86; mercantile courts, 76; political revolution in, 83; 
 revolution of 1848, 83 ; Russia and political revolution, 
 83 ; Socialism, 83-86 ; Socialism and Karl Marx, 83 ; 
 Sociahsm and Lassalle, 83 ; expenditures for strikes, 
 85 ; Socialism and strikes, 85 ; Social Democratic party, 
 83-86 ; Social Democratic Workingmen's party, 83 ; so- 
 cial justice, 58-86; strikes, 78-80; trade unions, 85, 86; 
 wage agreements, 82 ; workers, organizations of in large 
 and small cities, 82 ; workmen, American and German 
 compared, 86; workmen, committees of in collieries, 82; 
 workers, aristocratic preference among, 86. 
 
 Gillman, Methods of Industry, quoted, 256. 
 
 "Give the people more power," 10. 
 
 Gompers : referred to, 114, 205, 301 ; quoted, 300. 
 
 Government, city in New Zealand, 121. 
 
 Government insurance scheme inaugurated in Great Britain, 55. 
 
 Government ownership in New Zealand, 127. 
 
 Grand Trunk railway, strike of, 181. 
 
 Great Britain : arbitration and conciliation, 34-42 ; success of, 
 42-46; agitation for shorter hours, 31, 32; agriculture, 
 27, 28 ; Boulton, Sir Samuel, referred to, 38 ; child labor, 
 29 ; compulsory service, 25 ; Commons, John R., quoted, 
 26; craft guilds, discussed, 23; education, 28; Fielding,
 
 INDEX XXXV 
 
 Great Britain — Continued. 
 
 ten-hour bill of, 33; hours of labor, 29-32; Haywood, 
 W. D., visits England, 50; individual disputes, settled 
 locally, 24 ; Industrial Council, created, 40-43 ; Indus- 
 trial Workers of the World, gain foothold in, 50 
 Mann, Tom, returns from Australia, 50; machinery, 
 introduced, 26-28 ; merchant guilds, discussed. 22, 23 
 methods of strike settlement, 317, 319; Mundella, A. J. 
 organized first successful conciHation council, 38; New 
 Zealand institutions copied, 54 ; occupations, 27 ; Owen, 
 Robert, referred to, 32, 33 ; pensions, 54 ; people's char- 
 ter, 30 ; population, movement of, 28 ; prices, attempt to 
 regulate, 26; statute of apprentices, discussed, 24; stat- 
 ute of laborers, discussed, 25 ; violence, 26. 
 
 Greece, immigration from to New Zealand, 122. 
 
 Hadley, president of Yale University, quoted, 223. 
 
 Has the present regime done its work, 6. 
 
 Hatch, Leonard W. : quoted, 158 ; referred to, 36. 
 
 Hatters, agreement of, 308. 
 
 Homestead strike, investigation of, 268, 275. 
 
 Homesteads, of Australia: 148; of Canada, 169, 170. 
 
 Hours of labor: in Australia, 156; generally, 16, 328, 336; in 
 
 New Zealand, 128; in Germany, 71, 72. 
 Housing : 329, 342 ; New York tenement house law, 343-345. 
 
 Idaho: awards of arbitration boards, 236; investigation of 
 disputes, 227, 229 ; provisions for mediation, 218. 
 
 Illinois : awards of arbitration boards, 235 ; intervention by 
 state board, 224- investigation of disputes, 230; strikes 
 in, 239. 
 
 Illiteracy, 340, 341. 
 
 Immigrants, housing of, 342, 343. 
 
 Immigration: of Australia, 151; of Canada, 170-172; gen- 
 erally, 330, 349; duty of government, 328; of New Zea- 
 land, 122, 123. 
 
 Imports, of New Zealand, 144. 
 
 Indemnity act, extended to agriculture in France, 99. 
 
 Indiana: different laws of, 202-204; law repealed, 255; labor 
 commission, quoted, 256, 316; referred to, 223; work 
 of, 257; state federation of labor, referred to, 259; 
 strikes in, 239. 
 
 Indianapolis, street railway strike of, 204. 
 
 Individual disputes, in Germany, 76-81. 
 
 Industrial arbitration, problems of, 3; also see Arbitration. 
 
 Industrial Commission: investigations of, 269; quoted, 283. 
 
 Industrial council: created in England, 40; report of, 318-320. 
 
 Industrial courts, in Germany, 75-77. 
 
 Industrial disputes act of Canada, 167-185.
 
 xxxvl INDEX 
 
 Industrial justice: 321 ; meaning of, 325. 
 
 Industrial peace, in United States and New Zealand, 125. 
 
 Industrial questions, and politics, 8. 
 
 Industrial Relations Commission, work of, 269, 270, 290. 
 
 Industrial upheavals, in England, France and Italy, 7. 
 
 Industrial welfare, 324, 325, 340. 
 
 Industrial Workers of the World: 165; opposed to industrial 
 
 arbitration, 208; referred to, 331. 
 Industry: conditions of in Australia, 153, 154; conditions of 
 
 in France, 89-98; development of in New Zealand, 121. 
 International Garment Makers, 307. 
 International Iron Moulders, 306. 
 International Labor Congress, 108. 
 International Typographical Union, 327. 
 Investigation of strikes, states enumerated, 227-232. 
 Iowa : awards of boards, 237 ; failure of industrial arbitration, 
 
 265; investigations of disputes, 227, 229; provisions for 
 
 mediation, 220, 221. 
 Iron moulders, trade agreement of, 306. 
 
 Jefferson, referred to, 330. ^■ 
 
 Judicial aid, free in France, 97. 
 
 Jurisdictional disputes, 17. 
 
 Justices, empowered to fix wages, 24. 
 
 Kansas : act of 1886 of no avail, 266 ; creation of arbitration 
 tribunal, 219; investigation of disputes, 232; judgment 
 upon award, 220 ; no provisions for mediation, 218. 
 
 Knapp, commissioner of labor, referred to, 282. 
 
 Knights of Labor, 194, 195. 
 
 Knights of St. Crispin, referred to, 193, 194, 304. 
 
 Labor exchanges, act creating, 55. 
 
 Labor leaders, character of, 327. 
 
 Labor unions: in France, 99-109; and state-owned railroads 
 
 in Germany, 70. 
 Land: condition in Australia, 148, 149; effect of free in 
 
 Canada, 169; problem in New Zealand, 118. 
 Lawrence : referred to, 331 ; strike of textile workers, 245, 
 
 287; troubles of settlement, 315. 
 Leroux, Pierre, referred to, 94. 
 Limoges, congress of trade unionists at, 106. 
 Lindsay, Judge Ben B. : quoted, 298, 299; testimony of, 295. 
 Lippman, Walter, quoted on syndicalism, 18. 
 Living wage: in Australia, 147, 157; generally, 334-337, 351; 
 
 in Germany, 86.
 
 INDEX xxxvll 
 
 Lloyd-George, social legislation espoused by, 54. 
 
 Local boards of arbitration and conciliation, in United States, 
 216-221. 
 
 Longshoremen, strike of, 246. 
 
 Los Angeles, 121. 
 
 Louis Philippe, 94. 
 
 Louis XVI, 87. 
 
 Louisiana: appointment of arbitrators, 224; awards of arbi- 
 tration boards, 236; investigation of disputes, 232; law 
 a dead letter, 253-255. 
 
 Lowell, strike in cotton mills, 245. 
 
 Ludlow, battle of referred to, 294, 331. 
 
 Lumber industry, of Canada, 174. 
 
 Ljrnn, Mass., joint boards of trade, 196. 
 
 Lyons and silk industry, 87. 
 
 Maine : award of arbitration boards, 235 ; investigation of 
 disputes, 232; local boards of arbitration, 216. 
 
 Manufacturers: in Australia, 149; in Canada, 173, 174; corn- 
 pared to agriculture in New Zealand, 124 ; growth of in 
 New Zealand, 144. 
 
 Markets, and price control, 329. 
 
 Maryland : act of no avail, 264; award of board, 238; investi- 
 gation of disputes, 218, 219; provisions for mediation, 
 218; voluntary arbitration, 219. 
 
 Massachusetts : award of state board, 235 ; Bureau of Sta- 
 tistics of Labor, cited, 244; commission on minimum 
 wage, 340 ; commission on cost of living, report of, 335 ; 
 duties of state board, 224 ; expert assistance to board, 
 232-234; investigation of disputes by board, 227, 229; 
 local boards of arbitration, 216; report of state board 
 quoted, 243, 244; state board commends trade agree- 
 ment, 314; strikes in, 239. 
 
 Mediation, different agencies, 218-225. 
 
 Medical aid, free in France, 98. 
 
 Mercantile courts, in Germany, Id. 
 
 Michigan : arbitration acts of, 201 ; law repealed, 255. 
 
 Military training, in Australia, 164. 
 
 Millerand, state employees and labor unions, 109. 
 
 Milwaukee, referred to, 121. 
 
 Mine guards, 294, 295. 
 
 Minerals : in Australia, 149, 150 ; in Canada, 174, 175. 
 
 Miners, superannuation fund of in France, 98. 
 
 Minimum wage : in Australia, 156, 163 ; in Australia and New 
 Zealand, 346; enacted in Great Britain, 56; generally, 
 339, 349; in Oregon, 339; in Utah, 339; in Washington, 
 339.
 
 xxxvili INDEX 
 
 Minneapolis, referred to, 121, 
 
 Minnesota : application for arbitration, 225 ; award of state 
 board, 235 ; investigation of disputes, 231 ; law of no 
 avail, 253, 254 ; local boards of arbitration, 217. 
 
 Missouri: award of state board, 235, 237; state board quoted, 
 246; submission to investigation of grievances, 225, 
 227, 229 ; strikes in, 239. 
 
 Montana: award of state board, 235; expert assistance, 234; 
 investigation of disputes, 232; law of no avail, 253-255; 
 work must continue pending investigations, 226; viola- 
 tions of contract, 226. 
 
 Nantes, congress of trade unions at, 106. 
 
 Napoleon : First, 87 ; Third, 97. 
 
 National Association of Builders, official quoted, 311. 
 
 National Association of Manufacturers and arbitration, 209, 
 210. 
 
 National Civic Federation, and arbitration: 210; also 304; 
 
 National domain, discussed, 330. 
 
 National Federation of Railway Servants, 111. 
 
 National Guard, character of, 294. 
 
 National Lithographic Association, 308. 
 
 National Stove Manufacturers, 306-308. 
 
 National workshops, 96, 97. 
 
 Nearing, Professor Scott, referred to, 298. 
 
 Nebraska: local boards of arbitration, 217; investigation of 
 disputes by the governor, 231 ; state board idle, 261 ; no 
 provisions for binding award, 236; submission of griev- 
 ances by mutual consent, 226. 
 
 Negroes : in the United States, 123 ; neglect of, 330. 
 
 Neill, commissioner of labor intercedes in strike, 282, 283. 
 
 Netherlands, immigration from to New Zealand, 122. 
 
 Nevada: award of arbitration board, 237; board created fol- 
 lowing gold strike, 266; investigations of board, 232; 
 provisions for mediation, 218, 
 
 Newark, N. J., 121. 
 
 New Bedford weavers, strike of, 245. 
 
 New Hampshire : award of state board, 235 ; investigations 
 by state board, 231 ; operation of act successful, 260 ; 
 provisions for mediation, 226. 
 
 New Jersey: act futile, 256; different laws in force, 200, 201; 
 state board quoted, 223 ; strikes in, 239 ; law repealed, 
 255 ; housing law of, 344. 
 
 New Orleans, 121, 
 
 New South Wales, act of 1891 discussed, 146, 147. 
 
 New York : award of state board, 235 ; board quoted, 313 ; 
 bureau of mediation, 199, 200; findings of board, 226; 
 intervention by board, 242; investigations by board,
 
 INDEX xxxix 
 
 New York — Continued. 
 
 231 ; strikes, 239, 307 ; Department of Labor's report on 
 unemployment, 337 ; tenement house law, 343 ; reference 
 to state board, 148. 
 
 New York agreement, 307. 
 
 New York City, reference to population, 120. 
 
 Newspaper publishers, agreement with International Typo- 
 graphical Union, 301-303. 
 
 New Zealand: arbitration in, 119, 125, 126, 137; agriculture, 
 124 ; area compared to United States, 120 ; Austria- 
 Hungary, immigration from, 122 ; bank deposits, 144 ; 
 Belgium, immigration from, 122 ; Canadian act copied, 
 145 ; China, immigration from, 122 ; coal mining, work- 
 men employed, 124 ; debt, increase explained, 144 ; 
 drunkenness, 134, 135 ; Denmark, immigration from, 
 122 ; Netherlands, immigration from, 122 ; education, 
 immigration test, 122 ; France, immigration from, 122 ; 
 factories act of 1908, 128; government, city, 121; Ger- 
 many, immigration from, 122 ; Greece, immigration 
 from, 122 ; government ownership, 127 ; hours of labor, 
 128; industrial peace in United States compared, 131; 
 industry, development of, 121 ; immigration from vari- 
 ous countries, 122; imports, 144; land problem, 118; 
 manufactures, compared to agriculture, 124; growth of, 
 144 ; Netherlands, immigration from, 122 ; organization 
 of workers, 125 ; of employers, 125 ; occupations, com- 
 pared to United States, 126; old age pensions, 128, 129; 
 population, 120 ; pauperism, 136 ; race problem, 121 ; 
 railways, 127; syndicalism, failure in New Zealand, 
 145; strikes, 118, 138, 143, 145; sweated industries, 127; 
 social legislation, 126 ; savings banks, 127, 128 ; shops 
 and offices act, 128 ; shipping act, 128 ; safety in indus- 
 try, 130; trade unions, 126; tobacco, 135; taboo, effect 
 of, 11; United States by contrasts and comparisons, 
 123-126 ; unemployment, 136 ; wages, 123, 132 ; work- 
 men's compensation, 128, 130; workers' dwelling act, 
 128, 131 ; reference to, 146, 147. 
 
 North Dakota: acts of, 201, 202; law repealed, 255; operation 
 of act, 257. 
 
 Norway, immigration from to New Zealand, 122. 
 
 Gates, William C, quoted, 275. 
 
 Occupations: in Australia, 151; in Canada, 174; in England, 
 27; in Germany, 61, 62; in New Zealand, 126; in the 
 United States, 126. 
 
 Ohio: award of boards, 235, 236; board of arbitration re- 
 ferred to, 224, 313, 314; investigation of disputes, 227, 
 229, 230; local boards, 217; provisions for mediation, 
 227; strikes, 239.
 
 xl INDEX 
 
 Oklahoma : investigation of strikes optional, 230, 231 ; no pro- 
 vision for binding award, 236; operation of law, 260. 
 
 Old age pensions: in Australia, 152; in England, 54; in 
 France, 117; in New Zealand, 126. 
 
 Omaha, street railway strike, 261. 
 
 O'Neill, a representative from Missouri, referred to, 273. 
 
 Order of Railway Conductors, 309. 
 
 Oregon, minimum wage law in, 339. 
 
 Organization : of the workers in New Zealand, 125 ; stages 
 of progress, 323, 324; their only hope of change, 322; 
 discussed, 13. 
 
 Owen, Robert: industrial reforms of, 32; referred to, 324. 
 
 Painters, strike of, 246. 
 
 Parliament, act of 1872, Zl. 
 
 Pauperism : generally, 341 ; in New Zealand, 136. 
 
 "Peace at any price," 322. 
 
 Pennsylvania: award of arbitration board, 236; conditions of 
 
 industry in, 262; investigation of disputes, 232; law of 
 
 1913, 263, 264; provisions for mediation, 218; reference 
 
 to, 148 ; strikes in, 239. 
 Pensions : old age in Australia, 152; in England, 54; in France, 
 
 117; in New Zealand, 126. 
 Perkins, Edgar A., referred to, 205. 
 Personal injuries, in Colorado mines, 296. 
 Personnel, of boards of arbitration, 215. 
 Philadelphia, reference to, 120. 
 Pittsburgh: reference to, 121; rents, 335; switchmen's strike, 
 
 . . 281. 
 
 Political : conditions in Colorado, 297, 298 ; franchise, 330 ; 
 freedom, discussed, 9; revolution in Germany, 83. 
 
 Population: character of in Australia, 147, 151, 152; of Can- 
 ada compared to the United States, 168, 170, 171 ; in 
 France, discussed, 92; in New Zealand, 120-124; 
 changes in England, 28 ; in Germany, 60, 61. 
 
 Portugal, immigration from to New Zealand, 122. 
 
 Post, C. W., referred to, 212. 
 
 Postmen, syndicates of, 109. 
 
 Present tendencies, ZZTs, 334. 
 
 Press, freedom of in France, 94. 
 
 Pressed Steel Car Company, strike of, 262. 
 
 Progressive platform, 331, Zil. 
 
 Prohibition party, on industrial arbitration, 213. 
 
 Protection, of German workmen, 64. 
 
 Proudhon, 94. 
 
 Prussia, and state-owned utilities, 68. 
 
 Public debt, of Canada, 176. 
 
 Public opinion, in France, 114,
 
 INDEX xli 
 
 Public utilities : exploitation of, 349 ; control of, 350. 
 Pullman strike: investigation of, 268, 276, 277; report of in- 
 vestigating committee on, 277, 278. 
 
 Queensland, 147, 148. 
 
 Question, the division of porridge, 2. 
 
 Race problem, in New Zealand, 121, 122. 
 
 Railways : of Australia, discussed, 165 ; of Canada, discussed, 
 174; in New Zealand, 127; building of in United States, 
 330; strikes on in United States, 194; conciliation act 
 affecting in England, 44-47 ; organization of employees 
 of state-owned forbidden in Germany, 70. 
 
 Rambaud, Albert, quoted, 115. 
 
 Rcdfield, William C, referred to, 324. 
 
 Rent: comparisons of rate in England, France and Germany, 
 48, 61 ; discussed, 334. 
 
 Republican party, and industrial arbitration, 213. 
 
 Republic Iron and Steel Company, 309. 
 
 Restriction of apprentices, 15. 
 
 Revolution of 1830, in France, 91. 
 
 Revolution of 1848, in France, 91 ; in Germany, 83 ; results of, 
 94, 95. 
 
 Rockefeller Foundation, discussed, 270. 
 
 Roosevelt, Theodore, referred to, 268, 284, 347. 
 
 Rouvier, father of syndicates, 109. 
 
 Royal Commission, investigations of, 46. 
 
 Russia : immigration from to New Zealand, 122 ; political 
 revolution in, 83. 
 
 Sabotage, 17. 
 
 Safety: in New Zealand industries, 130; in Colorado mines, 
 
 296 ; also 98. 
 Sailors, strike of in 1802, 191. 
 Savings banks: of Australia, 148, 165; of Germany, 67, 68; of 
 
 New Zealand, 127, 128. 
 School teachers, and syndicates, 109. 
 Seamen, strike of, 138, 145. 
 Seamen's bill, 205. 
 
 Sherman, Senator John, and industrial arbitration, 273. 
 Shipping act, 128, 132. 
 Shirtwaist workers, strike of, 262. 
 Shoemakers: strike of, 191; league of, 193. 
 Shops and offices, act of, 128, 130. 
 Social conditions, 330. 
 
 Social consciousness, growth of in France, 91, 
 Social Democratic party, 83-86. 
 Social insurance. 329, 349.
 
 xlli INDEX 
 
 Socialism : birthday of in Germany, 83 ; growth of in Ger- 
 many, 84 ; program of, 86 ; in Australia, 165 ; experi- 
 ments in France, 95 ; discussed, 4-6, 332, 333. 
 
 Socialists : opposed to present industrial order, 4 ; expendi- 
 ture for strikes in Germany, 85 ; attitude toward indus- 
 trial arbitration in United States, 208, 213. 
 
 Sons of Vulcan, 192, 304. 
 
 Sorel, George, an adherent of syndicalism, 109. 
 
 South Africa, Canadian disputes act copied, 188, 189. 
 
 South Australia, wages boards of, 147. 
 
 Southern Pacific railway, strike on, 281. 
 
 Square deal, platform of, 212. 
 
 St. Simon, 94. 
 
 Stable hands, strike of. 111. 
 
 State boards of arbitration and conciliation, greatest use of, 
 351. 
 
 Statute of apprentices, 24, 34, 35. 
 
 Statute of laborers, 25. 
 
 Stove Founders' National Defense Association, 306. 
 
 Street cleaners, strike of, 246. 
 
 Strikes: in Australia, 157-163; in Canada, 181-184; in Eng- 
 land, 30, 31, 42-45, 47, 49, 51 ; in France, 93, 101, 103, 
 105, 107; frequency of generally, 7; in Germany, 79, 
 80 ; in New Zealand, 143 ; not unknown in New Zea- 
 land, 119; prohibition of advocated in France, 111; in 
 the United States. 191, 192, 196, 239-268, 275, 276, 281, 
 282, 284, 285, 288-299, 316, 317, 345. 
 
 Sweated industries, unknown in New Zealand, 127. 
 
 Switchmen, state board fails in strike of, 254. 
 
 Sympathetic strikes, discussed, 16, 17. 
 
 Syndicalism: discussed, 6, 7, 18, 19; in France, 106-110; 
 failure in New Zealand, 145. 
 
 Syndicates: "red" and "yellow," 109; of school teachers, 109; 
 land, in New Zealand, 118. 
 
 "System federation," discussed, 309. 
 
 Table : I, showing percentage of disputes settled in favor of 
 each party and compromises in Great Britain, 45 ; II, 
 showing causes of disputes, 1903-1912 in Great Britain, 
 50; III, showing number of disputes, working men in- 
 volved, and time lost in Great Britain, 1903-1912, 51 ; 
 IV, showing an epitomized history of German strikes, 
 1903-1912, 79; V, showing the results of strikes for 
 three years, 1909-1911, 80; VI, showing number of 
 strikes for each year, 1905-1912, in France, with num- 
 ber of strikers, establishments affected and time lost, 
 103; VII, showing operation of French conciliation and
 
 INDEX xllli 
 
 Table — Continued. 
 
 arbitration act of 1892, for period 1902-1912, 104 ; VIII, 
 showing results of efforts at conciliation and arbitra- 
 tion under French laws, 1902-1911, 105; IX, showing 
 manner in which strikes were ended by application of 
 French act of 1892, 107 ; X, showing results of strikes 
 in France, 1902-1912, 107; XI, showing success of arbi- 
 tration and conciliation by state boards in five states 
 for stated periods, 241 ; XII, showing results of inter- 
 ventions in industrial disputes by the New York board, 
 242; XIII, showing the work of the Massachusetts 
 board for period, 1905-1911, 244; XIV, showing num- 
 ber of strikes, establishments involved, strikers, and 
 employees thrown out of work by states, 1881-1905, 248, 
 249; XV, showing lockouts, etc., by states, 1881-1905, 
 250, 251 ; XVI, showing methods by which industrial 
 disputes in Great Britain were settled, 1903-1912, 319; 
 XVII, showing number and percentage of members of 
 labor unions idle in New York, 1897-1912, 338 ; XVIII, 
 showing percentage of idleness due to each cause, 339. 
 
 Taboo, effect of in New Zealand, 11. 
 
 Tasmania, 148. 
 
 Taxation in Australia: 152; in Germany, 60. 
 
 Taxicab drivers, strike of, 246. 
 
 Teamsters, strike of, 253. 
 
 Telegraphers, strike of, 183. 
 
 Term of board members, 216. 
 
 Texas : award of board binding under law, 237 ; investigation 
 of disputes, 232; judgment of award, 220; law of no 
 avail, 264; no provision for mediation, 218; provisions 
 for arbitration, 220. 
 
 Theatrical managers, referred to, 308. 
 
 Thiers, president of third republic, 98. 
 
 Thorold Rogers, estimate of English working men, 52. 
 
 Tobacco, use of in New Zealand, 135. 
 
 Tortelier, and general strike, 108. 
 
 Trade agreements : 192, 300-320 ; discussed, 327. 
 
 Trade, foreign of Canada, 175. 
 
 Trade guilds, and feudalism, 87. 
 
 Trade unions: in Australia, 157; in France, 109; in Germany, 
 71, 85, 86; in New Zealand, 126. 
 
 Trinidad, convention at, 288, 289. 
 
 Turgot, and trade guilds, 87. 
 
 Typographical union, and collective bargaining, 301. 
 
 Unemployment : in England, 55 ; causes of, 328, 329 ; increas- 
 ing, 337 ; in mines, 338 ; free employment agencies, 338. 
 Union, recognition of, 312.
 
 xHv INDEX 
 
 United Board of Building Trades, 304. 
 
 United Mine Workers : attitude toward Canadian act, 188 ; 
 campaign in Colorado, 288; character of, 291; dis- 
 cussed, 327; recognition demanded, 290, 291. 
 
 United States : agriculture, mining and manufacturing in, 
 125 ; foreign-born population of, 123 ; devices for arbi- 
 tration and conciliation, 239-267 ; immigration from to 
 New Zealand, 136 ; Colorado coal strike, 288, 299 ; initial 
 experiments in arbitration and conciliation, 191-214; 
 interstate strikes, 268-287; legislation in on arbitration 
 and conciliation, 215-238; occupations, 126; land prob- 
 lem, 149; trade agreements, 300-320, 
 
 United States Steel Corporation, 308. 
 
 United Typothetse, 303. 
 
 Utah: awards of arbitration board, 236; investigation of dis- 
 putes, 232 ; law of no avail, 253, 255 ; minimum wage 
 law, 339; submission of grievances, 227. 
 
 Van Cleave, James W., referred to, 212. 
 
 Vermont: arbitration law of, 227; award of board, 235; ex- 
 pert assistance, 234; investigation of disputes, 227, 230; 
 law enacted, 261. 
 
 Victoria, wages boards of, 146. 
 
 Violence, 26, 294. 
 
 Vocational education, 329, 330, 339, 341, 349. 
 
 Voluntary arbitration, 216. 
 
 Von Schulze-Gaevernitz, Dr. G. : referred to, 27; quoted, 
 31, 53. 
 
 Wage agreements, 82. 
 
 Wage boards, 155, 157, 159, 162. 164. 
 
 Wages and living : 334-337 ; discussed, 15 ; in Canada, 173, 
 174 ; in England, 25 ; England, France and Germany 
 compared, 48 ; New Zealand, 123 ; New Zealand and 
 United States compared, 132-134. 
 
 Washington: awards of arbitration boards, 236; provisions 
 for arbitration, 218 ; investigation of disputes, 232 ; pro- 
 visions for mediation, 218; act of no avail, 264; mini- 
 mum wage law, 339. 
 
 Weinstock, Harris, quoted, 156. 
 
 Western Federation of Labor, and Canadian disputes act, 188. 
 
 Western Federation of Miners, referred to, 209. 
 
 Westinghouse plant, decrease in labor at, 330. 
 
 West Virginia, coal strike in, 287. 
 
 Wisconsin: housing law of, 344; industrial commission, 200; 
 work of, 266, 267; state board of arbitration, work of, 
 267; awards of board, 236.
 
 INDEX xlv 
 
 Workers: aristocratic preference among, 86; dwelling act of 
 in New Zealand, 128 ; organization of in large and small 
 cities, 82; welfare of in Australia, 146; committees of 
 in collieries, 82 ; American and German compared, 86. 
 
 Workingmen's Association, founded, 30. 
 
 Workmen's compensation, 82, 128, 130, 131. 
 
 Yonkers, street railway strike at, 246.
 
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