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The Hart Schaffher & Marx 
 Labor Agreement 
 
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The Hart Schaffner & Marx 
 Labor Agreement 
 
 Being a Compilation and Codification of the Agreements 
 
 of 1911, 1913 and 1916 and decisions rendered 
 
 by the Board of Arbitration 
 
 By 
 J. E. Williams 
 
 Chairman of Board of Arbitration 
 
 Sidney Hillman 
 
 President Amalgamated Clothing Workers of America, 
 formerly chief deputy for the union 
 
 Earl Dean Howard 
 
 Director of Labor for Hart Schaffner & Marx 
 
 CHICAGO 
 
 1916 
 

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 ADMINISTRATIVE ORGANIZATION OF 
 
 THE HART SCHAFFNER & MARX 
 
 LABOR AGREEMENT 
 
 BOARD OF ARBITRATION 
 
 J. E. Williams, Chairman 
 
 William O. Thompson, for the A. C. W. A. 
 
 Carl Meyer, for H. S. & M. 
 
 TRADE BOARD 
 
 James Mullenbach, Chairman 
 
 FOR THE amalgamated CLOTHING WORKERS OF AMERICA 
 
 Joseph Kaminisky Morris Spitzer 
 
 Samuel Diamond Samuel Albert 
 
 Robert Cunat Hyman Isovitz 
 
 for hart schaffner & marx 
 
 Albert Kirch Louis Kovell - 
 
 Adolph Larson 
 
 DEPUTIES 
 
 for hart schaffner & marx 
 Earl Dean Howard Gilbert L. Campbell 
 
 FOR THE amalgamated CLOTHIJsTG WORKERS OF AMERICA 
 
 Samuel Levin, Local 39 Edward Anderson, Local 61 
 
 Joseph Glickman, Local 152 John Katilius, Local 269 
 
 PIECE RATE COMMITTEE 
 
 James Mullenbach, Chairman 
 Gilbert L. Campbell A. D. Marimpietri 
 
 380526 
 
CONTENTS 
 
 I. Administrative Organization of the Hart Schaffner Si. Marx 
 Labor Agreement. 
 
 II. Preamble to the Agreement by Mr. J. E. Williams, 
 
 chairman of Board of Arbitration . . Page 1 
 
 III. Text of the Hart Schaffner & Marx Labor Agree- 
 
 ment with the Amalgamated Clothing Workers 
 
 of America ...... Page 2 
 
 IV. The Experience of Hart Schaffner & Marx with 
 
 Collective Bargaining. (April, 1914) . Page 22 
 
 V. The Development of Government in Industry, by 
 
 Earl Dean Howard .... Page 29 
 
 VI. A New Field for Systematic Justice, by Dean John 
 
 Wigmore ...... Page 37 
 
 VII. Making Piece-Work Rates under Hart SchaflFner 
 
 & Marx Agreement . . . . Page 40 
 
 VIII. Statement of Mr. Sidney Hillman, April 26, 1916. 
 
 (Fac-simile letter) ..... Page 42 
 
The Hart Schaffner & Marx 
 Labor Agreement 
 
 Preamble 
 
 By Mr. J. E. Williams, 
 Chairman of The Board of Arbitration 
 
 The parties whose names are signed hereto purpose entering 
 into an agreement for collective bargaining with the intention of 
 agreeing on wage and working conditions and to provide a method 
 for adjusting any differences that may arise during the term of this 
 contract. 
 
 In order that those who have to interpret this instrument may 
 have some guide as to the intentions and expectations of the parties 
 when entering into this compact, they herewith make record of their 
 spirit and purpose, their hope and expectations, so far as they are 
 now able to forecast or state them. 
 
 On the part of the employer it is the intention and expectation 
 that this compact of peace will result in the establishment and main- 
 tenance of a high order of discipline and efficiency by the willing 
 co-operation of union and workers rather than by the old method of 
 surveillance and coercion ; that by the exercise of this discipline all 
 stoppages and interruptions of work, and all wilful violations of 
 rules will cease ; that good standards of workmanship and conduct 
 will be maintained and a proper quantity, quality and cost of pro- 
 duction will be assured ; and that out of its operation will issue such 
 co-operation and good will between employers, foremen, union and 
 workers as will prevent misunderstanding and friction and make 
 for good team work, good business, mutual advantage and mutual 
 respect. 
 
 On the part of the union it is the intention and expectation 
 that this compact will, with the co-operation of the employer, operate 
 in such a way as to maintain, strengthen, and solidify its organiza- 
 tion, so that it may be made strong enough, and efficient enough, to 
 
THE HART SCHAFFNER & A4ARX 
 
 co-operate as contemplated in the preceding paragraph ; and also that 
 it may be strong enough to command the respect of the employer 
 without being forced to resort to militant or unfriendly measures. 
 
 On the part of the workers it is the intention and expectation 
 that they pass from the status of wage servants, with no claim on 
 the employer save his economic need, to that of self-respecting parties 
 to an agreement which they have had an equal part with him in 
 making; that this status gives them an assurance of fair and just 
 treatment and protects them against injustice or oppression of those 
 who may have been placed in authority over them; that they will 
 have recourse to a court, in the creation of which their votes were 
 equally potent with that of the employer, in which all their grievances 
 may be heard, and all their claims adjudicated; that all changes 
 during the life of the pact shall be subject to the approval of an im- 
 partial tribunal, and that wages and working conditions shall not 
 fall below the level provided for in the agreement. 
 
 The parties to this pact realize that the interests sought to be 
 reconciled herein will tend to pull apart, but they enter it in the 
 faith that by the exercise of the co-operative and constructive spirit 
 it will be possible to bring and keep them together. This will involve 
 as an indispensable pre-requisite the total suppression of the militant 
 spirit by both parties and the development of reason instead of forct 
 as the rule of action. It will require also mutual consideration and 
 concession, a willingness on the part of each party to regard and serve 
 the interests of the other, so far as it can be done without too great 
 a sacrifice of principle or interest. With this attitude assured it is 
 believed no differences can arise which the joint tribunal cannot 
 mediate and resolve in the interest of co-operation and harmony. 
 
 SECTION I 
 
 Administration 
 
 This agreement is entered into between Hart Schaffner & Marx, 
 a corporation, and the Amalgamated Clothing Workers of America, 
 and is effective from May 1st, 1916 to April 30th, 1919. 
 
 Officers of the Agreement 
 
 The administration of this agreement is vested in a Board of 
 Arbitration and a Trade Board, together with such deputies, officials 
 
LABOR AGREEMENT 
 
 and representatives of the parties hereto as are now or hereafter may 
 be appointed for that purpose, whose duties and powers are herein- 
 after described. 
 
 Board of Arbitration 
 
 The Board of Arbitration shall have full and final jurisdiction 
 over all matters arising under this agreement and its decisions there- 
 upon shall be conclusive. 
 
 It shall consist of three members, one of whom shall be chosen 
 by the union, one by the company, and the third shall be the mutual 
 choice of both parties hereto and shall be the chairman of the Board. 
 It is agreed that the board as constituted under the old agreement 
 shall be continued during the present agreement, William O. Thomp- 
 son being the choice of the union, Carl Meyer, the choice of the 
 company and J. E. Williams, chairman, being chosen by agreement 
 of both parties. 
 
 It shall be the duty of the Board to investigate, and to mediate 
 or adjudicate all matters that are brought before it and to do all in its 
 power to insure the successful working of the agreement. In reach- 
 ing its decisions the Board is expected to have regard to the general 
 principles of the agreement; the spirit and intent, expressed or im- 
 plied, of the parties thereto; and, especially, the necessity of making 
 the instrument workable, and adaptable to varying needs and condi- 
 tions, while conserving as fully as possible the essential interests of the 
 parties involved. 
 
 The line of practice already developed by the Board shall be 
 continued. This contemplates that questions of fact and testimony 
 shall in the main be considered by the Trade Board while the Board 
 of Arbitration will concern itself mainly with questions of principle 
 and the application of the agreement to new issues as they arise. 
 But this is not to be construed as limiting the power of the Board, 
 which is broad enough to make it the judge of facts as well as prin- 
 ciple when necessary, and to deal with any question that may arise 
 whose disposition is essential to the successful working of the agree- 
 ment. 
 
 By agreement between the chief deputies, cases may be heard and 
 decided by the chairman of the Board alone. 
 
THE HART SCHAFFNER & MARX 
 
 Emergency Powers 
 
 If there shall be a general change in wages or hours in the 
 clothing industry, which shall be sufficiently permanent to warrant 
 the belief that the change is not temporary, then the Board shall 
 have power to determine whether such change is of so extraordinary 
 a nature as to justify a consideration of the question of making a 
 change in the present agreement, and, if so, then the Board shall have 
 power to make such changes in wages or hours as in its judgment shall 
 be proper. 
 
 Trade Board 
 
 The Trade Board is the primary board for adjusting grievances^ 
 and shall have original jurisdiction over all matters arising under 
 this agreement and the decisions relating thereto, and shall consider 
 and dispose of all such matters when regularly brought before it, 
 subject to such rules of practice and procedure as are now or may 
 be hereafter established. 
 
 The Board shall consist of eleven members, all of whom except- 
 ing the chairman, shall be employes of Hart Schaffner & Marx. 
 Five members shall be chosen by the company, and five by the union, 
 and it is understood that these shall be selected in such manner as 
 to be representative of the various departments — cutting and trim- 
 ming, coat, vest and trousers. 
 
 The Board shall be presided over by a chairman who shall rep- 
 resent the mutual interests of both parties hereto, and especially the 
 interest of the successful working of this agreement. He shall pre- 
 side at meetings of the Board, assist in investigation of complaints, 
 endeavor to mediate conflicting interests, and, in case of disagree- 
 ment, shall cast the deciding vote on questions before the Board. 
 He shall also act as umpire on the cutting room commission, and 
 perform such other duties as may be required of him by the agree- 
 ment or by the Board of Arbitration. 
 
 The chairman shall hold office during the term of the agree- 
 ment, and in case of death, resignation, or inability to act, the vacancy 
 shall be filled by the Board of Arbitration. 
 
 It is especially agreed that James MuUenbach, chairman under 
 the former agreement, shall be retained under the present agreement. 
 
 Meetings of the Board shall be held whenever necessary at 
 
LABOR AGREEMENT 
 
 such times as the chairman shall direct. Whenever an authorized 
 representative of both parties is present, it shall be considered a 
 quorum. Each part}' is privileged to substitute an alternate in place 
 of the regular member whenever they so desire. Should either side, 
 after reasonable notice, fail to send a representative to sit on the 
 Trade Board, then the chairman may proceed the same as if both 
 parties were present. 
 
 Members of the Board shall be certified in writing to the chair- 
 man by the Joint Board of Hart Schaffner & Marx, and the proper 
 official of the company and any member, other than the chairman, 
 may be removed and replaced by the power appointing him. 
 
 Deputies 
 
 The deputies are the officers having direct charge of the execu- 
 tion of the provisioins of this agreement in the interest of their re- 
 spective principals. Each of the parties hereto shall have a sufficient 
 number of deputies to properly take care of the work necessary to 
 be done to keep the docket from being clogged with complaints, and 
 to insure an efficient working of the agreement. They shall have 
 power to investigate, mediate, and adjust complaints, and settlements 
 made by the deputies of the parties in dispute shall be legally binding 
 on their principals. In case of appeal to the Trade Board or Board 
 of Arbitration the deputies may represent their respective principals 
 before these Boards, and shall have power to summon and examine 
 witnesses, to present testimony or evidence, and do such other thmgs 
 as may be necessary to place their case properly before the trial body, 
 and such body shall see to it that they be given adequate opportunity 
 and facility for such presentation, subject to the usual rules of pro- 
 cedure. 
 
 One of the deputies on each side shall be known as the chief 
 deputy, and the statement of the chief deputy shall be regarded as 
 an authoritative presentation of the position of his principal in any 
 matter in controversy. Unless reversed or modified by either of the 
 Trial Boards the agreement of the chief deputies in all matters over 
 which they or their principals have authority shall be observed by 
 all parties. 
 
 The union deputy shall have access to any shop or factory for the 
 purpose of making investigations of complaints; but he shall m all 
 
THE HART SCHAFFNER & MARX 
 
 cases be accompanied by the representative of the employer. Provided, 
 that the latter may at his option waive his right to accompany him, 
 also that in minor matters where convenience or expedition may be 
 served the union deputy may call out the shop chairman to obtain 
 information without such waiver. 
 
 The deputies shall be available to give their duties prompt and 
 adequate attention, and shall be subject to the direction of the Trade 
 Board in all matters relating to the administration of this agreement. 
 
 Qualifications of Deputies 
 
 Each deputy, in order to qualify for duty, must have a commis- 
 sion signed by the proper official representing the union or the 
 company, and said commission must be countersigned by the chairman 
 of the Trade Board. Deputies must be either employes of Hart 
 Schaffner & Marx, or must be persons who are connected with the 
 Joint Board of Hart Schaffner & Marx. 
 
 Shop Representative 
 
 The union shall have in each shop a duly accredited representa- 
 tive authorized by the Joint Board who shall be recognized as the 
 officer of the union having charge of complaints and organization 
 matters within the shop. He shall be empowered to receive com- 
 plaints and be given sufficient opportunity and range of action to 
 enable him to make proper inquiry concerning them. When nec- 
 essary for the shop representative to leave his place to investigate 
 complaints the foreman may, if he deems it necessary, ask to be 
 informed of the purpose of his movements, and the representative 
 shall comply with his request. 
 
 It is understood the shop representative shall be entitled to 
 collect dues and perform such other duties as may be imposed on 
 him by the union, provided they be performed in such manner as 
 not to interefere with shop discipline and efficiency. 
 
 It is expected that he will represent the co-operative spirit of 
 the agreement in the shop, and shall be the leader in promoting 
 that amity and spirit of good will which it is the purpose of this 
 instrument to establish. 
 
 The co-operative spirit enjoined on the shop representative in 
 the foregoing paragraph shall be expected in equal degree from 
 
LABOR AGREEMENT 
 
 the shop superintendent, who shall be expected to contribute his 
 best efforts to promote harmony and good will in the shops. 
 
 SECTION II 
 
 Procedure 
 
 When Grievances Arise 
 
 When a grievance arises on the floor of the shop, the com- 
 plainant shall report it with reasonable promptness to the shop 
 representative, who shall present it without undue delay to the 
 shop superintendent. These two may discuss the complaint in a 
 judicial temper, and may endeavor to agree to an adjustment. It 
 is understood, however, that they are not a trial board, and it is 
 not expected that they shall argue or dispute over the case. In 
 the event that the shop representative is not satisfied with the action 
 of the superintendent, he may promptly report the matter to his 
 deputy, with such information as will enable him to deal advisedly 
 with the case. 
 
 Failure to comply with these provisions for the regulation of 
 shop transactions shall subject the offender to discipline by the 
 Trade Board. 
 
 Informal oral adjustments made by shop officials are subject to 
 revision by the Trade Board, and are not binding on their principals 
 unless ratified by the chief deputies. 
 
 Adjustment by Deputies 
 
 When the shop officers report a disputed complaint to their 
 respective deputies, they shall give it such investigation as its nature 
 or importance demands, either by visitation to the shop or by the 
 taking of testimony, and shall make an earnest endeavor to reach a 
 settlement that will be just and satisfactory to all the parties in 
 dispute. 
 
 Disagreement by Deputies 
 
 In the event of a failure to agree on an adjustment, the deputies 
 shall certify the case for trial to the Trade Board, agreeing on a 
 written statement of facts if possible. In certifying such disagree- 
 ment the deputy appealing to the Board shall file a statement stating 
 
THE HART SCHAFFNER & MARX 
 
 specifically the nature of the complaint alleged with the Trade 
 Board, and shall furnish a copy to the representative of the dissent- 
 ing party who shall have, at least, twenty-four hours to prepare his 
 answer, unless otherwise agreed on ; provided, that by direction .of 
 the chairman of the Trade Board emergency cases may be brought 
 to trial at once. Where no statement has been filed in writing 
 within a reasonable time after disagreement of the deputies, it may be 
 assumed that the disagreehient no longer exists, and the case may be 
 considered settled. 
 
 Docket and Records 
 
 The chairman of the Trade Board shall keep a docket in which 
 all cases shall be entered in the order of their arising. Unless 
 otherwise directed by the chairman, cases shall be heard in the order 
 of their filing. Duplicate records shall be made by the Board, one 
 copy of which shall be retained by the Chairman, and one given 
 to the chief deputy for the union. Such records shall contain all 
 complaints filed with the Board; orders or decisions of the Board, 
 or of the deputies or of any committee ; calendars of pending cases, 
 and such other matter as the Trade Board may order placed upon the 
 records. 
 
 Direct Complaints 
 
 Complaints may be made directly by either party, without the 
 intervention of a shop representative, whenever it desires to avail 
 itself of the protection of the agreement; but a statement of the 
 facts and grounds of such complaints must be filed in writing as 
 hereinbefore provided. Unless written notice has been filed, it may 
 be presumed, officially, that no complaint exists. 
 
 Decisions, Appeals, Etc. 
 
 All decisions of the Trade Board shall be in writing, and copies 
 given to the representatives of each party. Should either party desire 
 to appeal from the decision, it shall file with the Board a notice of 
 its intention so to do within ten days of the date of the decision. 
 Or if either party desires an amendment or modification of the 
 decision, or a stay of execution pending the appeal, it may make 
 a motion in writing to that effect, and the chairman shall use his 
 
LABOR AGREEMENT 
 
 discretion in granting it. In certifying the case to the Board of 
 Arbitration, the chairman shall make a summary of the case in 
 writing, giving the main facts and the grounds for his decision. 
 
 Number of Higher Trial Board 
 
 On being notified of the appeal to the Board of Arbitration, 
 said appeal may be heard by the chairman, as representative of the 
 Board, if both parties agree to it and it is acceptable to him. He shall, 
 how^ever, have the right to call for the full Board if in his judgment 
 the situation requires it. In the event that the representative of the 
 Board of either party is unable to attend a Board meeting, such 
 party, may at its discretion, furnish a substitute. 
 
 Hearing, How Conducted 
 
 The chairman shall determine the time and place of meeting and 
 shall notify all the parties in interest. Each party shall prepare 
 the case in advance, and have its testimony, evidence, and facts in 
 readiness for the hearing. The Board shall give each party ample 
 opportunity to present its case, but shall be the judge of procedure 
 and shall direct the hearing as to its order and course. After giving 
 an adequate hearing of the evidence and arguments the Board shall 
 render its decision in writing, and shall furnish copies to the chief 
 deputies of each party and to the chairman of the Trade Board. In 
 the event that the Board is unable to reach a unanimous decision, 
 the decision of a majority shall be binding. 
 
 Motions for Rehearing 
 
 The Board may after a reasonable time grant a rehearing of any 
 decision, if, in its judgment, there appears sufficient reasons for 
 doing so. Decisions are to be regarded as the Board's best solu- 
 tion of the problem offered to it at the time of hearing, but as the 
 problem changes with time and experience it is proper there should 
 be afforded a reasonable opportunity for rehearing and review. Mo- 
 tions for a rehearing shall be made in writing, and shall set forth 
 the reason for the request. 
 
 Enforcement of Decisions 
 
 All decisions, whether of deputies, Trade Board, or Board of 
 Arbitration, shall be put into execution within a reasonable time, 
 
10 THE HART SCHAFFNER & MARX 
 
 and failure to do so, unless for explainable cause, shall convict the 
 delinquent party of disloyalty to the agreement. The party in error 
 shall be notified of the charge, and suitable discipline imposed. The 
 chief deputy of each party shall be held responsible in the first, in- 
 stance, for enforcement of decisions or adjustments herein referred 
 to, and shall be held answerable, primarily, to the Trial Board. 
 
 SECTION III 
 
 Rates and Hours 
 Schedules of Piece Work Rates 
 
 The prices and rates of pay that are to be in force during 
 the life of this agreement are set forth in the schedules prepared 
 for that purpose, duly authenticated by the proper signatures, and 
 which are made a part hereof. 
 
 Hours of Work 
 
 The hours of work in the tailor shops shall be forty-nine per 
 week, with the Saturday half holiday. 
 
 Minimum Wage 
 
 The minimum wage scale in the tailor shop shall be as follows; 
 
 1st 2nd 3rd 
 
 month month month 
 
 Machine operators (male and female) . . .$ 5.00 $ 7.00 $ 9.00 
 
 Women in hand work sections 5.00 6.00 8.00 
 
 Men, 18 years and over, not operators. . . 8.00 10.00 12.00 
 
 All men not included in above 8.00 9.00 10.00 
 
 Inspector tailors (men) 16.00 
 
 Overtime 
 
 For work done in excess of the regular hours per day, overtime 
 shall be paid to piece workers of 50% in addition to their piece work 
 rates; to the week workers at the rate of time and a half; no 
 work shall be allowed on Sundays or legal holidays. Christmas, 
 New Years, Decoration Day, Fourth of July, Labor Day and 
 Thanksgiving Day shall be observed as holidays. 
 
Week Workers' Scale 
 
 It is agreed that the question of classified wage scale, and 
 periodical increase of pay for service, shall remain in the hands of 
 Messrs. MuUenbach, Campbell and Marimpietri, to whom it was 
 referred by the Conference Committee, until they are ready to report. 
 
 The week work schedule as agreed on by the committee, which 
 has been accepted and signed by both the parties hereto, is hereby 
 made a part of this agreement, subject to any changes that may be 
 made as provided for above. 
 
 Piece Rate Committee 
 
 Whenever a change of piece rate is contemplated the matter shall 
 be referred to a specially appointed rate committee who shall fix 
 the rate according to the change of work. If the committee dis- 
 agree the Trade Board shall fix the rate. In fixing the rates, the 
 Board is restricted to the following rule : 
 
 Changed rates must correspond to the changed work and new 
 rates must be based upon old rates where possible. 
 
 Hour Rates for Piece Workers 
 
 In case workers are changed from piece to hour work, the hour 
 rates for such piece workers shall be based on their earnings on 
 piece work. 
 
 Changing Operations 
 
 In the event a piece worker is required to change his mode of 
 operation so that it causes him to lose time in learning, his case may 
 be brought to the Rate Committee for its disposition. 
 
 SECTION IV 
 
 Preference 
 
 rhe Preferential Shop 
 
 It is agreed that the principle of the preferential shop shall pre- 
 /^ail, to be applied in the following manner: 
 
 Preference shall be applied in hiring and discharge. When- 
 :ver the employer needs additional workers, he shall first make 
 
12 THE HART SCHAFFNER & MARX 
 
 needed. The union shall be given a reasonable time to supply the 
 specified help, and if it is unable, or for any reason fails to furnish 
 the required people, the employer shall be at liberty to secure them 
 in the open market as best he can. 
 
 In like manner, the principle of preference shall be applied in 
 case of discharge. Should it at any time become necessary to reduce 
 the force in conformity with the provisions of this agreement the 
 first ones to be dismissed shall be those who are not members of the 
 union in good and regular standing. 
 
 Discipline of Union Members 
 
 The Trade Board and Board of Arbitration are authorized to 
 hear complaints from the union concerning the discipline of its mem- 
 bers and to take any action necessary to conserve the interests of the 
 agreement. The members referred to herein are those who have 
 joined, or who may hereafter join, the Amalgamated Clothing Work- 
 ers of America. 
 
 Preference in Transfers 
 
 If it becomes necessary to transfer workers from one shop to an- 
 other, the non-union workers shall be the first to be transferred, 
 unless at request of the foreman, union workers are willing to go. 
 Or if it becomes necessary in the judgement of the company 
 to transfer a worker from a lower to a higher paid section or opera- 
 tion, it is agreed that union workers shall have preference in such 
 transfers. Provided, that nothing herein shall be construed to be in 
 conflict with the provision relating to transfer for discipline and, 
 provided, that they are qualified to perform the work required and 
 that their departure from their section does not work to the dis- 
 advantage of that section. 
 
 Overcrowding of Sections 
 
 Overcrowding of sections is important in this agreement as the 
 point at which the provision for preference becomes operative. It 
 is agreed that when there are too many workers in a section to per- 
 mit of reasonably steady employment, a complaint may be lodged 
 by the union, and if proved, the non-union members of the section, 
 or as many of them as may be required to give the needed relief, 
 shall be dismissed. For the purpose of judging the application of 
 
LABOR AGREEMENT 13 
 
 preference the Trade Board shall take into consideration the actual 
 employment condition in the section, as to whether there are more 
 people employed at the time of complaint than are needed to do the 
 work, and whether they, or any of them, can be spared without sub- 
 stantial injury to the company. If it is found that the section can be 
 reduced without substantial injury, the Trade Board shall enforce 
 the principle of preference as contemplated in the agreement. 
 
 Avoidance of Injury 
 
 Among the things to be considered in the enforcement of pref- 
 erence are the needs of maintaining an adequate balance of sec- 
 tions, of the requirements of the busy season, of the difficulty of 
 hiring substitutes, and the risk of impairing the efficiency of the 
 organization. The claims for enforcement of preference and for 
 avoidance of injury to the manufacturing organization are to be 
 weighed by the Trade Board, and the interests of both claims safe- 
 guarded as far as possible, the intention being to enforce preference 
 so far as it can be done without inflicting substantial injury on the 
 company. 
 
 Preference of Seniority 
 
 If in order to properly balance sections, a reduction of force 
 be required greater than can be secured by the laying off of a non- 
 union worker as provided for herein, then there may be laid off 
 those who are members of the union in the order of their seniority 
 who have been in the employ of the company for a period of six 
 months or less, provided that any exceptionally efficient worker, or 
 any especially valuable member of the union, may be exempted from 
 the rule of seniority. Provided, also, the company shall give notice 
 to the chief deputy of its intention to discharge under this clause, 
 and if he fails to agree the matter shall be referred to the Trade 
 Board. 
 
 SECTION V 
 
 Working Conditions 
 
 Discipline 
 
 The full power of discharge and discipline remains with the 
 company and its agents; but it is understood that this power should 
 
14 THE HART SCHAFFNER & MARX 
 
 be exercised with justice and with due regard to the reasonable 
 rights of the employe, and, if an employe feels that he has been un- 
 justly discharged, he may have appeal to the Trade Board, which 
 shall have the power to review the case. 
 
 Every person suspended shall receive a written notice, directing 
 him to appear at the office of the company for a decision. Every 
 suspension notice properly presented to the discipline officer of the 
 company must be disposed of within six working hours from the 
 time of its presentation and a definite decision announced to the 
 suspended person. 
 
 Stoppages 
 
 In case of a stoppage of work in any shop or shops, a deputy 
 from each side shall immediately repair to the shop or shops in ques- 
 tion. 
 
 If such stoppage shall occur because the person in charge of the 
 shop shall have refused to allow the people to continue work, he shall 
 be ordered to immediately give work to the people, or in case the em- 
 ployes have stopped work, the deputies shall order the people to 
 immediately return to work, and in case they fail to return to work 
 within an hour from such time such people shall be considered as 
 having left the employ of the corporation, and shall not be entitled 
 to the benefit of these rules. 
 
 Detention in Shop 
 
 Workers shall not be detained in the shops when there is in- 
 sufficient work for them. The company or its agent shall exercise 
 due foresight in calculating the work available, and as far as prac- 
 ticable shall call only enough workers into the factory to do the 
 Work at sight. And if a greater number report for work than 
 there is work for, those in excess of the number required shall 
 be promptly notified and permitted to leave the shop. The work 
 on hand shall be divided as equally as mav be between the remain- 
 ing workers. 
 
 Complaint Slips 
 
 Before or at the time of entering any complaint against any 
 employe in the complaint book said employe shall be notified thereof 
 so he may have the opportunity of notifying a deputy of the Board 
 and have said complaint investigated. 
 
LABOR AGREEMENT 15 
 
 Lay-Oflfs 
 
 Workers who are dismissed may be given lay-off memoranda 
 allowing them to return to their shops or factories, trimming or 
 cutting rooms, when there is need for their services. Provided, this 
 clause shall not be construed to give such worker precedence over 
 union members, or to interfere in any way with the provision for 
 preference in hiring. 
 
 Transfer of Employes 
 
 The company has the right to transfer employes for purposes of 
 administration or discipline, subject to review by the Trade Board. 
 If the Board finds that any transfer is being made to lower wages, 
 or for any discrimination or improper purpose, or if injustice is being 
 done the worker by the transfer, the Board may adjust the complaint. 
 
 SECTION VI 
 
 General Provisions 
 Lay Off of Workers 
 
 No union member who is a permanent worker shall be laid off 
 in the tailor shops except for cause, whether in the slack or busy 
 season, except as provided herein. Cause for temporary lay off 
 may be alternation of w^orking periods in slack times, reorganization 
 or reduction of sections, lawful discipline, and such other causes as 
 may be provided for herein or directed by the Trade Board. 
 
 Go-Operation to Abolish Waiting 
 
 The company and the deputies have agreed to co-operate to- 
 gether to abolish all unnecessary waiting in the shops. 
 
 Division of Work 
 
 During the slack season the work shall be divided as near as 
 is practicable among all hands. 
 
 Abandonment of Position 
 
 Whenever any employe shall have absented himself from his 
 accustomed place without giving an acceptable reason to the foreman 
 
16 THE HART SCHAFFNER & MARX 
 
 or other officers in charge of his work before the end of the second 
 business day of his absence, the employer may consider his position 
 forfeited. Notice of absence and reason therefor must be given to 
 foreman by messenger, mail or telephone. 
 
 Abolishment of Section 
 
 When sections are abolished, the company and its agents shall 
 use every effort to give the displaced workers employment as much 
 as possible like the work from which they were displaced, within a 
 reasonable time. 
 
 Sickness 
 
 Any workers who are absent on account of sickness shall be re- 
 instated in their former positions if they return within a reasonable 
 time. 
 
 Trade Board Members 
 
 Complaints against members of the Trade Board as workmen 
 are to be madc' by the foremen to the Trade Board. Any action 
 of any employe as a member of the Trade Board shall not be con- 
 sidered inimical to his employment with the corporation. No mem- 
 ber of a Trade Board shall sit on a case in which he is interested, 
 or to which he is a party. 
 
 Union Membership 
 
 The provisions for preference made herein require that the door 
 of the union be kept open for the reception of non-union workers. 
 Initiation fee and dues must be maintained at a reasonable rate, and 
 any applicant must be admitted who is not an offender against the 
 union and who is eligible for membership under its rules. Provided, 
 that if any rules be passed that impose an unreasonable hardship, 
 or that operate to bar desirable persons, the matter may be brought 
 before the Trade Board or Board of Arbitration for such remedy 
 as it may deem advisable. 
 
 The Old Agreement 
 
 The provisions of the old agreement and the decisions based there- 
 on shall be regarded as being in force except as they may be modi- 
 fied by, or are not in conflict with the provisions of the present 
 agreement. 
 
LABOR AGREEMENT 17 
 
 SECTION VII 
 
 Loyalty to the Agreement 
 
 Experience suggests that there are certain points of strain which 
 it would be wise to recognize in advance and to safeguard as far as 
 possible. Among the points to be safeguarded are the following : 
 
 1. When dissatisfaction arises over change of price or work- 
 ing conditions. It is believed that the agreement provides a remedy 
 for every such grievance that can arise, and all complainants are 
 urged and expected to present their cases to the proper officials and 
 await an adjustment. If any one refuses to do this, and, instead, 
 takes the law in his own hands by inciting a stoppage or otherwise 
 foments dissatisfaction or rebellion, he shall, if convicted, be ad- 
 judged guilty of disloyalty to the agreement and be subject to dis- 
 cipline by the Trade Board. 
 
 2. Strain may arise because of unsatisfactory personal rela- 
 tions between workers and officials. The company's officials are 
 subject to the law as are the workers, and equally responsible for 
 loyalty in word and deed, and are subject to discipline if found 
 guilty of violation. Any complaints against them must be made 
 and adjudicated in the regular manner. They are to respect the 
 workers and be respected by them in their positions, and supported 
 in the proper discharge of their duties. Any one indulging in im- 
 proper language or conduct calculated to injure them or to break 
 down their authority in the shop shall be adjudged guilty of disloyalty 
 and disciplined accordingly. 
 
 3. Officials of the union are equally under the protection of 
 the agreement when in the exercise of their duties as are the officials 
 of the company, and any words or acts tending to discredit them or 
 the union which they represen' or which are calculated to injure the 
 influence or standing of thf, union or its representatives shall be 
 considered as disloyalty to the agreement and the offender shall be 
 subject to discipline by the Trade Board. 
 
 Provided, however, that no reasonable criticism or expression 
 of disagreement expressed in proper language shall be deemed a viola- 
 tion within the meaning of this section. 
 
 4. If any worker shall wilfully violate the spirit of the agree- 
 ment by intentional opposition to its fundamental purposes and es- 
 
18 THE HART SCHAFFNER & MARX 
 
 pecially if he carry such wilful violation into action by striking and 
 inciting others to strike or stop work during working hours, he shall, 
 if charge is proven, be subject to suspension, discharge or fine. Pro- 
 vided, that if a fine is imposed its amount shall be determined by 
 the chairman of the Trade Board and shall not be less than $1.00 or 
 more than $5.00 for each offense. 
 
 5. If any foreman, superintendent or agent of the company 
 shall wilfully violate the spirit of this agreement and especially if 
 he fails to observe and carry out any decision of the Trade Board 
 or Board of Arbitration, he shall, if charge is proven, be subject to 
 a fine of not less than $10.00 or more than $100 for each offense, at 
 the discretion of the chairman of the Trade Board. 
 
 SECTION VIII 
 
 Cutting and Trimming Departments 
 
 The cutting and trimming departments shall be subject to the 
 general provisions of this agreement, and to the bases and provisions 
 of the old agreement, except as they may be modified by, or found to 
 be in conflict with, the special provisions agreed on for these depart- 
 ments. It is understood that these special provisions are intended to 
 change certain features of the old agreement, and if they are found 
 to be in conflict, the new provisions are to be considered as the guide 
 of practice, and as representing the latest and, therefore, the most 
 authoritative expression of the wills of the parties hereto. The new 
 special provisions are as follows: 
 
 1. The principle of preference as applied in the cutting and trim- 
 ming rooms shall be as before, except that the clause relating to cutters 
 who are exempted from union obligations is expressly defined as being 
 strictly limited to the individuals now on the exemption list. Should 
 the number on that list be for any reason reduced, it is understood 
 that no other cutters and trimmers can be added. 
 
 2. The company shall not reduce the wages of any cutter. The 
 company shall report to the commission all failures of cutters to pro- 
 duce their quota of work when in its judgment the delinquency is not 
 caused by the conditions of the work. The commission shall investigate 
 the matter and advise with the cutter concerning it. At the end of a 
 period sufliciently long to determine the merits of the case, the cutters' 
 
LABOR AGREEMENT 19 
 
 commission shall, if it deem necessary, find measures to discipline cut- 
 ters to conform to their production. In judging the merits in such 
 instances, the commission shall use the principle of comparative 
 efficiency. 
 
 3. All cutters whose present wages are less than $26.00 per week 
 shall receive an increase of $1.00 per week. This increase shall not 
 be taken into account by the commission in calculating the quota of 
 work required by such cutter. 
 
 4. The company shall prefer men now in the trimming room 
 when increasing the number of apprentice cutters. 
 
 5. The salaries of experienced cutters who are employed tempo- 
 rarily shall for the first two weeks be at a rate not less than the salaries 
 they received in their last position. After two weeks, the temporary 
 cutters shall be paid on the same basis as the regular men, their salary 
 to be fixed by the cutters' commission on the basis of their produc- 
 tion, and their comparative efficiency. 
 
 6. The company shall continue the practice of paying cutters 
 for Christmas, New Years, Decoration Day, Fourth of July, Labor 
 Day and Thanksgiving Day. 
 
 Paper Cutting Department 
 
 All men who cut paper patterns shall be members of the union ; 
 except that, by special agreement, one man, Mr. Lindsay, may be 
 exempted from such requirement, and shall be added to the exist- 
 ing exempted group. 
 
 The three apprentices now in the paper cutting department shall 
 have the status, privileges and protection of the regular cutting room 
 apprentices, including the right to learn all branches of the trade, and 
 be subject to the same requirements and provisions. The ratio of 
 apprentices to cutters in the paper cutting department shall not exceed 
 that which obtains now, namely, three apprentices to seven permanent 
 cutters. 
 
 The company may employ such other boy help in this department 
 as is needed, and such boys, may at its option, be promoted to posi- 
 tions as apprentices when vacancies arise, but not in excess of the 
 total number of apprentices provided for in the agreement. 
 
 Permanent graders employed in the grading department may 
 work at paper cutting temporarily when there is not sufficient work in 
 their own department. Boys, who are not apprentices, shall not take 
 
20 THE HART SCHAFFNER & MARX 
 
 the places of blockers in any permanent manner, but they may for 
 short times, to fill odd unemployed hours, be permitted to try to do 
 blocking in the slack seasons. 
 
 Damage Department 
 
 All employes in the damage department who recut parts of 
 garments shall be members of the union or exempted men. The 
 manager of the department and helpers who do not cut parts shall not 
 be members of the union. 
 
 Trimming Department 
 
 1. All men now on the trimmers pay roll who are receiving 
 not to exceed $15.00 are to be increased $2.00 per week. All men 
 receiving a weekly wage of over $15.00 and not exceeding $20.00 
 shall receive an increase of $1.00 per week. Except that apprentice 
 trimmers having been employed less than 6 months are to receive an 
 increase of $1.00 per week. 
 
 2. The following periodical increases shall be granted during 
 the term of this agreement: Men receiving under $12.00 shall 
 receive an increase of $1.00 per week every three months until their 
 wages shall be $12.00 per week. Men receiving over $12.00 and 
 less than $18.00 shall receive an increase of $1.00 every six months 
 until their wages shall be $18.00 per week. Men receiving over 
 $18.00 per week and less than $20.00 shall receive an increase of 
 $1.00 per week every year until their wages shall be $20.00 per week. 
 
 3. All men starting to v5^ork on the band-saw machines shall re- 
 ceive not less than $18.00 per week and shall receive an increase of 
 $1.00 per week every six months until their wages are $20.00. There- 
 after, they shall receive an increase of $1.00 per week every year 
 until they reach the rate of $24.00. No man shall be assigned to the 
 band-saw machine permanently until they have been employed in 
 the trimming room two years. 
 
 4. So far as practicable, the apprentices in the trimming room 
 shall begin on their work on the lower grades of the trade and 
 shall be advanced gradually to the more difficult ones. 
 
 5. Apprentices shall not be permanently transferred to work re- 
 quiring the use of any electric machines until they have been employed 
 for one year or more. 
 
LABOR AGREEMENT 21 
 
 6. The wages of experienced men employed shall be determined 
 in the same manner as in the cutting room. 
 
 7. The jack boys and canvas pickers are to be under the juris- 
 diction of the union, with this express provision : That these two 
 sections are not to be under the agreed scale for trimmers, but are 
 to be subject to a special scale of wages, which scale is to be subject 
 to the decision of the board of arbitration. 
 
 Signatures to this Agreement 
 
 FOR THE BOARD OF ARBITRATION 
 
 J. E. Williams, Chairman 
 W. O. Thompson, for the A. C. W. A. Carl Meyer, for H. S. & M. 
 
 FOR THE TRADE BOARD 
 
 James Mullenbach, Chairman 
 
 FOR HART SCHAFFNER & MARX 
 
 Harry Hart, President Joseph SchafFner, Secretary 
 
 Max Hart, Vice-President Mark W. Cresap, Vice-President 
 
 Earl Dean Howard Milton A. Strauss Gilbert L. Campbell 
 
 A. M. Levy Samuel Browne 
 
 FOR THE AMALGAMATED CLOTHING WORKERS OF AMERICA 
 
 Sidney Hillman, President A. D. Marimpietri, President Joint Board 
 Samuel Levin, Deputy Local 39 
 Harry Wolchnovesky, Vice-President Local 61 
 Morris Spitzer, President Local 144 
 Nathan Garbut, Recordings; Secretatj Local 152 
 John Katilius, Deputy Local 26^ 
 Edward Anderson, Deputy Local 61 
 Joseph Glickman, Deputy Local 152 
 Vincent Pachkauskas, President Local 269 
 Frank Rosenbloom Louis Taback 
 
 Sam Rissman Hyman Isovitz 
 
 Robert Cunat Frank Petrick 
 
 Sam Diamond Joe Kaminsky 
 
22 THE HART SCHAFFNER & MARX 
 
 The Experience of Hart SchafFner & 
 Marx with Collective Bargaining 
 
 (Prepared for the Federal Industrial Relations Commission 
 
 as a part of testimony for the hearing at 
 
 Washington, April, 1914.) 
 
 During the past four years, this Company has concerned itself 
 very deeply in developing its relations with its employees. Labor 
 disturbances brought keenly to our attention the necessity of having 
 the good will of the workers in order that we might maintain and 
 preserve the good will of our customers and insure the stability of 
 our business. 
 
 We are glad to give an outline of our experience, believing it 
 has yielded results in the form of certain principles of policy and 
 action, which may be helpful in the promotion of industrial peace. 
 
 In making this statement we are particularly concerned that 
 the formal and external features of our plan shall not be confused 
 with the real and vital substance of the arrangements, to the neglect 
 of the spirit and of the principles which are in reality responsible 
 for whatever progress we have made. 
 
 After an opportunity of several years to study causes and efifects, 
 we are convinced that the prime source of difficulty was a lack of 
 contact and understanding between our people and ourselves. The 
 failure to adjust petty grievances and abuses became the cause of 
 irritation entirely disproportionate to their importance when taken 
 singly, but which in accumulation became the main ground for 
 complaint. 
 
 There was no special complaint against the hours of work, 
 which were fifty-four per week, and which have since been reduced 
 to fifty-two. The physical working conditions were good and in 
 fact very far advanced compared with the general conditions in the 
 industry. There was a general demand for higher wages, but we 
 
LABOR AGREEMENT 23 
 
 have always looked upon this as an accompanying demand rather 
 than a first cause of difficulty. 
 
 A settlement was reached by an agreement to arbitrate, one 
 arbitrator to be named by each side and the two to choose a third. 
 It was not possible to agree upon the third member and the efiforts 
 to arbitrate were started with only the two partisan men on the 
 board. This proved to be a good thing. For the time being it forced 
 us to settle matters by agreement and compromise rather than by 
 arbitrary decision, and this method has become a distinctive feature 
 of the whole system. A third arbitrator was eventually chosen, and 
 he is a man peculiarly capable of aiding in creating sympathetic 
 understanding on the part of all. 
 
 Favorable results did not appear at once, but were the natural 
 and legitimate effects of various devices introduced to meet diffi- 
 cult situations as they arose, and of certain principles of fair dealing, 
 into harmony with which we have attempted to bring our business 
 policies. 
 
 In addition, the Company created a labor department. A 
 university professor, trained in economics, was engaged to study the 
 situation and draft a plan for promoting better relations with our 
 employees. At the beginning the task appeared stupendous, as 
 grievances were highly magnified and exaggerated by frequent re- 
 iteration of the more radical leaders for the purpose of keeping the 
 war spirit at a high temperature. 
 
 This new department, headed by Professor Earl Dean Howard 
 of Northwestern University, gradually assumed certain functions in 
 which the workers had a direct interest and administered them 
 with the main purpose always in view. The chief duties of the 
 labor department now are: the maintenance of a system for the 
 prompt discovery and investigation of any abuses or complaints 
 existing anywhere among the employees; the recommendation of 
 measures designed to eliminate the source of the complaint ; protecting 
 the Company's interests in the Board of Arbitration and the Trade 
 Board (a court of first instance established to adjust complaints 
 and interpret the agreements) ; negotiating with the business agents 
 of the unions and satisfying their demands as far as possible; ad- 
 ministering all discipline for all the factories (all executives have 
 been relieved of this function) ; general oversight of all hiring; the 
 
24 THE HART SCHAFFNER & MARX 
 
 maintenance of hospital and rest rooms; the administration of a 
 charity fund for unfortunate employees, of a loan fund, and of the 
 Workman's Compensation Act; responsibility for the observance of 
 the state and municipal laws regarding child labor, health and safety, 
 also for the strict observance of all agreements with the unions or 
 decisions of the two Boards; education of the foremen and people in 
 courtesy, patience, mutual helpfulness and other peace-producing 
 qualities; suggesting devices for the amelioration of hardships inci- 
 dental to the industry and for the higher efficiency of operating. 
 
 Industrial peace will never come so long as either employer 
 or employee believe that they are deprived of rights honestly belong- 
 ing to them. Our experience has taught that the business man in 
 authority is a trustee of various interests, including his own, and if 
 he administers his business so as to conserve and harmonize these 
 interests to the best of his ability, he is most likely building an endur- 
 ing success. 
 
 A labor department, critical of everything touching the inter- 
 ests of the workers, a Trade Board and a Board of Arbitration con- 
 stantly reviewing and discussing policies and methods, protect us 
 against ourselves and make it impossible to violate or overlook the 
 rights of the employees. These agencies undoubtedly create limita- 
 tions which at times seem vexatious, but we have found that, in the 
 long run, legitimate progress has been helped rather than hindered 
 thereby. Innumerable cases have arisen where we have been obliged 
 to change plans and policies much against our will yet where the 
 final results were better because of the change. 
 
 Arbitration and conciliation should be applied to all depart- 
 ments of a business wherever there is a conflict of interest. If noth- 
 ing more, it insures exhaustive discussion of every matter of 
 importance, gives everybody an opportunity to express his opinions, 
 frequently brings to light valuable suggestions, and makes possible 
 a higher degree of co-operation and team-work. It is a method to 
 be employed continuously to secure harmony and satisfaction. Pa- 
 tience and self control are essential in administering a business on 
 this basis. It is human nature to resent interference and to desire 
 unrestricted liberty of action, but these conditions are not necessary 
 and are often inimical to true success. Few men can use unlimited 
 power wisely and no wise men will dispense with checks which tend 
 
LABOR AGREEMENT 25 
 
 to keep him in the right path ; certainly, he will approve of checks 
 calculated to restrain his agents from arbitrary and unjust acts 
 toward fellow-employees. 
 
 The application of these ideas to the labor problem, especially 
 as a help to the employer in deciding what attitude to take toward 
 trade unionism, has produced favorable results with us. If the 
 employer voluntarily limits his own authority and agrees to conduct 
 his business according to the rule of reason and even-handed justice 
 as interpreted by an outside authority, such as an arbitration board, 
 he must insist that the organized employees submit to the same 
 limitation, otherwise his sacrifice will be futile and his submission to 
 injustice cowardly. 
 
 Unions should be recognized and favored in the same propor- 
 tion as they manifest a genuine desire to govern themselves efficiently. 
 All agreements should be so drawn as to release the employer from his 
 obligations whenever the unions fail to observe theirs. Arbitration 
 boards, officials in charge of labor matters, and union leaders should 
 direct their operations and make their decisions with the one purpose 
 always in mind, namely, to make it profitable and easy for all parties 
 to acquiesce in the rule of reason and justice, and dangerous and 
 difficult for them to attempt to get unjust advantage. We did not 
 realize and we believe the majority of employers do not yet realize 
 the extent to which the attitude and conduct of their organized em- 
 ployees reflect their own policies and conduct. Strict adherence to 
 justice, especially if interpreted to the people by a board in whom 
 they have confidence, will gradually educate them and their leaders 
 to see the advantage of this method. It is fortunate for the em- 
 ployer if his own employees have an autonomous organization, in- 
 fluenced as little as possible by outsiders. 
 
 In our own business, employing thousands of persons, some of 
 them newly-arrived immigrants, some of them in opposition to the 
 wage system, hostile to employers as a class, we have observed aston- 
 ishing changes in their attitude during three years under the influence 
 of our labor arrangements. They seem to understand that they can 
 rely upon promises made to them by the Company; that all disputes 
 will be finally adjusted according to just principles interpreted by 
 wise arbitrators. 
 
 Disciplinary methods are a prolific source of dispute with em- 
 
26 THE HART SCHAFFNER & MARX 
 
 ployees and it is difficult to avoid offending their sense of justice, 
 especially if they are not fully informed of all the facts in the case 
 and hear only one side. Moreover, petty officials are not likely to 
 show good judgment in administering disciplinary povs^er or to have 
 correct theories about it ; very frequently they are tempted to satisfy 
 private dislikes under pretense of disciplining. We regard it as an 
 essential element in maintaining industrial peace to centralize the 
 administration of discipline in one official having no interest except 
 to maintain the efficiency of the shops without disturbing the harmony 
 and good will of the people. 
 
 Our theory of discipline is that it should be as mild as possible 
 consistent with effectiveness in securing the desired results. Com- 
 plaint memoranda are given as warnings by the foreman ; if these 
 are disregarded, suspension slips are next given which remove the 
 offenders from the pay-roll until reinstated by the discipline officer. 
 An investigation is made, and, as a rule, the suspended person is 
 restored to his position on probation. This method is continued until 
 it becomes apparent that the employee is either hopelessly incom- 
 petent or insubordinate, whereupon a temporary lay-off or discharge 
 may follow. Our Trade Board, composed of workmen and fore- 
 men, presided over by a neutral, outside chairman, will give a hear- 
 ing to the case if requested, and may order a reinstatement or modi- 
 fication of the penalty. Appeal from this tribunal may be taken to 
 the Board of Arbitration for final adjudication. In spite of its 
 apparent complexity, the administration of discipline has become very 
 satisfactory to both sides and very few cases even come before the 
 Trade Board, and for many months none have been appealed. 
 
 Much depends upon the leaders of the workers. We have had 
 some experience with misinformed, and self-seeking men who secured 
 temporary influence over the people, but somehow they failed to 
 thrive in the atmosphere of our arrangement. Some of these same 
 men have been delivered of their worse qualities as they have learned 
 the advantage of better methods of dealing. The system seems to 
 work out a selection of the fittest candidates and trains them to be- 
 come efficient leaders and executives, skilled in negotiation, in plead- 
 ing and cross-examination before the judicial boards, in organizing, 
 disciplining and leading the people. One of the leaders in particular 
 developed a wonderful influence over all who came in contact with 
 
LABOR AGREEMENT 27 
 
 him on account of his high ideals, his patience under trying circum- 
 stances, and his indomitable faith in the ultimate success of right 
 method. 
 
 At the beginning of our experiment we believed that the labor 
 union was a competitor for the good will of the people and that both 
 could not have this good will at the same time; we feared that the 
 union would get the credit for anything granted to the people, thus 
 nullifying the good efifect to the Company of any concessions or bene- 
 fits given to them. Concessions wrung from the reluctant employer 
 by the union through a Board of Arbitration, especially if the with- 
 holding of the concession seems contrary to the sense of justice of the 
 workers, of course gain no good will for the Company. 
 
 Without some kind of organization among the people, there 
 are no responsible and authorized representatives with whom to deal 
 and the real interests of the people as they see them themselves are 
 likely to be overlooked or disregarded. The chosen representatives 
 are made to feel the dignity and honor of their positions so long as 
 they deal fairly and reasonably; those who adopt a different policy 
 invariably fail and retire with considerable loss of respect and 
 prestige. Those whose motives are good and who can reason intel- 
 ligently grow in the esteem of their fellows through their success in 
 negotiation and arbitration. They appreciate the consideration shown 
 them by the Company and the arbitrators and reciprocate by pro- 
 claiming the fairness of the Company. 
 
 One of the most important functions of our labor department is 
 welfare work — giving advice and material assistance to unfortunate 
 employees, improving the working conditions in the shops, maintain- 
 ing rest rooms and libraries, etc. — but this is not done for the purpose 
 of more easily depriving the workers of their right to be represented 
 in all matters to which their interests are involved. Working men 
 are quick to resent the substitution of favors for justice. Welfare 
 work, however, in connection with general fair dealing is very ef- 
 fective in securing good will, especially if it increases the personal 
 contact between the officials of the Company and the employees. 
 
 Not the least of the advantages we have derived from our sys- 
 tem is the reaction of the ideas and ideals, first applied in the labor 
 department, upon the other departments and particularly upon the 
 executive staff of the manufacturing department. Inefficient methods 
 
28 THE HART SCHAFFNER & MARX 
 
 of foremen, lack of watchful supervision, and inaccurate information 
 as to prevailing conditions on the part of higher executives; these 
 could not long survive when every complaint brought by a workman 
 was thoroughly investigated and the root-cause of the trouble brought 
 to light. 
 
 The unexpected and indirect results of our labor policy in 
 increasing the efficiency, reforming the conduct, and raising the intel- 
 ligence of the executives coming into contact with the system have 
 been as profitable and satisfactory as the direct result, i. e., the crea- 
 tion of harmony and good will on the part of the people toward the 
 Company. 
 
 A summary of the essentials of the system which has produced 
 such gratifying results in our institution would include: a labor 
 department, responsible for industrial peace and good will of the 
 employees, thereby of necessity fully informed as to their sentiments, 
 their organizations, and really representing their interests in the 
 councils of the Company ; a means for the prompt and final settle- 
 ment of all disputes; a conviction in the minds of the employees that 
 the employer is fair and that all their interests are safeguarded ; con- 
 stant instruction of the leaders and people in the principles of busi- 
 ness equity, thus gradually evolving a code accepted by all parties in 
 interest, serviceable as a basis for adjustment of all difficulties; the 
 development of efficient representation of the employees — honest, 
 painstaking, dignified, reasonable, eager to co-operate in maintaining 
 peace, influential with their people and truly representative of their 
 real interests; a friendly policy toward the union so long as it is 
 conducted in harmony with the ethical principles employed in the 
 business and an uncompromising opposition to all attempts to coerce 
 or impose upon the rights of any group or to gain an unfair advantage ; 
 and a management that guarantees every man full compensation for 
 his efficiency and prevents anyone receiving anything he has not 
 earned. 
 
 Briefly expressed, it is simply the natural and healthy relation 
 which usually exists between the small employer and his half dozen 
 workmen, artificially restored, as far as possible in a large-scale 
 business where the real employer is a considerable group of executives 
 managing thousands of workers according to certain established prin- 
 ciples and policies. 
 
 HART SCHAFFNER & MARX. 
 
LABOR AGREEMENT 29 
 
 The Development of Government 
 in Industry 
 
 By Earl Dean Howard' 
 (Reprinted from the Illinois Law Review for March, 1916) 
 
 During the past five years, in several branches of the garment- 
 making industries of New York and Chicago, certain principles for 
 the adjustment of conflicting interests with employees by legal 
 methods have been experimented with. This experience has sug- 
 gested certain ideas and possibilities interesting to those who appre- 
 ciate the growing danger of leaving the settlement of employer- 
 employee controversies to the arbitrament of industrial warfare and 
 who understand how, in other human relations, the crude method 
 of force has been superseded by the legal method. 
 
 The protocoP in the cloak and suit trade, together with half a 
 dozen similar protocols in other branches of garment-making in 
 New York, the Rockefeller system of industrial representation in 
 the Colorado mines, and the labor agreement of Hart, SchafEner & 
 Marx^ in Chicago, grew out of long and bitter strikes, severe enough 
 on both sides to convince the parties thereto that the old system 
 was intolerable. Complete domination by either side was impossible 
 and intermittent struggles over the division of power were costly 
 and unsatisfactory. The protocols and agreements provided a system 
 of government to protect each side against the other. 
 
 Any system of government for the adjustment of human rela- 
 
 1. Director of Labor for Hart Schafifner & Marx; Professor of 
 Economics in the College of Liberal Arts and Professor of Banking 
 and Finance in the School of Commerce, Northwestern University. 
 
 2. See Bulletin of U. S. Bureau of Labor Statistics No. 144, 
 March, 1914, entitled, "Industrial Court of the Cloak, Suit and Skirt 
 Industry of New York City," by Charles H. Winslow. 
 
 3. See Monthly Bulletin of the Pennsylvania Department of 
 Labor and Industry, August, 1915. "The Experience of Hart Schaffner 
 & Marx with Collective Bargaining." 
 
30 THE HART SCHAFFNER & MARX 
 
 tions and conflicting interests by law rather than by force requires 
 some devices to perform legislative, executive and judicial functions. 
 Rules must be laid down and interpreted, administrative duties 
 must be discharged, effective limitations and requirements must be 
 placed upon individuals to secure co-ordination, and all questions 
 in dispute must be authoritatively decided. 
 
 There is a strong tendency to enlarge the scope of political 
 government so as to include also industrial government. Whether 
 this shall grow into state socialism or whether private enterprises 
 will be able individually or collectively to establish a satisfactory 
 form of government, supplementary to political government, is one 
 of these large interesting questions which may be decided within a 
 generation or two. The solution may depend upon the ability of 
 the employees to develop a constructive power and effective gov- 
 ernment among themselves. 
 
 Employers and those responsible for the prosperity of large 
 enterprises are reluctant to lose any part of their control. When 
 they discover that the power has passed from them, or when their 
 government has failed to maintain place, they are then ready for 
 experiment. The protocols and other experiments have always 
 grown out of strikes, usually long and exhausting. 
 
 Structure of Government. — The first step is an agreement on 
 constitution providing usually for a board of arbitration. Executive 
 control is left in the hands of the employer but subject to the limi- 
 tations of the agreement and the decrees of the board. The repre- 
 sentatives of the employees, usually labor union officials, strive 
 through the board to extend these limitations to inhibit all acts of 
 the employer which the employees or their officials conceive to be 
 of any disadvantage to themselves. The system resembles a con- 
 stitutional monarchy. 
 
 The legislative function is usually inadequately provided for. 
 New conditions arise to which the rules of the agreement and pre- 
 vious decisions are not applicable. The employer claims the right 
 to legislate by administrative decree on the ground that he has all 
 the authority not specifically relinquished in the agreement. The 
 union officials urge the board to assume jurisdiction and by a decision 
 create a precedent which has the effect of law. In practice legislation 
 originates in several ways: (1) The constitution or basic agreement 
 
LABOR AGREEMENT 31 
 
 entered into by the parties at intervals for definite terms and with 
 which the decisions of the board of arbitration must harmonize; 
 (2) administrative orders promulgated by the employer and subject 
 to veto or alteration by the board of arbitration on the ground of 
 unconstitutionality; (3) judicial decisions having the force of prece- 
 dents by the board of arbitration in adjudicating complaints — "judge- 
 made" law. 
 
 The judicial function is performed by the board of arbitration 
 and inferior courts or committees, such as the Trade Board in the 
 Hart Schaffner & Marx system, and the Committee on Immediate 
 Action in the Suit and Cloak Protocol. Appeals may always be 
 taken for final decision to the board of arbitration. Decisions are 
 based upon the fundamental agreement, administrative orders which 
 have not been challenged, precedent decisions, customs and practices 
 in the industry. 
 
 The judicial boards and committees are composed of repre- 
 sentatives in equal strength of employers and employees, presided 
 over by a neutral arbitrator who casts the decisive vote. This 
 neutral arbitrator has the opportunity to develop an extra-legal 
 process of mediation by which the necessity of much litigation is 
 avoided. It is usually stipulated that agreements reached by media- 
 tion do not create precedents, but apply only to particular cases in 
 hand. The neutral arbitrator, if he have the ability and inclina- 
 tion, may in the course of his work by discussion and education 
 establish standards of justice and fair dealing in the employer- 
 employee relation acceptable to both sides. These may form a sort 
 of unwritten constitution of great practical influence upon the har- 
 monious operation of the enterprise. The possibility of disputes 
 and conflicts is greatly reduced when the parties, acting in good 
 faith, gradually approach agreement in their beliefs as to what is 
 right and wrong action. 
 
 Industrial concerns which have adopted some form of indus- 
 trial government such as here described find it advantageous to 
 establish a department to supervise their relations with their em- 
 ployees and to represent them in litigation and negotiation. Posi- 
 tions are thus created for men who have been trained in economics, 
 political science, law and business, and who have talent for negotiat- 
 ing, pleading, instructing and social service work. 
 
32 THE HART SCHAFFNER & MARX 
 
 In the five-year experience with the Hart Schaffner & Marx 
 arrangement, most of the fundamental issues which arise in the 
 employer-employee relation have been met and adjudicated. These 
 typical cases have revealed principles which may some day help to 
 form an established code of governing rules for industry and sup- 
 planting the present method of competitive bargaining and con- 
 flicts settled by economic strength. 
 
 Opportunity to Work. — The ordinary concept of the employer 
 is that labor is a commodity purchasable as other commodities. 
 He strives to get as much as he can as cheaply as possible. The job 
 or opportunity to work is his private property and the workman 
 has no claim upon it. The new principle gives the worker a right 
 to his job which can be defeated only by his own misconduct. The 
 job is the source of livelihood to the worker exactly as his capital is 
 the source of livelihood to the capitalist. In the slack season what- 
 ever work there is shall be divided equally among all as far as 
 practicable. 
 
 In cases of discharge, the burden of proof is upon the employer 
 to show that such discharge is necessary for the welfare of the 
 organization. He must also show that any alternative action in- 
 volving less hardship on the individual is inadequate. 
 
 So long as there is an adequate supply of labor available in the 
 skilled trades, the employer must not introduce an unreasonable 
 number of apprentices into the trade. 
 
 In the hiring of new help, preference must be given to members 
 of the union which is a party to the agreement, provided such 
 members are competent and of good records. To maintain its prestige 
 with the people, the union must be able to keep all its reputable 
 members at work. 
 
 Discipline. — Disciplinary penalties must never be allowed as 
 a means of discouraging the organization of employees into unions. 
 The employees must have leaders, and some of these, lacking experi- 
 ence and information, sometimes fail to distinguish between legitimate 
 complaining and insubordination.* Discrimination on account of 
 
 4. Under the protocol, piece-work prices are determined by bar- 
 gaining between the individual employee and a shop-committee. A 
 serious situation is created by the suspicion of the workers that the 
 power of discipline is used to gain advantage in bargaining. There 
 is no centralization and specialization of the discipline function there. 
 
LABOR AGREEMENT 33 
 
 union activity is difficult to prove or disprove and is a favorite device 
 for befogging a case. The difficulty is diminished by specializing 
 the disciplinary function in one man who is free from suspicion of 
 antagonisrti to the organization of employees. 
 
 Managers who are directly responsible for the efficiency of the 
 shop should not be burdened with the responsibilities of discipline. 
 This function is one of great delicacy. If badly or unskillfully 
 performed it is a fruitful source of antagonisms and personal feelings, 
 which is like sand in a complicated machine. If, however, it is 
 handled with judgment and resourcefulness by an official who is 
 detached from an immediate interest in the operations and who can 
 look forward to ultimate results, the function presents great oppor- 
 tunities for gaining the respect and good will of the employees. 
 Discipline cases afford the finest opportunities for educational work, 
 both .with worker and foreman. 
 
 So long as the offending employee is to be retained in the 
 factory, any disciplinary penalty must be corrective and no more 
 severe than is necessary to accomplish the best results for all con- 
 cerned. Most offenders are victims of wrong ideals or mental 
 deficiencies, the remedy for which is not punishment but help and 
 instruction. Delinquencies in management can frequently be dis- 
 covered and the manager or other executive may need the services 
 of the expert discipline officer quite as much as the original offender. 
 The efficiency of the discipline officer should be measured by the 
 proportion of ex-offenders who have ultimately become competent 
 and loyal friends of the company. It is his prime duty to prevent 
 and remove from the minds of the people all sense of injustice in 
 their relations with the employer, which is the fundamental cause 
 of the bitterest industrial conflicts. 
 
 Management. — ^The great defect in autocratic governments is 
 the lack of adequate and intelligent criticism. Autocratically- 
 governed business enterprises suffer from the absence of their whole- 
 some check. Organized employees represented by spokesmen who 
 are protected in that function, together with a labor department 
 responsible for the good will and welfare of the employees, consti- 
 tute a critical check on bad management and the source of valuable 
 suggestion for more efficient management. Piece-workers, especially, 
 are vitally affected in their earnings by the quality and efficiency 
 
34 THE HART SCHAFFNER & MARX 
 
 of the management. Subordinate executives in the factory may con- 
 ceal this inefficiency from their superior officers for a long time, but 
 a system of free complaints makes this impossible. 
 
 Standards. — Lack of standards is probably the chief cause of 
 disorder and conflicts, especially in the needle industries. This in- 
 cludes standards of workmanship, piece-work prices, conduct in the 
 shop, and all points which involve the interest of the employee. 
 
 The primary tribunals or Trade Board should settle finally all 
 disputes as to facts; appeals should be taken only when disputed 
 standards are involved. Each case before the Board of Arbitration 
 is an opportunity to establish one or more standards. Thus, unless 
 the industry is one of great changes, the board will find the need 
 for its services grow gradually less as both parties learn to be gov- 
 erned by standards. The immense value to an industry of estab- 
 lished standards should reconcile the parties to the time consumed 
 in deciding some comparatively unimportant case which happens 
 to afford opportunity for creating a standard. The board in such 
 cases should get expert and technical testimony from all sources 
 through witnesses and committees of investigation, so that the work 
 is done once for all. 
 
 Unionism. — This system of government assumes adequate rep- 
 resentation of the employee; such representation requires organiza- 
 tion and leadership. There are many advantages where the employer 
 is large enough to be independent of associations of employers, and 
 where the employees' organization is limited to employees of the one 
 company. At the outset, the workingmen are likely to belong to 
 national unions, and the company to be a member of a trade associa- 
 tion, especially if the experiment begins at the close of an industrial 
 conflict or general strike. 
 
 Many of the traditional principles and practices of unionism 
 are developed out of a state of militancy and are not adapted to a 
 state of peaceful government, hence they are obstructive. Unless 
 the employees as well as the employer agree that the rules and 
 decrees of the Board of Arbitration shall prevail over any rules or 
 orders of either a national union or a trade association; that the 
 government which they are establishing shall receive their undi- 
 vided, unhyphenated allegian-ce; the scheme will be unsound. 
 
 These difficulties do not exist when the Board of Arbitration 
 
LABOR AGREEMENT 35 
 
 has jurisdiction coextensive with the association and union and where 
 the entire membership of both groups submit themselves to its 
 government. The combination of local unions into great national 
 and international federations was a war measure and loses its 
 raison d'etre when a system of representative government is estab- 
 lished. 
 
 When the organization of employees uses its strength to pro- 
 mote the reign of law and order, the employer has an interest in 
 helping to develop its strength. So long as he has faith in this sys- 
 tem, he cannot then be hostile to the organization. 
 
 The "closed shop" issue which is responsible for so much indus- 
 trial warfare has been eliminated in some of the needle industries 
 by the device of the "preferential shop." The issue has its cause 
 in the difficulty of the unions in maintaining their membership and 
 collecting money from members. The unions use their power over 
 the employer to force him to maintain the strength of their organiza- 
 tion by penalizing persons who are disinclined to submit to the rule 
 of the union officials. The conscientious employer has moral scruples 
 against forcing his employees to be members of a union against their 
 will and to submit to the authority of union officials. 
 
 The preferential shop idea is a compromise by which the 
 greatest dangers and injustices of compulsory union membership 
 are avoided and yet by which there is a distinct advantage to mem- 
 bers of the union. Union members have preference when new people 
 are needed and, when the force must be reduced, they are retained 
 in preference to others. 
 
 Under this system the danger of the abuse of arbitrary powers 
 by union officials as well as by employers is much reduced. Both 
 must submit in equal degree to the board of arbitration, and all 
 their actions may be reviewed by that body. The principles of 
 right action as laid down by the board govern them equally. 
 
 Wages. — We are so habituated to the idea of labor as a pur- 
 chased commodity or service, that it seems to us quite natural for 
 the price of it to be determined by the law of supply and demand 
 through the bargaining process. When employees are unorganized, 
 they are unable to bargain with a large employer on anything like 
 equal terms; when they are organized, the bargaining may take the 
 form of industrial warfare. Bargaining cannot be equitable and 
 
36 THE HART SCHAFFNER & MARX 
 
 fair unless either party has the right to withhold what he is offering 
 to the other. This principle is so true that the courts and legisla- 
 tures have been forced to legalize strikes and picketing, notwith- 
 standing the tendency of these measures to subvert law and order 
 and to jeopardize the right of person and property. 
 
 The dilemma is most acute in public utilities where the public 
 interest is peculiarly affected; therefore, every possible means is 
 being tried to introduce government in the form of voluntary arbi- 
 tration. Upon the success of this method may depend the future 
 necessity of using the authority of the state to establish and enforce 
 standards by compulsion in at least some instances. 
 
 Whether voluntary government can succeed or not will turn 
 largely upon the possibility of discovering principles of manifest 
 justice from which practicable standards may be deduced. The 
 great need is therefore a principle applicable to wage controversies. 
 Much depends upon a satisfactory answer to the sphinx-riddle, what 
 is a just wage? 
 
 In the system here described, the rate of wages and piece-work 
 prices existing at the beginning of the agreement was accepted as 
 the basis. Certain horizontal advances were granted to prevail 
 during the term of the agreement. At the end of that period, the 
 whole question is reopened. If both parties agree to arbitrate this 
 major question as they do all others, the burden is thrown upon 
 the Board of Arbitration of finding some governing principle from 
 which a rational decision may be derived. 
 
 The student of political science will find in the development 
 of voluntary industrial government an interesting contribution to 
 his science. Just as the common law of England evolved from self- 
 imposed customs and regulations in the interest of harmonious dealing 
 and relations, so here we may observe an organic growth of industrial 
 government, establishing itself alongside the federal and state juris- 
 dictions. Perhaps this will be the means of escape from the dilemma 
 of domination by a ruling over a subject class on the one hand, and, 
 on the other, a chronic state of civil warfare with the classes perpetu- 
 ally struggling for advantage, with small consideration for the public 
 welfare. 
 
LABOR AGREEMENT 37 
 
 A New Field for Systematic 
 Justice 
 
 (Editorial Note By Dean John Wigmore of Northwestern 
 
 University Law School in Illinois Law Reveiw 
 
 for March, 1916. ) 
 
 Few laymen, and fewer lawyers, stop to reflect that the system 
 of legal justice keeps changing slowly, from epoch to epoch, in its 
 contents — the subjects of its rules and dispensations. Mr. Higgins' 
 recent article in the Harvard Law Review (November, 1915), 
 entitled, "A New Field for Law and Order," called attention to 
 Australia's Court of Conciliation and Arbitration and its body of 
 decisions. But already, spontaneously, in our own country, work 
 in the same field has begun. ^ Mr. Howard's article in the present 
 number of the Illinois Law Review is the first to set forth for 
 lawyers the good beginning already made. Lawyers should awaken 
 to this coming enlargement of the field of systematic justice. 
 
 Look back over six centuries. In the late Norman times there 
 is great bulk of learning on the courts' dealings with essoins, mort 
 d'ancestor and other obsolete matters. Later, wardships, homage 
 and primer seisin fill the year books. Then for a while the law of 
 treason absorbs a large place. Meantime, notes and bills of ex- 
 change make their appearance; tithe-law and copyholds begin to 
 disappear. Estates in futurity begin to bulk large, and insurance, 
 stock companies, copyrights and trademarks appear upon the stage. 
 Compare any digest of the 1850s with Brooke's Abridgment of the 
 1500s; and one can hardly recognize the two as dealing with the 
 same country's law. Yet the machinery of justice has been contin- 
 uous; it is the grist that has gradually changed. 
 
 Can we imagine that the process of change has ceased in the 
 
 1. See also Julius Cohen, "Law and Order in Industry" (1915); Chas. H. 
 Winslow, "Industrial Court of the Cloak, Suit and Skirt Industry of New York 
 City" (Bull. No. 144, U. S. Labor Department, March 18, 1914). 
 
38 THE HART SCHAFFNER & MARX 
 
 1800s? Has not the same slowly shifting panorama been going past 
 before our eyes, if we would only look? Should we not naturally 
 expect to find new fields gradually entering the area of justiciable 
 disputes — especially in an era of rapidly changing social and indus- 
 trial conditions? 
 
 What are some of the obviously new classes of' material ? 
 
 In the region of family life, the wife's interests to protection 
 have been furnishing much grist; and the child's interests, in juvenile 
 court law. In personal rights, the injuries done by machinery have 
 come to absorb nearly a third of the time of the courts. In property 
 law, the stockholders of a corporation now furnish the material which 
 was formerly afforded by the tenant in capite and the copyholder; 
 the chattel mortgage takes the place of the old actions of debt. 
 
 And so, along the margin of the judicial stage, in the wings, 
 we may expect to see still other material in formation, ready to be 
 openly justiciable by the courts. 
 
 The most obvious of these is the subject of railroad service to 
 the public. Nearly thirty years ago I made for the Massachusetts 
 Railroad Commission a Digest of seventy-five pages, covering their 
 rulings of the prior twenty years; the second edition by the present 
 chairman of the board, has just appeared. Any one who consults it 
 will see that its material is judicially treated, after the style of 
 legal justice. That is, general principles are laid down, for deciding 
 particular cases. E. g., the inhabitants of Smithville apply for a 
 second morning train to Boston ; the railroad argues that even the 
 one train does not pay for itself in fares; the Board grants the appli- 
 cation, on the ground that the town does need the train, and that 
 the cost of running each particular train is not decisive to negative 
 the duty to furnish adequate facilities. Here is the germ of a gen- 
 eral principle ; which in another case will be qualified or extended, 
 until at last we have a complete legal principle for the decision of 
 a general class of cases. All this has since become familiar to us in 
 the rulings of the Interstate Commerce Commission. Whether that 
 organ be called a court or not is immaterial ; the fact is that it de- 
 cides particular controversies by more or less general principles. 
 Thus a new mass of material has been brought into the field of 
 systematic justice. 
 
 The next mass of material due to arrive is that of industrial 
 
LABOR AGREEMENT 39 
 
 controversies. Twenty years ago it seemed impossible that such 
 things should be justiciable. Why? Because there were no general 
 principles to lay hold of. The judge of the last hundred years feels 
 at home in a copyright case, because he can invoke a number of 
 principles with their sundry exceptions. But before Miller v. Taylor 
 and Donaldson v. Becket, he would have felt lost. "Let these 
 authors and publishers wrangle it out between themselves; the courts 
 cannot help them ; that is a question of the ethics or economics of 
 their trade, about which we know nothing," such would have been 
 the judge's thought. Where everything is arbitrary, how can the 
 judges attempt to settle the dispute? 
 
 Such has been the helpless attitude of the courts towards in- 
 dustrial disputes. "Freedom of contract" relegated them all to the 
 limbo of non-justiciable controversies. 
 
 But in Australia the experience in private arbitration had gone 
 so far that finally the subject was handed over formally to a special 
 court, where it now is. In our own country, the material is begin- 
 ning to be worked over by a few private boards. This is what Mr. 
 Howard's article recounts. 
 
 The significant thing is that general principles are beginning to 
 be formulated. And the moment you have general principles, used 
 for deciding particular cases, you have justice in the form of law, 
 as distinguished from the arbitrary justice of a Turkish Caliph, or 
 from private struggle decided by private force. 
 
 Gradually, as this system described by Mr. Howard is extended 
 in other enlightened industrial institutions, and the body of ex- 
 perience with it is enlarged, the general principles with their numer- 
 ous qualifications will become clearer and more accepted. The 
 sanction of government, under one or another name for the court, 
 will be granted. The community will approve. Industrial contro- 
 versy will become as justiciable as property controversy. 
 
 And a new field will have been gained for systematic justice. 
 
 J. H. Wigmore 
 
40 THE HART SCHAFFNER & MARX 
 
 Making Piece-Work Rates under 
 Hart SchafFner & Marx Agreement 
 
 By James Mullenbach, 
 Chairman Trade Board 
 
 Responsibility for making piece rates is lodged primarily in the 
 Trade Board. For expediency the responsibility, however, has been 
 turned over by the Trade Board to a Committee, knovi^n as the Rate 
 Committee, and composed of three members, one representing the 
 company, one representing the people, and the chairman of the Trade 
 Board. As a matter of practice, the w^ork of rate making is carried 
 on almost exclusively by the two members representing the company 
 and the people. While some cases are brought before the full com- 
 mittee, these cases are exceptional when compared to the number 
 settled by the two members. 
 
 The agreement provides that in fixing rates the Board is re- 
 stricted to the following rules: Changed prices' must correspond to 
 the changed work and new prices must be based on old prices when 
 possible. 
 
 Whenever a question of piece rate arises, it is taken up in the first 
 instance by the two members of the committee and an attempt is made 
 to reach an agreement. If an agreement is reached, a specification of 
 the work to be performed and the rate to be paid is prepared and 
 signed by both representatives without any further action. If, how- 
 ever, the two parties are unable to reach an agreement, the case is 
 taken up with the full committee and an agreement reached, or a deci- 
 sion made fixing the rate and specification. If this decision is unsatis- 
 factory to either party, the decision may be appealed to the Board of 
 Arbitration. 
 
 New rates are always provisional and temporary, and are sub- 
 ject to review after sufficient period of trial to determine their merit. 
 
 1. In earlier drafts of the agreement the word "price" was used 
 in this connection. 
 
LABOR AGREEMENT 41 
 
 The Committee seeks to make the temporary rate as nearly equitable 
 as possible, both for its effect on the people and to save a repetition of 
 the negotiation. 
 
 After the specification and rate have been authorized by the 
 Rate Committee, there can be no alteration of the terms either by the 
 company or the people without permission from the Rate Committee. 
 

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